My thoughts on Pepsi VS Coke

The Soda Wars

Market Performance

2008 2009 2010 2011 2012

Coca-Cola 17.3 17.0 17.0 17.0 17.0

Pepsi 10.3 9.9 9.5 9.2 8.9

Diet Coke 10.0 9.9 9.9 9.6 9.4

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Brands Rank by CSD Volume [1]

PepsiCo. may have won over Coke as a whole company in 2006 (with their snack products), but in the bursting world of soda market share, Coke is the king for more than a century.

2008 2009 2010 2011 2012

Coca-Cola Co. 42.7 41.9 42.0 41.9 42.0

PepsiCo. 30.8 29.9 29.3 28.5 28.1

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1015202530354045

Companies Rank by CSD Volume [2]

2008 2009 2010 2011 2012

Coca-Cola 31,944 30,990 35,119 46,542 48,017

Pepsi 43,251 43,232 57,838 65,881 65,492

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Revenues (In millions) [3]

Source: [1], [2] Beverage-Digest

[3] Companies Annual Reports

Top 5 Campaigns

• Coca-Cola Happiness Machine

• Coca-Cola Share a Coke

• Coca-Cola Open Happiness

• Coca-Cola Brrr TVCs

• Coca-Cola Coke Side of Life

• Pepsi Challenge

• All of Pepsi Football TVCs

• Pepsi Stuff

• Pecsi in Argentina

• Pepsi Live For Now

Diet Coke VS Coke Zero

• Coke Zero is marketed to men while Diet Coke is marketed to women. Coke Zero even has the nickname “Bloke Coke” in the UK [1]

• While Coke Zero is a modified form of Coca-Cola recipe, Diet Coke use completely different formula [2]

• Diet Coke is released to compete with Diet Pepsi in 1983, and it is more successful than Coke’s first diet soft drink, TaB [3]

Source: [1] http://ind.pn/17MMyjN

[2] http://bit.ly/13Y67YN

[3] http://bit.ly/1bud8lJ

Pepsi Max VS Diet Pepsi

• Pepsi Max has more caffeine than Diet Pepsi [1]

• Pepsi Max was once named Diet Pepsi Max, but in 2009 PepsiCo redesigned and re-branded many of their products and Diet Pepsi Max changed into Pepsi Max [2]

• The long-term success of Diet Pepsi is the reason why Coca-Cola decided to make Diet Coke [3]

• Diet Pepsi first test marketed in 1963 under the name Patio Diet Cola, it was rebranded as Diet Pepsi the following year [4]

Source: [1] http://bit.ly/1d5SASu

[2] http://bit.ly/13jlUTF

[3] http://bit.ly/1bud8lJ

[4] http://bit.ly/1a3JWUH

I never liked the diet version of both brand’s products. To be honest, I don’t drink sodas since 2009, but if I have to choose between Coke Zero and Pepsi Max, I will choose Coke Zero. It feels more familiar than Pepsi Max due to their aggressive marketing campaigns in Indonesia

The Coke Side of Life Story

Launched in 2006, The Coke Side of Life is all about the simple idea, : Drinking Coke makes you happy. It’s an invitation to “Live on the Positive Side of Life”. The campaign positioned the brand as “happiness”. The campaign was success during the economic recession in 2009. [1]

However, while Coca-Cola is enjoying their success, Pepsi is actually suffering.

In 2009, Pepsi redesigned its logo, which isn’t drastically different that its predecessor. The logo also made headlines for resembling that of newly elected President Obama. Coupled with Pepsi's new slogans -- "Yes You Can" and "Choose Change" -- the company was criticized for copying Obama’s award-winning campaign and aligning itself with it at the same time. In 2010, for the first time in 23 years, Pepsi did not participate in the Super Bowl. Instead, they invested $20 million in the Pepsi Refresh Project, which not a sales-driving program. In the same year, Pepsi’s sales declined by 6% (a sharper decline than 4.3% decline of sodas overall) [2] Source: [1] http://bit.ly/1247Dr0

[2] http://read.bi/16P2yVi

2008 2009 2010 2011 2012

Coca-Cola 584.4 708.5 791.6 846.5 949.8

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Coca-Cola Amatil Indonesia Annual Total Revenue

Coca-Cola’s Market Performance in Indonesia

There are no information that I can found about the Coca-Cola’s market performance in Indonesia.However, from the Coca-Cola Amatil’s annual report, I found that Coca-Cola Indonesia’s total

revenue is growing over the years

Source: Coca-Cola Amatil Annual Reports

In Indonesia, Pepsi has been struggling long enough in the soda war versus Coca-Cola mostly with new product launch strategy. The most memorable one is when the Pepsi Blue launched. Some people say that it could make Coke’s drinkers turned their backs. Other than that, Pepsi is not aggressively putting their products in the market. While Coca-Cola’s cooler is everywhere, we rarely see the Pepsi’s cooler. Pepsi is now struggling with their channel on KFC, Texas Fried Chicken, and CFC

Starting this year, PT. Pepsi-Cola Indo Beverages has been acquired by Indofood Group, who’s already create a Joint Venture with PepsiCo Group for their FritoLay company. Being in the same umbrella could be a good move for Pepsi. However, seeing how strong Coca-Cola got in Indonesia over the years, Pepsi would still has no chance in the next 3 years. Coca-Cola will still win the war

THANK YOU!

@moonayyy

Andi Adiprasetyo

about.me/andiadiprasetyo

Andi Adiprasetyo

Andi Adiprasetyo Digital Planner of Publicis Indonesia