A comparison of Coca Cola and Pepsi's Marketing expenses

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's has exceeded that of Coca Cola over the last three years. Starting 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.

Take a look at how Pepsi and Coca Cola's marketing expenses compare over the last five years in the following table.

YearPepsi Marketing expenses ($Billion)Coca Cola Marketing Expenses ($billion)
2018$4.2 $4.1
2017$4.1 $3.96 
2016$4.2 $4 
2015$3.9 $3.98 
2014$3.9 $3.5