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The largest companies in world can demonstrate the best promotion strategies which are worth
learning and following if one wishes to get success in the worldtrade and production. Two of such big
companies which success could be defined as the best promotion strategies implementation are Coca
Cola beverages Company and Pepsi Company.
Pepsi promotes its products by personal selling, advertising, and sales promotion. For advertising,
and sales promotion it used printed and electronic media. Every newspaper and magazine carry
Pepsi advertisements. Advertisement of Pepsi are eye catching and attractive. Through advertising it
informs the consumer about new brands and flavours. Pepsi designs its sales promotion strategies
and advertisement campaign focusing strictly on the target markets. Pepsi has been catching the
trends of society. National songs by bands like “Vital Signs”, “Awaaz”, “Junoon” and “Strings” were the
keys in their advertisement campaign. Sponsoring the pop industry and the cricketing team helped
Pepsi hit right on target of their primary market which consists of teenagers.
The management of PEPSI uses both the skimming and penetration pricing strategy. The brands,
which has price greater than Pepsi beverage is skimming pricing strategy, and brands having prices
less than one can of Pepsi adopted penetration-pricing strategy. By adopting skimming they are
earning more profit and by penetration they attract the customers and consolidating position in the
market. They have to adopt both strategies because they are facing established competition in the
market, e.g. In beginning the main competitors for Pepsi are Coca cola & RC, now their major
competitor is Coca cola.