Advertising strategies with their competitive reactions of coca cola and Pepsi

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.