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V/S
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Marketing Mix
Marketing Mix is the set of marketing tools that the firm uses to
pursue its marketing objectives. Marketing mix has a classification
for these marketing tools. These marketing are classified and called
as the Four Ps i.e. Product, Price, Place and Promotion.
The most basic marketing tool is product which includes product
d e s i g n , q u a l i t y, f e a t u r e s , b r a n d i n g , a n d p a c k a g i n g .
A critical marketing tool is price i.e. the amount of money that
customers pay for the product. It also includes discounts,
allowances, credit terms and payment period.
Place is another key marketing mix tool. And it includes various
activities the company undertakes to make the product accessible
a n d a v a i l a b l e t o t h e c u s t o m e r. S o m e f a c t o r s t h a t d e c i d e t h e p l a c e a r e
transport facilities, channels of distribution, coverage area, etc.
Promotion is the fourth marketing mix tool which includes all the
activities that the company undertakes to communicate and promote
its product to target market. Promotion includes sales promotion,
advertising, sales force, public relations, direct marketing, etc.
Product
In marketing, a product is an ything that can be offered to a market
t h a t m i g h t s a t i s f y a w a n t o r n e e d . I t i s o f t w o t y p e s : Ta n g i b l e
( p h y s i c a l ) a n d I n t a n g i b l e ( n o n - p h ys i c a l ) . S i n c e s e r v i c e s h a v e b e e n
at the forefront of all modern marketing strategies, some
intangibility has become essential part of marketing offers. It is
therefore the complete bundle of benefits or satisfactions that
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bu yers perceive they will obtain if they purchase the product. It is
the sum of all physical, ps ychological, symbolic, and service
a t t r i b u t e s , n o t j u s t t h e p h ys i c a l m e r c h a n d i s e . A l l p r o d u c t s o f f e r e d i n
a m a r k e t c a n b e p l a c e d b e t w e e n Ta n g i b l e ( P u r e P r o d u c t ) a n d
Intangible (Pure Service) spectrum.
A product is similar to goods. In accounting, goods are physical
objects that are available in the marketplace. This differentiates
them from a service, which is a non-material product. The term
goods is used primarily by those that wish to abstract from the
details of a given product. As such it is useful in accounting and
economic models. The term product is used primarily by those that
wish to examine the details and richness of a specific market
offering. As such it is useful to marketers, managers, and quality
control specialists.
A service is a non-material or intangible product - such as
p r o f e s s i o n a l c o n s u l t a n c y, s e r v i n g , o r a n e n t e r t a i n m e n t e x p e r i e n c e .
Coke - Product
T h e C o c a - C o l a f o r m u l a i s T h e C o c a - C o l a C o m p a n y' s s e c r e t r e c i p e
for Coca-Cola. As a publicity marketing strategy started by Robert
W. Wo o d r u f f , t h e c o m p a n y p r e s e n t s t h e f o r m u l a a s o n e o f t h e m o s t
closely held trade secrets ever and only a few emplo yees know or
have access to. This Coca-Cola formula appears to be the original
formula to Coca-Cola. It is from the book “For God, Country and
Coca-Cola”.
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The company Coca-cola is a multinational and it is not limited to
one product. Through the years they have invented and introduced
many products than their main cola drinks. The list of Coca-cola
brands are as follows:
1. Appletiser
2. Aquarius
3. BPM Energ y
4. Barq's
5. Beat soda
6. Beverly
7. Cannings
8. Cheers
9. Ciel
10.Coca-Cola Black
C h e r r y Va n i l l a
11 . C o c a - C o l a B l a k
12.Coca-Cola C2
36.Lemon & Paeroa
37.Lift
38.Lift plus
39.Lilt
40.Manzana Lift
41.Mare Rosso
4 2 . M e l l o Ye l l o
43.Mezzo Mix
44.Minute Maid
45.Nestea
46.New Coke
47.Nordic Mist
48.OK Soda
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13.Coca-Cola Cherry
14.Coca-Cola Citra
15.Coca-Cola M5
16.Coca-Cola Zero
17.Coca-Cola
18.Coca-Cola with
Lemon
19.Coca-Cola with Lime
20.Dasani
21.Delaware Punch
22.Diet Coke
23.Fanta
24.Fanta Citrus
25.Fioravanti
26.Fresca
27.Frisco
28.Fruitopia
29.Frutonic
30.Full Throttle
31.Georgia
32.Hi-C
33.Hit
34.Kia-Ora
35.Kinley
49.Pibb Xtra
50.Powerade
51.Qoo
52.Raspberry Coke
53.Relentless
54.Sarsi
55.Senzao
56.Simply Orange
57.Smart
58.Sparkle
59.Sprite
60.Sprite Ice
61.Sprite Remix
62.Sprite Zero
63.Surge
64.Swerve
6 5 . Ta b
6 6 . Ta b C l e a r
6 7 . Ta b E n e r g y
6 8 . Ta b X - Tr a
6 9 . Ti k y
7 0 . Va u l t
Pepsi - Product
The Pepsi-Cola drink contains basic ingredients found in most other
s i m i l a r d r i n k s i n c l u d i n g c a r b o n a t e d w a t e r, h i g h f r u c t o s e c o r n s y r u p ,
s u g a r, c o l o r i n g s , p h o s p h o r i c a c i d , c a f f e i n e , c i t r i c a c i d a n d n a t u r a l
flavors. The caffeine free Pepsi-Cola contains the same ingredients
but no caffeine.
