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Marke arke t i ng Mix Marketing Mix is the set of marketing tools that the firm uses to p u r s u e i t s m a r k e ti t i n g o b j e c ti t i v e s . M a r k e t i n g m i x h a s a c l a s si s i f i c at at i o n for these marketing tools. These marketing are classified and called as the Four Ps i.e. Product, Price, Place and Promotion. T h e m o s t b a s i c m a r k e ti ti n g t o o l i s p r o d u c t w h i c h i n c l u d e s p r o d u c t design, quality, features, branding, and packaging. A critical marketing tool is price i.e. the amount of money that c us u s to t o me m e rs r s p a y f o r t h e p ro r o du d u ct c t . I t a ls l s o i nc n c llu u de d e s d is i s co c o un u n ts ts , allowances, credit terms and payment period. P l a c e i s a n o t h e r k e y m a r k e ti t i n g m i x t o o l . A nd nd i t i n c l u d e s v a r i o u s a c t iv i v i ti t i e s t h e c o mp m p a n y u n d er e r t ak a k e s t o m a ke k e t h e p r od o d u c t a c ce c e s si s i b le le and available to the customer. Some factors that decide the place are transport facilities, channels of distribution, coverage area, etc. Promotion is the fourth marketing mix tool which includes all the a c t i v i ti t i e s t h a t t h e c o m p a n y u n d e r t a k e s t o c o m m u n ic i c a t e a n d p r o m o te te i t s p r od o d u c t t o t a rg r g e t m a rk r k e t. t . P r om o m o ti t i o n i n c lu l u d e s s a le l e s p r o mo m o t io io n , advertising, sales force, public relations, direct marketing, etc.
Product In marketing, a product is anything that can be offered to a market t h a t m ig i g h t s a t is i s f y a w a n t o r n e ed e d . I t i s o f t wo w o t yp y p e s : Ta n g i b l e (physical) and Intangible (non-physical). Since services have been a t t h e f o r e f r o n t o f a l l m o de d e r n m a rk r k et e t i n g s t r a t e g ie ie s , s o m e i n ta t a n g ib i b i li l i t y h a s b e c om o m e e s se s e n t ia i a l p a rt r t o f m a rk r k e t in i n g o ff f f e rs rs . I t i s t h e r e f o r e t h e c o mp m p l et e t e b u n d le l e o f b e n e f it i t s o r s a t is i s f a c ti ti o n s t h a t b u y e r s p e r c e iv i v e t h e y w i l l o b t a i n i f t h e y p u r c h a s e t h e p r o d u c t. t. I t i s t h e s u m o f a ll l l p h ys y s i c a l , p s yc y c h o l o g ic i c a l, l , s ym y m b o l i c, c , a n d s e r vi v i ce ce attributes, not just the physical merchandise. All products offered in a m ar a r ke k e t c an a n b e p la l a ce c e d b et e t we w e en e n T a n g ib i b le l e ( Pu P u re r e P ro r o du du ct ) a nd Intangible (Pure Service) spectrum. A p r o d u ct c t i s s i mi m i l ar a r t o g o o ds d s . I n a c co c o u n ti t i n g, g , g o od o d s a r e p h ys y s i ca ca l o b j ec e c t s t h at a t a r e a v ai a i l ab a b l e i n t h e m a rk r k e tp t p l ac a c e . T h is i s d i ff f f e re r e n ti t i a te te s t h e m f ro r o m a s e r vi v i c e , w hi h i c h i s a n o n - m a t er e r ia i a l p ro r o d uc u c t. t . T h e t er er m g o od o d s i s u s e d p r i ma m a r il i l y b y t ho h o s e t h a t w is i s h t o a b s tr t r a c t f ro r o m t he he d e t ai a i l s o f a g i ve v e n p r od o d u c t. t . A s s u ch c h i t i s u s ef e f u l i n a c co c o u n ti ti n g a n d economic models. The term product is used primarily by those that w is i s h t o e x a mi m i ne n e t he h e d e t ai a i ls l s a nd n d r ic i c h n es e s s o f a s pe p e c i fi f i c m aarr ke ke t o f fe f e r in i n g . A s s u ch c h i t i s u s ef e f u l t o m a rk r k e te t e r s, s , m a na n a g e rs r s , a n d q u al a l i ty ty control specialists.
