Coca-Cola and Pepsi: brand identity and marketing strategy comparison

Coke vs. Pepsi

Among the leading beverage producers in the world, the Coca-Cola brand is iconic and has achieved a wide range of brand identity. As one study indicates,

Coca-Cola has been an intricate part of American culture for over a century. The product's image is laden with sentimentality, and this is an image many people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. (Coca-Cola Case Study)

One of the company's greatest strengths is its brand name and this plays a crucial role in its marketing strategy and marketing "mix." The Coca-Cola brand and logo are recognized internationally and are "Enjoyed more than 685 million times a day around the world… Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment" (Case Study Coca Cola strategy. Strategies for Americas, Asia and Africa).

In other words, the company's brand name and the images, values and ethos projected, are perceived via advertizing and the media. This forms an essential part of the company's marketing strategy. As Mittal et al. ( 2008) state, "Brand is defined as a name, term, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors" (Mittal et al. 2008). In this regard the Coca-Cola brand very clearly identifies specific emotional, symbolic, cultural and other aspects of the products of the company.

Another company in the beverage industry is Pepsi. Like Coca-Cola, Pepsi is a brand name that projects certain values and perceptions as part of its marketing campaign and strategy. Their brand name is also included in the overall marketing campaigns that include aspects such as targeting certain demographics and identifying various cultural and social desires and trends. Both Coca-Cola and Pepsi will be discussed and compared in terms of their branding and marketing objectives and achievements.

The Coca-Cola Brand and Marketing Strategy

Coca Cola is the world's largest beverage company and with the most widespread distribution. It owns over 400 brands internationally. These include diet, light beverages, water, juices, energy and sports drinks. The company operates in more than 200 countries (THE COCA-COLA COMPANY ENGAGES IN MORE THAN 50 COUNTRIES TO "TURN OUT" SUPPORT FOR EARTH HOUR ).

The Coca-Cola Company had very small beginnings as a one-man business begun by Dr. John Perberton, a pharmacist from Atlanta. His mixture of lime, cinnamon, coca leaves and seeds from certain Brazilian shrubs originated in the beverage that we know as Coca-Cola (Yogi). The extent of the growth of the product and the recognition of the brand name can be seen in the fact that in the 1970s, '…more than half Coca-Cola sold was outside of the U.S.… " (Mittal et al. 2008). The company also outsells its closest competitor by more than two to one" ( Mittal et al. 2008).

It has arguably the best known brand name of any product marketed today. As one report on the marketing of the product notes; "One in every two cola and one in every three soft drinks is a Coca-Cola product. The best-known trademark in the world is sold in about one hundred and forty countries to 5.8 billion people in eighty different languages" (Mittal et al. 2008).

This ubiquitous brand name has become more than a product indicator but has become assimilated into contemporary culture; as can be seen in the way that it has been adopted in modern art and design. It has become symbolic of certain values, such as 'zest for life' and modernity as part of the mystique of the branding. The brand name is the 'promise' of aspects of the product that form an important part of the overall 'marketing-mix' of the company. This includes its promoted link to concepts such as "well-being" and "health" (Business PROFILE).

In the past the company and the brand have had to face many marketing challenges as a result of competition and changing social trends and conditions. However, the brand has been able to retain its basic meaning and promise; "The Company remained focus on the basic promise of Coca-Cola, which has not only endured, but also indeed carried Coke. Coca-Cola has been Coke's consistent theme throughout the 115-year history" (Mittal et al. 2008).

A central facet to their marketing strategy which has been largely responsible for the continued dominance of the Coca-Cola brand is the company's bottling and distribution system. This allowed the company to export and make their brand name known internationally. At the same time they also succeeded in maintaining a local approach to the demographic or market in which the distribution points are situated -- which in turn has allowed for greater inclusiveness and flexibility in their advertizing and marketing. This has been achieved by the fact that,

The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. Because Coke does not have outright ownership of its bottling network, its main source of revenue is the sale of concentrate to its bottlers. (Coca-Cola Case Study)

This refers to the fact that while in the past the entire world was seen as a single market place for the products, now "…the trend is changing and different marketing campaigns are being designed for different regions of the world" (Coca Cola 78 ). This strategy provides the opportunity to service large geographical and diverse areas (Coca Cola 78). In short, through the uniqueness and persistence of its brand has developed a mystique around the products; "For Coke, the real formula for success is the product's "brand equity," developed over the last century (Yogi).

An illustration of the importance of brand name and how it is linked to marketing in the various demographics is the following. When Coca-Cola was introduced to China in 1920, the name was similar or the Chinese "kou-kekou-la" which means "a thirsty mouth and a mouth of candle wax" (Mittal et al. 2008). Therefore, the phonetic translation of the brand was changed to "ke-kou-ke-le" which means "a joyful taste and happiness," which succeeded in attracting customers (Mittal et al. 2008).

Conclusion

The Importance of branding is supported by modern science. This refers to the view that the "… preference for Coke vs. Pepsi is not only a matter for the tongue to decide" (Coke vs. Pepsi: It's all in the head). In other words, choosing one brand over another has a lot to do with the perception of what one is drinking, as well as taste. Preference also has been found to be linked to "…memory-related brain regions that recall cultural influences" ( Coke vs. Pepsi: It's all in the head). This means that brand images and their associations affect perceptions and preferences for the product. Choices are affected by perception because "there are visual images and marketing messages that have insinuated themselves into the nervous systems of humans that consume the drinks" (Coke vs. Pepsi: It's all in the head).

In terms of brand image, the Coca-Cola brand tends to dominate the international beverage market. However, there is conjecture about its overall position in relation to Pepsi. One of the reasons for Coca-Cola's apparent advantage over Pepsi is that it has a longer history and therefore that its image and brand is more ensconced in the culture and mind of the consumer. It has also achieved a dominating position as a result of its flexible and effective distribution and marketing system. "Coca-Cola's bottling system is one of their greatest strengths. It allows them to conduct business on a global scale while at the same time maintain a local approach" ( SWOT n Pest Analysis of Nestle and Coca Cola). Pepsi on the other hand has shown a tendency in branding and marketing to engage the younger sector of the consumer market.

Both these market leaders however have to continually be aware of challenges and threats to their brand dominance. Among these is the threat of substitutes that could put pressure on their market share. More significantly, changes in consumer consciousness pose continual challenges to these companies. "Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage market, the changing health-consciousness of the market could have a serious affect" (Coca-Cola Case Study). Health trends or a number of other variables are apects that both Pepsi and Coca- Cola have to be continually aware of.