Video war

Thank you very much for your attention and for following us during these last months. It is the last post of our blog. We hope you enjoyed our work on these two historical brand.
A good illustration of the war is available on youtube videos:

And for a funny end, here are our favorite commercials about COKE VS PEPSI:

Brand Mantras

Pepsi Brand mantra	Excitement,music,fun,adventure
Coca Cola brand mantra	Hapiness,Joy,Family,magic

Pepsi ,Coke Points of differences and parity

Coke & Pepsi Archetypes

“Archetypes helps us to understand the intrinsic meaning of product categories and consequently helps marketers create enduring brand identities that establish market dominance, evoke and deliver meaning to customers, and inspire customer loyalty – all potentially in socially responsible ways”.

Carol Pearson &  Margaret Mark, The hero and the outlaw

      Coke can be defined as the innocent. Indeed, you can see in their ads the message conveyed that Cola Cola believes in the purity of life, in enjoying nature, friends ans family. It seems that in Coca Cola's world, everything is beautiful like in a paradise. The goal is to be happy, and they clearly show it, from the famous song "I want to teach the world to sing", promoting universality and unity around the world, to the innocent celebration of christmas with a family of polar bears.
Actually, the brand created the modern standarized image of Santa Claus, with his white beard and red uniform. It was in 1931, when the company was looking for a way to increase its famous product sales.
From 1931 to 1964, the company advertising showed Santa Claus delivering toys, drinking a coke, raiding refrigerators...

      When you think about pepsi, the first thing that comes in mind is adventure, self-discovery. Pepsi is more modern than Coke is the way that the message addressed is to think outside the box ( also refering to the competition with the traditional and leader Coke). Pepsi archetype is thus the explorer, its ads deliver the message that with Pepsi, you have a better and a more fullfilling life. Pepsi helps you to discover and experience new things, to be part of pioneers, to express your individualism. It claims autonomy, modernity. These are all characteristics in Pepsi communications, sponsorships...
But Pepsi can also be defined as the Jester. The core desire of jesters is to live in the moment with full enjoyment, to have great time.

Sources:
Class n°7
http://www.snopes.com/holidays/christmas/santa/cocacola.asp
http://trevorfisher.com/the-innocent-archetype
http://www.coca-colacompany.com/stories/coke-lore-santa-claus
http://www.synotac.com/wordpress/wp-content/uploads/2011/05/Marketing_Archetypes_L_L.pdf

Coke keller pyramid

Click on the pyramid for a bigger size

Pepsi Keller pyramid

Coke & Pepsi Brand personalities

The process of positioning a brand or product is a complex managerial task and must be done over time using all the elements of the marketing mix. Positioning is in the mind of the consumer and can be described as how the product is considered by that consumer, which enables to develop a character statement and thus a personality.

Coca-Cola and Pepsi have always been similar in their “fun and young” personalities, the two brands have always been on separate paths over the decades. On the one hand, Pepsi has stuck with its high energy, music and comedy-driven strategy; on the other hand, Coke can be seen constantly gravitating towards the emotional side of branding.

Coca-Cola ads are about human experience in two ways. First, before global branding strategy becomes the trend we know today, Coca-Cola was embracing diversity. This can be clearly seen in its long-running “I’d like to buy the world a Coke” series of ads, showing people from all over the globe joining together in Coke and song. Nostalgic people, check it out:

Moreover, Coca-Cola is available in countries all across the world. As noticed before, it’s even rumored to be the most recognizable brand, logo and even word on the planet.

When Coca-Cola isn’t targeting diversity, it still has a strong sense of community through universal similarities such as a love for Coke.

The second way that Coke has leveraged the human experience is throughout families.

Pepsi always stayed aimed right at children but Coke seems to know that Mom are the buyers; they played on emotions and feeling moms know and are sensitive too. Coca Cola communicates as the product desired by the whole family and as a daily life product.

This is more an evidence during Christmas period where families are targeted, through for example a polar bear family.

This occurs all over Coca-Cola’s advertising throughout the years but is never more evident than in Coke’s Christmas ads. Whether its an endearing scene of a father and son watching the Santa Coke truck go by or a family of polar bears consistently being brought together by Coke, the Christmas ads are aimed right at the hearts of American consumers.

Pepsi has always had a young target audience. Their ads were historically targeted at teens and even pre-teens and are injected with fun, sports and most often, music. Pepsi has leveraged all manner of musical celebrities over the years, from Ray Charles to Britney Spears.

