Building Brand Architecture: Coca Cola vs. Pepsi Introduction This report builds and examines the brand architecture of two brands –Coca Cola and Pepsi- in the beverage market. The reason behind choosing these two brands is that both are soda drinks, they compete in very similar markets but yet have very different brand personalities. Pepsi has been a market leader in Pakistan for years until Coca Cola entered Pakistani market. Both brands are among the most valuable brands in the beverage industry all-round the global market, and this report will bring out the stark differences in the brand architectures of these brands. The goal is to observe how consumers can have vastly different perceptions of and relationships with very similar products owing to the differences in brand architectures. Brand Architecture The first step is to develop brand pyramids for both brands. Brand Architecture for Coca Cola Brand Core/Essence: Joy, Relationship Brand Personality: Legend, Leader, Reliable Emotional Benefits: Love, Happiness, Celebration, Sharing and Caring, Leading Product Benefits: Top Class, Classic, Refreshment, Energy, Fun Product Attirbutes: Soft Drink, Unique and Balanced Flavor, Fizziness, Iconic Bottle Shape, Variety, Brand Architecture for Pepsi Brand Core/Essence: Urban Lifestyle, Modernism Brand Personality: Fun, Friendly, Youthful, Free-spirit Emotional Benefits: Love, Happiness, Celebration, Enjoyment Product Benefits: Thirst Quenching, Refreshment, Energy, Fun Product Attirbutes: Soft Drink, Unique Flavor, Fizziness, Color Page 1 of 2 Brand Comparison Coca-Cola Co. and Pepsi Co, Inc. are very similar businesses in terms of industry, ideal consumers, and flagship products. Both Coca-Cola and PepsiCo are global leaders in the beverage industry, offering consumers hundreds of beverage brands. In addition, both companies offer ancillary products such as consumer packaged goods. Both brands compete in very similar markets and both brands put a high value on product quality. However, the differences in the brand personalities appeal to very different target audiences in the same market. Pepsi Co is a company known for a highly diversified product portfolio, both within the beverage industry and in other industries such as the consumer-packaged goods industry. In contrast, Coca-Cola only focuses on a diversified product portfolio within the beverage industry and has few products outside of that industry. This means PepsiCo's products in the snack food category account for more than 50% of its business revenue, while a majority of Coca-Cola's revenue comes directly from the 100-plus beverage products it owns. Coca Cola prides itself for being the soft drink which brings friends and families under one roof. On the other hand, Pepsi attracts the audience who love music, are fun-loving free spirits. In Pakistan, Coca Cola targets the top end and middle-class of the market, and its customers are not usually price sensitive. Pepsi’s customers are generally more likely to be price sensitive. Due to differences in pricing, Coca Cola’s products are high margin products. On the other hand, Pepsi relies more the sales volume. Thus, both brands serve the company’s goal of revenue share through two different drivers. Brand Value Coca-Cola heads the brand valuation game, ranking number 6 compared to 29 for Pepsi on Forbes World's Most Valuable brands in 2019. Coca-Cola also enjoys a higher market capitalization on the stock exchange, with $204.87 billion value versus $159 billion for PepsiCo. According to Interbrand 2019 ranking, Coca Cola was ranked as 6 with brand value of 63,365 $m whereas Pepsi’s ranking was 24 and it had a brand value of 20,488 $m. These rankings do not resemble the Brand asset valuator in that they do provide a dollar value, and rather rate brands on various other parameters such as innovation, customer reviews etc. Sources Consulted https://www.interbrand.com/best-brands/best-global-brands/2019/ranking/cocacola/ https://www.interbrand.com/best-brands/best-global-brands/2019/ranking/pepsi/ https://www.investopedia.com/articles/markets/081415/comparing-cocacola-and-pepsis-businessmodels.asp https://www.cms-connected.com/News-Archive/February-2019/Coke-vs-Pepsi-Who-Wins-on-Social Page 2 of 2