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Compare Coca-Cola and Pepsi's marketing strategies

Paper Type: Free Essay Subject: Business Strategy
Wordcount: 3556 words Published: 8th May 2015

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Coca-cola is a soft drink. Manufactured by coca-cola company. It was introduced in 1986. Coca-Cola is a carbonated soft drink sold in stores, restaurants, and selling equipment worldwide. The Coca-Cola Company claims that the drink is sold in more than 200 countries. It is produced by The Coca-Cola Company in Atlanta, Georgia, and is often referred to simply as Coke or as cola. The Coca-Cola Company is the world’s largest drink company, refreshing customers with more than 450 fresh and still brands. Along with Coca-Cola, known as the world’s most valuable brand, the Company’s collection includes 12 other billion dollar brands, including Diet Coke, Fanta, Sprite, Coca-Cola Zero, and vitamin water, PowerAde, Minute Maid and Georgia Coffee. Worldwide, we are the No. 1 supplier of fresh beverages, juices and juice drinks and ready-to-drink teas and coffees.

Throughout the world’s largest beverage delivery system, customers in more than 200 countries enjoy the Company’s beverages at a rate of 1.5 billion servings a day. With a permanent promise to building sustainable communities, our Company is focused on initiatives that guard the surroundings, preserve resources and improve the financial growth of the communities where we work.

In the beginning proposed as a copyright medicine when it was made-up in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman As a Griggs Candler, whose marketing plans lead Coke to its authority of the world soft-drink market throughout the 20th century. The concern produces focus, which is then sold to certified Coca-Cola bottlers all the way through the world. The bottlers, who hold territorially private contracts with the company, manufacture complete product in cans and bottles from the deliberate in arrangement with filtered water and sweeteners. The bottlers then sell issue and produce Coca-Cola to put up for sale stores and trade equipment. Such bottlers include Coca-Cola Enterprises, which is the main on its own Coca-Cola bottler in North America and Western Europe. The Coca-Cola Company also sells concentrate for soda fountains to major restaurants and food service distributors.

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The Coca-Cola Company has time tointroduce other cola drinks under the Coke brand name. The most regular of these is Diet Coke, with others as well as Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special editions with lemon, lime or coffee. In answer to buyer insistence on a more natural product, the company is in the process of phasing out E211, or sodium benzoate, the contentious additive used in Diet Coke and linked to DNA damage in yeast cells and hyperactivity in children. The company has known that it plans to take away E211 from its other products, including Sprite and Oasis, as soon as a reasonable substitute is found.

On April 23, 1985, Coca-Cola, among to a large extent advertising, attempted to change the formula of the drink with “New Coke”. Follow-up flavour test exposed that most customers chosen the taste of New Coke to both Coke and Pepsi, but Coca-Cola management was not ready for the public’s homesickness for the old drink, primary to a reaction. The company gave in to protests and returned to a difference of the old method, with high-fructose replacing cane sugar, under the name Coca-Cola model on July 10, 1985.On February 7, 2005, the Coca-Cola Company announced that in the moment sector of 2005 they designed to begin a Diet Coke product sweet with the artificial sweetener sucralose, the same sweetener at present used in Pepsi one.

On March 21, 2005, it announced one more diet product, Coca-Cola Zero, sweetened in part through a blend of aspartame and aciculae potassium. In 2007, Coca-Cola began to sell a new healthy soda. Diet Coke with vitamins B6, B12, magnesium, niacin, and zinc, marketed as Diet Coke Plus.

On July 5, 2005, it was exposed that Coca-Cola would start again operations in Iraq for the first time since the Arab group boycotted the company in 1968.

In April 2007, in Canada, the name Coca-Cola Classic was changed back to Coca-Cola. The word Classic was removed because New Coke was no longer in making, eliminating the need to distinguish between the two. The method remained unmovable.

In January 2009, Coca-Cola stopped printing the word Classic on the labels of quantity bottles sold in parts of the south eastern United States. The change is part of a big plan to refresh the product’s figure.

In November 2009, due to a argument above wholesale prices of Coca-Cola products, Costco stopped restocking it’s shelve with Coke and Diet Coke.