23 A s e rv r v ic i c e i s a n on o n -m - m a te t e ri r i al a l o r i nt n t a ng n g ib i b le l e p ro r o du d u ct c t - s uc uc h a s professional consultancy, serving, or an entertainment experience.
Coke - Product The Coca-Cola formula is The Coca-Cola Company's secret recipe f o r C o c a - C o l a . A s a p u b l i ci c i t y m a r k e t i n g s t r a t e g y s t a r te te d b y R o b e r t W . W o od o d r u ff f f , t h e c o m p a n y p r e s e n t s t h e f o r m ul ul a a s o n e o f t h e m o s t closely held trade secrets ever and only a few employees know or have access to. This Coca-Cola formula appears to be the original formula to Coca-Cola. It is from the book “For God, Country and Coca-Cola”.
The company Coca-cola is a multinational and it is not limited to one product. Through the years they have invented and introduced m a n y p r od o d u c t s t ha h a n t h e i r ma m a i n c o l a d ri r i n k s . T h e l i s t o f C o c a -c -c o l a brands are as follows:
24 1 . A p pl p l et e t i se se r 2 . A q u ar ar i u s 3 . B PM P M E ne n e rg rg y 4. Barq's 5. Beat sod a 6. Beverly 7. Cannings 8. Cheers 9. Ciel 10.Coca-Cola Black Cherry Vanilla 11.Coca-Cola Blak 12.Coca-Cola C2 13.Coca-Cola Cherry 14.Coca-Cola Citra 15.Coca-Cola M5 16.Coca-Cola Zero 17.Coca-Cola 18.Coca-Cola with Lemon 19.Coca-Cola with Lime 20.Dasani 21.Delaware Punch 22.Diet Coke 23.Fanta 24.Fanta Citrus 25.Fioravanti 26.Fresca 27.Frisco 28.Fruitopia 29.Frutonic 30.Full Throttle 31.Georgia 32.Hi-C 33.Hit 34.Kia-Ora 35.Kinley
36.Lemon & Paeroa 37.Lift 38.Lift plus 39.Lilt 40.Manzana Lift 41.Mare Rosso 4 2 . M e l l o Ye Ye l l o 43.Mezzo Mix 44.Minute Maid 45.Nestea 46.New Coke 47.Nordic Mist 48.OK Soda 49.Pibb Xtra 50.Powerade 51.Qoo 52.Raspberry Coke 53.Relentless 54.Sarsi 55.Senzao 56.Simply Orange 57.Smart 58.Sparkle 59.Sprite 60.Sprite Ice 61.Sprite Remix 62.Sprite Zero 63.Surge 64.Swerve 65.Tab 66.Tab Clear 67.Tab Energy 68.Tab X-Tra 69.Tiky 70.Vault
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Pepsi - Product The Pepsi-Cola drink contains basic ingredients found in most other similar drinks including carbonated water, high fructose corn syrup, sugar, colorings, phosphoric acid, caffeine, citric acid and natural f l a v o rs r s . T h e c a f fe f e i n e f r e e P e p si s i - C o l a c o n t a i n s t h e s a m e i n g r e d i e n ts ts but no caffeine. Some of the different and varied brands of Pepsi are as follows: 1 . A ll ll S p o r t 2 . A q u a f in in a 3 . C a f fe f e in i n e - Fr F r e e P e ps ps i 4 . C r y s ta t a l P eep p si si 5 . D ie i e t P e ps ps i 6 . G at at o r a d e 7. Izze 8. Jazz 9. Josta 10.Kas 11.Manzanita Sol 12.Mirinda 13.Mountain Dew 14.Mountain Dew AMP 15.Mountain Dew LiveWire 16.Mountain Dew MDX 17.Mug Root Beer
18.Pepsi 19.Pepsi Blue 20.Pepsi Cappuccino 21.Pepsi Max 22.Pepsi ONE 23.Pepsi Samba 24.Pepsi Tarik 25.Pepsi Twist 26.Propel Fitness Water 27.Sierra Mist 28.Slice 29.SoBe 30.Storm 31.Teem 32.Tropicana Products 3 3 . T r o p i c a n a Tw i s t e r
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Coke
Pepsi-Product
A s s e e n a b o v e b o t h t h e c o m p a n i es es C o k e a n d P e p s i h a v e a n u m b e r o f products. Many of these products are innovations but there are also many products which are brought out just as a competitive product f o r t h e o t h e r c o m p a n i e s . S o m e o f t h e s e p r o d u c ts ts t h a t a r e b r o u g h t i n the market by both the companies to compete against each other are as follows:
Coke
Pepsi
The main dark cola drink of the company which started the rivalry between these companies.
