Principle of Marketing

Marketing Mix Report

Submitted by
Kumail Abbas
Submitted to
Dr. Shahid Yaqub

Roll No
S23BMRKT1M036

BS Digital Marketing

Department of Marketing
Institute of business management Administrative Sciences
Dedication:

I would like to dedicate this project on the marketing mix of Coca-Cola and its competitor, Pepsi,
to my respected teacher, Mr. Shahid Yaqub. His guidance, expertise, and unwavering support
have been instrumental in shaping my understanding of marketing concepts and strategies.

Mr. Yaqub, your passion for teaching and commitment to our growth as students have inspired
us to push our boundaries and strive for excellence. Your insightful feedback and valuable
suggestions have helped me develop a deeper understanding of the marketing mix and its
application in real-world scenarios.

I am truly grateful for your unwavering dedication, patience, and encouragement throughout
this project. Your enthusiasm for sharing your knowledge and expertise has made the learning
process engaging and enjoyable. This project is a testament to the impact you have had on my
education.

Thank you, Mr. Shahid Yaqub, for being an exceptional teacher and mentor. Your guidance has
been invaluable, and I am honored to dedicate this project to you as a token of my appreciation
and gratitude.

Sincerely,
Kumail Abbas
Executive Summary:

This report provides an analysis of Coca-Cola, one of the leading beverage companies globally,
and its competitor, Pepsi. It includes an overview of the company and its offerings, followed by
an environmental analysis using tools such as SWOT, PESTEL, Value Chain, and Industry Analysis.
The report also discusses the STDP (Segmentation, Target Marketing, Differentiation, and
Positioning) decisions of Coca-Cola and Pepsi, highlighting their strategies in these areas.

Main Body of Project:

Introduction:
Coca-Cola is a renowned multinational company that offers a
diverse range of non-alcoholic beverages. The company was
founded in 1886 and has since become an iconic brand globally.
Coca-Cola's flagship product, also known as Coca-Cola, is a
carbonated soft drink that has gained immense popularity and
brand recognition. PepsiCo, on the other hand, is another major
player in the beverage industry, known for its Pepsi-Cola brand and
a wide range of snack and beverage products.

Environmental Analysis:

SWOT Analysis:
Coca-Cola:

• Strengths: Strong global presence, well-established brand image, extensive distribution

network.
• Weaknesses: Increasing competition, and concerns over the health effects of sugary
beverages.
• Opportunities: Growing demand for healthier beverage options, and expansion into
emerging markets.
• Threats: Changing consumer preferences, and stricter regulations on sugary drinks.
Pepsi:

• Strengths: Strong brand portfolio, diversified product offerings, global presence.

• Weaknesses: Competition from Coca-Cola, and health concerns related to sugary beverages.
• Opportunities: Expanding into healthier beverage options, tapping into the snack food
market.
• Threats: Changing consumer preferences, increasing health consciousness.

PESTEL Analysis:
Both Coca-Cola and Pepsi operate in markets influenced by political, economic, sociocultural,
technological, environmental, and legal factors. These include factors like government
regulations, economic stability, cultural shifts, technological advancements, environmental
sustainability, and health concerns.

Value Chain Analysis:

Both companies have a value chain that includes procurement of raw materials, manufacturing,
distribution, marketing, and customer service. Each step adds value to their respective products.

Industry Analysis:
The beverage industry is highly competitive, with Coca-Cola and Pepsi being key players. The
industry is characterized by changing consumer preferences, technological advancements, and
intense marketing efforts.

Detailed Discussion on STDP:

Segmentation:
Coca-Cola:

• Targets a wide range of consumers, including teenagers, young adults, and families.
• Segments are based on psychographic and behavioral factors, such as lifestyle, values, and
consumption patterns.
Pepsi:

• Also targets a diverse consumer base, with a focus on younger consumers.

• Segments based on lifestyle, interests, and social trends.

Target Marketing:
Coca-Cola:

• Focuses on building emotional connections and a positive brand image.

• Tailors marketing campaigns to specific segments, such as sports enthusiasts, music lovers,
and social gatherings.
Pepsi:

• Emphasizes its association with pop culture, music, and sports.

• Target younger consumers through celebrity endorsements and partnerships.
Differentiation:
Coca-Cola:

• Differentiates itself through its unique taste, brand image, and emotional appeal.
• Emphasizes its rich history and tradition to create a distinctive identity.
Pepsi:

• Positions itself as a youthful and energetic brand, with a focus on fun and excitement.
• Differentiates through taste and associations.

Positioning:
• Coca-Cola positions itself as a timeless and refreshing beverage that brings people together.
Pepsi positions itself as a youthful and energetic brand that embodies the spirit of the
younger generation.

Four Ps of Marketing:
Product:
• Coca-Cola addresses the need for a refreshing and flavorful beverage.
• Its product line includes various carbonated and non-carbonated soft drinks, juices, and
bottled water.
• Coca-Cola is currently in the maturity stage of the product life cycle, characterized by steady
sales and market saturation.
• The company employs brand extension strategies by introducing new flavors and variants
under the Coca-Cola brand.
• Coca-Cola's branding strategies also include co-branding with partners for promotional
campaigns and limited editions.

Placement:
• Coca-Cola products are prominently displayed in supermarkets, convenience stores,
restaurants, and vending machines.
• The placement on shelves and coolers indicates the company's focus on high visibility and
accessibility for consumers.

Pricing:
• Coca-Cola uses various pricing strategies such as value-based pricing and price
discrimination.
• The company offers different packaging sizes and price points to cater to different consumer
segments.
Promotion:
• Coca-Cola employs extensive marketing and advertising campaigns through various
channels, including television, print media, digital platforms, and social media.
• The company utilizes celebrity endorsements, sponsorships of sports events, and creative
advertising to enhance brand visibility and create emotional connections with consumers.

Other Factors:
• Coca-Cola has a well-established and efficient distribution system, ensuring its products are
available in a wide range of locations.
• The company focuses on sustainability initiatives, including recyclable packaging and water
stewardship.

Conclusion and Recommendation:

Coca-Cola has successfully utilized the four Ps of marketing to ensure the success of its product.
The company has built a strong brand image, differentiated its product through taste and
emotional appeal, positioned itself as a refreshing beverage, and implemented effective pricing
and promotional strategies. However, the company should continue to monitor changing
consumer preferences, invest in product innovation, and explore healthier beverage options to
stay competitive in the evolving market.