PepsiCo is a global consumption goods company with a focus on beverages and “junk” food. The total revenue in 2013 underlines its global significance. Compared to Coca-Cola Company, PepsiCo is stronger in North America and around the globe, but that is a direct result of PepsiCo’s diversified portfolio. When it comes to brand value and numbers of sold cola beverages, Coca-Cola Co has a unique market share. Especially on the cola-market, both companies are the most successful competitors worldwide.
Pepsi-Cola has a very long history, but had only been a domestic product in the United States until the late 1940s. Therefore, Coca-Cola has an advantage regard-ing international distribution. In Germany, Pepsi-Cola entered the market almost 30 years after Coca-Cola. Nonetheless, Pepsi proved to be strong opponent by initiat-ing clever marketing campaigns. After the so-called “Pepsi-Challenge” in the 1970s PepsiCo could succeed temporarily in winning the consumers’ hearts. However, the German market for cola products is much more competitive behind Coca-Cola than the US-market.
Traditionally, Coca-Cola is the main producer of cola in Germany followed by local products from dicount markets. Next to the big international players, the German beverage industry is very diversified and oriented locally. Pepsi-Cola is available in nearly every German supermarket. It is also very present due to PepsiCo’s strong focus on advertising and sponsorship. But among German consumers Coca-Cola still maintains its pole position supported by a dominent brand image.
This turns out to be one of the most obvious threat to Pepsi-Cola’s market position. Addtionally, Pepsi-Cola’s image as a cheap cola drink is firmed, because of PepsiCo’s focus on distribution through discount markets. The development on the German beverage market shows the importance of sustainable packaging and ingredients. Therefore, Pepsi-Cola has to rely on its niche position in order to offer an alternative meeting consumers’ requirements in the future.
Table of Contents
1 Introduction
1.1 Problem definition
1.2 Aim of the Assignment
1.3 Scope of Work
2 PepsiCo and its products
2.1 Company profile
2.2 Pepsi-Cola
3 Market definition for Pepsi-Cola
3.1 Beverages in Germany
3.2 Competitors
3.3 Customers
3.4 Positioning map
4 Market analysis
4.1 Strengths and Weaknesses
4.2 Opportunities and Threats
4.3 Unique Selling Proposition (USP)
5 Conclusion
Objectives and Topics
This paper aims to define and analyze the market for Pepsi-Cola in Germany from 2000 to 2013, specifically evaluating its performance in direct comparison to its primary competitor, Coca-Cola. It explores the competitive dynamics of the German beverage industry to identify strategic opportunities and challenges for Pepsi-Cola.
- Historical performance and market presence of Pepsi-Cola in Germany
- Comparative analysis of Pepsi-Cola and Coca-Cola brand value
- Market segmentation and consumer behavior in the German cola sector
- Application of strategic marketing frameworks including SWOT and PEST
- Identification of niche positioning strategies for secondary cola brands
Excerpt from the book
3.2 Competitors
As mentioned before, Coca-Cola Co is the most significant competitor of PepsiCo and its beverage products. In contrast to PepsiCo Coca-Cola Co focuses entirely on beverages of all kinds. Referring to figure 3, especially the market value of its cola-drinks allows Coca-Cola Co to maintain its current business fields. Classic Coca-Cola, Diet-Coke or Coke-Light and Coke Zero are the products that German consumers like most. Additionally, a mixed cola-product is important in Germany. The so-called “Spezi” is a mixture of cola and orange lemonade. It was originally brewed in local facilities, but has nowadays been replaced in numbers by Mezzo Mix (Coca-Cola Co) and Schwip-Schwap (PepsiCo).
Germany’s largest discount market Aldi also sells competing products like River-Cola, River-Cola (0% Sugar) and River-Cola Mix (“Spezi”). Due to their discount origin cola drinks by Aldi are priced very low and repeatedly suffer from discussions about quality. Nevertheless, Aldi-colas are among the most favorite drinks in 2013. Since 2012 Aldi has also been selling Coca-Cola, because discount market Lidl switched to Pepsi-Cola and Freeway-Cola, after Lidl had argued with Coca-Cola about marketing concepts.
The German product Afri-Cola has been available since its registration in 1931. Due to the market share of its main competitor Coca-Cola and the lack of resources during World War 2 Afri-Cola almost disappeared. Its revival began during the after-war prosperity phase in the 1950s. In these days, Afri-Cola is only consumed by a small number of people in Germany. The company focuses more on life-style and extraordinary appearance instead of massive sales.
Bionade-Cola is a product that meats current demand for healthy or “green” products. Its ingredients make Bionade-Cola favorable for people, who prefer kosher, vegetarian or low-sugared beverages. According to little numbers in sales, Bionade-Cola has to be considered as a very niche-product.
Summary of Chapters
1 Introduction: This chapter defines the problem, states the goal of analyzing Pepsi-Cola's German market performance, and outlines the scope of the study.
2 PepsiCo and its products: This section provides a company profile of PepsiCo and details the history and product significance of Pepsi-Cola.
3 Market definition for Pepsi-Cola: This chapter examines the specific context of the German beverage market, identifies key competitors, analyzes customer needs, and visualizes market positioning.
4 Market analysis: This part conducts a strategic evaluation using SWOT and PEST analyses to determine the strengths, weaknesses, opportunities, threats, and the unique selling proposition of Pepsi-Cola.
5 Conclusion: The final chapter summarizes the findings regarding Pepsi-Cola's competitive position and suggests the need for ongoing monitoring of consumer needs.
Keywords
Pepsi-Cola, Coca-Cola, German beverage market, Marketing analysis, SWOT analysis, PEST analysis, Market definition, Consumer behavior, Brand value, Cola-War, Niche positioning, Discount market, Strategic marketing, USP, Competitive strategy
Frequently Asked Questions
What is the primary focus of this assignment?
The assignment focuses on defining and analyzing the market for Pepsi-Cola within Germany from 2000 to 2013, particularly in contrast to Coca-Cola.
What are the central themes discussed in the paper?
The paper covers company profiling, market definitions, competitive landscapes, consumer segmentation, and strategic internal and external factor evaluations.
What is the main objective of the author?
The objective is to outline the performance of Pepsi-Cola and identify potential strategic approaches for the brand to remain competitive in the German market.
Which scientific methods are employed?
The author uses strategic marketing methods, specifically the SWOT analysis and the PEST analysis, to evaluate internal and external factors.
What topics are covered in the main body?
The main body details the history of PepsiCo, market positioning maps, competitive analysis of various cola brands in Germany, and the identification of a unique selling proposition.
Which keywords characterize this study?
Key terms include Pepsi-Cola, competitive strategy, German market, SWOT, PEST, market positioning, and brand management.
How does the discount market influence Pepsi-Cola's position in Germany?
The focus on distribution through discount markets allows for broad availability but contributes to a low-price and "cheap" brand image compared to the premium positioning of Coca-Cola.
What role does the "Pepsi Challenge" play in the author's analysis?
The author cites the "Pepsi Challenge" to illustrate that while Pepsi-Cola has a competitive taste profile, its market dominance is hampered by the stronger brand image of Coca-Cola.
How is the "David vs. Goliath" metaphor applied?
It describes Pepsi-Cola's role as the "underdog" fighting against the dominant market leader, Coca-Cola, using comparative advertising and price advantages.
- Citar trabajo
- M.A. Benjamin Pommer (Autor), 2014, Market definition and analysis of Pepsi-Cola, Múnich, GRIN Verlag, https://www.grin.com/document/279083
