Minggu, 30 November 2008

Coke Or Pepsi Which One Do You Prefer?

Coke Or Pepsi

It's the Battle of the Better Beverage!

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Place your vote for the fountain beverage that has the fizz your tastebuds just can't resist: Coke Or Pepsi?

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Kamis, 27 November 2008

Why I love Pepsi Cola?

Why do I love Pepsi Cola? Ever since I was a boy until this very day I still drink Pepsi cola, because it tastes better than coca cola, Pepsi cola has less carbonation burn and a sweeter taste.  I also like how Pepsi it gears its product to my age demographic. The Pepsi bottling company closely rivals the coca cola in the soft drink industry. The Pepsi Cola brand was trademarked in 1903 and since then Pepsi has spent its 105 years building a strong brand it has done this through marketing. Pepsi bottling marketing also affected the product life cycle of Pepsi cola.

In the beginning Caleb Bradham always tried to keep the public interested in his product he used slogans like in 1903 when he said that Pepsi "Exhilarating, invigorating, aids digestion.[i]" Pepsi markets its product to the youth of the world through out its 105 year history. Through slogans like 1984’s “Pepsi The choice of a new generation”, and 1993’s slogan Be young, Have fun, Drink Pepsi[ii]. The slogans for today are geared toward younger generation. The slogans help keep the Pepsi brand fresh in the minds of the public.

Coca Cola to New Coke

In 1985 Coca Cola decided to terminate their flagship brand Coca Cola and launch a formula sweeter than it.To understand why, let's go back a few years.

In the 60s Pepsi repositioned itself as a youth brand, even though it was loosing out its elderly customers to Coke. This move brought them enormous success, it perfectly complimented the rivals 'old and classic' look. With a narrowed focus, it came to be seen as a 'drink of the youth'.

In the 70s Cokes rival started the Pepsi challenge which was a blind test between its own product and the Coke. To the companies terror most of the participants preferred Pepsi to Coke.

In the 80s Pepsi launched the challenge globally, it promoted the arrival of the 'Pepsi generation'. It also signed up celebrities like MJ and Britney Spears. Now Coke's numero uno position seemed to be vulnerable. It lost the market share not only to Pepsi, but to its own brand Diet Coke.In 1983 Cokes market share came down to a new low of 24%.

1n 1984 coke launched a marketing campaign praising itself for being less sweet than Pepsi. They roped in Billy as the brand ambassador. These efforts were fruit less. They could survive only because of their effective distribution chain.

Coke perceived that the problem was with the product. So, they started working on a new sweeter formula. They finally came up with a formula which they taste tested, the results were satisfying. It fared better than Pepsi. But having both the formulae in the market was not logical as it would make the numero uno position vulnerable.

Coke had badly underestimated the power of its brand. After hearing the news, a large part of US decided to boycott the product. On 23, April 1985 New Coke was launched and few days later Coke was stopped. New Cokes sales were low, public was agitated by the fact that Coke was no longer available.

Things were very clear, Coca Cola had to bring back the 'real thing'.

The first very big mistake they did was under estimating its own brand. They took people for granted. We all know that Coca Cola is the 'real thing'. They simply thought that they can convince us by telling that, the real thing was a mistake. So, they have come up with a 'new real thing'. In fact their mistake was first identified by Pepsi, so they came up with a ad criticizing their move. And while analyzing, why their sales were going down, they took only taste into consideration. Its a mistake not just done by Coke. the same little blunder is done by many major companies while analyzing their decline in sales. The main purpose of the launching New Coke was to retain their numero uno position. But history has repeatedly told us that no new product in an old product line can become number one overnight. But this is what they wanted to do. These mistakes sound petty I know, bu these are the kinds of mistake such huge companies do.

Take away:

-Brand value can never be underestimated.
-Research should have a 360 degree approach.
-Never follow the competitor.

The author Avinash Mohan Bandarapu Chetty is the owner of the blog http://www.marketingcampaigner.blogspot.com

Article Source: http://EzineArticles.com/?expert=Avinash_Mohan_Bandarapu_Chetty

Coca-Cola vs. Pepsi: Which Stock is a Better Buy?

Possibly one of the biggest rivals in Corporate America today, the battle between Coca-Cola (KO) and PepsiCo (PEP) continues to baffle not only consumers but investors as well in determining which product is a better buy. While both companies have had recent problems in emerging nations such as India by having their products be condemned for improper ingredients, a shakeup like this might be necessary to promote future growth for possibly undersold equities.

In terms of fundamentals, Pepsi seems to have the slight advantage. While Coca-Cola does have the higher figures, Pepsi has the better margins in terms of operating margins, revenue, and profit which is more important for growing companies. Pepsi also has, according to Yahoo Finance, been upgraded more times than Coca-Cola during the last few months, signaling a favorable sentiment among investment banks. In terms of guidance, both companies look to secure better procedures in the emerging markets with their products which should hurt earnings for a while but eventually boost them due to economies of scale. However, recently Pepsi has had positive surprise EPS statements during its quarterly results. While Coca-Cola has also reported similar reports, the findings were at a much smaller margin, barely affecting shares.

