The Competition Between CocaCola And PepsiCo

Coca Cola And PepsiCo

The Competition Between Coca Cola And PepsiCo

Coca Cola and PepsiCo are the two largest corporations in the non-alcoholic beverage industry. Coca-Cola has a market capitalization of $ 186 billion and PepsiCo’s $ 147 billion. Coca Cola focuses on beverage production while PepsiCo sells both beverages (Pepsi soft drink 330ml) and food. For centuries, people have been referring to Coca-Cola and Pepsi as a rivalless, unrelenting rival. Despite the gap in time, space and culture, Coca Cola and Pepsi continue to chase each other, from every corner, from restaurants, supermarkets, stadiums to regions.

Coca Cola and PepsiCo now hold the position of the two largest non-alcoholic beverage companies. Coca-Cola’s market capitalization is $ 169 billion and PepsiCo’s $ 138 billion. Coca Cola focuses on beverage production. While PepsiCo sells both beverages and food. Coca-Cola owns 20 companies and PepsiCo has 22 similar companies.

“Coca Cola” senior.

The story begins in 1886 when a man named John S. Pemberton intends to create a refreshing, healthy drink from coca leaves and cola nuts. The mixture mix with carbonate instead of pure water and the result is the first soda water formula. He named the company Coke (Coca-Cola abbreviation).

Thirteen years later, Coca-Cola’s main rival appeared when a pharmacist named Caleb Bradham created the Pepsi Cola formula. The name Pepsi is chosen by the primary use of this new soda water is to reduce indigestion.

Coca-Cola’s on-going business continued to grow, and the company began building factories abroad such as Paris, Bordeaux and other European cities in 1919.

By contrast, Pepsi was not so lucky when it declared bankruptcy in 1923 due to restrictions on the distribution of sugar under World War I. In 1928, Pepsi Cola was bought by Craven Holdings Corporation, based in Virginia. However, by 1931 Pepsi was once again bankrupt and sold to president of a confectionery chain, Charles G. Guth.

While Pepsi is still struggling to find a way out. Coca-Cola continues to expand its market to Australia, Austria and South Africa.

It was not until 1938, after Pepico was separate from Loft’s candy maker, that Walter S. Mack took over as president of the company. Walter S. Mack is still refer to as the hero. Who has been credite with turning Pepsico from an unknown brand into one of the world’s largest producers.

Cola Wars.

From the beginning of the 1920s. Coca-Cola began to focus on advertising, building brand image. They repeatedly invited celebrities to appear in the commercials and resonated loudly. In 1929, Coca-Cola was flooded throughout the United States and the profits flowed into the company’s pocket.

Meanwhile, through two failures and transfer, Pepsi still can not revive until they use the last resort: Pepsi in 10 ounce bottles and sell for 5 cents to compete with Coca Cola 6 ounces, 10 cents. This important decision has helped to double the sales of Pepsi, three times.

In that situation, Coca-Cola had already thought of switching to a new radio promotion. Unfortunately, Pepsi was quicker to launch the first 15 seconds of radio commercials on the radio in 1939. The ad was really a favorite because not only did it appear on the radio. It was also broadcast the vending machines.

Then America entered the Second World War and this has had a great impact on both Coca Cola and PepsiCo. At this point, Pepsi has won a large number of loyal customers of Coca Cola and built a certain brand. Pepsi is still stuck with the No. 2 position after Coca Cola.

Pepsi’s turning point.

In 1994, Suntory PepsiCo came to Vietnam. In the year 2000, under the direction of Steven Reinemund. Who has many years of experience working at Pizza Hut, Pepsi has made history. Steven realized that his company could not or at least not catch Coca-Cola in the beverage market (Pepsi now holds 21% of the market, with Coca-Cola holding up to 50% market share). Therefore, his solution is to transform the product structure and seek market share in the new products. 

As a result of this, he decided to buy Quaker Oats, which owns the Gatorade brand of drinks and biscuits. It not only saves about $ 400 million in operating costs each year, it also helps Pepsi expand its market share, increase its record sales, drive its share price up by 10%, while Coca Cola is down 14%. Since then, the strategy to capture the market share of new products in addition to soft drinks of Pepsi is still consider smart. Most recently, due to concerns over obesity, the consumption of carbonated soft drinks dropped and snack contributed up to 39% of Pepsi’s total sales.Read on to find out Suntory PepsiCo In Vietnam.

Running advertisement.

In the race for television advertisement. Pepsi always ranked in the top five names, while Coca Cola only ranked 8th.

Pepsi is not afraid to pay the rent of movie stars, sports and celebrities to represent their brand.

Pepsi’s commercials revolve around the selective theme of the stars of Coca Cola and PepsiCo. Which Pepsi has always chosen, with the slogan “The Choice of the New Generation”, “Live For Now”. 

Pop princess Britney Spears or the international football superstars such as Veron, Raul, Beckham, Petit, Rivaldo are all turned advertising representatives of Pepsi.

In the 1895s, Coca Cola leadership focused on bringing the company’s image as far as possible. At the same time on the media and billboards, Coca Cola appeared with unprecedented frequency. In the first year of the campaign. They sold more than 30,000 liters of Coca Cola less than 30 years after the company consumed more than 70 million liters.


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