Coke vs Pepsi

An interesting piece of statistic about Coke and Pepsi. Pepsi earned $3.6b on revenues of $27b as against Coke which earned $4.3b on revenues of $21b. However, the market capitalization of Pepsi is $92.1b against Coke's $126.1b.

And we thought Coke was many times the size of PepsiCo. In fact, as we can see, Pepsi has larger operations than Coke although Coke is more efficient. However, when we look at the Market-Cap, we see the difference in the brand values of Coke and Pepsi. Earlier America was known for only 2 things, and they were Coke and McDonald's.

Another interesting observation: According to Al Ries and Jack Trout in their book 22 Immutable Laws of Marketing, there is a ladder in the customer's mind, with only 3 rungs, the No 1, the Alternative, and the Laggard. Coke is the No. 1. Pepsi is the Alternative. Have you heard of RC Cola???

By the way, even Reliance beats Coke in terms of revenues. It earned $2.6b on revenues of $22.6b in the year ended March 2004. How many of us would be aware of that???

[The figures quoted have been taken from New York Times. For instance, Coke figures are given here. In case you have doubts about their authenticity, check NYT]
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