Market definition and analysis of Pepsi-Cola

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Seminar paper from the year 2014 in the subject Business economics - Offline Marketing and Online Marketing, grade: 1,3, University of Applied Sciences Essen, language: English, abstract: 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 PepsiCos 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 PepsiCos 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-Colas market position. Addtionally, Pepsi-Colas image as a cheap cola drink is firmed, because of PepsiCos 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.

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