It is a fierce competition between Coca-Cola and PepsiCo. Most importantly, both companies are leading food and beverages industries and market cap with competition still going on. Thus, it is urgent to learn both companies’ tight strategies in winning the market. Continuing from part one, PepsiCo owns a consumer driven pricing strategy. In this scenario, Pepsi serves a lot of bottle sizes with various pricing rates based on the area demands.
The example is in the Doritos and Tostitos. Doritos is more famous globally. So, certain products would have different prices based on their popularity. This is actually a bit similar to Coca-Cola. PepsiCo price refers to the targeted consumer demographics. The company designs a range of prices based on the customer group in particular areas.
Coca-Cola however, is a pure beverage company with over 200 brands of drinks. Although Coca-Cola also has global market groups, it is not similar with Pepsi. Unlike Pepsi, Coca-Cola does not diversify its food, snack and beverage industries. The company pours its attention to the kingdom of drinks. Therefore, its product lines cover soda, water, tea, juices, and other drinks.
To be precise, the company divides its product into non-carbonated and carbonated beverages.
Its sparkling beverages only represented 63% of the company’s bottle sales. Then, Coca-Cola has four divisions to operate internationally. They are in North America, Europe, Latina America, and Asia Pacific. The company creates a global ventures to scale its brands. This is different from Pepsi who scale from the geographical divisions not the global ventures.
The pricing strategy of Coca-Cola is more like meeting the competition pricing. It researches the competitors’ pricing then strives for its own price. This scenario allows the company to improve all economic elements as well as price is highly comparable. Based on the 2021 study, consumers argue that the taste of Coca-Cola is better than Pepsi.