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Marketing Strategy Analysis of Coca-Cola and Pepsi Cola Two famous beverage companies exist in the market today, Coca-Cola and Pepsi Cola. Each competes intensely to distribute their beverage and food products to a global market for higher profits for the last several generations. In the free market, it can be difficult to determine which company uses the best practices in their marketing strategy as both use similar strategies to expand their local and global markets.

In this paper the subjects to describe are the products, prices variations, target demographics, promotion mix, sales, relationship building strategies, unfair predatory marketing, technology, and marketing campaign successes and failures for Coca-Cola and Pepsi Cola. Product Both Coca-Cola and Pepsi Cola offer a variety of drinks and brands. Pepsi offers brands such as Starbucks, Sobe, Ocean Spray, Aquafina, and Lipton, to name a few. Coca-Cola has a list from A to Z on their website including well-known brands such as A & W, Dasani, Dannon, Minute Maid, Nestea, and PowerAde.

Each company primarily sells the basic products listed below. Coca-Cola • Energy drinks • Juice and juice drinks • Soft drinks • Sports drinks • Tea • Coffee • Water (Coca-Cola Company, 2011). Pepsi • Waters • Soft drinks • Energy drinks • Ready to drink teas • Juice and juice drinks • Dairy-based drinks • Ready to drink coffees • Sports drinks (PepsiCo, 2011, p. 1). Price Variation No substantial price variation occurs between Coca-Cola and Pepsi Products. The difference is derived from the volume of sales and what demographics prefer Coke over Pepsi products.

One can enter any grocery store and find Coca-Cola products on sale one week, and the next week Pepsi products on sale. One could essential visit one supermarket and discover Coke on sale and walk into a different supermarket and find Pepsi on sale on the same day. The original cost and sales cost run generally the same. Target Demographics Both companies market products around the world in several countries. Both companies target the entire market and not any particular area of demographics. The goal is to generate high levels of revenue from many demographical areas.

This includes geographical regions, age, and gender, in the United States as well as other countries such as Italy, Russia, Asia, Croatia, England, Canada, Europe, and Africa. Coke outsells Pepsi with a market in 200 countries (Coca-Cola Company, 2011). Pepsi markets to Europe, Asia, the Middle East and Africa (PepsiCo, 2011, p. 1). . Promotion Mix Coca-Cola and Pepsi both use the same promotional mix that includes product, price, place, and promotion. Each company focuses on building relationships with everyone that comes into contact with their products.

Because of this they can promote products with cross-cultural and diverse groups of people. This includes everyone in the nation expanding too many countries. Coca-Cola With upwards of 2800 products ranging from carbonated soda, food snacks, and water, coke has placed its products all over the world. Coke uses its websites and slogans as a major promotional mix with slogans such as ‘satisfying your needs’ and ‘the choice is yours’ (Gabriel, 2009, p. 1), insinuating to the consumer that Coca-Cola is concerned with the needs and choices of its consumer.

Coke takes advantage of many promotional avenues available to them. Radio, store ads, Internet, billboards, television, global, and local events, and celebrity endorsements. Coca-Cola uses sports and entertainment events to promote their products. Recently while attending a movie at the local movie theater, a Coca-Cola ad appeared on screen partnering with the theaters popcorn. It made one desire a bag of popcorn and a coke. Pepsi Pepsi and Coca-Cola follow the same promotional mix. Pepsi uses all the aforementioned marketing avenues as Coke.

Pepsi also used slogans that appealed to the consumer such as ‘the choice of a new generation’ and ‘generation next’ (Gabriel, 2009, p. 1). What makes Pepsi unique was the introduction of the Pepsi Challenge. The challenge started when Pepsi introduced the blind taste test. These taste tests were known as the Pepsi Challenge. “The challenge was designed as a response to critics who insinuated that Coca-Cola and Pepsi were identical in taste” (Customer U, 2009, p. 1). The challenge was a taste test administered to consumers, conducted at various public locations such as shopping centers and malls.

Loyal Coke fans were encouraged to taste both products in unidentified cups and select, which cup was considered to better taste. The Cola was revealed after the consumer made his or her choice. The implications for the test are that Pepsi taste better and different than Coke and consumers should switch to Pepsi. This challenge promoted the name of Pepsi to greater heights in the public eye and they became the major competitor to Coke. Sales and Relationship Building Strategies Coca-Cola “The Coca-Cola Foundation gives grants totaling $20 million to support 65 organizations in the United States and around the world.

These grants support the Company’s global sustainability initiatives, including water stewardship, recycling and other essential sustainable community initiatives” (Coca-Cola Company, 2011p. 1). A significant amount of money is designated for organizations such as youth development, HIV/AIDS in Africa, and other civic priorities. Organizations receiving funding include: • Water Stewardship • Recycling • Active, Healthy Living • Education • Humanitarian/Disaster Relief • Local Community and Civic Initiatives • Youth Development (Coca-Cola Company, 2011) Pepsi In 2009 Pepsi donated 27. 9 million dollars to various charities.

They promote relationships through grants, associate, and disaster relief programs. Pepsi’s philosophy for grants is to “foster healthy, vibrant and self-sufficient communities worldwide through global partnerships that improve the quality of life across communities in areas of great need” (PepsiCo, 2011, p. 1). The associate program involves three parts, first Pepsi matches associate personal contributions to qualifying nonprofit organizations, second, Pepsi supports United Way campaigns and third, Pepsi promotes associate secondary education through Excel scholarships as well as urban youth through Diamond scholarships.

Pepsi states that, “When disaster strikes, PepsiCo Foundation provides financial assistance, in-kind product donations and human resource contributions to help respond appropriately to people and communities affected” (PepsiCo, 2011, p. 1). Unfair Predatory Marketing In 1998 the Center for Science in the Public Interest (CSPI), publisher of the Nutrition Action Health letter reported that, Coca-Cola and Pepsi spent more than six billion in advertising for exclusive marketing rights in schools and other locations that target children.

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