Coca Cola vs. Pepsi Co.

, 2004, p. 56). Culture is defined as a set of values passed on from generation to generation in society (Etzel et al., 2004, p. 57). Some cultural elements that can influence a company's marketing program include family, customs and behavior, education, and language differences (Etzel et al., 2004, p. 58).
             Facts.
             The apparent trend is that soda consumption is decreasing and has a profound effect on soft drink producers. In this case, it has had an effect on Coke and Pepsi. To respond to this trend, each company has expanded its marketing mix and used different marketing strategies to gain market share. Specifically, each responded differently to the decrease in carbonated sales.
             Pepsi recognized the trend early and took proactive measures. They company desired to become a "total beverage company" and expanded its product mix to include bottled water and juices (Etzel et al., 2004, p. 82). At the same time, Pepsi revitalized its cola products with flashy ad campaigns targeted to 12-24 year olds who drink the most soda (Etzel et al., 2004, p. 83).
             While Coke experienced its third consecutive year in flat or declining market share in the U.S., Pepsi made small gains on Coke's share of the market. Assisting in boosting the health of Pepsi was its fast growing snack food division, Frito-Lay, which comprised 60% of Pepsi's sales (Etzel et al., 2004, p. 82).
             Coke's earnings declined despite aggressive growth targets, advertising, and promotional strategies which lost momentum (Etzel et al., 2004, p. 82). Daft, Coke's CEO, decided to decentralize decision making giving local managers authority over local marketing strategies. The new strategy created by Daft was coined "think local, act local" (Etzel et al., 2004, p. 82). A marketing executive at Coke realized that to achieve a high growth rate, the company needed to become more diversified and move beyond carbonated beverages as Pepsi did (Etzel et al., 2004, p.