Ingredients of coca-cola are Carbonated water, Sugar, Caffeine, Phosphoric acid v. Caramel, Natural flavourings. A can of Coke has 39 grams of carbohydrates, 50mg of sodium, 0 grams fat, 0 grams potassium, and 140 calories. The correct procedure of Coca-Cola’s normal flavourings is a well-known operate top secret. The new copy of the procedure is said in SunTrust Bank’s key cellar in Atlanta. Its forerunner, the dependence concern, was the underwriter for the Coca-Cola Company’s initial public offering in 1919. An admired legend states that only two executives have right of use to the method, with each management have only half the principle. The truth is that while Coca-Cola does have a rule restricting contact to only two executives, each knows the whole formula and others, in adding to the agreed set of two, have known the formulation method. Coca-cola cherry available only in Canada starting in 1996. Coca-cola with lemon available in many countries like as, Brazil, Germany, Hong Kong, United kingdom, United states etc. Coca-cola vanilla these drink we can get in Australia, New Zeeland, Malaysia etc.

The famous Coca-Cola symbol was shaped by John Pemberton’s bookkeeper, Frank Mason Robinson, in 1885. Robinson came up with the name and chose the logo’s typical cursive handwriting. The font used, identified as Spenserian script, was developed in the middle 19th century and was the main shape of proper writing in the United States throughout that time. The regularly famous Coca-Cola bottle, called the “contour bottle” inside the concern, but known to some as the “shuffle kilt” bottle, was created in 1915 by bottle designer Earl R. Dean.

In 1915, the Coca-Cola Company launched an opposition between its bottle suppliers to make a new bottle for the drink that would differentiate it from other drink bottles. In 1997, Coca-Cola also introduced a contour can, like in figure to its famous bottle, on a small number of test markets, as well as Terre Haute, Indiana the new can has never been generally released. Coca-Cola is a registered brand name in most countries. The U.S. brand for Coca-Cola was first filed on May 14, 1892 with the picture nutrient or boost beverages. This filing became a registered United States trademark on January 31, 1893 and continues to be changed through the end of December 2009.

In the UK, Coca-Cola was registered with the UK rights Office on July 11, 1922, under registration number 427817. In 2007, Coca-Cola introduced an aluminium can considered to look like the original glass Coca-Cola bottles. In 2007, the company’s symbol on cans and bottles changed. The cans and bottles taken the red colour and common letters, but the plans were cut down, leaving only the sign and a simple white spin. In 2008, in a number of parts of the world, the plastic bottles for all Coke varieties was changed to take in a new plastic coil ceiling and a contoured bottle figure planned to suggest the old glass bottles. The Coca-Cola Corporation purchased Columbia movies in 1982, and began inserting Coke-product descriptions in a lot of its films. After a small number of early successes for the period of Coca-Cola’s ownership, Columbia began to under-perform, and the studio was sold to Sony in 1989. Coca-Cola has left through a number of different publicity slogans in its lengthy history, as well as the break that refreshes.


In 2006, Coca-Cola introduced My Coke Rewards, a buyer faithfulness movement where customers receive points by entering codes from specially-marked letters of Coca-Cola goods into a website. These points can be redeemed for a variety of prizes. Coca-Cola was the first industrial sponsor of the Olympic games, at the 1928 games in Amsterdam, and has been an Olympics supporter still since.The Coca-Cola Company has been an Olympic partner since 1928 almost 80 years and is the best continuous commercial follower of the Olympic Movement.

The Company works with National Olympic Committees in more than 200 countries to help athletes train and fight. More than 90 percent of the Coca-Cola system’s investment in the Olympic Games is focussed to athlete development and to help in production the Games. Products of The Coca-Cola Company refresh athletes, volunteers, officials and audience during the Olympic Games and supporting programs such as the Beijing 2008 Olympic Torch Relay allows Coca-Cola to help share the Olympic courage around the world. The Coca-Cola Company is the special non-alcoholic beverage partner to the Olympic Games through 2020.

