Coca-Cola Vs Pepsi: Business Model & Marketing Strategies

This post may contain affiliate links and I may receive a small commission if you make a purchase using these links – at no extra cost for you. Please read my disclaimer here.

Do you know how Pepsi and Coca-Cola are considered among the best companies globally? Well, they have some similarities and differences that define them and how they earn.

You can take some points from their marketing strategies and business models to improve yours. So, why not explore how they are the leaders of one of the biggest industries in the world, beverages, and food!  

Coca-Cola Vs. Pepsi Business Model Marketing Strategies

So, we will talk about some of the top marketing strategies they love to adhere to and innovate in. We will start with what a business model is.

Then, go to what kind of challenges, campaigns, and business methods they use. At the same time, we will discover their slogans, distribution and marketing channels, methods, plus much more. 

Pepsi business model

PepsiCo is one of the biggest beverage and food companies globally and has multiple products.

Pepsi business model

The strength of the business model is hidden in producing products that can be consumed on the go. This thing makes them one of the best ready-made food product sellers globally.  

They have great advantages when looking to expand and work well in this department. The thing is that they control their distribution well, and it helps them get the right results.  

The experts believe that as they have complete control over the production and distribution section, they do not need anyone's help. At the same time, they control their marketing campaigns, which improves their overall performance.  

Although people know the company as a producer, it also has the right to distribute other products.

They have the right to distribute several products that other companies make. The fact is that they have one of the best distribution networks globally, which gives them an advantage.

Business divisions

The company's business divisions are among the most important parts of the model it has. The company tells that there are 7 different divisions of its structure.

These different divisions cover different world areas like North America and the Middle East.

Other divisions include Australia, Greater China, and Latin America, divisions. At the same time, it has a division named Quaker oats North America that also sells products abroad.

It is one of the leading brands in the oats division and has several other products. 

Social impact and branding

The impact of the company on the lives of commoners has been huge globally. Their efforts and special slogans have made a huge difference in positive and negative ways.

Although many people consider soft drinks the worst food, people still use them worldwide. At the same time, it offers financial support for organizations that work on development programs.

They also try to impact their employees' lives positively by offering long-term growth. Moreover, they try to provide welfare for their employees to improve their lives. 

Investment opportunities 

The company offers investment opportunities and helps people grow globally with it. At the same time, they try their best to address the consumers' concerns.  

Environmental efforts 

The company offers environmental sustainability as a welfare work to different countries. It is working to improve agriculture and other fields in several countries worldwide.  

Marketing and branding

Although Pepsi has worked a lot in the outbound marketing field, it still works for inbound. 

Marketing and branding

It has taken help from several content marketing strategies on social media. They try to capture the international market with the best marketing efforts and better branding. 

For this purpose, they have used social media like Instagram and Facebook. These social media have a lot to offer and can help you maintain the right results. These media can help you better if you try growth services.

Instagram campaigns 

The company has worked well to get its content to Instagram, and it shows in its efforts. Their Instagram has several amazing pieces of content using several different marketing methods.

Their Instagram has some of the top content globally, and they use it for a real boost. They have some of their best-ever marketing efforts online, which shows their commitment.

Some companies may not need such services, but bigger brands can use them for better results. All they do is get Instagram followers and use them for credibility. 

Products 

PepsiCo has one of the biggest food products providers when it comes to ready-made food.

They have products like Pepsi cola, Lay's, Mountain Dew, and Doritos. This diversity of products makes them one of the most diversified companies in the world

Their business model depends on food products that are known for their tastes. Although their products may not be considered the best for health, they have marketed them right.

Their business model heavily depends on how they distribute and market their products globally.      

Marketing strategies 

The distribution has really helped the company achieve its marketing goals with the right budget. Some experts believe that Pepsi has a strong parent company, and that is why it gets the right strategies all the time.  

Marketing strategies

Pepsi uses a distribution that involves several channels like e-commerce websites and local stores. The company emphasizes several types of stores, including superstores and smaller ones.  

Use of brands and celebrities

Pepsi has used several brand ambassadors and celebrities for promotion online and in commercials

Some of their top campaigns include the use of famous personalities around the globe. As they have been promoting their product for dozens of years now, they have strong bonds with consumers. 

The primary reason for this bond is the right marketing strategy that always targets the youth. They have used the same marketing strategy in almost all eras they have lived. So, if you are a young person in any country in the world, you would know it.

They use several channels to promote the right way and get maximum people to know about them. The company is no more in the awareness part of marketing; they have gone way beyond that.  

Pepsi slogans 

Pepsi slogans have changed over the years, and they have been great and cool since the beginning. Some of the top slogans you can find from them are "Summer Time is Pepsi time" and "Where there is Pepsi, there is music."

