1. Case Study : Soft Drinks
COCA-COLA VS PEPSI
HALDEBIQUE Geoffroy
ROYER Johan

2. What do you know about Coca-Cola and Pepsi ?
Coca-Cola, or Pepsi ?

3. Which one has the biggest ?
PepsiCo has the highest revenue, with 65,5 billon dollars a year (48 for The Coca-Cola Company).
The Coca-Cola Company has the largest net income, with 6,7 billion dollars (vs 6,55 billion dollars).
Both are losing to Nestlé, dominating the food industry with a revenue of over 90 billion dollars and a net income over 10 billion dollars.

4. Concerning soft drinks
The Coca-Cola Company only produces soft drinks and alcohol.
PepsiCo also sells crisps (Lay’s and Benenuts).
The product Coca-Cola and its derivatives represent 80% of the company’s revenue.
Coca-Cola is still way ahead Pepsi-Cola in terms of market share.

5. Advertising campaings
Coca-Cola’s ads aim at increasing brand awareness…
Whereas Pepsi’s ads target Coca-Cola specifically !

6. The Coca-Cola Company : SWOT Analysis
Strengths
Weaknesses
Very strong brand image
Numerous brand failures (dogs)
Already existing market share
Negative publicity
Value of the company
Undiversified activities
Distribution channels
High debt

7. The Coca-Cola Company : SWOT Analysis
Opportunities
Threats
Bottled water consumption is increasing
Health awareness
Growing consumption and opportunities in BRIC
Water scarcity & cost
Growth of the company through acquisitions
Hard competition from PepsiCo in BRIC

8. PepsiCo : SWOT Analysis
Strengths
Weaknesses
Huge product diversity
Low pricing
Successful mergers and acquisitions of products
Weak brand awareness compared to Coca-Cola
Successful marketing campaigns
Low net profit margin (9,7% compared to 18,55%)

9. PepsiCo : SWOT Analysis
Opportunities
Threats
Bottled water consumption is increasing
Health awareness
Growing market in BRIC
Decreasing gross profit margin
Snacks consumption is increasing too
Strong dollar

10. Coca-Cola Versus PepsiCo : The 4 P’s
PRODUCTS :
The Coca-Cola recipe
Most of the products are soft drinks
There are a lot of innovations…
But most of products are brought in the market just for the sake of competition
Coca-Cola has more products than PepsiCo (considering soft drinks only)

11. Coca-Cola Versus PepsiCo : The 4 P’s
PRICE :
Coca-Cola was ruling the market before PepsiCo’s arrival
Now both companies are adjusting their prices on the basis of competition
Pepsi is renowed to bring the price down to half, although they have a decent margin

12. Coca-Cola Versus PepsiCo : The 4 P’s
PLACE :
The whole world, for both of them (visible on the Coca-Cola Company website or with PepsiCo’s ads
PROMOTION :
Blind taste test film
More ads on Pepsi-Cola than Coca-Cola, but Coca-Cola has a lot more programs (Sprite, etc.)
Both are featuring celebrities in their ads

13. E-commerce objective and challenge
Pepsi-Cola and Coca-Cola are already famous and a have lot of consumers.
In a BCG Matrix they would be…
They don’t have to present their product
Just to keep people entertained!

14. Website presentation Let’s check Pepsi’s Website !
Very thumbs friendly
Pop music topics
Geolocation
Consumer generated

15. Social networks Here are some figures :
Coca-Cola has several Twitter accounts
More than 2,32 million followers on the main account !

16. On Youtube COCA-COLA PEPSI 223k subscribers 689k subscribers
237M views
162M views
Several videos a day
Several videos a week

17. The Super Bowl 2014 A Polemic around a single ad
Extremely strong reactions to this ad

18. The Super Bowl 2014 What do YOU think about this ad ?
What impact do you think it will have on Coca-Cola ?

19. THANK YOU VERY MUCH FOR YOUR ATTENTION !
ANY QUESTIONS ?