Some of the different and varied brands of Pepsi are as follows:
1.
2.
3.
4.
5.
All Sport
Aquafina
Caffeine-Free Pepsi
Crystal Pepsi
Diet Pepsi
18.Pepsi
19.Pepsi
20.Pepsi
21.Pepsi
22.Pepsi
Blue
Cappuccino
Max
ONE
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6. Gatorade
7. Izze
8. Jazz
9. Josta
10.Kas
11 . M a n z a n i t a S o l
12.Mirinda
13.Mountain Dew
14.Mountain Dew AMP
1 5 . M o u n t a i n D e w L i v e Wi r e
16.Mountain Dew MDX
17.Mug Root Beer
23.Pepsi Samba
2 4 . P e p s i Ta r i k
2 5 . P e p s i Tw i s t
2 6 . P r o p e l F i t n e s s Wa t e r
27.Sierra Mist
28.Slice
29.SoBe
30.Storm
3 1 . Te e m
3 2 . Tr o p i c a n a P r o d u c t s
3 3 . Tr o p i c a n a Tw i s t e r
Coke v/s Pepsi-Product
As seen above both the companies Coke and Pepsi have a number of
products. Many of these products are innovations but there are also
many products which are brought out just as a competitive product
for the other companies. Some of these products that are brought in
the market by both the companies to compete against each other are
as follows:
Coke
Pepsi
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The main dark cola drink of the company
which started the rivalry between these
companies.
Pepsi version of dark cola which is the
major primary competitor to Coke.
Full Throttle is an energ y drink
brand produced by The CocaC o l a C o m p a n y. I t d e b u t e d i n l a t e
2004 in North America.
AMP is an energy drink produced
and distributed by PepsiCo under
the Mountain Dew soft drink
brand.
Va u l t i s a c a r b o n a t e d b e v e r a g e
that was released by The CocaCola Company in June 2005.
Mountain Dew MDX is an energ y
drink manufactured and
distributed by PepsiCo under the
Mountain Dew brand. It was
introduced in 2005.
Powerade is a sports drink by
The Coca-Cola Company and
currently number two in the
sports drink market worldwide.
Gatorade is a non-carbonated
sports drink marketed by Quaker
O a t s C o m p a n y, a d i v i s i o n o f
PepsiCo. Originally made for
athletes, it is now often
consumed as a snack beverage.
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S p r i t e i s a c l e a r, l e m o n - l i m e
flavored, non-caffeinated soft
drink, produced by the Coca-Cola
C o m p a n y. I t w a s i n t r o d u c e d t o
the United States in 1961.
Minute Maid is a product line of
beverages, usually associated
with orange juice, but now
extends to soft drinks of many
kinds. The Minute Maid company
is now owned by Coca-Cola, and
is the world's largest marketer of
fruit juices and drinks. It is
h e a d q u a r t e r e d i n H o u s t o n , Te x a s .
Nestea is a brand of iced tea
manufactured and distributed by
t h e N e s t l e c o m p a n y' s b e v e r a g e
department in the United States,
and by Coca-Cola in several
European countries, Brazil and
Ve n e z u e l a .
7 Up is a brand of a lemon-lime flavored
soft drink.
