Soft Drink Market Share by Two MNCs in Pakistan

International Share of Coca Cola and Pepsi

Coke is considered to be the market leader on international basis. It occupies 80% market share worldwide, while Pepsi has 20% share. 

Coca Cola & Pepsi Share in Pakistan

Coke is having 35% market share while Pepsi is having 65% Market share in Pakistan this is due to some reasons. Whereas in Gujranwala, Coke is having 49% market share and Pepsi is having 51% market share. This rate shows that Pepsi is having more market share than Coke in Pakistan.

Strength for Pepsi

  • It is considered to be one of the leaders in the Pakistan industry.
  • Its CSD rates were lesser than coke because of which it had strengthen its foundations as a soft drink in market.
  • Pepsi accomplished 2nd rank as a CSD brand by competing franchises of coke, Royal crown and Dr. Pepper by attaining 10% of U.S market.
  • Pepsi introduced incentive of home delivery through supermarket.
  • Pepsi introduced 26 oz bottle for targeting family consumption.
  • Pepsi main focus was on the establishment of brand while coke main focus was on gaining profit due to which in 1970 Pepsi bottlers were generally larger than coke. In this period of time, Pepsi sold concentrate at a price about 20% less than coke.
  • In 1979, Pepsi passed coke in food store sales for first time with 1.4 share point lead.

Reading: Detailed Swot Analysis of Pepsi

  • In 1985, new formula announced by coca-cola resulted in declining of share as well as defame of coke brand that it is a mimic of Pepsi that gives fame and market share to Pepsi.
  • It is having a broader product line and outstanding reputation
  • It is having a large amount of free cash flow for doing its investment and for expansion. Due to availability of free cash flow it is having wide distribution, innovative capabilities and strong brand image. 
  • It is considered to be the best maker of snacks i.e. corn chips and potato chips.
  • Its market share is increasing day by day by increasing its revenues. 
  • It had adopted a strategy of selling the three products namely Pepsi, Gatorade and Tropicana through the same distribution channel by reducing cost, improving efficiency and smoothing out the impact of seasonal fluctuations in demand for particular product.

Weakness of Pepsi

  • It is hard for Pepsi to inspire vision and provide direction for large global company.
  • The different products being offered by Pepsi are not having the company name of Pepsi with them.

Reading: Why Coca Cola is different from others?

  • PepsiCo is far away from leader Coca-cola in the international market - demand is highly elastic. Pepsi adopted the strategy of coke for its survival.

Difference between Coke and Pepsi

  • Coke is having difference in taste than Pepsi due to having difference in ingredients.
  • Coke has maintained global leadership in soft drink industry whereas Pepsi has gained success in both snack foods and beverages industry.
  • Coke is trying to focus on worldwide expansion of the cola market. While Pepsi must divide its focus between managing soft drinks lines and snack food lines.
  • Coke must try to focus on its relationships with bottling subsidiaries as compared to Pepsi in order to keep itself out of legal and territorial problems.
  • Pepsi is having strong brand equity in Pakistan as compared to Coke. While Coke is having strong market share and world wide identity being a leader in market.
  • Organizational structure for international sales of cola products may not be as strong as Coca-Cola’s.
  • Both the brands are facing both political and economic instability in many developing regions of the world.

Reading: Coca Cola secure 67,2% of market share in

  • Coke is facing a major challenge in developing countries that their regional bottlers may not have the financial resources to continue expansion.
  • Both the brands are trying to create world-wide economic development and population growth to sustain sales and profits
  • Both are facing competition from other national, regional, and global soft drink Companies.

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