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Thanda chalega kya ... Pepsi and Coke!
(20 April 2004)

 

Soft drinks is perhaps the most hard fought product categories in India in every respect - media, events, distribution, pricing, communication, endorsements and so on... Every year it consistently emerges as one of the top 10 categories on television. We, at AdEx India, have looked at year 2003 to understand the year that was for this exceptionally competitive segment!

One clear and predictable pattern in 2003 was the two clear peaks of ad spend - one during the world cup and the other during the festive time. Interestingly, while Pepsi dominated media budgets during World Cup, Coca-Cola seems to have been the dominant spender in the month of September.

However, this time we at AdEx thought of dwelling on aspects of advertising in terms of strategy adopted by the different players in this category and the duration of advertising across genres on TV and press.

This paper tries to throw some light on the following aspects: -

  • Genre wise and channel wise composition of advertising on TV
  • Advertising strategy adopted by the aerated soft drink players on TV and press
  • Zone wise and genre wise advertising on press
  • Specific case: zone wise and genre wise advertising for Pepsi and Coke

Channel wise and genre wise composition of advertising on TV

Genre wise analysis on aerated drinks establishes that this category is heavily advertised on feature films, music, cricket and soaps. Major part of the advertising on Cricket can be attributed to the fact that Pepsi was the official sponsor of the Cricket World Cup 2003. However, apart from cricket Pepsi is actively present on other types of sports such as soccer, wrestling etc.

 

Exhibit 1

 

On the other hand, 10 per cent of advertising of aerated drinks is concentrated on music channels, Channel V and MTV scores over others, where Coke has a significant share.

 

Exhibit 2

 
A very interesting insight emerges-- on press about 98 per cent of the advertising for aerated soft drink is concentrated in the general interest segment. Whereas, only about 2 per cent advertising is concentrated on youth, film magazine, business, and women's magazine, in flight and education and career. And from that 2 per cent share, 1per cent advertising is done on youth magazine.
 

Exhibit 3

 

Advertising strategy adopted by the aerated soft drink players on TV and press

'Exhibit-4' highlights the strategy undertaken by some of the players in the aerated soft drink category. Couple of interesting insights transpire. One is how frequently do they advertise and the duration/CC for which they advertise. Such as, Coke advertises more, relative to Pepsi both interms of frequency and duration on TV. While Pepsi scores over Coke on press.

 

Exhibit 4

 
 
 

Genre wide advertising for Pepsi and Coke(duration)

'Exhibit-5' clearly helps to establish a very interesting fact that Coke is advertised more on genres such music, soaps, news bulletin and Pepsi is advertised more on sports such as cricket, soccer and wrestling.

 

Exhibit 5

 

Zone wise advertising for Pepsi and Coke (CC)

'Exhibit-6' clearly shows that in terms of advertising on press, Coke is more active in North, while Pepsi is more active in South.

 

Exhibit 6

 
To summarise...

While most of the brands in the soft drink category follow the media spend distribution pattern, the trend is different for the leaders- Pepsi and Coke. The differential media strategies of the two players explains the fact that though the broad target group for the brands may be the same but they can be reached through different combination of media vehicles, thereby avoiding the overlap of advertising messages in other words the 'ad clutter'. However, the marketwise strategy may be specific to each brand.

 
Analysis from AdEx India (A Division of TAM Media Research pvt ltd)
 
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