Coke and Pepsi Part 2/2
Topics to discuss
·
Demand
and Availability
·
Self-Improvement
·
Preservation
of the Original
Demand and Availability
For a product to be successful,
it must make profit, and one of the ways that it can do that is through its
distribution system, where is creates a demand though advertisements and
therefore a need to create more supply. This is true for both Coles and Pepsi.
However as these two competing brands have been incorporated into the fast food
franchises and are advertised as the drink to go with this company’s product, then
they need to compete in a different way, namely not both being available at
once.
Both companies sign a supply
contract with the individual companies they supply to and they are not ever in
the same place. KFC for example stock Pepsi while Hungry Jacks will only stock
Coke. This then causes a limitation of availability and puts forth the idea to
choose this food place to eat because they carry Pepsi instead of Coke.
Self-Improvement
Both Coke and Pepsi have tried to do two things with their
product. Firstly they try to put out a good product that pleases people in both
athletics and taste and secondly they then take feedback and create versions to
please everyone. It is this second point that has really made these brands
successful internationally. As not only do they have a great product but they
modify themselves to fix issues people have which not only earns them respect
but also opens them up to new audiences by appealing to different groups.
They both do this with their different ranges of the same
product. Coke has Regular which is identified as a red background with
white writing. They then made one with the sugar taken out called Zero.
This then appeals to the health conscious and parents who are heath conscious for
children.
They then also have Diet which has removed the caffeine,
meaning that people can enjoy the same great taste but may not be able to
tolerate the caffeine now don’t have to. Pepsi have their own similar different
versions, Regular Pepsi, Pepsi Max which has no sugar and
Pepsi next which has less sugar as a in between option. All these options have
been very successful and contributed to their success.
Finally both companies have come into the news recently over
the new line in both products that use stevia instead of sugar as a sweetener
and as an alternative to chemical sweeteners. This product is known as Coke
Life and features a green label in both the coke brand and the Pepsi brand
which helps to identify it as a stevia product. This change will appeal to the
health conscious, those aware of the dangers of fake chemicals and also those
who wish to lose weight as they have significantly less of an impact on the
human body.
Here is a coke life video that illustrates people’s
reactions to it interms of concept and taste. It highlights how people are very
attached to this product and how they react to the change. This type of
advertisement featured (interviews) is one very key way of advertising a new
product or line.
Preservation of the original
This last point is very important. As a brand both Coke and
Pepsi are very simple, the shape of the bottle, the plain coloured background,
because what they are selling is the product. It is extremely popular. It is a
drink, they want to sell its refreshes and its ability to go with most foods
and give energy. Therefore talking about the good things about this product is
key. The great taste and unchanged recipe have only fuelled its successes.
Web links-
image from- http://economicstudents.com/2012/10/coca-cola-vs-pepsi-the-economics-behind-cokes-dominance/
Post by Alissa
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