Tr o p i c a n a P r o d u c t s i s a n
American company based in
Bradenton, Florida, USA, which
is one of the world's largest
producers and marketers of
orange juice. It has been owned
by PepsiCo, Inc. since 1998.
L i p t o n O r i g i n a l I c e d Te a i s a
read y-to-drink iced tea brand
sold by Lipton through a
worldwide partnership with
Pepsi.
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Barq's is a brand of root beer
notable for being the only major
North American root beer to
contain caffeine. It has been
bottled since the start of the 20th
century and is currently sold by
t h e C o c a - C o l a C o m p a n y.
Mug Root Beer is a brand name of root
beer made by the Pepsi company.
Diet Coke or Diet Coca-Cola is a
Diet Pepsi is a low-calorie
sugar-free soft drink produced
carbonated cola. It was
and distributed by The Coca-Cola introduced in 1964 as a variant of
C o m p a n y. I t w a s i n t r o d u c e d i n
P e p s i - C o l a w i t h n o s u g a r.
the United States in July 1982.
Kinley is a brand of still or
carbonated water owned by The
C o c a - C o l a C o m p a n y.
Aquafina is a non-carbonated bottled water
produced by PepsiCo.
Aquarius is a mineral sports
drink manufactured by The CocaC o l a C o m p a n y. I t w a s f i r s t
All Sport was a sports drink. It is
produced by PepsiCo.
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introduced in 1983.
Fanta is a soft drink brand owned
b y T h e C o c a - C o l a C o m p a n y. I t i s
produced and distributed by The
Coca-Cola Company's bottlers.
Mirinda is a brand of soft drink.
Mirinda is owned by PepsiCo.
Sprite Ice was the first flavor
extension for The Coca-Cola
Compan y's Sprite brand soft
drink.
Pepsi Blue is a soft drink made by PepsiCo
and launched in mid-2002.
Coca-Cola Blak is a coffeeflavoured soft drink introduced
by Coca-Cola in 2006.
Pepsi Cappuccino is a
cappuccino-flavored carbonated
soft drink produced by Pepsico.
Maaza is a Coca-Cola fruit drink
brand marketed in India and
Bangladesh.
Slice is a line of fruit-flavored
soft drinks manufactured by
PepsiCo and introduced in 1984.
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Limca is a lemon and lime
flavoured carbonated soft drink
made in India by Coca-cola.
Te e m w a s a l e m o n - l i m e - f l a v o r e d
soft drink produced by The
P e p s i - C o l a C o m p a n y.
Price
In economics and business, the price is the assigned numerical
monetary value of a good, service or asset.
Price is also central to marketing where it is one of the four
variables in the marketing mix that business people use to develop a
marketing plan.
Pricing is a big part of the marketing mix. Choosing the right
price and the right pricing strategy is crucial to the marketing
process.
The price of the product is not something that is fixed. On the
other hand the price of the product depends on many other factors.
Some times the price of the product has got nothing to do with the
actual product itself. The price may act as a way to attract target
customers.
The price of the product is decided keeping many things in mind.
These things include factors like cost incurred on the product, target
market, competitors, consumer bu ying capacity etc.
Coke - Price
Coke was a company ruling the markets before Pepsi entered.
Earlier the price of coke was cost based i.e. it was decided on the
cost which was spent on making the product plus the profit and other
expenses.
But after the emergence of other companies especially the likes
of Pepsi, Coca-cola started with a pricing strategy based on the
b a s i s o f c o m p e t i t i o n . N o w a d a ys m o r e e x p e n s e s a r e s p e n t o n
advertising my soft-drink companies rather than
on manufacturing.
Coke has brought in a revolution especially in
Indian markets with the Rs. 5 pricing strategy
which was very famous. It was the first company
to introduce the small bottle of Coke for just
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Re.5. This campaign was very successful especially with the price
conscious Indian consumers.
Even today most prices of Coke are decided on the basis of the
competition in the market.
Pepsi – Price
Pepsi again decides it price on the basis of competition. The best
think about the company Pepsi is that it is very flexible and it can
c o m e d o w n w i t h t h e p r i c e v e r y q u i c k l y. T h e c o m p a n y i s r e n o w n e d t o
bring the price down even up to half if needed.
But this risk taking attitude has also earned Pepsi losses. Though
lowering the price would attract the customers but it would not help
them cover up the cost incurred in production hence causing them
losses.