Pepsi version of dark cola which is the major primary competitor to Coke.
Full Throttle is an energy drink brand produced by The CocaC o l a C o m p a n y. y. I t d e b u t e d i n l a t e 2004 in North America.
AMP is an energy drink produced and distributed by PepsiCo under the Mountain Dew soft drink brand.
Va u l t i s a c a r b o n a t e d b e v e r a g e that was released by The CocaCola Company in June 2005.
Mountain Dew MDX is an energy drink manufactured and distributed by PepsiCo under the Mountain Dew brand. It was introduced in 2005.
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Powerade is a sports drink by The Coca-Cola Company and currently number two in the sports drink market worldwide.
Gatorade is a non-carbonated sports drink marketed by Quaker Oats Company, a division of PepsiCo. Originally made for athletes, it is now often consumed as a snack beverage.
Sprite is a clear, lemon-lime flavored, non-caffeinated soft drink, produced by the Coca-Cola C o m p a n y. y. I t w a s i n t r o d u c e d t o the United States in 1961.
7 Up is a brand of a lemon-lime flavored soft drink.
Minute Maid is a product line of beverages, usually associated with orange juice, but now extends to soft drinks of many kinds. The Minute Maid company is now owned by Coca-Cola, and is the world's largest marketer of fruit juices and drinks. It is h e a d q u a r t e r e d i n H o u s t o n , Te Te x a s .
Tropicana Products is an American company based in Bradenton, Florida, USA, which is one of the world's largest producers and marketers of orange juice. It has been owned by PepsiCo, Inc. since 1998.
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Nestea is a brand of iced tea manufactured and distributed by the Nestle company's beverage department in the United States, and by Coca-Cola in several European countries, Brazil and Venezuela.
Lipton Original Iced Tea is a ready-to-drink iced tea brand sold by Lipton through a worldwide partnership with Pepsi.
Barq's is a brand of root beer notable for being the only major North American root beer to contain caffeine. It has been bottled since the start of the 20 th century and is currently sold by t h e C o c a - C o l a C o m p a n y. y.
Mug Root Beer is a brand name of root beer made by b y the Pepsi company.
Diet Coke or Diet Coca-Cola is a sugar-free soft drink produced and distributed by The Coca-Cola C o m p a n y. y. I t w a s i n t r o d u c e d i n the United States in July 1982.
Diet Pepsi is a low-calorie carbonated cola. It was introduced in 1964 as a variant of P e p s i - C o l a w i t h n o s u g a r. r.
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Kinley is a brand of still or carbonated water owned by The C o c a - C o l a C o m p a n y. y.
Aquafina is a non-carbonated bottled water produced by PepsiCo.
Aquarius is a mineral sports drink manufactured by The CocaCola Company. It was first introduced in 1983.
All Sport was a sports drink. It is produced by PepsiCo.
Fanta is a soft drink brand owned by The Coca-Cola Company. It is produced and distributed by The Coca-Cola Company's bottlers.
Mirinda is a brand of soft drink. Mirinda is owned by PepsiCo.
Sprite Ice was the first flavor extension for The Coca-Cola Company's Sprite brand soft drink.
Pepsi Blue is a soft drink made by PepsiCo and launched in mid-2002.
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Coca-Cola Blak is a coffeeflavoured soft drink introduced by Coca-Cola in 2006.
Pepsi Cappuccino is a cappuccino-flavored carbonated soft drink produced by Pepsico.
Maaza is a Coca-Cola fruit drink brand marketed in India and Bangladesh.
Slice is a line of fruit-flavored soft drinks manufactured by PepsiCo and introduced in 1984.
Limca is a lemon and lime flavoured carbonated soft drink made in India by Coca-cola.
Te e m w a s a l e m o n - l i m e - f l a v o r e d soft drink produced by The P e p s i - C o l a C o m p a n y. y.
Price In economics and business, the price is the assigned numerical monetary value of a good, service or asset. Price is also central to marketing where it is one of the four variables in the marketing mix that business people use to develop a marketing plan. Pricing is a big part of the marketing mix. Choosing the right p r i c e a n d t he h e r ig i g h t p r i ci c i n g s tr t r a t eg e g y i s c r u c i a l t o t h e m ar a r ke k e ti ti ng process. The price of the product is not something that is fixed. On the other hand the price of the product depends on many other factors. Some times the price of the product has got nothing to do with the actual product itself. The price may act as a way to attract target customers.
31 The price of the product is decided keeping many things in mind. These things include factors like cost incurred on the product, target market, competitors, consumer buying capacity etc.
Coke - Price C o k e w a s a c o mp m p a n y r u l in i n g t h e m a r k e ts t s b e fo fo r e P e p s i e n t e re d . Earlier the price of coke was cost based i.e. it was decided on the cost which was spent on making the product plus the profit and other expenses. But after the emergence of other companies especially the likes o f P e ps p s i , C o c a - co c o l a s t ar a r t ed e d w i th t h a p r ic i c i ng n g s t ra r a t eg e g y b a se se d o n t h e b a s is i s o f c o m pe p e ti t i ti t i on o n . N ow o w a d a y s m or o r e e xp x p e n se s e s a re r e s pe p e nt nt o n a d v e r t is i s i n g m y s o f tt- d r i n k c o m p a n i e s r a t h e r t h a n on manufacturing. Coke has brought in a revolution especially in I nd n d i a n m ar a r ke k e ts t s w it i t h t h e R s. s . 5 p r i c i n g s tr t r at at eg y w h i c h w a s ve v e r y f a mo m o u s . I t w a s th t h e f i r st st c o m p a n y t o i nt n t ro r o d u ce c e t he h e s ma m a l l b o t tl t l e o f C ok o k e f or o r j us us t Re.5. This campaign was very successful e sp s p ec e c ia ia l l y w i t h t h e p r i c e c o n sc sc i o u s Indian consumers. E v en e n t o da d a y m o s t p r i c e s o f C o k e a r e d e c id id e d o n t h e b a s i s o f t h e competition in the market.
Pepsi
– Price
Pepsi again decides it price on the basis of competition. The best think about the company Pepsi is that it is very flexible and it can come down with the price very quickly. The company is renowned to bring the price down even up to half if needed. But this risk taking attitude has also earned Pepsi losses. Though lowering the price would attract the customers but it would not help t h e m c o v e r u p t h e c o s t i n cu c u r re r e d i n p r od o d u c ti t i o n h e nc n c e c a u si s i n g t h em em losses. This was the situation earlier but now Pepsi is a full-fledged and growing company. It has covered all its losses and is now growing at a rapid rate.
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Place Place is a term that has a variety of meanings in a dictionary sense, but which is principally used in a geographic sense as a noun to d e n o t e l o c a t i on o n , t h o u g h i n a s e n s e o f a l o c a t io i o n i d e n t i f i ed ed w i t h t h a t which is located there. In marketing, place refers to one of the 4 P's, defined as "the market place". It can mean a geographic location, an industry, a group of people (a segment) to whom a company wants to sell its products or s er e r vi v i ce c e s, s , s u c h a s y o u n g p ro r o fe f e ss s s io i o na n a l w om o m een n ( e. e . g. g . f or o r s el e l li l i ng ng cosmetics) or middle-aged family men (e.g. for selling family cars).
Coke - Place Coke is a multinational company and it has its market around the entire world. This can be said just by the first page on its site which asks people to select the place of their choice. The website looks something like this:
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Pepsi
– Place
P e ps p s i a g a in i n h a s s p r e a d w o r l d w i de d e . P e ps p s i w h e n e n t e r in in g a n e w market does not go in alone but it looks for partners and mergers. Till now Pepsi has collaborated with companies like Quaker Oats, Frito-lays, Lipton, Starbucks, etc. Pepsi like Coke has spread all over the world. It is because of this worldwide spread that now it is coming up with Advertisements w h i c h c a n b e b r o a d c as a s t e d i n t h e d i f fe fe r e n t n a t i o n s i n t h e w o r l d . T h e recent example with would be the Pepsi advertisements having David Beckham as it brand ambassador.
