dimanche 25 novembre 2012

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

jeudi 22 novembre 2012

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.


mercredi 21 novembre 2012

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:

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


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.


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: 

lundi 19 novembre 2012

Pepsi distribution

In order to connect with customers and satisfy their needs , Pepsi distribution channel Decisions  strives to make the products available in customers’ popular shopping areas.The marketing approach of dealing with different types of distribution channels from retailers to wholesalers was based on the management strategy to implement  the right network distribution with regard to the nature of the product .
The key accounts are different wholesalers, restaurants and hotels like Pizza Hut,KFC, Metro which serve as a place for key sale.
Pepsi have exclusive contracts with franchise bottlers ,independent/online distributors and retailers(Tesco,Walmart)too.
Pepsi have also refrigerated vending machines at various locations and workplaces.Service the right pack size at the right price, in the right place at the right time.


Coca Cola distribution strategy

The Coca-Cola Company sells its products to bottling and canning operations, distributors, fountain wholesalers and some fountain retailers. These then distributes them to retail outlets, milk bar and corner stores, restaurants, petrol stations and newsagents.
Thus we can cite different point of sales where Coca cola is generally available throughout the Coca-Cola Company:
-          Wholesalers/ distributors
-          Retail/corner stores/supermarkets/Groceries…
-          Restaurants/cafés/night clubs
-          Petrol stations
-          Automated teller machines (AMTs)

Coke’s distribution system is one of the most important and is very impressive compared to all other drinks in the category. It has such an impact on consumers and is so successful that even wholesalers and distributors need the product for their business’ success.Coke’s position on consumer’s mind makes it essential to retailers, wholesalers and away-from-home market. They have achieved their goal thanks to this high visibility, and to the availability of the products all over the world, even in remote places. 

Here is a video showing Coke's innovation in its distribution system:

Coca Cola vending machines are also a way to deliver the brand's identity. Innovations in this channel are numerous, but we have selected a lovely one for you: the hug machine!

dimanche 18 novembre 2012

Pepsi pricing strategy

Pepsi pricing is based on consumer’s perception of Value. Cold drink prices are market determined. But Pepsi never got involved in a price war with coke as it would have eaten into the brand equity of Pepsi as consumers perceive that the basic price they pay for brands like Pepsi is justified as its more about the refreshing cola experience rather than a just a thirst quencher.
Pepsi is thus competitively priced to its major competitors, offering a better tasting product than other brands at a competitive price.But this is due first to the pressure in the beverage industry regarding pricing due to constant rise of  costs in transportation, ingredients and work force.
Moreover, the partnership with Wal-Mart impacts on its pricing strategies because of Wal-Mart urge to maintain low prices. So the company works hard on maintaining current prices by reducing their operating costs and adapting its processes.


Pepsi Product strategy

Products of Pepsi-Cola in the carbonated soft drink US market:

Pepsi Natural

Pepsi Next

Pepsi One

Pepsi Throwback

Pepsi Wild Cherry

Caffeine Free Pepsi

Diet Pepsi

Diet Pepsi Lime

Diet Pepsi Vanilla

Diet Pepsi Wild Cherry

Caffeine Free Diet Pepsi

As any oder beverage manufacturer, Pepsi is committed to environmental guidelines, in order to ensure that packaging has as little impact as possible on the environment



At least 86% of soft drink is purified water. In the case of diet soft drinks water comprises around 96%.


Such as sugar (sucrose from sugar cane) or non-nutritive sweeteners. The most popular and most widely non-nutritive sweetener used is Aspartame, being 200 times sweeter than sugar,                is used in very small quantities. Pepsi Max and Pepsi Light use a dual sweetener system, aspartame and acesulphame potassium. The latter is 300 times sweeter than sugar, requiring even less to sweeten the soft drink.


Pepsi uses flavors to develop characteristic tastes associated with its beverages. These come from a variety of sources; natural, artificial and nature identical. Examples of flavors used in the manufacture of soft drinks include natural flavorings from Kola nut, and fruit.

Carbon Dioxide

Effervescence gives soft drinks their special bubbly appeal and is added during production by injecting C02 into the product on the way to the filler.


Colors are added to Pepsi Cola products to enhance the esthetic appeal and appearance of products

These may be both natural and artificial


Certain preservatives are used in soft drinks to ensure microbial stability and prevent spoilage.