This minor case write-up is to analyze the marketing strategies involved in the battlefields between Coke and Pepsi on their CSD and non-CSD products in US and international markets. It focuses on the change of marketing strategies used by the two companies in different competition scenarios, as well as the comparison of Coke’s marketing FTP (Segmentation, Target Market and Positioning) and the marketing mix with those of Pepsi’s. The core objective is to evaluate influence of the marketing strategies to their market shares.

The CSD industry experienced a vast growth during the 1970s to the middle of 20th century due to the continuous increase in cola assumptions of American people. The two big players of the industry, Coke and Pepsi, have dominated the markets by claiming a combined 76% market share. They are recognized by consumers as the top two brands in the beverage market.

The challenges to the two rivals come from the shrinking consumption of OSD and the slowed-down of worldwide shipment for both Coke and Pepsi. The cola war will spread into the non-carbonated beverages and the emerging international market.

6. Pepsi led Coke in wide margin in the share of non-CSD sales. Experience in the snack food and restaurant businesses contributed the success of managing the new non-CSD products.

In the following cola wars, both Coke and Pepsi have targeted all the consumers, but put more efforts to attract young generations who are likely big cola drinkers. Changes in segmentation strategies also include serving non-cola drinkers with regard to developing multi-brand portfolio. Besides domestic market, potential, approaching consumers such as foreign consumers, have also been targeted by the two cola giants. Relevant positioning processes of channel services, branch offices have been establish to boost those markets.

Some topics in this essay:
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