This company funding included the 1996 Summer Olympics hosted in Atlanta, which allowed Coca-Cola to focus its homeland. Since 1978, Coca-Cola has sponsored each FIFA World Cup, and other competition controlled by FIFA. In fact, one FIFA tournament award, the FIFA World Youth Championship from Tunisia in 1977 to Malaysia in 1997, was called FIFA Coca-Cola Cup. In adding together, Coca-Cola sponsors the annual Coca-Cola 600 and Coke Zero 400 for the NASCAR Sprint Cup Series at Charlotte Motor Speedway in Concord, North Carolina and Daytona International Speedway in Daytona, Florida. Coca-Cola has a long history of sports advertising dealings, which over the years have built-in Major League Baseball, the National Football League, National Basketball Association and the National Hockey League, as well as with many teams within those leagues.

Coca-Cola is the certified soft drink of many collegiate football teams throughout the country. Coca-Cola was one of the representative sponsors of the 1996 Cricket World Cup assumed on the Indian subcontinent. Coca Cola is also one of the link sponsors of Delhi Daredevils in Indian Premier League. In England, Coca-Cola is the chief sponsor of The Football League, a name given to the three qualified divisions below the Premier League in football. It is also responsible for the renaming of these divisions until the beginning of Coca-Cola sponsorship; they were referred to as Divisions One, Two and Three.

Since 2004, the divisions have been known as the challenge League One and League 2. This renaming has caused conflict amongst some fans, which see it as hopeless that the third level of English Football is now called League One.

In 2005, Coca-Cola launched a competition for the 72 clubs of the football league, it was called Win a Player. These approved fans to leave 1 take part in an election per day for their favourite club, with 1 admission being chosen at chance earning £250,000 for the club, this was continual in 2006. The Win a Player competition was very contentious, as at the end of the 2 competitions, Leeds United AFC had the most votes by more than twice, yet they did not win any money to spend on a new player for the club. In 2007, the competition changed to buy a Player. This competition allowed fans to buy a bottle of Coca-Cola Zero or Coca-Cola and accept the code on the covering on the Coca-Cola website. This code could then receive anything from 50p to £100,000 for a club of their selection. This competition was favoured over the old Win a Player competition, as it approved all clubs to win some money. In India, there is a main argument whether there are pesticide and other dangerous chemicals in bottled goods, as well as Coca-Cola.

In 2003 the Centre for Science and Environment, a non-governmental organization in New Delhi, said fizzy waters shaped by soft drinks manufacturers in India, including international giants PepsiCo and Coca-Cola, controlled toxin together with Lindale, marathon and chlorpyrifos pesticides that can give to growth and a fail of the immune system. CSE found that the Indian produced Pepsi’s soft drink products had 36 times the level of pesticide residues allowed under European Union system; Coca-Cola’s soft drink was found to have 30 times the legal amount. CSE said it had tested the same products sold in the U.S. and found no such residue. After the creature repellent allegation were made in 2003, Coca-Cola sales in India declined by 15 percent.

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In 2004 an Indian governmental commission backed up CIE’s result and a government-appointed group was tasked with early the world’s first pesticide principles for soft drinks. The Coca-Cola concern has responded that its plants filter water to remove possible contaminants and that its products are tested for pesticides and must meet minimum health values before they are spread. In the Indian state of Kerala sale and production of Coca-Cola, along with other soft drinks, was firstly banned after the allegation, until the High Square in Kerala overturned ruled that only the central government can ban food products. Coca-Cola has also been accused of too much water handling in India.

The Coca-Cola system in Australia introduced Coca-Cola Zero on Australia Day, January 26. As the first market outside North America to launch Coca-Cola Zero, Australia is attractive a significantly different approach. In Australia, Coca-Cola Zero encourages people to free themselves from limits. Instead of Chill Out, the note to consumers is Unlimited Yourself. A single Australian formulation was developed, and even the covering was developed particularly for Aussie consumers. The Coca-Cola drink has a high degree of classification with the United States, being measured by some an American Brand or as a thing indicating America.

The classification with the increase of American society has led to the pun Coca-Colonization. The drink is also often a metonym for the Coca-Cola concern. There are some customer boycotts of Coca-Cola in Arab countries due to Coke’s early investment in Israel throughout the Arab League boycott of Israel. Mecca Cola and Pepsi have been doing well alternatives in the centre east.

Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the best-known product in the world. Coca-Cola has been at the front position of libelling initiatives for nearly 20 years, most important the way in adding per-package diet information on labels, in addition to the per-serving information that is compulsory by rule. Last year, the concern began as well as caffeine-content information on the labels of products with added caffeine. The new front-of-package libelling includes information that was always to be found in the food proof panel of Coca-Cola goods, but it is now easier for customers to see this important information at a glance. In the next months, Coca-Cola goods throughout the European Union will start transport expanded food information on packaging to help consumers make educated option.

The Coca-Cola Company in the European Union has committed to the chosen, practical changes, which the European food and drink production group CIAA announced this week to regulate the food information available on food and drink packaging in Europe.

In addition, the British Soft Drinks company announced that the drink manufacturing in Great Britain would be adopting a GDA food system regular with the CIAA plan, indicating the first convenient performance of the new labels to a whole division in a European Union country. Within the next 24 months, all Coca-Cola goods sold in the European Union Group will have a force symbol on the front of the packs stating the calories per serving in the product and the percent those calories stand for of the total optional daily drinking, or Guideline Daily Amount. The backs of the parcels will contain expanded information displaying the GDAs for sugar, fat, soaked fat, salt and calories, when applicable. That will be in adding to a Big 8 nutrient table on the pack stating the energy value, protein, carbohydrate, sugar, fat, saturated fat, fibber and sodium content. Our Company is committed to contribution customers all the information they need to make up to date choices, in order to meet their diet and lifestyle needs. This idea recognizes people’s desire for more regular, helpful and easy-to-understand information, and we will take action upon it with genuine achievement in the open market.


COCA-COLA has developed a highly successful social networking strategy over the past two years. The company currently owns the second most popular page on Facebook with 3,261,218 members, and has a strong presence on other social sites, as well as its own corporate blog.

Michael Donnelly, the company’s global interactive marketing director, said at the Social Networking World Forum in London this week that the success of the strategy was the result of breaking from traditional marketing strategies and letting customers lead the way. “So we let consumers drive the strategy, which we then embrace,” he explained.


At first the idea of using social networks for marketing purposes had made Coca-Cola “a little uncomfortable”, as traditional marketing had always worked well for the company. Donnelly cited the 1.5 billion servings of Coke sold every day as evidence.

An additional obstacle had been the global combination necessary for a social media strategy. Donnelly explained that his role had been to “scale the learning from all around the world”.

“We had brilliant marketers all over the world but they were decentralised in each country and, while they each had a social network, they were not sharing their experiences,” he said.

The deployment of the social media strategy began in late 2007 with the launch of Coca-Cola conversations , the first of the company’s corporate blogs, which discusses Coca-Cola’s role in popular culture, its brand history and collectables.

Coca-Cola infiltrated the virtual world space in the same year by launching a competition for residents of Second Life called Virtual Thirst to design a vending machine that dispensed the essence of Coca-Cola rather than the drink itself.

Digital Marketing:


Strategic planning is so essential to ensure the successful delivery of a project, that we take every design, website, email, banner, CMS and database through the same scoping, research and strategy definition process. At the project outset we work with our clients to build a deep understanding of their brand. Stakeholder interviews highlight the key business objectives, and user research ensures our customer’s customer is at the heart of any decision making. Only when we fully take hold of all of this, do we devise the most effective strategy, giving you confidence in our delivery, and maximum return on investment.

We spend time defining goals and understanding your brand, asking users how they’d like your website to work, scoping the project and setting the strategy. We then present our project specification which provides an perfect representation of the project. Then we deliver the goods, in-line with your expectations, which is why we’re enjoying so many long-term relationships with our clients.

Online marketing:

For many years we’ve helped major clients with their online advertising, right through from concept to completion. We can take care of media buying and develop exciting and effective strategies. We can design exciting, believable creative and promote your brand via search engines. We’ll even undertake a full analysis of the campaign, and work out how we can go one better next time round.


In a competitive market, both companies(coke and pepsi) must identify and target different market segments in order to remain at the cutting edge. Differences between the companies are evident with respect to product, pricing, place and promotion. Coca-cola relies heavily on value: quality is more than something we see or taste. Pepsi, on the other hand, relies on its success resulting from superior products and high standards of performance.

An effective marketing program brings together all of the elements of the marketing mix to achieve the organisation’s marketing objectives by delivering to customers what they want and need. Thus, the most successful companies will be those that can meet these needs most effective.


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