Here is a commercial on YouTube featuring Michael Jackson and a group of kids that are probably far too young to legally target for such a sugary product nowadays.

When Pepsi wasn’t using musical celebrities, humor was their weapon of choice, again utilizing young kids in the ads. Who could forget the lovable little girl telling the bartender, “I asked for a Pepsi Pal” in the voice of the Godfather?

Coke identity: Kapferer prism

Pepsi identity: Kapferer Prism

Success of Pepsi branding strategy

Customer Desired Benefits : Pepsi has been successful in capturing the Youth Spirit.It has also ventured out to different customer segments with different offering for e.g. Diet Pepsi was introduced to cater to the health conscious people. Pepsi’s entire Product Portfolio caters to the different customer segments.

Relevance : It’s  considered to be a new generation drink, the drink has managed to grab the imagination of Teens and young Adults alike. Pepsi through the combination of innovative ideas (like Pepsi Blue even though a failure), effective communication and aggressive advertising has been able to stay relevant to its customers.

Pricing : based on consumer’s perception of Value and on the market. Pepsi isn't on a price war with coke in order to keep its brand equity.

Brand positioning : The brand positioning is based on its sweet sugary taste suited for its young consumers. Thus it was able to create a Point of difference from Coca cola.

Consistency : Pepsi has maintained continuity in its brand image and has been consistent in its brand promise of refreshing drink for Youth. It has always depicted a defying attitude and continued to challenge the market leader. Its campaign have been about making a mark and proving its real benefit among young people & cool people.

Brand Portfolio and hierarchy : All Pepsi brands cater to different market segments and rarely cannibalize each others sales. It also gives Pepsico optimum market coverage as its products are diversified.

Repertoire of marketing Activity : Pepsi’s Brand Elements are distinctive and the awareness is very high. It has an extensive distribution network. Promotional campaign have also been innovative in the usage of social media like Facebook ore twitter .

Internal Branding : Pepsi’s give it brand manager the liberty to experiment  ideas to capture customers at the bottom of the pyramid. Pepsi also has predefined set of rules that brand manager should follow which is meant to develop a sense of ownership for the brand.

Sustainable and support marketing programs : Pepsi marketing team is probably the most innovative when it come to determining go to market strategy for its product. The company’s marketing expenditures are very high.

Monitoring Sources of Brand Equity : Pepsi has a series of monitoring programs like periodic brand audit, routine brand sales tracking, monitoring brand performance, etc.

Pepsi branding strategy is very effective. Its brand value has been estimated to $12,762 million.

Source:

Building, measuring and managing Brand equity, Kevin Lane Keller

Pepsico.com

http://www.marketingweek.co.uk/brands/pepsico/ 
http://www.ideasmakemarket.com/2012/03/ideasclash20-entry12-branding-strategy.html
http://article.unipack.ru/eng/18573/
http://fr.slideshare.net/rohitpatel203/branding-of-pepsi-cola#btnNext

Coke Brand Identity

A brand is based on:

-the name

-physical elements: logo, color, shape…

-its identity

It defines who you are, who you want to be as well as how you are perceived. It is important to know exactly your market and your strategy to be successful.

Coke bottle for example is red, scripted “Coca Cola” and is known for its Old-style bottle. The main identity of Coca corresponds to the message they vehicle, in other words “Coke makes you happy”.

Brand image

It is an important factor influencing Coca Cola sales. The brand has the privilege to be known all around the world as they have built their image on a universal value, happiness. The brand is perceived by consumers as a part of daily life and of their life style. Coke is this globalized product that has the same taste customers are looking for, and which give the same pleasure of refreshment during break together.

Brand loyalty

The brand image conveyed, the visibility and availability of products and ads, and also the expected quality everywhere make Coca Cola one of the most bought brand in the world. It is the most sold one.

If we take purchasing frequency in the US, figures speak for themselves: 48% of Americans drink a soda everyday with an average of 2.6 glasses per day. When we know that coke represents almost 50% of Soda consumption, there is no doubt that its customers are loyal. Around the world, more than 3% of beverages consumed are Coca Cola, that is to say 1.7 billion serving/day.

As we have noticed, it is seen as part of daily life, and we can thus say that Coke has achieved a high level of loyalty. A recent Coca-Cola annual report reported that the second most recognized expression in the world after “ok?” is “Coca-Cola.”

