Coca-Cola was born in 1886, while Pepsi was 12 years later than Coca-Cola. Pepsi has always played the role of challenger, no matter from the market penetration or brand value, Coca-Cola is still far more than Pepsi. So people still see Coca-Cola as the leader and Pepsi as the challenger, and that's an indisputable fact in China.
According to the continuous monitoring of the China Market and Media Study (CMMS) conducted by the New Generation Market Monitoring Organization, Coca-Cola has been "far ahead" of Pepsi in terms of market penetration (the ratio of the number of consumers who drink a certain brand of Coke to the total number of Coke consumers) by virtue of its "dragnet" marketing strategy, which is based on the spreading of its net across the country, with the penetration rate (the number of consumers who drink a certain brand of Coke to the total number of Coke consumers) in 20 cities nationwide in 1999 and 2000 respectively, and the penetration rate of Coke in 20 cities nationwide in 1999 and 2000 was much lower than that of Pepsi. In 1999 and 2000, its penetration rate in 20 cities was 83.9% and 85% respectively, while that of Pepsi was only 65.5% and 67.9% respectively. However, if we analyze carefully, we will find that the market penetration rate of Pepsi is slightly higher than that of Coca-Cola, the former is 3.7%, while the latter is only 1.3%, and this trend is still in a silent manner, the former reached 89% in 2004, and the latter competed for 81%, which is really letting people have a sense of vicissitudes of the latter pushing the former waves. Especially recently, the media has been reporting that Pepsi's equity market capitalization exceeded Coca-Cola's for the first time in a century, which reminds people of the sharpness of the new generation of Pepsi and Coca-Cola's helpless decadence.
Pepsi's market performance in various cities is clearly polarized, with high market penetration even exceeding Coca-Cola's and low penetration less than 50% of Coca-Cola's. This is precisely the reason why Pepsi's market penetration is so high and Coca-Cola's market penetration is so low. This is precisely the result that Pepsi wishes to see in the near future, because their purpose is to seize the weakness of Coca-Cola's "casting a net all over the sky" strategy, focusing on the implementation of the center of the strengths of the breakthrough in campuses, tourist attractions, entertainment venues and other channels to focus on investment, intensive cultivation, and digging deep channels. And finally in Shanghai, Guangzhou, Chengdu, Chongqing, Changchun, Harbin, Wuhan, Shenzhen and other cities in the "two music" in the fight to win, in Beijing, the two music entrenchment war is also occurring in the situation change, the balance of the slow tilt towards the Pepsi's side.
The two music fight not only lingers for a hundred years, but also more and more like a never-ending Broadway play, the competition between the game ups and downs, the classic case of a variety of. But from the process and results of their competition in recent years, a large number of facts for the marketing community to think y and puzzling, from many sides we see the industry leader's marketing powerlessness.
In China's carbonated beverage market in 1998, four of the top five brands were Coca-Cola brands, and half of the carbonated beverage market share was held by Coca-Cola. At that time, many consumers should have this experience: when you asked the waiter of a restaurant to get a "Coke" drink, the waiter usually gave you a "Coca-Cola". But after 2002, in many large and medium-sized cities in the domestic restaurant, everywhere you can see Pepsi's three-dimensional posters, often you want to drink cola, the waitress out is Pepsi, when you say you want to Coca-Cola, she will use the expression of anger to make you feel that you did not make it clear. That's one way to show that Pepsi is gradually occupying a lot of high ground in the Chinese market in the challenger's position, and that the market is undergoing a situational shift.
Why is it that Coca-Cola, which represents American culture, always seems to be overwhelmed by the "choice of the new generation" and its moves are scattered? From the marketing point of view, the analysis may cover too much content, Pepsi's differentiated communication strategy, unique product mix strategy and public relations wisdom, etc. Everywhere there is a remarkable masterpiece. The author would like to discuss the topic of strong competition between the industry from the two music marketing channel strategy and team management to win.
