Coke vs. Pepsi

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Florida State College at Jacksonville *

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1101

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Business

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Apr 3, 2024

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Exner 1 Anita Exner Dr. Sarah MacDonald ENC 1101 – 2412 4 December 2022 Coke vs. Pepsi In May 1886 Coca-Cola was founded by Dr. John Pemberton in Atlanta, GA and in 1892 Asa Griggs Candler formed a corporation called the Coca-Cola Company ( Coca-Cola History and The ASA Candler Era ) . Shortly after, in May 1893, Caleb Bradham invented Pepsi-Cola, which was first called Brad’s Drink until 1898, in New Bern, NC. Both products have changed over the years and became one of the most popular sodas in today’s society. Coke and Pepsi are similar in many ways, but individuals often have a difficult time choosing between these two sodas. Although these sugary, carbonated soft drinks are similar, they do differ from each other by their cost, appearance, and nutritional facts. Cost and sales are one of the areas the companies, Coca-Cola and PepsiCo, differ from each other. Coca-Cola uses the “meet the competition pricing” strategy for pricing their products, whereas PepsiCo prices their products based on customer demand and the prices of their competitors (Wells and Pepsi marketing strategy: Refresh your marketing with these 4 tips ). According to John Carlton, the pricing of the sodas, Coke and Pepsi, are the same, which lays at $1.68 for a twenty-ounce bottle at Walmart (Carlton). The merchandise that each company sells plays a factor in their revenue. Coca-Cola is known for soda products, such as Coke, Sprite and Fanta, but the brand also sells water, juices, coffees, and teas. Coca-Cola products are present in over 200 countries (Banerjee). The revenue for Coca-Cola has increased from 2021 to 2022 by 5.59 billion dollars ( Coca-Cola's net operating revenues worldwide 2021 ). The revenue for 2022

Exner 2 is at approximately 38.60 billion dollars ( Coca-Cola's net operating revenues worldwide 2021 ). PepsiCo, just like Coca-Cola, is also known for their drink products, but in addition also offers food items, such as chips and Quaker products (Ciura). PepsiCo had an increase of 12.94 percent in revenue from 2020 to 2021 ( PepsiCo revenue 2010-2022: PEP ). The ending revenue dollar amount for 2021 was 79.47 billion dollars. Only 44 percent of the revenue came from PepsiCo drink products, which is approximately 39.96 billion dollars (Ciura). Although the revenue for their drink products is about the same dollar amount, PepsiCo does offer more merchandise which gives Pepsi the upper hand when it comes to their sales. Another way the companies differ from each other is their appearance. The first Coca- Cola logo was written in 1886, the same year Coke was founded. The first logo seemed to be written on a typewriter and in capital letters. As years went by the logo changed in appearance but not much. The writing became more cursive and in 1969 a wave was added below the writing (Foley). As it is known the bottle for Coca-Cola has a red logo with white writing on it. The PepsiCo on the other hand, was first known as Brad’s Drink and its first logo, according to Henny Kel, was written in bold, capital letters and the main color of the logo was blue (Kel). Around 1898 the name changed to Pepsi-Cola and the writing of the logo changed to red. Around 1950, the color blue was added to the logo and about ten years later the word Cola was removed from the logo (Kel). The logo plays a big role in the advertising world, as it should be eye catching to the customer. As the television was invented Coca-Cola and PepsiCo began to advertise on TV. As technologies have advanced, advertising have changed as well. New ideas are brought to the surface, as well as new scripts for TV and radio commercials have become more modernized. Coca-Cola spent 193 million dollars on advertising in 2021, whereas PepsiCo

