DONE BY:

Mamata Bashar 1110409030

Coke and Pepsi wanted to increase their market share.Both cola brands was counter attacking with each other. ‘Fight or succumb’ situation in the Indian market persisted. Their attention moved away from their customers to their competitors.They were marketing their product in a wrong way.

So, the problem statement is:‘What should the cola brands take hold of in customer’s minds to be able to gain a bigger chunk of the market share in the future?’

Coke and Pepsi failed to focus on the fundamentals of marketing their own brands in their own original style.

The cola brands should focus on the fact who and how they will sell their colas.

Coke and Pepsi relied completely on their competitor’s strategy.

Both the brands should understand that what matters most is how they will they market their colas to reach their common goal.

The Cola brands were not focusing on any specific group of customers.

Both the brands did the same mistake of targeting and advertising to the same group of people, living in the same area, especially in big cities.

Coke and Pepsi have not yet made the effort to specifically promote their product to the untapped areas.

They have focused more on who their competitors are targeting.

The cola brands can use their promotional strengths and create new opportunities for them in this new market.

The brand can enjoy the benefits of FIRST-MOVER ADVANTAGE.

Undertaking market development strategy will create at least some difference in the cola brands’ market share

This alternative might not be effective, as:

Both the brands will compete once again for the first mover advantage.

intensified competition will persist.

The war between the cola brands will continue.

Coke and Pepsi no longer focused on the fundamental issues such as building strong brand equity as they were obsessed in increasing their market share than its competitors.

Coke and Pepsi are global brands that are considered indistinguishable in the minds of the Indian consumers as both the concentrate looks and tastes same.

Eyeing each other as their “deadliest” rival and hence imitating each other’s strategy has further lead to building a weak Brand Equity.

Differentiation (What makes it unique from it’s competitors brand in customer’s mind)

Knowledge (How much consumers know about the brand and it’s attributes?)

Relevance (How much customers feel it’s need to have the product?)

Esteem (What is image of the brand in consumer’s mind?)

Cola brands might find it difficult to Change the knowledge about the product- as they view both the brands as substitutes persuade the customers to buy the product that has no inherent merit. improve their poor brand images.

Building strong brand equity do not necessarily mean increased customer equity.

This alternative might not be effective as:

•Advertising in print and mass media has a mass coverage.

•Coke and Pepsi created an illusion in terms of comparative advertising of being ‘substitute cola brands’ in the minds of Indian customers.

•Comparative advertising has resulted in: Creating intense competitive situation in the Indian market. Unhealthy and unfair competition practices. Poor brand images.

•Cola brands might suffer from lower customer equity, and hence lower profitability in future.

•The ‘original-advertising’ style of Coke, basically, is focused on the Indian culture whereas Pepsi concentrated on youth.

•Coke and Pepsi can promoting their own advertising style (not their competitor’s) with their individual ‘unique’ touch points.

•Getting back to their own advertising style would result in:‘distinguishable cola brands’.Increased focus on targeted customers.improved brand images.Competing in a fair way. Improved customer equity.

This alternative might not be as effective since:

Advertising is not the only issue they are battling on.

The ‘series of counter-attacks’ and ‘whacky’ competition between the cola brands will be reduced to some extent, but not fully.

WHY?

Coke and Pepsi have weak brand equity.

Differentiated brand image is created with stronger brand equity.

Stronger brand equity can be built by fulfilling the four basic customer perceptions:

differentiation

knowledge

relevance

esteem

Creating strong brand equity would result in:increase their market share.compete in a fair way.increased customer equity. being profitable.

WHY NOT?

TARGETING THE UNTAPPED MARKETS FIRST:

Both the brands will want to reap the benefits of first mover advantage.

The Coke Pepsi rivalry will still continue.

WHY NOT?

BRANDS STICKING TO THEIR “OWN-ADVERTISING” STYLE:

Advertising is not the only issue the cola brands are fighting on.

Such other issues include bottling and product launches.

Even after a strong Brand Equity is successfully made, customer retention might fall as the targeted customers may not like the new “differentiated” product.

In such cases the cola brands will suffer these situations: A sudden fall in market share Low or no profit The brand is under huge cost burden as brand

equity development costs a fortune

In such crucial situations, the brand needs to undertake a series of major steps to survive:

Arrange bank loans to target untapped markets and work on bringing market shares back on track

Convince themselves they are “unique” and they have their own targeted customers to satisfy.

•Coke vs. Pepsi is all about the intense cola war happening in the Indian market in order to acquire more market share.

•As both Coke and Pepsi are quite indistinguishable, to gain more market share it would be more effective if the brands focused more on creating a differentiated image on target consumer’s mind and build stronger brand equity.