Lens replay: Harbin market: Pepsi's blue position
Harbin market is the northern market must fight, especially in the beverage industry, the national brand is difficult to share a share. Coca-Cola to 1993 since the establishment of the plant, in the Harbin market has been occupying an absolute dominant position, the highest time accounted for 70% of the carbonated drinks market share. However, Harbin PepsiCo did not build a local factory (the factory is in Changchun), in the challenge to Coca-Cola in the action, has been profitable for many years, the sales volume has risen sharply year by year. 2004 PepsiCo carbonated beverages with 31% of the market share of the slightest victory over Coca-Cola, the market in Harbin was PepsiCo's awards for "fastest-growing market Harbin market was honored by PepsiCo as "the fastest growing market". Walking in the major squares and busy streets of Harbin, the blue sea of Pepsi and the strong atmosphere of the new generation can be seen everywhere. So often heard a college student say: "We like Pepsi because we are a rebellious generation, we like innovation, but in the face of the pressure of employment and survival, we can't romanticize ourselves as Coke rendered." Therefore, in the face of the brutal market competition, Coca-Cola is not "Coca-Cola", nor "Cola", but "Wish you Pepsi" has become a holiday or birthday blessing for the young people who have changed with the times. The first time I saw this was when I was a student at the University of California at Berkeley.
How come:
Behind the success, is a good channel strategy, promotional strategy, coupled with well-trained personnel management, all of which makes the marketing system to produce a benign lasting driving force
1. good channel management.
PepsiCo divides front-line sales staff into WAT (Wholesale Assistants) and DSD (Direct Salesmen), of which DSD is the main force, engaged in direct sales in regional markets.The work of WAT and DSD mainly includes customer visits, line management, bottle and box management, refrigerator management, shelf display, POS posting and management, management of sales and purchasing, and feedback on competing products. At the same time, PepsiCo strictly enforces the standardized line visit system, and implements the "four timed, eight-step" terminal development strategy, which is a very fruitful channel mode of intensive cultivation from the perspective of market reality. Despite the similarity of the model, Pepsi's performance has been significantly better than Coca-Cola's over the past few years, so it's only natural that Coca-Cola's strategic position will be shaken.
In the early 1990s, in order to quickly open up the market and seize the high ground, the fledgling Shanghai Pepsi decided to adopt the direct sales model. As a result, a large Pepsi sales force began to appear in the streets of Shanghai. Then, Shanghai Pepsi spent a huge amount of money to buy into the 20 Iveco, to provide door-to-door delivery service. From this day on, the customer's emperor feeling thus arose. PepsiCo is constantly changing its approach to the channel, pushing the boundaries of what is possible. It introduced the wholesaler collaboration model, not to subsidize part of the operating costs, to help wholesalers to serve the final customer, acting as a street terminal letter carrier function, in order to achieve the ultimate fine-tuning of the original purpose of marketing.
Between 1992 and 1993, in order to adapt to Shanghai's different lot level difference in the rent of this new affair, Shanghai Pepsi imported 1,500 sets of bulk beverage machines from abroad, this set of fast, on-site configuration, refrigeration, one-time drinking many advantages as a whole by the Shanghai public acceptance. the end of 1990s, Shanghai Pepsi already had a sizable market share and popularity.
For Pepsi's overall market strategy pattern, basically can be elaborated as follows: a type of strategic market to do direct, carved, the second type of market to set up the auxiliary sales office, for the distributor's marketing work; three types of markets for the management of the personnel to visit the regular, with the potential to do the management of the permanent staff. Regardless of the model Pepsi has never forgotten the development and control of the channel, the control and management of the channel is one of the core content of Pepsi marketing personnel at all levels. The competition in the future market is the competition of brand and channel, just like the army only has the army without the air force can not fight. Coke advocates the 3A rule (affordable, buy, happy to buy) is the truth in the axiom, but the fact is that many cities in the warehouse to buy when you buy Coca-Cola, shopkeepers often tell you do not have, when you want to go, he said I look for it, and then there is. In the face of neatly displayed Pepsi, I think this is the Coca-Cola channel crisis, there is no problem with the brand, the consumer's fingerprints to buy is the best note, it is his promotions, personnel, channel force problems caused by a combination of issues. There is no power to ram enough channel driving force, and then the good brand and sales have not much to do. I often go to the terminal to check the display of various consumer goods, and shopkeepers talk about the sales staff, listen to their views and comments. Often shopkeepers say: "Although it is a regular visit, but Pepsi's business can come once in four days, Coca-Cola's business often have to seven days to patrol the store once, while Coke's industry is wearing quite sharp, talk is also subject to listen to, that is, not hands-on work, Pepsi's is not the same, adjusting the display of products, wiping the dust, and even into the narrow library to see the inventory, there are promotions to notify the timely, so you don't have to ask why I'm not in the market for the product. So you don't have to ask why Pepsi sells well in my store." In the lack of channel planning and management, it seems that the quality of human resources to improve the quality of enterprises and training is equally important, high-frequency, high-quality visits is often the amount of efficient channel control, strong control brings is a huge sales.
