Free Paper Sample on Pepsi Versus Coca Cola

Introduction

Coca-Cola and Pepsi Companies are very similar businesses in the industry, ideal customers, and flagship products (Kiiru et al., 2017). Both companies are world leaders in the beverage industry; they can offer consumers hundreds of beverages. Additionally, customers are also afforded other ancillary products, such as consumer packed goods. A critical evaluation thus tends to view the companies as those that have similar business models. However, investors have established pronounced differences and essential similarities that have contributed to today's companies’ reputation. This piece will evaluate Pepsi and Coco-Cola pricing strategies to define critical differences and similarities in the companies’ models.

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Pricing Strategies

Pricing is a dynamic marketing dichotomy that people use as a crucial variable while establishing a marketing plan; it plays a significant role in the marketing mix. In this context, both pricing and pricing strategy are essential in the spectrum of marketing courses. Coca-Cola and Pepsi are companies that face stiff competitions from each but simultaneously experience the same from other similar companies as well; however, they have dominated the beverage market. This existing situation is described as an oligopoly (Kiiru et al., 2017). This implies that Pepsi and Coca Cola companies have more pricing power in the right market. The two giant beverage companies' pricing strategies depend on the competition between them since they are a subject of each other. In this sense, if Coca Cola increases its price, many of its consumers will move to Pepsi advice verse.

Now, Coca Cola pricing strategy differs from that of Pepsi in a sense, and it harbors its pricing on values it creates for varying situations (Singaram et al., 2019). For instance, Coca-Cola's price per liter can vary depending on certain aspects such as packing and location. However, Pepsi establishes a value-based pricing strategy in a bit complex model. Its pricing strategy tends to make consumers buy their products not only when they are on sale, though Coca Cola's pricing is today slightly lower (Singaram et al., 2019). It is using this strategy to penetrate the new market.

Conclusion

On the other hand, Pepsi has many product competitions, so its primary pricing strategy is based on market-oriented pricing to have competitive prices (Singaram et al., 2019). Since 2004, Coca Cola has been the market leader of Carbonated Soft Drinks while it has a 42.5% market share with 500 different brands (Maverick, 2018). It brands out powered those from Pepsi in 2017 (Maverick, 2018). Coca Cola pricing strategies are still well placed today than Pepsi.

References

Kiiru, K. C., Makokha, E. N., & Gichuhi, D. (2017). Effect of Pricing of New Coca Cola Soft Drink Products on Sales Performance of Coca-Cola Company in Nyahururu Town. mergers and acquisitions, 34. https://core.ac.uk/download/pdf/234694301.pdf

Maverick, J. B. (2018, November 14). Much of the Global Beverage Industry Is Controlled by Coca-Cola and Pepsi. https://www.investopedia.com/ask/answers/060415/how-much-global-beverage-industry-controlled-coca-cola-and-pepsi.asp

Singaram, R., Ramasubramani, A., Mehta, A., & Arora, P. (2019). Coca Cola: A study on the marketing strategies for millenniums focusing on India. IJARD, ISSN, 2455-4030. https://www.researchgate.net/profile/Aaditya_Mehta3/publication/330924745_Coca_Cola_A_study_on_the_marketing_strategies_for_millenniums_focusing_on_India/links/5c5bb5e6299bf1d14cb19f6d/Coca-Cola-A-study-on-the-marketing-strategies-for-millenniums-focusing-on-India.pdf.