Coca Cola and Pepsi Marketing Expenses Compared.
Coca Cola and Pepsico are the two leading brands in the soft drink industry. Both have a large product portfolio of competing products. However, due to the intense competition in the industry, both brands spend a large sum each year on advertising and promotions. Marketing is also a source of competitive advantage in the soda industry, and both brands invest heavily in marketing through several channels, including online and offline channels. Both brands utilize video marketing for promotions heavily. While Coca-Cola’s expenditure on marketing has generally remained at around $4 billion during the last four years, Pepsi has exceeded that of Coca Cola over the last three years. Starting in fiscal 2016, Pepsi’s marketing expenditure started exceeding $4 billion, while Coca Cola’s remained at $4 billion or less till 2017. In 2016, while Coca Cola spent around $4 billion on marketing, Pepsi’s marketing costs were around $4.2 billion. Coca-Cola’s marketing expenditure reduced sightly in 2017 compared to the previous year reaching $3.96 billion and then rose again in 2018 to $4.1 billion. On the other hand, Pepsi’s marketing costs also fell in 2017 compared to the previous year, reaching $4.1 billion and then rose again in fiscal 2018 to $4.2 billion.
In fiscal 2019, the marketing expenses of Pepsi have reached $4.7 billion whereas that of Coca Cola reached $4.25 billion.
Take a look at how Pepsi and Coca Cola’s marketing expenses compare over the last five years in the following table.
|Year||Pepsi Marketing expenses ($Billion)||Coca Cola Marketing Expenses ($billion)|
About Coca Cola:
Coca Cola is a leading brand of sparkling and nonsparkling beverages. It is the largest competitor of Pepsico and its products sell in virtually all countries of the world. It has its headquarters in Atlanta, Georgia. The company owns or licenses and markets more than 500 nonalcoholic beverage brands. They are grouped into the following categories: sparkling soft drinks; water, enhanced water, and sports drinks; juice, dairy, and plant-based beverages; tea and coffee; and energy drinks. Coca-Cola also owns and markets four of the world’s top five nonalcoholic sparkling soft drink brands: Coca-Cola, Diet Coke, Fanta, and Sprite. Finished beverage products bearing Coca-Cola trademarks, sold in the United States since 1886, are now sold in more than 200 countries and territories. In 2019, the net operating revenue of Coca Cola grew to $37.3 billion from $34.3 billion in the previous year. Coca-Cola’s largest market is the United States that accounted for around 32% of its net operating revenues in 2019.