2. Flexible promotional strategies
Promotions, also known as sales promotion or business promotion, is the most pragmatic marketing strategy in the marketing mix 4P, but also to influence and attract consumers the most powerful means. It can be categorized into SP tactics for consumers and SP tactics for distributors. The achievements of Pepsi are inseparable from its flexible and well-executed sales promotion. Comparing the promotional methods and contents of Pepsi and Coca-Cola, it is not difficult to find that the two have exhausted their efforts to dig out their minds and dedicate themselves to interpretation, which are all wonderful, but in-depth understanding of Pepsi seems to be slightly better. 1998-1999, Pepsi launched the World Cup soccer tournament in the Chinese market, respectively, the pull-ring, bottle cap exchange for prizes for the soccer stars, the Seven Happiness Romantic small passbook exchange for prizes and the Macau travel activities. 2000, Pepsi launched the World Cup soccer tournament, respectively, the World Cup soccer tournament, the World Cup soccer tournament, the World Cup soccer tournament, and the Macau travel activities. Between 2000 and 2005, Pepsi gradually launched a series of promotional activities, "Love to Win", "Unlimited Desire" and "Blue Storm", which were divided into on-site prize-shaking, card-collecting and prize-gathering activities. During the period of 2005, Pepsi gradually launched a series of promotional activities, such as "Love to Win", "Crave Unlimited", "Blue Storm", which were divided into on-site prize-shaking, card-collecting for prizes, etc., and the well-designed and novel Pepsi star shirts and star posters, etc., all of which have become the endorsement of Pepsi's rebelliousness, passion and innovation. These activities are wide-ranging and influential, and play a positive role in terminal promotion and increasing sales.
Targeting distributors, PepsiCo mainly uses sales promotion strategies such as freebies, price concessions and discounts. In carbonated beverage sales in 2002, Pepsi's wholesale price was among the lowest of competing brands, and Pepsi tends to make a big effort on product capacity, making Pepsi products highly competitive. In addition to the low direct price, Pepsi also provides distributors with activities such as one-month credit support, free trips, quarterly lucky draws, and VCD incentives. For better cooperation, novel ideas dealers, PepsiCo's promotional tools are varied, providing dealers with staff training opportunities, provide manpower to support the market, and so on a series of promotional tools, whether it is attacking the heart or the city, the potential for the sublimation of tacit is the effect of the accumulation of thinning is to make the envious red in the eyes.
3. Strict and systematic management of sales personnel
PepsiCo has a modern marketing concept that has been updated by the internationalization of hundreds of years of precipitation and a modern marketing management system based on it, together with the management team that is familiar with the Chinese market, which has created a highly efficient and pragmatic management platform for PepsiCo, and also constitutes a great advantage for PepsiCo's human resources. The management of PepsiCo's filling plants in China is now almost exclusively Chinese, and managers who know the Chinese market and the characteristics of Chinese employees can make use of their strengths and avoid their weaknesses in the Chinese market, and make appropriate strategies to win. Chinese people do senior managers, they know the traditional strengths and weaknesses of the Chinese short board place, can be adapted to local conditions, according to the development of pragmatic landing management policies, give full play to the subjective initiative, to avoid the strategic policy of the sky roaming, grass-roots work on the ground wandering in a malignant situation. Now I know through the survey, Pepsi each branch of the marketing staff are feeling the pressure of work, and always have the possibility of being fired.
