Coca Cola and Pepsi are two brands which are well known and most demanding brands among soft drink brands. There has been tough competition between these two brands which look like similar, taste like similar, but still they are different. Coca cola was introduced in 1950 while Pepsi developed much later as the company faced bankruptcy in 1920. The two brands are similar in tastes and appearance, but Pepsi is sweeter than Coca Cola. But people also claim that taste of Coca Cola is better than Pepsi. Other found Pepsi more affordable than Coca Cola.
Coca Cola is most popular and valuable brand and has increased its dividends per share since 25 years. The company has diversified its products and Pepsi is also a leading brand in beverages. Pepsi is more diversified as the company has entered in snacks and confectionery items (Cramer, 2014).The dividend yield of Coca Cola is better than PepsiCo. The dividend yield of Coca Cola during ten years is better than Pepsi. Coca Cola is in a better financial position than Pepsi as dividend growth rate of Coca Cola is 8.51 % and PepsiCo is 6.67 % during five years (Cramer, 2014).
The marketing techniques used by two brands are similar, and Pepsi gained its popularity by connecting with customers. Coca Cola provides its product details like nutritional information and contact details. While Pepsi offers customers more accessibility and facts response and contact details. Coke is strong as it is more carbonated than Pepsi while Pepsi is sweeter. Pepsi is admired by youth mostly while mature people prefer Coca Cola.
In United States, the consumption of Cola drinks has reduced since past few decades. Therefore, the volume of sales of Pepsi dropped by 8 percent but sales volume of Coca Cola dropped by only 2 percent in North America in 2009 (D’ Altorio, 2012). According to Beverage Digest Coca cola has won this war (D’ Altorio, 2012). Coke is trusted more than Pepsi and Coke, and market share of Coke is 41.9 % and Pepsi got 29.9 % (D’ Altorio, 2012).
During blind test people prefer Pepsi over Coke but still people is buying coke more than Pepsi. Coke has won cola war because it has preferred branding over flavor as the company is investing much on advertising. The commercials of Coke induce people greatly, and they keep on sticking to Coke. On March, 2010, Coca cola sold 1.6 billion cases of regular soda and 927 million cases of diet soda and Pepsi just sold only 892 million cases (boston.com, 2011).By studying all these facts, it can be said that Coke is a better brand than Pepsi.
References
As soft drink sales fall, Diet Coke passes Pepsi. (18 march, 2011). Boston.com. Retrieved 31 May, 2014 from http://www.boston.com/business/articles/2011/03/18/as_soft_drink_sales_fall_diet_coke_passes_pepsi/?camp=pm
Cramer, Bob. (12 January, 2014). Coca-Cola vs. PepsiCo: Coke’s got more fizz. BIDNESS ETC. Retrieved 31 May, 2014 from http://www.bidnessetc.com/20878-coca-cola-vs-pepsico-whose-dividends-taste-better/
D’ Altorio, Tony. (26 February, 2012). Coke Vs. Pepsi: Are the Coal Wars finally over? INVESTMENT U. Retrieved 31 May, 2014 from http://www.investmentu.com/article/detail/17410/are-the-coke-vs-pepsi-cola-wars-over#.U4m0Y3KSyao
