Coke Or Pepsi Essay

1008 words - 5 pages

Overview

There is little doubt that the most spirited and intense competition in the beverage world is between Coca-Cola and Pepsi Co., the two main players in the carbonated soft drink (CSD) production market. The competition between the two giants has benefited not only the consumers but also the companies. By checking and challenging each other in the market, the competition has lead to improvement and diversification of products and has forced each company to be creative and innovative. Throughout time, both companies have employed a number of diverse strategies to differentiate their products and to gain market share. Each successful tactic by one company would be copied by the ...view middle of the document...

This has proven to be a powerful and influential tool in attracting consumer brand awareness and loyalty. Coke has stuck with one basic slogan for years, without infusing new faces and sounds. Right now they are associated with being the cola for the older generation. With this reputation, they are missing out on the younger generation choosing Coke. To remain strong in the long-term, Coke needs to find a way to appeal more to the younger generation. Coke has successfully come out with new variations and sizes of drinks that have evolved with customer demands, but have not built a strong brand image where their products are identified with evolving social values and attitudes of the younger generation. Coke should take steps to reposition their brand in alignment with these social values and attitudes. They have a strong, recognized brand name, but they need to reposition themselves better for the long term. The biggest challenge that Coke will face with this alternative is the fact that they are already so well established. With such an established brand name, it may be difficult to reposition their brand in the minds of the younger generation.

2. Focus on Foreign Markets
At this point, domestic customers already know which cola they prefer. Those preferences are fairly constant and it is unlikely that advertising and promotions will significantly change those preferences in the long-term. However, this is not the case in foreign countries. Advertisements and promotions could make all the difference in these markets. Coke should concentrate on its foreign markets and tailor their product, marketing, and brand strategies to each specific foreign market. By shying away from the global approach, they will be able adapt more quickly and efficiently to changing consumer demands and they will be more appealing to foreign markets. In addition to the fact that tailoring product and marketing to specific markets will be difficult and prevent them from gaining the economies associated with a global brand, they also will face the challenge that their brand name is associated with the American way of life and culture.

3. Further...

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