PowerPoint Presentation

Group 1Ishant Singh 159278117Ravi Chouhan 159278071Rishabh Tanwar 159278073

Case OutlineCase is all about Managing Brands over Geographic Boundaries and Market SegmentsIn order to build Global Customer Based Brand Equity following Points should be kept in MindUnderstand the similarities and differences in the Global Branding LandscapeDo not take shortcuts in brand building Establish marketing infrastructure Balance Global and Local controlLeverage brand elementsAdvertising and marketing campaigns have considerably increased In 2013, Coca-Cola spent $3.37 billion, or 7.0% of its 2013 revenues, on advertisingincluding in-store activations, loyalty points programs, and point-of-sale marketingPepsiCo, Inc. (PEP), Coca-Colas closest rival, spent $3.9 billion in advertising expenses and marketing activities, representing 5.9% of its 2013 revenues

Source: Investopedia

Portfolios

Role of Advertisement in Building the various brand of the two soft drink major The soft drink industry is marked by severe competition Company can sustain Position on the basis of Advertisements and BrandingCoca Cola company as worlds 3rd most valuable brand and Pepsi Ranked 24th most Valuable brand

Source:-http://marketrealist.com/2014/11/role-branding-advertising-soft-drink-industry/

How had the advertising of each of two brand evolved over the time in India

Coca- ColaHill Top commercial 1993Always Coca- Cola- (1994-1998)Thanda Matlab Coca-Cola- 2003Little Drop of Joy- (2007-2008)Open Happiness & Coke opens up the Possibility (2009-2010)Pepsi Yehi Hai Right Choice Baby campaign Ah-Ha- (1990-1994)Nothing official About it- 1996 Yeh Dil Mange More- 2001Dare for More- 2004Join the blue billion 2006Youngistan 2008Youngistans Wow - 2010

India and USA MarketsSoft drink industry in India is worth 50 billion (year 2012) growing at 6% CAGRCarbonated drink segment has 62% market share in overall soft drink industryIn USA, soft drink market is valued at $97.82 billion with leading companies- PepsiCo, Coca Cola and Dr Pepper Snapple

Per capita consumption of carbonates in USA was 180 gallons per year in 2007 which was 45 times than that in IndiaDiet Coke and Diet Pepsi form a major share of market in USA while in India it is less than 1% combined without any growth In USA, market share of both Pepsi and Coca Cola has reduced 7% and 5.8% respectively from 2007 to 2009 while in India the market share has increased slightly by 1.3% for Pepsi and 5.25% for Coca Cola

Home-grown drinks such as Thums Up and Limca which were acquired by Coca Cola are still strong in the market with combined market share of 25% The biggest differentiation is the growth of local or new brands in US market which command a market share of 43.8% and has seen a growing trend while in India this segment has reduced from 9.5% in 2007 to 7.6% in 2009 showing the influence of big brands on Indian consumersSource: HBS

Localization of BrandAsk For More Yeh Dil Mange MoreDare For More Yeh Pyas Hai BadiThe communication of brands have not changed when they targeted Indian marketsSince there is no or negligible product differentiation from market to market as well as same target segment, global image and positioning of brands makes it easier it easier for local customers to connect with itYoungistan Generation Next

Ask For More

Yeh Dil Mange More

Year 2001Year 2004Year 2010Pepsi focussed on youth evolving their taglines and brand endorsers over time

Localization of Brand

Brand Endorsers in USBrand Endorsers in India

Just like in US market, Pepsi positioned itself as a youngsters drink in India and always used youth icons in cricket and Bollywood for advertising

Advertising Strategy

$2.3 BnThe advertising spend by Pepsi in 2014 which was 3.5% of total revenueAdvertising here is used to stop backsliding of the market share also resulting in creation of an entry barrier for the industry Source: InvestopediaTARGET AND POSITIONINGPrimarily targeted at teenagers and young adultsHip, cool, lively and refreshing attitudeHas to constantly respond to spoofs and threats from other brands by tweaking or changing its planned advertising strategyTop Brands By Ad Spending

In carbonated soft drink industry, there can no differentiation on product, packaging or service so only differentiating factor is the advertising. Hence, advertising undoubtedly is biggest driver of growth in this industry

Different Advertising Roles in USA and IndiaThe brands are already well established in USA and advertising plays the role of maintaining the brand image but in India brands have to evolve with time and take into account the contextual differences.

Due to contextual difference, 7 Up Indianized its mascot so that Indian audience can relate to its cool, genuine, liberal and witty character

With time Mountain Dew changed its communication strategy from daredevil drink Do the Dew and Dar ke aage jeet hai to the No Fear or Macho Man image hence directly competing with Thums Up.

Similarly, the target segment for Coca Cola in its initial days was the youth segment and the campaign Jo Chaaho Ho Jaye clearly connected well with the segment. The next advertising campaign ofThanda Matlab Coca Colawas launched with an objective to have a mass appeal. The campaign leveraged the product platform rather than the emotional platform that it had established earlier.Advertising role in India has been about establishing the brand and adapting to the cultural and demographics changesSource: HBS

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Developed as a substituteof Red Wine to deal with addictionFree tasting to get people hooked Positioned as a substitute for alcohol. The Great Temperance BeverageFirst campaign as a symbol of happy times Thirst Knows No Time Nor SeasonFirst commercial product to appear on the cover of Time MagazinePepsi Challenge and the beginning of Cola War The Brand Evolution

The Brand Evolution

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Advertising Strategy

$3.5 BnThe advertising spend by Coke in 2014 which was 6.9% of total revenueNew Product LaunchIncrease Brand AwarenessIncrease Brand EquityResponse to Competition Focus AreasSource: InvestopediaAdvertising here is used to stop backsliding of the market share also resulting in creation of an entry barrier for the industry Top Brands By Ad Spending

A Major Marketing Shift: All Coke Trademark brands will be united in one global creative campaign: Taste the FeelingOne Brand ApproachAny spoof or threat on Coca Cola is countered by Sprite