The Competiton Between Coca Cola And Pepsi

1710 words - 7 pages

Subject: Economics

The competition between “Coca-Cola”and “Pepsi” in the market for soft drinks

Abstract
There are two types of people – the ones who like “Coca-Cola”, and the ones who prefer “Pepsi”. Or at least that is the fact that trying to convince us the marketing experts from both companies. The two famous brands compete with any means to persuade whose drink is better. The solution to this problem relies on both of the companies’ abilities to boost the domestic sales, to prove to new international markets, to broaden their brand for new streams of revenue and include non-carbonated beverages in their “big plan”.

Competition analysis
Nowadays competition is not only ...view middle of the document...

Each competitor has a certain philosophy on how to do business, certain internal culture of guiding beliefs. Company that understands how competitors react will be able to develop strategies to minimize their impact on their own performance.

The soft drink industry
The soft drink industry is one of the biggest profitable markets. And the major players in this market are Coca-Cola and Pepsi. Maximum percent of cola industry is captured and maintained by these two companies. For any new company it is very difficult to enter the cola market because of the bottling network, brand image, customer loyalty, etc. Both Pepsi and Coca-Cola have a strong franchise base in most of the regions. Coca-Cola and Pepsi continuously introduce new products within their brands, as well as new container types which increased their profits. The moment customers hear the word soft drink, customers relate it with either Pepsi or Coca-Cola. 

Coca-Cola
As a company “Coca-Cola” is famous for the production and supply for soft drinks worldwide. The company is recognized for each user as the number one brand in the market. In Bulgaria, as well as in other countries, the demand is greater than others companies because of the qualities of the product. His customers are people with no restrictions by age, gender, education, religion, etc. In Bulgaria the main consumption is mainly during the summer heat and late spring, when Coca-Cola is a basic refresher. Age, profession and education of consumers do not affect the consumption of the product. The one thing that has influence over the customer is their financial condition. What supports the huge demand for Coca-Cola is the ability to buy it from many places; both future and immediate consumption such as supermarkets, grocery stores, specialty shops for soft drinks, etc. The lifestyle of the user is a motivating factor that has an impact on the individual needs and solutions consumed by him. In the case of Coca-Cola are defining activities and interests, such as visits to catering, disco clubs, day and night clubs and bars where drinks are available. The other factor that has affected over the user is the physiological factors. They act on a subconscious level and the company uses them in their marketing activities. Impact on consumers it uses the brand name that is publicly accessible and easily understandable; Interesting design of bottle attracting the attention of consumers.
Coca-Cola nowadays is just a means to satisfy thirst. It is offered by manufacturers as the most appropriate means to satisfy this need because Coca-Cola gives enjoyment and confidence.

Pepsi
Pepsi Cola was first made in the 1893 by pharmacist Caleb Bradham in New Bern, North Carolina. Initially Pepsi was introduced as "Brads Drink" by Bradham in 1898 and was made at Braham's pharmacy where the drink was also sold. Today Pepsi Cola is manufactured by PepsiCo. PepsiCo is a world leader in convenient snacks, foods and beverages. Currently...

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