PepsiCo today's achievements and its tightly regulated sales force management can not be separated and the argument. Marketers know that in today's Chinese market, even with a high-quality brand does not mean that sales and profits, only mastered the channel terminal, mastered the consumer; to really have the market. Pepsi has adopted the line pre-sale system sales system that has been used in foreign countries, and divided the front-line sales staff into WAT (Wholesale Assist Technician) and DSD (Direct Seller), of which DSD is the main force, engaged in direct sales in each market. The work of establishing WAT and DSD mainly includes line management, marketing props management, product shelf display, dynamic file registration management, and competition information feedback. The work of settling payment with customers is also done by the drivers in charge of delivery. The directors of PepsiCo's districts carry out on-site supervision and management, and the business staff must have a record for each visit, and the number of visits per day (face-to-face visits) has gradually evolved from no quota in the past to 30, 35, 40, and all the way up to 45 today! Strict management and a sense of crisis make no one in the marketing staff dare to slack off.
In order to better utilize the executive power of the enterprise's good scientific marketing system, Pepsi has also established a strict and meticulous form system, and has the process of supervision and management system for marketing personnel at all levels. For marketing managers at all levels, Pepsi uses a hierarchical work responsibility system, sales targets, market expenses to the implementation of people, everything is quantitative institutionalization, the establishment of a clear distinction between rewards and penalties for the marketing of positive and negative incentive system. At the same time, the business staff incentives directly linked to sales performance, under the premise of the base, the overachievement of part of the award in cash, and to provide certain welfare incentives, including material, cash, honor, and even training opportunities and so on.
Because PepsiCo has adopted a large number of direct sales methods, it has established a huge street patrol team in many large and medium-sized cities. Directly facing the terminal retail market, digging deep into the channel, making most of the retailers adopted Pepsi's refrigerator, bottle box, taking up a large amount of the dealer's pressure bottle funds, personnel-intensive, resource-intensive, large investment in the strategy, making Coke lean and efficient team in the face of the Pepsi's tactics, quite a good tiger is difficult to beat the wolves of the sad vicissitudes of the feeling. When Coca-Cola woke up to adopt the same method to develop the terminal market, dealers have been reluctant to come up with more bottle-pressing funds, which naturally formed an obstacle to Coca-Cola's sales channels.
While Pepsi's sales force has been flowing more in the past few years, with 20-30% of the personnel flowing every year, the pre-sale system has been perfected under the platform of a good brand to support a good management strategy, a larger proportion of the flow of the enterprise has created a fresh flow of blood, and the flow of water does not rot, and the door does not become worm-eaten, that is, this is the truth, right? We face Coca-Cola did more than 5 years of business representatives, really believe that his passion and motivation?
In order to give full play to the dynamic role of marketing personnel at all levels, PepsiCo has a whole set of human resources development programs. From the grass-roots business generation CR to business director TDS, and even to the regional manager TDM, regional manager UM, each level has its own strict assessment evaluation standards. Performance to, all the indicators have reached, with job promotion, give more space, no job to increase income and salary standards, into the professional managers in the alternative library.
Waving the enterprise azure or bright red flag are people, so only people move up, the vitality of your brand can be shown, the channel is more driving force, promotions have penetration, the brand has more core competitiveness. So the competition among enterprises is still the competition of people in the final analysis, because if the people are powerless, channels without thrust marketing powerless, the brand is even more vitality can not be said.
Added, this is a very classic case! There are several good turning points:
First, when Pepsi seized the Coca-Cola market, it accurately set the target consumer group in the next generation of young people who sang the song of individuality after World War II! In the campus public **** occasion to carry out large-scale activities, the impression of basketball games, mountain bike races! Highlighting positivity, bravery and passion!
Secondly, Pepsi found through market research that Americans wanted to take more Coke home, so they developed large bottles! So more Americans chose Pepsi for the convenience of taking more Coke home from the supermarket, which in turn took over Coca-Cola's market! (over)