Brand equity

            Because of brand extension, Coca Cola equity is difficult to measure. People do not distinguish all brands own by the company, and might even buy without knowing they will be drinking or eating Coca Cola’s product. However, the brand promises the same experience around the world: refreshment, fun and good times, American lifestyle.

            Moreover, Coca-cola is recognized as the most valuable in the world by the respected inter brand corporation valued at above US $ 67 billion , coke has become effectively a part of modern world culture though its advertising campaign has changed over the years, “THE REAL TASTE” has always stood for a ”REAL” COLA DRINK with authenticity. There is legitimacy recognized and appreciated by everyone.

The identity has been built with consistent values and differentiating elements during a decade. Despite the competition, the brand continues to be a number one position globaly in brand equity rankings. 

Coke is affecting every part of life and every cultures.

What far can we go to have 2 cokes?

Sources: 

http://www.businessinsider.com/facts-about-coca-cola-2011-6?op=1
http://fr.scribd.com/doc/46403814/Coca-Cola-CBBE-Model

How values influence consumer's Coke choice?

Emotional value: 

Coke has always been, and especially during though times, the brand which brings positivity and joy to people simply by taking a break with Coke. That has always been their message: to enjoy simple pleasure of life. That emotion is transcribed all over the world and shared by all the society whatever their age, social status or gender. The power of coke is to turn this benefit into its advantage by making it differentiating, and it works! A blind test revealed that Pepsi was preferred to Coke, while testers affirm they prefer Coke when they know the brand that is to say when the test is not “blind”. That is the emotional power Coca Cola achieved: changing a taste preference through the brand.

Social value: 

Coca cola is the symbol of sharing and social values. Throughout our own experiences reflected in their advertising, we share coke in different occasions such as beach trips, family dinners, football games, parties with friends…Coca cola brings people together, and makes all occasions good to share a Coke.

Condition & function values:

High availability: anywhere you are, whenever you want you will find Coke.

Available in all sizes and quantities.

Different tastes

Hydrating, refreshing, replacement for water.

Affordable for all social segment of a society

Coca Cola development strategy success

           

            For sure, brand loyalty is an important variable in maintaining Coke’s number one position. Founded in the year 1886, the Coca Cola company is the biggest non alcoholic beverage company of the world. It has a distribution system, which makes it unique from the rest of the soft drink manufacturers. Over the years, Coca Cola has enhanced the brand through tests and the company continues to communicate as much as possible to stay in consumer’s mind.

The brand development strategy of Coca Cola included brand and product development, but also techniques and strategies in order to keep up with the switching and changing trends of its consumers.

            Earlier, this brand believed in affordability, availability and acceptability.

However, brand development strategy of Coca Cola was reworked to match a higher loyalty and equity. They have based their branding on price value, preference and “pervasive penetration”. 
In order to have an effective brand identity, Coca tests each month more or less 20 attributes involving as many as 4000 customers. 
           The brand development strategy of Coca Cola has been able to build, manage and maintain its brand image according to consumers’ attitudes and behavior. 
A worldwide acceptance and a constant brand image has been possible thanks to brand loyalty; Coca Cola is connected with its customers and they do not count expenses on that field. 
Constant communication enables to enhance frequency of purchase, which is instrumental for brand loyalty. Also, by responding to a trend and a need which is “health” and “diet”, Coca Cola has segmented its market into 3 parts: Classic Coke, Diet Coke for girls style-conscious about their weight and Coca Cola Zero for men, promoting an unconventional but effective ad. Coca Cola went from “the real thing” to “many things” successfully thanks to its positioning and branding strategy.

Sources:

http://fr.scribd.com/doc/22027744/Coca-Cola-Branding-Strategy

http://fr.scribd.com/doc/46403814/Coca-Cola-CBBE-Model 

Pepsi Promotion

Over the last decades and since the 1990’s, Pepsi revitalized their advertising campaigns with celebrities from a wide range of fields. Besides, their attractive and inspiring website was a huge asset to the company as it not only presents the Pepsi products but also includes promotions games, music, and movie trailers.

Pepsi promotion for Pepsi’s Project Blue introduced  the first commercial to be filmed in space. 

  Pepsi also reiterated their promotions with their new ads featuring

 basketball superstar Shaquille O’Neal. The ad offers the buyer to earn points 

that can be exchanged for Pepsi prizes. With the advent of the new 

millennium, Pepsi confirmed their established promotions and advertisements 

strategies Pepsi’s younger image is also aided by celebrities endorsement 

touted by the teen market including Britney Spears,pink, Beyonce ,NSync, 

along with popular rappers.

