Promotion Strategies CocaCola & Pepsi Essay Examples & Outline

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Promotion Strategies CocaCola & Pepsi


PROMOTION STRATEGIES COCACOLA & PEPSIIn this age of information technology, promotion remains as the only aspect in the marketing mix that is easily manipulated. This is mainly because of the fact that the era that we are in is the information management era. The company that has the ability to communicate has a head start at success (Wilson & Temple, 2004). The purpose of this study is to compare and contrast the promotion strategies applied by coca cola enterprises and Pepsi Co. The soft drink market is increasingly improving over the time with small start-up companies mushrooming in all the areas. Coca cola enterprises and Pepsi Co are the major player in the industry who are also one of the fierce competitors.

Pepsi Co

Pepsi Co sells its products in near 200 countries and regions. The sales revenue generated by the company is close to USD 92 billion. Some of the brands under the company are more than 100 years. The company was formed in 1965 through a merger between Pepsi Co and Frito-Lay. It has since acquired other companies that have enabled them attain a rapid growth all over the time. Pepsi Co and Coca-Cola have been engrossed in competition since the onset of the companies leading to the creation of sophisticated promotion strategies aimed at attracting the attention of most of the soft drink consumers (Wilson & Temple, 2004).

Coca cola Company

The foundations of the Coca-Cola Enterprises started over a century ago in a humble start. Over the time, the company has been able to promote itself as an integral part of the American dream. Most of the promotions still carry this message. However, significant evolution have been made on the promotion strategies to mirror the changing market needs. Therefore, the main Coca-Cola marketing strategy has been selling on the premise of the American dream. The second promotion strategy that the company has used is the sports. Most of the drinks have been associated with major sports with Fanta being associated with surfing and common street fun activities such as skating. Sprite has been associated with the basketball games. Coca cola is associated with a perfect food accompaniment. The drink is also associated with the perfect hangout activity whereby it is a representation of fun. This promotion strategies have been selling for the company since it has been able to maintain its market dominance.

Pepsi Co also has unique promotion strategies that have some resemblance to the ones used by Coca Cola Company. The company has also sought to promote its products as the perfect accompaniments for various foods. The various product lines in the company are promoted separately just as it is the case with coca cola. Most of these products have ended up appealing to the people such that the company has been able to maintain the second position in the market. The other source of business competence for the company has been the ability of the company to sell unique product offerings. This means that the company has attained a major market share due to its ability to promote the products solely on their unique nature. This is a contradictory approach to the one used by coca cola which seeks to sell the products based on an assumption that something is cool. Pepsi Co focus on the unique nature of the products has been a viable way of competing against coca cola since it does not offer substitutes in the same category but different and unique products (Wilson & Temple, 2004).

References
Wilson, T., & Temple, N. (2004). Beverages in nutrition and health (1st ed.). Totowa, N.J.: Humana Press.




 

Effective communication


EFFECTIVE COMMUNICATIONPepsi cola digital version of the annual report has many visual cues that are specifically targeted to maintain the attention of the reader. The initial visual cue that a visitor encounters when he visits the site is the use of mixed fruits to write the word Pepsi cola. Tags leading to various sections of the report are also written in various colours. As a result, the reader tends to know when moving from one section to the other of the repo (Bogg, 2012) rt.

Coca cola annual report for 2013 is not as colourful since the dominant colour is the official company’s colour. However, the layout design for the site where the annual report is contained is different and captivating. Headings in Coca-Cola report are written in red. Reading Pepsi cola report is more captivating than reading Coca-Cola annual report.

Reports from the CEOs of both companies focus on the achievements that the companies have attained in the particular year. The CEO of Pepsi looks at the individual brands and what they have been able to contribute to the overall earnings of the company. There is also a focus on the contributions made by the products from the sales in other parts of the world. However, the Coca-Cola report does not look at the contributions made by the company in the individual international market.

This could be attributed to the size of the company. There are specific sections in the report that focus on the performance of the international subsidiaries. Both reports look at the performance of the company based on the various investments made by the companies. Therefore, the reader is able to follow the source of the increased performance of the organization.

Pepsi cola did a substantial job when it came to the presentation of the information that could otherwise sly be referred to as number heavy. The online version of Pepsi’s annual report is full of animated sections that indicate the real-time growth of the earnings made by the company. This leads to easy comparison of the data produced in the various periods (Bogg, 2012). There are also representations of condensed data in the form of summary reports.

Coca-Cola uses the same approach to condense data heavy information. Number heavy information is also represented in reports that are divided by sectors and markets. Some sections of the report use prose as summary to ensure that the numbers are better understood. However, in addition to the prose, there are some instances when the companies use conventional graphs and tables to cater for the readers that would like to follow the number trail and validate the summaries presented in prose.

The writing approaches used in both reports is both professional and easy to understand. For the case of Pepsi, the CEO’s letter is written in short sentences that are both complete and easily understood. This is also the case with Coca-Cola Company. The paragraph formation is also done with the purpose of increasing readability among the members. Short paragraphs are applied in both reports leading to clear message delivery. Both reports make conscious efforts to reduce the instances where they use jargon to the minimal such that the information is appealing to all the people. Jargon reduction is an approach used to increase readability of the reports (Bogg, 2012).

In both annual reports, the message is how well the companies performed. In order to deliver this, the sections on leadership are full of how well the company has performed under the leadership. As a result, there is the creation of the notion that the information contained therein is a representation of the correct status of the company. However, the reality of the matter is that there are some instances when the performance of the company was not as good as the management would love to make the reader believe.

This technique is called spinning whereby one majors on the positive aspects of an encounter while downplaying the instances of failure. In both reports, there is a tendency of avoiding issues that plagued the companies unless the encounter is a matter of public information. Even when talking about the failures that are well known in the public domain, the report writers tend to downplay the negative information. There is also a tendency of lumping up the negative information in a single sentence that is not self-explanatory (Reid, 2012). Space given for reports on the negative performance of the organization is meagre compared to the space allocated to reports on the positive aspects of the company.

Both reports are well understood by an average reader since they have been organized in sections with subsections included when necessary. Pepsi cola report is more convincing since in each section where there is a prose explanation of the performance, there is numerical data to support the assertions. The colourful display and the use of the first person in the annual reports make them interesting. However, the visual cues employed in the Pepsi cola report make it more interesting than Coca-Cola report.


References

Bogg, D. (2012). Report Writing. 1st ed. Maidenhead: McGraw-Hill Education.
Reid, M. (2012). Report writing. 1st ed. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan.