Manufacturers often produce almost similar products on many occasions. However, there are always slight differences in the products. This essay highlights the comparisons and contrasts between the Coca Cola soda and Pepsi soda. These two products are similar in terms of the type of product but different in pricing and branding strategies.
To begin with, these two sodas are manufactured by different companies. Coca Cola soda is manufactured by the Coca Cola Company while Pepsi soda is obtained from the Pepsi Company. These two companies are competition with one another, and because of that, their products are differentiated in terms of price and branding. Therefore, the appearance and branding of the tow sodas are different (Michman & Mazze, 1998). With regards to pricing strategy, these two companies apply different strategies. The Coca Cola Company uses a cost-based pricing strategy whereby the prices of its products are determined by the cost of production. Pepsi on the other hand, sets its prices based on the perception of the consumers on Pepsi soda. Thus, Pepsi’s prices are based on the relation to the price of coca cola soda and other products that are manufactured by the Coca Cola Company. Based on this, the prices of the two sodas are not significantly different (Michman & Mazze, 1998). However, the two companies often apply promotional pricing strategies in order to enhance their sales as well as attract more consumers. Besides, they also use segmented pricing strategy whereby the products are packaged and sold in different sizes and prices based on the products’ sizes.
Despite the differences highlighted above, the two products are soft drinks and serve similar purposes. The two companies have been in the market for quite a long time, although the Coca Cola Company might have had more experience in the market compared to the Pepsi Company.
Michman, R., & Mazze, E. (1998). The food industry wars: Marketing triumphs and blunders. Westport, Conn: Quorum.