Marketing and Positioning Strategies of Coca Cola and Pepsi and Their Effectiveness on the Consumer Market

Marketing and Positioning Strategies of Coca Cola and Pepsi and Their Effectiveness on the Consumer Market

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Abstract

This paper explores current marketing and positioning efforts made by Coca Cola and Pepsi and measures each brand’s effectiveness on the consumer market. Both companies have successfully adapted to the idea that marketing efforts no longer should focus on informing consumers, but rather express symbolic associations. Physical features and product quality have become less important in the marketing strategies of the Coca Cola and Pepsi brand. Instead, the two brands are focusing on establishing emotional connections, interactivity and cognitive influences on consumers. This paper will examine what strategies have been used to achieve this and explain perception of the consumers.

Company Profiles

Coca-Cola is a manufacturer, distributor and marketer of the soft drinks industry (Data Monitor, 2012). The beverage company is a worldwide known brand that together with its 250 bottling partners and 23 million customer outlets prides itself on “refreshing” the world more than 1.8 billion times of day with its diverse portfolio of more than 500 brands, including 16 brands worth over 1 billion dollars (Coca-Cola, 2012). Coca-Cola's biggest market is Latin America, which accounts for 29% of sales. North America has 22% of sales, the Pacific region 18%, Eurasia and Africa 16% and Europe 15% (Benady & Kemp, 2013). Coca-Cola’s sales was over $48 billion in 2012 and profits reached $10.8 billion (Joseph, 2012). In 2011 Coca-Cola’s worldwide market share was 25.90% (Euromonitor, 2011).

PepsiCo is an iconic and globally recognized food and beverage company that has a portfolio of 22 strong brands that in 2012 alone each generated more than $1 billion in retail sales. This includes famous brands such as Pepsi Cola, Tropicana and Lays. PepsiCo brands are sold in over 200 countries around the world (PepsiCo, 2013). In 2011 PepsiCo had...