Pepsi Cola and Coca Cola has been in the cola wars for centuries now. It erupted 13 years after the birth of Coca Cola by pharmacist Caleb Bradham, when Pepsi Cola was created. This made the two cola producers a direct competitor with one anothe
VISION AND MISSION
Coca - Cola
Mission
Our Roadmap starts with our mission, which is
enduring. It declares our purpose as a company and serves as the standard
against which we weigh our actions and decisions.
- To refresh the world...
- To inspire moments of optimism and happiness...
- To create value and make a difference.
Our
Vision
Our vision serves as the framework for our
Roadmap and guides every aspect of our business by describing what we need to
accomplish in order to continue achieving sustainable, quality growth.
- People: Be a great place to work where people are inspired to be the best they can be.
- Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.
- Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.
- Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.
- Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.
- Productivity: Be a highly effective, lean and fast-moving organization.
Pepsi
Our Mission
As one of the largest food and beverage companies in
the world, our mission is to provide consumers around the world with delicious,
affordable, convenient and complementary foods and beverages from wholesome
breakfasts to healthy and fun daytime snacks and beverages to evening treats.
We are committed to investing in our people, our company and the communities
where we operate to help position the company for long-term, sustainable
growth.
Our Vision
At
PepsiCo, we're committed to achieving business and financial success while
leaving a positive imprint on society – delivering what we call Performance with Purpose.
In
practice, Performance with Purpose means providing a wide range of foods and
beverages from treats to healthy eats; finding innovative ways to minimize our
impact on the environment and reduce our operating costs; providing a safe and
inclusive workplace for our employees globally; and respecting, supporting and
investing in the local communities where we operate.
Wherever we do business, Performance with Purpose is
our guide. We believe that delivering for our consumers and customers,
protecting the environment, sourcing with integrity and investing in our
employees are not simply good things to do, but that these actions fuel our
returns and position PepsiCo for long-term, sustainable growth.
SWOT ANALYSIS
Coca Cola
Strengths
- The best global brand in the world in terms of value ($77,839 billion)
- World’s largest market share in beverage
- Strong marketing and advertising
- Most extensive beverage distribution channel
- Customer loyalty
- Bargaining power over suppliers
- Corporate social responsibility
Weakness
- Significant focus on carbonated drinks
- Undiversified product portfolio
- High debt level due to acquisitions
- Negative publicity
- Brand failures or many brands with insignificant amount of revenues
Opportunities
- Bottled water consumption growth
- Increasing demand for healthy food and beverage
- Growing beverages consumption in emerging markets (especially BRIC)
- Growth through acquisitions
Threats
- Changes in consumer preferences
- Water scarcity
- Strong dollar
- Legal requirements to disclose negative information on product labels
- Decreasing gross profit and net profit margins
- Competition from PepsiCo
- Saturated carbonated drinks market
Pepsi
Strengths
- Product diversity
- Extensive distribution channel
- Corporate Social Responsibility (CSR) projects
- Competency in mergers and acquisitions
- 22 brands earning more than $1 billion a year
- Successful marketing and advertising campaigns
- Complementary product sales
- Proactive and progressive
Weakness
- Over-dependence on Wal-Mart
- Low pricing
- Questionable practices (using tap water but labeling it as mountain spring water)
- Much weaker brand awareness and market share in the world beverage market compared to Coca-Cola
- Too low net profit margin
Opportunities
- Growing beverages and snacks consumption in emerging markets (especially BRIC)
- Increasing demand for healthy food and beverages
- Further expansion through acquisitions
- Bottled water consumption growth
- Savory snacks consumption growth
Threats
- Changes in consumer tastes
- Water scarcity
- Decreasing gross profit margin
- Legal requirements to disclose negative information on product labels
- Strong dollar
- Increased competition from Snyder’s
Corporate Strategy
Pepsi
PepsiCo mission statement has been worded by CEO Indra Nooyi as
‘Performance with Purpose’ and this principle is closely integrated with the
strategic direction chosen for the company.
First, international market expansion strategy through mergers and
acquisitions
Second, formation of strategic alliances in global scale
Third, focus on emerging
markets.
Fourth, focus on
organisational culture.
Coca Cola
- A unique and recognised brand - Coca-Cola is among the most recognised trade marks around the globe
- Quality - consistently offering consumers products of the highest quality
- Marketing - delivering creative and innovative marketing programmes worldwide
- Global availability - Coca-Cola products are bottled and distributed worldwide
- Ongoing innovation - continually providing consumers with new product offerings e.g. Diet Coke (1982), Coca-Cola Vanilla (2002)
Strategic Comparison
of Coca – Cola and Pepsi
The
product
The
expected product is defined as a set of attributes or characteristics that
buyers normally expect and agree to when they purchase a product. When
consumers get a hold of a Pepsi Cola product, they are expecting the sweet,
citrusy flavor burst (Lubin, 2012) and when other consumers grab a Coca Cola
product they await the raisiny vanilla taste of the soft drink (Gladwell,
2012). The Coca Cola products are constantly produced in a red background
with the iconic Coca Cola writing. Conversely, Pepsi products are
packaged in a can with their blue writing.
Brand
Positioning
Ideally
brand positioning is the act of designing the company‟s offer and image so that
it occupies a distinct and valued place in the target consumer‟s minds (Kotler
and
Keller,
2006). It is also a way to delicately position the brands in the minds of
consumers so that they think of the brand in the right or desired manner, which
will in the end, maximize potential benefit to the company. The cola wars
between the two name brands has been started for centuries, they are well aware
that they are in competition with one another and at multiple occasions have
directly compared themselves publicly; The Pepsi Challenge. To distinguish
themselves, they have targeted different audiences, as Pepsi Cola has always
had the younger generation in mind. Their advertising and marketing strategies
are fixed to target teens aged 14 or even younger with a fun and most often
interlaced with music. This is evident over the years as Pepsi had musical
celebrities like Michael Jackson, Britney Spears and now Beyoncé (Vendredi,
2012). In contrast to Coca Cola, their target audience is wider but ensuring
the products pleases the generation Y as well as the older generation. They
achieve this by trying a fresher new image to reach the younger generation but
maintaining the originality of the cans and bottles as well as taste for the
older generation.