Exner 3 only spent 114 million dollars in 2021 ( Advertising spending of selected beverage brands in the United States in 2021 ). Lastly, Coca-Cola and PepsiCo also differ in their nutritional facts. According to Vertava Health, the first coke that was invented by Dr. Pemberton consisted of “coca extract, coco, caffeine, sugar waters, lime juice, vanilla, caramel and more” (Health). As Health stated in the article “Putting the Coke in Coca-Cola,” cocaine is one of the compounds in the coca leaves (Health). This recipe with small amounts of cocaine was used up until 1929. The recipe has changed, and the current main ingredients are sugar, water, caffeine, coca leaves and corn syrup, the drug cocaine has been removed (Hyland). Pepsi on the other hand started of with the main ingredients consisting of mixed sugar, water, caramel, lemon oil, kola nuts, and nutmeg (Born in the Carolinas). The current ingredients as of 2022 are “carbonated water, high fructose corn syrup, caramel color, sugar, phosphoric acid, caffeine, citric acid, and natural flavors” ( Pepsi Cola ). The ingredients show that both sodas are sugary drinks which contain calories. A twelve- ounce Coca-Cola serving consists of 140 calories, whereas PepsiCo is slightly higher than Coke with 150 calories. In addition, Coke has two grams of sugar less than PepsiCo, per a twelve- ounce serving. A significant change of nutritional facts can be seen in the sodium value. Coke is fifteen milligrams higher than Pepsi, which leaves Pepsi at thirty milligrams of sodium in a twelve-ounce serving ( Pepsi and Save on Coca-Cola Original ). Coca-Cola and Pepsi have many similarities yet differ in many ways. Everyone has their preferences and choose their favorite brand accordingly. Many take costs, appearances and nutritional facts into account when purchasing a merchandise. Both companies have their pros and cons, and Pepsi may be a bit more advanced when it comes to their revenue as they offer more products than coke does.

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Exner 4

Exner 5 Works Cited “Advertising Spending of Selected Beverage Brands in the United States in 2021.” Statista, 26 Aug. 2022, https://www.statista.com/statistics/264985/ad-spend-of-selected-beverage- brands-in-the-us/#:~:text=Coca%2DCola%20spent%20193%20million,in%20promoting %20Pepsi%20that%20year “The ASA Candler Era.” The Coca-Cola Company, https://www.coca-colacompany.com/company/history/the-asa-candler-era Banerjee, Ramyawrik. “Coca Cola Marketing Strategy, Plan & Mix (4PS).” The Strategy Story, 2 Sept. 2021, https://thestrategystory.com/2021/08/27/coca-cola-marketing- strategy-plan-mix/ Carlton, John. “Coca-Cola Prices.” Hangover Prices, 2 Nov. 2022, https://hangoverprices.com/coca-cola-prices/ Carlton, John. “Pepsi Prices.” Hangover Prices, 2 Nov. 2022, https://hangoverprices.com/pepsi- prices/ Ciura, Bob. “PepsiCo's Largest Brands List: All Iconic Brands Examined.” Sure Dividend, 8 Nov. 2022, https://www.suredividend.com/pepsicos-23-billion-dollar-brands-future- growth/ “Coca-Cola History.” The Coca-Cola Company, https://www.coca-colacompany.com/company/history “Coca-Cola's Net Operating Revenues Worldwide 2021.” Statista, 10 Oct. 2022, https://www.statista.com/statistics/233371/net-operating-revenues-of-the-coca-cola-

Exner 6 company-worldwide/#:~:text=In%202021%2C%20the%20Coca%2DCola,around %2038.66%20billion%20U.S.%20dollars Foley, Joseph. “The Coca-Cola Logo: A History from 1886 to Today.” Creative Bloq, Creative Bloq, 4 Oct. 2022, https://www.creativebloq.com/news/coca-cola-logo-history “Pepsi Cola, 12 Fl Oz, - 355 Ml.” Open Food Facts, https://world.openfoodfacts.org/product/01256808/pepsi-cola-12-fl-oz “Pepsi Marketing Strategy: Refresh Your Marketing with These 4 Tips.” CoSchedule Blog, 2 Nov. 2022, https://coschedule.com/marketing-strategy/marketing-strategy-examples/ pepsi-marketing-strategy Pepsi. https://www.pepsi.com/en-us/#!products “PepsiCo Revenue 2010-2022: PEP.” Macrotrends, https://www.macrotrends.net/stocks/charts/PEP/pepsico/revenue#:~:text=PepsiCo %20revenue%20for%20the%20twelve,a%204.78%25%20increase%20from%202019 “Save on Coca-Cola Original - 12 PK Order Online Delivery | Giant.” Giant, https://giantfood.com/groceries/beverages/soft-drinks/cola/regular-cola/coca-cola- original-12-pk-12-oz-can.html Wells, Taylor. “Price Acceptance - What We Can Learn from Coca Cola's Pricing Strategy.” Pricing Recruitment I Pricing Jobs I Revenue Management Jobs, 18 Oct. 2022, https://taylorwells.com.au/price-acceptance/

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