The company engaged in the popular Pepsi Challenge, and became the

 National Football League’s official soft drink sponsor with Gatorade. For its 

marketing campaign “dare for more” has succeed to have great soccer players 

of the world such as Roberto Carlos,David Beckham,Ronaldinho,Totti

 Pepsi slogans from 2008:

2008:	"Pepsi Stuff" Super Bowl Commercial (Justin Timberlake)
2008:	"Pepsi is #1" Тv commercial (Luke Rosin)
2008–present:	"Something For Everyone"
2009–present:	"Refresh Everything"/"Every Generation Refreshes the World"
2010–present:	"Every Pepsi Refreshes The World"
2011–present	"Summer Time is Pepsi Time"
2011–present	"Born in the Carolinas"
2012:	"Where there's Pepsi, there's music" – used for the 2012 Super Bowl commercial featuring Melanie Amaro
2012	"Live For Now"
2012	"Change The Game"
2012	"The Best Drink Created Worldwide"

PEPSI REFRESH PROJECT

We can't talk about Pepsi communication without mentioning the Pepsi refresh project. Indeed, PepsiCo is one of the first company to have used internet for its communiction and advertising.

The Pepsi refresh project became a reference in social media campaign after its launch in 2010. Let's have a look to this huge campaign, representing a rupture in Pepsi's strategy.

Pepsi has been acting in this project in coherence with its Modern, innovtive image as its archetype defines it. Indeed, Pepsi has spent less money promoting the brand in the super bowl very expensive ad and they have invested in social marketing to help communities. Just like Coca Cola, they are willing to prove they can help people in 8 different categories by improving local communities well-being. They invited people to submit their ideas that people would vote for; all that through social media. $20 million were given to support the wining ideas.

Passing from a traditional 23 years old super bowl ad to an innovative and without precedent campaign, Pepsi took a lot of risks investing in such a project with uncertain issues. But the positioning of the campaign ensured them a successful buzz on media, especially social media. The on-line and off-line media coverage was huge. Rare are the media who haven’t mentioned this initiative. From newspapers to magazines, from Facebook to radio, from YouTube to Blogs: every medium in every format have talked about the Pepsi Refresh project.

Each person concerned or who have heard of the project had something to share about it. The personal involvement about a cause, or the one of a close relative/friend would necessarily generate interest.

Even marketer/communicators seized the phenomenon, talking about it in study cases, making videos of it, and taking it as an example of innovation, of success or of branding.

The Refresh Project accomplished everything a social media program is expected to:

·         Billion of ideas submitted

·         1000+ ideas selected

·         Over 80 million votes were registered

·         3.5 million “likes” on the Pepsi Facebook page

·         60,000 Twitter followers.

In order o have an idea of what Pepsi Refresh Project grantees have accomplished, here are a quick overview of what the project has accomplished:

• “68 Parks and playgrounds that have been built or improved
• 30 Prom outfits that have been donated to high school seniors who could not afford them
• 50 States that have voted for ideas in the Pepsi Refresh Project
• 108 Schools that have been improved
• +/- 200 iPods/Smartboards that have been installed in classrooms
• 3,800 Animals that have been saved or treated
• 4,500 Donations in dollars raised in addition to Pepsi Refresh Project funding
• 23,000 Volunteers involved in the Project
• 1,000 Pajamas that have been donated to those in need
• 123,332 Miles grantees have traveled by foot, bike and skate on Pepsi Refresh Project-funded action trips
• One million People impacted by grantees over the course of the Pepsi Refresh Project

• 3.2 million Dollars of additional funding leveraged”

The campaign had therefore a lot of success among people and among media, thanks to its innovative concept and the rupture with the traditional ad they were making each year at the same time. But the social media campaign has faced a lot of critics and skepticism from marketers and communicators who weren’t sure of the results for Pepsi even if they were amazed by its success. 

Indeed, the only thing the campaign failed to do was sell Pepsi. Indeed, the brand lost 5% of its market share within the campaign period. It has proved that traditional advertising can't be totally replaced by social media; they are complementary.

Sources:
 http://www.poetpatriot.com

http://popsop.com/41621

http://multivu.prnewswire.com/mnr/pepsirefreshproject/47651/

http://awards.ixda.org/entry/2012/pepsi-refresh-project

http://adage.com/article/viewpoint/a-teaching-moment-professors-evaluate-pepsi-refresh-project/237629/

Coca Cola Intergrated marketing communications

Coca Cola uses Integrated Marketing Communications in order to communicate with its target.

It is a pioneer company in 360° communications as they rapidly understood they had to get in touch with consumers to create links and to look for them wherever they are. 

The communication plan is adapted regarding the market, the society, the potential, the product positioning etc. Coca Cola is willing to be close to its consumers, to be part of their daily life, to become a kind of ritual attached to specific moments; for that, they use social media and social marketing through social responsibility for example, creating emotions and feeling of affiliation toward its customers. For example, they raise funds for social causes like earthquake or hurricane.

Also, it always focuses on fun and entertainment as it is the main message they want to deliver. They adapt their message to the target market but they are always based on the same values: sharing, happiness, fun, tradition of coke…

One of the most spectacular action for by Coca Cola done to show their leadership is certainly the one made for their 125th birthday:

Here is a very funny, social and emotional campaign that Coca Cola has implemented in several countries:

The IMC campaign has started in 2006, with the new brand platform “Taste the Coke side of life”. From there, the company had to rethink its whole organization in communications department (from  a vertical and unilateral communication to a dialogue with customers). Such an approach means creating new jobs, new departments, different recruitment process and strategy…

Element of IMC mix

This depends on not only on the market & the product but also on the objectives. In IMC mix there are the three types of mass media: TV advertising, Print media, and banners advertisement. The various elements that are included in the IMC mix must work together to deliver a consistent and persuasive message to the target audience.

Tools of IMC:

-          Advertising: very important for Coca as it cater mass consumers market worldwide. They allow building a brand image and creating brand awareness. Coca Cola Slogan became memorable and universal, as well as the message conveyed.

            EX: print media, POS, TV commercials, billboards…

source: reportingonhealth.org

-          Direct marketing: offerings throughout partnerships such as restaurants, hotel…, but also campaigns including emailngs, texting/SMS, sponsorships…

   source: tatango.com

-          Interactive marketing & social media: interactive & entertaining website, social networks, advertising…

  source: socialmediajamaica.com

-          Sales promotion: It is really important for Coke to be distinguished from its competitors in supermarkets, city markets… thus, the company uses different strategies, oriented toward consumer or toward trade:

-Consumer oriented strategy: Visibility in shelves, eye-catching positions…

-Trade: Discounts, merchandising, free goodies, return back allowance…

For example, Coke Zero has built a reversed pyramid, it was an ingenious idea for its merchandising strategy. Its aim is to prove that nothing is impossible, so does Coke Zero which has the same taste than Coke but without calories.

source: algorythms.blogspot.com

-          PR: Coca uses PR in its strategy through events (culture, music, cinema…), social causes, CSR,…

-          Personal selling: build relationship with buyers and indirect consumers (restaurant, grocery, supermarket…)

     Coca Cola has made Americans vote for their favorite park, and the beverage giant donated $ 175,000 total to the three top vote-getters

Source: http://www.reportingonhealth.org

By using different types of media, the message will be delivered to the whole target, who doesn’t necessarily have the same attitude toward the brand and toward communication. Some people are more on TV while others more on Internet, and others are willing to live and/or share an experience with the brand.

Cokes uses a lot interaction with its consumers throughout PR and social media advertising.
As an example, here is a campaign in Korea:

Partnerships & sponsorships:

The strategy is based primarily on major events to be coherent with its global strategy and to have a global IMC program. As an example, we can cite:

- In 1923, Coke became the drink of the "sportsman"

- Olympic Partner since 1928

- partner of FIFA since 1974

-Since 1996, Official Partner of the France team football

 -Presence in all major sports events (World Cup soccer, rugby, skiing world championships, NBA)

 -Partner of Rugby World Cup 2007

Coca Cola is also involved in cinema and music. the last campaign they have featured was a PR campaign based on their sponsorship with James Bond 007. Check out the video, it is really innovative and it increases consumer's engagement toward Coke's Zero community:

For more information and more Coca Cola campaigns, visit this website:
http://www.trendhunter.com/trends/coca-cola-recycling-bins Sources: 
http://kninn.blogspot.fr 
http://fr.slideshare.net/VikasGupta12/coke-vspepsi#btnNext
http://fr.slideshare.net/saptarshic/integrated-marketing-communications-tools-used-by-coca-cola#btnNext
http://www.strategies.fr/articles/r48443W/la-communication-inte-gree-c-est-leur-metier.html