Promotion P r om o m o ti t i o n i s o n e o f t h e f o ur u r a s pe p e c ts t s o f m a rk r k e ti t i n g. g . P r om o m o ti ti o n comprises four subcategories: 1 . A dv d v er e r ti t i si s i ng ng 2 . P e r so s o n al a l s el e l li l i ng ng 3 . S aall es e s p r om o m ot o t io io n 4 . P u bl b l i ci c i t y a n d pu p u b li l i c r el e l a ti t i o ns ns The specification of these four variables creates a promotional m i x o r p r om o m o ti t i o na n a l p l an a n . A p r om o m o ti t i o na n a l m i x s p ec e c i fi f i e s h o w m u ch ch attention to pay to each of the four subcategories, and how much m o n e y t o b u d g e t f o r e a c h . A p ro ro m o t i o n a l p l a n c a n h a v e a w i d e r a n g e of objectives, including: sales increases, new product acceptance, c r e a t io i o n o f b r a n d e q u i t y, y , p o s i ti t i o n i n g, g , c o m p e ti t i t i v e r e t a l i a t io io n s , o r creation of a corporate image. B o t h t h e c o mp m p an a n ie i e s P e p s i a n d c o k e a r e f a mo m o u s f o r t h ei ei r promotions. The rivalry was first started whe n Pepsi started with its b l in i n d t a st s t e t e st s t s k n ow o w n a s t h e P e ps p s i C h a ll l l e ng n g e . T he h e c h al a l l en en g e i s designed to be a direct response to critics who allege that Coca-Cola and Pepsi-Cola are identical drinks, with no meaningful differences. T h e c h a l l en e n g e t a k e s t h e f o rm r m o f a t a st s t e t e st s t . A t m a ll l l s , s h o p pi pi n g centers and other public locations, a Pepsi representative sets up a t a b l e w i t h t w o b l a n k c u p s , o n e c o n t a in in i n g P e p s i a n d o n e w i t h C o k e . Shoppers are encouraged to taste both colas, and then select which drink they prefer. Then the representative reveals the two bottles so t h e t a s t e r c a n s e e w h e t h e r t h e y p r e f er e r r e d C o k e o r P e p s i. i. I f P e p s i i s revealed, the shopper is given a small prize. The implication is that Pepsi tastes better than Coke, and thus consumers should purchase Pepsi.
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In blind taste tests, more consumers prefer the taste of Pepsi to t h a t o f C o ca c a - C ol o l a . B e c au a u s e C o ke k e w a s t h e h i st s t o ri r i c al a l l e ad a d e r, r , m o re re people expected that they'd prefer and select Coke. Their surprise at p i c k in i n g P ep e p si s i i n t h e b li l i n d t as a s t e t es e s t ( pr p r od o d u ct c t s w e r e s e r ve ve d i n unmarked cups) helped change their minds about which product they prefer. Capturing this on film, Pepsi turned this into a memorable TV campaign that lasted many years. A ls l s o a dd - c a mp m p a i gn g n s a re r e p u t u p o n t he h e t el e l ev e v is i s io i o n b y b o t h t he he players. The following statistic just tells of much o f share of ads on TV are captured by these pla yers.
I nf n f ac a c t i n t he h e n ex e x t g ra r a ph p h y o u c an a n s ee e e h ow o w m an a n y p ro r o gr g r am a m s a re re sponsored by cola companies and the leader among them is Pepsi.
35 M ai a i n l y P e p s i i s t h e c o mp m p a ny n y s po p o n so s o r i n g m o s t c ri r i c k e t t el e l e ca c a st st s happening in India and spends most of its revenue in that field.
Nowadays both Cok e and Pepsi are going in for Brand Ambassadors t o p ro r o m o t e t h e ir i r p r o d uc u c t. t . T h e se s e b r a n d a m b a s s a d o r s a r e f a mo mo u s people who usually people idolize and people can relate to them. The following pictures do not need any explanation as people are familiar with the celebrities and can thus quickly identify with the product.
A l is i s t o f C eell eb e b ri r i ti t i es e s t ha h a t a re r e b ra r a n d a mb m b as a s sa s a d o rs r s f or o r t he he c o l a companies are as follows. These celebrities are not only asked to
36 work in the advertisements but they also have to use the product p r o mo m o t e d b y t h em e m a n d t h e y s h o u ld l d n o t u s e t h e c o mp m p a ni n i e s r i va va l s proucts.