This was the situation earlier but now Pepsi is a full-fledged and
g r o w i n g c o m p a n y. I t h a s c o v e r e d a l l i t s l o s s e s a n d i s n o w g r o w i n g a t
a rapid rate.
Place
Place is a term that has a variety of meanings in a dictionary sense,
but which is principally used in a geographic sense as a noun to
denote location, though in a sense of a location identified with that
which is located there.
In marketing, place refers to one of the 4 P's, defined as "the market
p l a c e " . I t c a n m e a n a g e o g r a p h i c l o c a t i o n , a n i n d u s t r y, a g r o u p o f
people (a segment) to whom a company wants to sell its products or
services, such as young professional women (e.g. for selling
cosmetics) or middle-aged family men (e.g. for selling family cars).
Coke - Place
Coke is a multinational company and it has its market around the
entire world. This can be said just by the first page on its site which
asks people to select the place of their choice. The website looks
something like this:
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Pepsi – Place
Pepsi again has spread worldwide. Pepsi when entering a new
market does not go in alone but it looks for partners and mergers.
Ti l l n o w P e p s i h a s c o l l a b o r a t e d w i t h c o m p a n i e s l i k e Q u a k e r O a t s ,
Frito-lays, Lipton, Starbucks, etc.
Pepsi like Coke has spread all over the world. It is because of
this worldwide spread that now it is coming up with Advertisements
which can be broadcasted in the different nations in the world. The
recent example with would be the Pepsi advertisements having David
B e c k h a m a s i t b r a n d a m b a s s a d o r.
Promotion
Promotion is one of the four aspects of marketing. Promotion
comprises four subcategories:
1. Advertising
2. Personal selling
3. Sales promotion
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4. Publicity and public relations
The specification of these four variables creates a promotional
mix or promotional plan. A promotional mix specifies how much
attention to pay to each of the four subcategories, and how much
money to budget for each. A promotional plan can have a wide range
of objectives, including: sales increases, new product acceptance,
c r e a t i o n o f b r a n d e q u i t y, p o s i t i o n i n g , c o m p e t i t i v e r e t a l i a t i o n s , o r
creation of a corporate image.
Both the companies Pepsi and coke are famous for their
promotions. The rivalry was first started when Pepsi started with its
blind taste tests known as the Pepsi Challenge. The challenge is
designed to be a direct response to critics who allege that Coca-Cola
and Pepsi-Cola are identical drinks, with no meaningful differences.
The challenge takes the form of a taste test. At malls, shopping
centers and other public locations, a Pepsi representative sets up a
table with two blank cups, one containing Pepsi and one with Coke.
Shoppers are encouraged to taste both colas, and then select which
d r i n k t h e y p r e f e r. T h e n t h e r e p r e s e n t a t i v e r e v e a l s t h e t w o b o t t l e s s o
the taster can see whether they preferred Coke or Pepsi. If Pepsi is
revealed, the shopper is given a small prize. The implication is that
Pepsi tastes better than Coke, and thus consumers should purchase
Pepsi.
In blind taste tests, more consumers prefer the taste of Pepsi to
t h a t o f C o c a - C o l a . B e c a u s e C o k e w a s t h e h i s t o r i c a l l e a d e r, m o r e
people expected that they'd prefer and select Coke. Their surprise at
picking Pepsi in the blind taste test (products were served in
unmarked cups) helped change their minds about which product they
p r e f e r. C a p t u r i n g t h i s o n f i l m , P e p s i t u r n e d t h i s i n t o a m e m o r a b l e
TV campaign that lasted man y years.
Also ad-campaigns are put up on the television by both the
players. The following statistic just tells of much of share of ads on
TV are captured by these players.
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Infact in the next graph you can see how man y programs are
sponsored by cola companies and the leader among them is Pepsi.
Mainly Pepsi is the company sponsoring most cricket telecasts
happening in India and spends most of its revenue in that field.
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Nowadays both Coke and Pepsi are going in for Brand Ambassadors
to promote their product. These brand ambassadors are famous
people who usually people idolize and people can relate to them.
The following pictures do not need any explanation as people are
familiar with the celebrities and can thus quickly identify with the
product.
A list of Celebrities that are brand ambassadors for the cola
companies are as follows. These celebrities are not only asked to
work in the advertisements but they also have to use the product
promoted by them and they should not use the companies rivals
proucts.
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