What is more important, in determining a choice between these equities, is the technical analysis involved. During the past year Coca-Cola has only remain in a five dollar range, showing little fluctuation patterns for speculators or investors. While such a figure may be encouraging for fixed income advocates, in reality, since 2000, Coca-Cola has barely fluctuated at all in its 20 point range, showing no signs of potential growth. While the situation is unfortunate, it looks as if, like Microsoft, Coca-Cola has increased in terms of value to its maximum, and pretty soon diseconomies of scale may be evident for this once prosperous company causing shares to drop in the future. On the other hand, Pepsi has seen continued growth throughout its tenure in a nice steady growth pattern. While speculators may not be encourage by the slow appreciation of the stock, long term investors may favor such a pattern as it does not seem the price of Pepsi has peaked. The company is still in the prime of its career and should carry the stock to higher numbers in both fundamentals and shares for at least one more decade. By investing now, investors have the opportunity to see Pepsi rise to near 80-100 points by 2010 and possibly even further by 2015. While the wait may be more tedious than other penny-stocks, the process will be relativity stress free as investors will be allowed to see their capital gains appreciate over the years. Such as a process is also favorable with its dividend payoff which allows for reinvestments to increase gains.

What I also like about Pepsi currently is its recently appointed CEO with an Indian background who may look more favorable than Coca-Cola to the emerging markets. Such a basic presence may add increased pressure to Coca-Cola to spend more money on advertisements and other apparels to strike a similar chord in these markets as its soft drink counterpart. While it is genuinely assumed that Coca-Cola is the king of its industry, times are slowly changing for the worse for this tremendous corporation and looking more and more favorable its hated rival in PepsiCo.

Dennis Biray presents advice on all kinds of topics ranging from finance and investing to fitness to sports. For more information email him at dbiray@gmail.com, or to view other articles written by him visit http://www.biraynetworks.co.nr

Article Source: http://EzineArticles.com/?expert=Dennis_Biray

Pepsi plan investing up to $3B in Mexico

MILWAUKEE - PepsiCo Inc. said Thursday it plans to invest up to $3 billion in Mexico in the next five years to grow its beverages and food brands Sabritas and Gamesa there.

The Purchase, N.Y.-based maker of Frito-Lay's and Pepsi said it will spend $2 billion on manufacturing, marketing and research and development for its food businesses.

PepsiCo Americas Foods Chief Executive Officer John C. Compton told company executives at an event in Mexico City that the company will spend the remaining $1 billion on marketing and advertising for Pepsi's beverages in the country.

Mexico is considered a key market for the company, Compton said in a news release, and PepsiCo has been there for the last century.

“PepsiCo's businesses in Mexico have developed great consumer loyalty to their brands, built through decades of investment,” Compton said.

The company has 60 production centers, 22 manufacturing plants and 667 distribution centers there. With 40,000 employees in Mexico, PepsiCo is among the country's largest employers.

Compton said as part of its investment in Mexico, it will introduce some of its key brands there to the U.S., where Hispanic populations are rising.

The investment follows news earlier this month that the beverage and snack maker will invest $1 billion in China over the next four years. Its goals there are similar to the Mexican venture in that it wants to expand its manufacturing capability, research and development and sales force in the country. The move marks the company's largest investment in China in nearly 30 years.

The company is expanding its presence abroad as it faces a slumping soft drink market in the U.S.

PepsiCo earlier this month reported a nearly 10 percent drop in third-quarter profit, missing Wall Street expectations. The company, which has focused on growing market share in quickly growing markets of Brazil, India, Russia and China, said at the time it would cut 3,300 jobs and close six plants to combat weak U.S. drink sales and a surging dollar, which will hurt profits from its rapidly growing international business.

In the U.S. market, the company is noticing its penetration stays high but consumers are drinking its soft drinks less as they change their habits for health reasons or to save money, Massimo d'Amore, Chief Executive Officer of PepsiCo Americas Beverages, told investors on Thursday. He told investors at a conference in New York the company wants to engage consumers in the brands, much like it does with Mountain Dew, and win them back through product innovation.

Rabu, 26 November 2008

Which one is your favorite? Coca Cola or Pepsi?

The Battles between these two popular drinks had been going on for decades, each beverage representing different age or era, it's like seeing or comparing The Beatles or the Backstreet Boys? Star Trek or Star Wars? Yankees or Mets? They say you must like either one or the other.

Now we have known about these 2 drinks for many decades now and I believe that there are a lot of people out there didn’t realize that right now McDonald’s is serving both Pepsi and Coca Cola! Hey it’s true man, boy I didn’t realize it neither until today, but I want to ask you guys, which one do you think the best drink to have with your burger and fries? Pepsi or Coca Cola?

The fact about Coke is it’s still the market share leader in soft drinks. One of the main reasons the stock has outperformed Pepsi this year was because it reported a better than expected gain in unit volume in the first quarter. And the company has taken steps to cement its carbonated beverage lead as well gain ground in the bottled water market. (Coke and Pepsi both have their own brands of water, Dasani and Aquafina, respectively.)

But unfortunately we don’t see a lot of diversity from Coke, which another factor in Pepsi’s favor is its diversity. Crit Thomas, director of growth equity for National City Investment Management Co, says ”What attracts me to Pepsi is I have more faith in their ability to grow earnings. Not only are they successful on the beverage side but they are successful with salty snack foods.”