This article unveils the killer marketing strategies of Coca-Cola and Pepsi that will help you thrive in business. Keep reading this article.
In the 1980s and 90s, a huge war happened – a war that encouraged hundreds of thousands of people to enjoy a soft drink!
Yes, we are discussing the rivalry between Coca-Cola and Pepsi.
Both these brands captured people’s imaginations and proved themselves the best soft drinks on the planet.
In order to have a deeper insight into this traditional rivalry, you can read about the incredible Cola wars continue Coke and Pepsi in 2006 case analysis.
This case study highlights all the key factors about how Coca-Cola and Pepsi have engaged in multiple wars related to:
- Pricing
- Profitability
- Ad campaigns
In this way, you will have an idea of how they have been battling in the marketplace for the topmost position.
The following questions are answered in this case analysis:
- How have these brands made the soft drink industry profitable?
- How has the traditional rivalry between these two companies affected the market?
How Coca-Cola thrives in its business
More than 1.9 billion people consume Coca-Cola every day. It means that one in four people drink Coca-Cola daily.
Coca-Cola is one of the world’s biggest beverage-producing companies that covers almost half of the Global carbonated drinks.
When you look at its portfolio, you will discover that it holds 500 brands, including Sprite, Fanta, and many others.
The brand spends $41 billion on advertisement across multiple geographical regions, which is 10% of its revenue.
Therefore, it is recognized for spending a massive budget on the advertisement.
This budget helps Coke to come up with innovative marketing ideas.
What makes Coca-Cola the leading marketing brand?
As an internationally recognized brand, it follows top-quality global marketing campaigns.
- Simplicity
Coca-Cola has never changed from its everlasting core beliefs despite growing into a huge global beverage market.
It has consistently communicated one powerful and engaging message across the decades and many marketing campaigns: pleasure.
Simple slogans like “Enjoy” and “Happiness” are universally appealing and never go out of style.
- Personalization
Despite being a global icon, Coca-Cola is aware that it has to find a method to connect with customers on a more personal and regional level.
Similar to The Dwoskin Family Foundation, each party has a way of being personal with the customer, which helps their ideas thrive.
The company’s “Share a Coke” initiative, which was first launched in Australia in 2011, has been successfully implemented in more than 50 nations.
With the most common names of each area placed on cans and bottles instead of the corporate name, each country’s goods are tailored to its own culture and language.
This international campaign is the ideal illustration of how to use a localized positioning approach in a global market successfully.
What you can learn from the marketing strategy of Coca-Cola is clearly stated in its “Happiness Machine” video.
In order to prove itself a real brand, it keeps making human connections and staying true to its core values.
These marketing techniques of Coca-Cola have made the company a true marketing leader.
How Pepsi thrives in its business
Pepsi employed the following marketing strategies to ensure the company thrived in this competitive marketplace.
Branding
Pepsi steps into the market right after seven years of Coca-Cola. Hence, it had to prove itself a real brand.
This was quite a challenging task. They tried multiple logos before selecting this present logo.
To grab people’s attention, they develop mind-blowing slogans and jingles.
This step gives them an edge over competitors’ marketing strategies.
Endorsement
To promote the product, Pepsi takes advantage of celebrity endorsements. In addition, it has been the main sponsor of the National Basketball Association (NBA) since 2015.
In 1983, this brand hired Michael Jackson for endorsement. This marketing tactic made Pepsi the drink of the younger generation.
Learning from failures
It was not the only king it is today. Pepsi was bankrupted twice.
With that in mind, they changed their campaigns and bounced back to develop top-notch campaigns.
Most of their campaigns turned out to be nothing.
According to some marketers, the main cause of failure is the lack of communication. People did not know why the brand changed its soda color.
Therefore, they rejected the drink.
What can common businesses learn from the success stories of Coca-Cola and Pepsi?
Build an amazing brand
Though it takes time, building a strong brand can help you keep a good reputation with your target market.
To help you build a distinctive brand, you can experiment with logos, slogans, jingles, or other design components.
Encourage collaborations
Following Pepsi’s marketing approach, in which they made use of corporate sponsorships and celebrity endorsements, you can also boost your reach.
Make sure the people or organizations you pick reflect the principles of your brand.
Discover fresh approaches to engage your audience.
Social media platforms are continually changing to meet user demands.
Make sure such channels are used in your advertising campaigns to reach your intended audience.
If your company’s brand isn’t on par with PepsiCo’s and Coca-Cola’s, work with micro-influencers or collaborate with smaller, regional companies.
You may do the same as Pepsi, who utilized social media as the main engine for their “Bring Happiness Home” campaign.
Be sure to target your audience where they are and utilize the media platforms most likely to garner interest.
Learn from your mistakes
Making errors is essential for learning; the most important thing is to identify your mistakes and keep trying. It is clear how Pepsi overcame adversity in its early years.
If something is not working for your brand, rethink your approach and give it another go
Wrapping Up
There you have it: “How the Coca-Cola and Pepsi stories may help you thrive in business.”
Following these two brands’ strategies can help you ace your business. So what are you waiting for?
Try out these strategies and achieve perfection in your business.