These slogans show how the company expresses what matters to its consumers. They have used these slogans in YouTube and Instagram campaigns, and it works out very well.

Different factors that affect  

Several factors affect the marketing campaigns Pepsi runs, and they matter a lot. Some of these factors are:

  • Socio-economic factors cause a lot of ups and downs in the company's popularity. 
  • One of the most common factors is the use of ingredients that are known for being unhealthy. The use of refined sugar has caused a lot of problems for the company, especially in developed countries.

Coca Cola business model

Coca-Cola has one of the best business models globally and owns 4 out of 5 top beverages in the soft drink sector. They have divided their work into six different geographical sections as they work globally. 

Coca Cola business model

They have a massive distribution system that is similar to PepsiCo in size.  

Distribution network 

The distribution network of the company includes several different methods to work. They use distributors, wholesalers, bottling partners, and other methods.

Statistics tell that people consume around 1.9 billion servings of Coca-Cola every day globally.

They have bottling partners that work to provide around 41 percent of overall sales products for the company. This thing means these partners produce around 41 percent of all Coca-Cola bottles for production.

The company has different types of contracts with these bottle producers. 

Production and ingredients 

There are different ingredients that the company gets from different sources globally. It also gets these ingredients from Chinese and American suppliers. At the same time, they work closely to ensure the supply remains at the right level.

Coca-Cola also gets some of its ingredients from fruits to create the best juices people love to have.

Strategies

When it comes to strategies for operations, the company has some priorities it follows to ensure better results. They try to offer the products that work to provide the best tastes. 

The resources tell that they are also working to improve their revenue growth and to improve the system. They are also working on digitalizing their company and creating social change

Marketing channels it uses

The marketing channels that the company uses are diversified, just like their product portfolio. 

It is said that the company uses several sources for its marketing. For this purpose, some of the tops are print media, social media, and other online commercials

They cover several languages when it comes to marketing their products online. Their activities include creating new hashtags and using music as a source to reach audiences.

Using slogans has been their specialty to create great vibes surrounding their products online and offline. Some of their most famous slogans are "Taste the Feeling," "Real Magic," "Open Happiness," and "Together Tastes Better."

Instagram 

Instagram is one of their top marketing channels for paid and organic marketing online. So, they spend their resources on marketing with the best content for social change.  

Their Instagram profile talks about the people who have brought a real positive change in the world. Coca-Cola has worked well to define itself as a brand that is committed to bringing positive change.  

They also try their best to get more likes on their Instagram profile with the most impressive content. You can also get Instagram likes for your brand from a growth service that promotes brands on social media. 

So, their Instagram channel has several quotations from people who believe in justice and helping others.

At the same time, they try their best to give some funky content to capture the young generation. They try to capture the right market with cool paintings and doodle art on Instagram. 

YouTube 

Just like Pepsi, they have worked hard to use music to make youngsters feel special about their brand. They use several campaigns that feature the top music celebrities of the regions they work in. 

Challenges the company faces

The company has faced several issues and still has some in different sectors. 

One of the biggest challenges of Coca-Cola is that people do not consider it a healthy food choice. The hype in healthcare awareness has led to people thinking that they need healthier alternatives.

This challenge took them to produce new products that people would consider healthier. For instance, they launched products like Coca-Cola sugar-free. They have worked in all major regions to meet the consumption needs of the consumers.  

Some other factors like rules and regulations plus laws of a country affect their explanation.

At the same time, people do have problems when looking to enter a new area of the world. They also face pressure from environmental regulations in different countries. 

Supply chain issues

Supply chain issues are among the top problems they face when producing. Issues like a shortage of bottles and cans may occur due to supply chain issues. There have been several instances in the past in regards to such demand needs. 

Several Coca-Cola products have faced these issues in the past, including diet Coca-Cola.

Coca-Cola vs. Pepsi: business model & marketing strategies - final thoughts  

We talked about two of the biggest companies for beverages and food in the world.

With an analysis of their business model and marketing strategy, we tried to find their strengths. We also talked about their challenges like health consciousness and environmental issues.

These companies are among the best for some reasons that helped them grow this big. For instance, they have amazing management and distribution methods.

They spend their resource and money on great advertisement and marketing on all major channels.

From Instagram to YouTube, they have all channels involved in their campaigns. And they would come up with the most impressive campaigns and slogans.

Both of them have tried to use music to target the world's youth and bring positive aspects up.

Their music campaigns have helped them stay in mainstream marketing and get their goals. They use several channels to get to the next level of marketing with the best solutions.

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}