Abstract:
Pepsi Co.’s flagship brand, Pepsi and its key competitor Coca Cola are the world’s leading
cola drink brands, competing neck to neck for market share in every country and territory.
Despite its acclaimed worldwide leadership, Coca-Cola holds a second place to Pepsi in
Pakistan. The consumers in Pakistan rely on a number of conventional and non-conventional
drinks, and with their introduction, Coke and Pepsi have created a special position in their
lives. These drinks are now used for refreshment, serving guests or to accompany food.
A country with a population of more than 165 million people, Pakistan presents an important
market for securing future growth in the companies’ success. This research aimed to describe
the advertising strategies of Coca-Cola and Pepsi with a view towards their competitive
reactions. In order to achieve this objective, primary data was collected through in-depth
interviews with members of the senior management of Pepsi and Coca-Cola. Additionally,
100 consumer questionnaires were administered to people for consumer feedback. These
findings were supplemented with secondary data complied through academic research that
sought to lay out the theoretical framework for the expected behavior in such a situation.
The findings revealed that Pepsi as market leader looks to expand its long term growth by
pursuing heavy growth in its brand equity. Consequently, its brand presences and prevalence
is widespread. In reaction Coca-Cola has adopted a differentiated advertising strategy to
increase its own share within a market growing in size.
