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The Coke and Pepsi Rivalry

The Ultimate Battle

Our real competition is water, tea, nimbupani and Pepsi in


that order.
- Coke Sources, 1996
When youre No 2 and you are struggling, you have to be more
innovative, work better, and be more resilient. If we become No 1,
we would re-define the market so we became No 2! The fact is
that our competition with the Coca-Cola company is the single
most important reason weve accomplished what we have. And if
they were honest, they would say the same thing.
- Pepsi sources, 1998
Both companies did not really concentrate on the fundamentals
of marketing like building strong brand equity in the market, and
thus had to resort to such tactics to garner market shares.
- Business India, 1998

History
Brand
Coke
Pepsi
Coke
Coke
Pepsi
Coke

Year
1887 (Born)
1898 (Born)
1970s (Entered Indian Market)
1977 (Had to exit Indian Market)
1988 (Entered Indian Market)
1993 (Re-entered Indian Market)

Brand
Pepsi
Coke

Market Share (Yr.2000)


47.3% to 49%
IMRB
55% to 57%
ORG

Misleading figuresAgreed!!

Agency

Cola-War What was it all about?

Folklore or Situation of fight or succumb


Print and electronic media used as battlefields
Comparative Advertisements
Competitive advantage (Implement strategic changes)
Product modification
Pricing / Promotion / Distribution Tactics
Resulted in ceased to generate sustained public interest.

Cola War The Extent

Both had their insiders in each others offices who reported to their
respective heads on a daily basis.
Pepsi filed a petition against Coke alleging that coke had entered into
conspiracy to disrupt its business operations.
Recruiting of employees at higher rate by coke.
Frequent complaints from both the players about their bottlers and
retailers being hijacked.

Brand Operation mode and Strategy


Involved
Brand

Operation Mode

Coke
Pepsi

Franchisee-driven operation
Capital Intensive Route

Targeting youth Pepsi


Targeted All - Coke

Rivalry on various fronts


1.
.

Bottling
Key to distribution

RIVALRY FRONTS

1.

Bottling

2.

Advertising

3.

Product Lunch

4.

Poaching

5.

Other Fronts

RIVALRY ON ADVERTISING FRONTS

RIVALRY ON PRODUCT LUNCH FRONTS

RIVALRY ON POACHING

Coca-Cola getting employees


from the competitor.
Coca Cola disrupted Pepsis
Business Operation

Pepsi Allegations

Coca-Cola Response

Captured Sales Person


Denied Allegations

Offering high Salary(300%-400%)


Pressure on BCCI against Pepsi
Counter offer to Coke MD
Celebrities lured for breaking Contract

Dropped Charges

RIVALRY ON OTHER FONTS


1. Stock Keeping Units

Excise
Duty

Year

Size

Company

1989

250ml

Pepsi

1993

300ml

Coke

1993 mid

300ml

1996

200ml

Mini Coke
Chota
Pepsi

Pepsi
Pepsi + Coke

Rs 5
Rs 4.5

Similar Promotional and Advertising


Strategy

PEPSI
Retail Outlets

COCA-COLA
Retail Outlets

Tied Up
@BPCL

Tied Up
@IOCL

MTV

[V]

KFC

Mc Donalds

As per Facebook and


Twitter data

IS THE RIVALRY HEALTHY ???

References

https://www.brandwatch.com/2015/05/the-coke-vs-pepsi-socialpresence-showdown
/#

http://www.dividend.com/how-to-invest/7-charts-that-compare-co
ca-cola-and-pepsico-ko-pep
/