...Coca Cola’s Marketing Challenges in Brazil: The Tubaínas War Case Analysis I. Summary The case study deals with Coca Cola’s attempt to pursue different strategies in order to stand up to the strong growth of the so called tubaínas. Tubaínas is defined as the numerous brands of inexpensive, carbonated and sweet beverages which are manufactured and distributed locally throughout Brazil by hundreds of small companies. Due to the significant growth of the tubaínas in Brazil, Coca Cola intended to find a way to impede and even defeat the steady increase, to sustain their performance and strength. II. / III. Statement of the problem / Causes of the problem One of the biggest problems Coca Cola faced was its declining market share in 1999 which dropped to 48%. It became evident that Brazil seemed to be a challenging market for Coca Cola concerning sales, market share and profitability despite the existing high brand awareness all over the world. The decline was the result from the rising social class C which included typical workers in the lower middle class and accounted for around 28% of total national consumption of soft drinks. The outcome of a market study conducted by Boston Consulting Group showed that brand awareness was the least significant factor in the beverage purchase decision of Class C. However lower-priced products, also referred to as B brands, played a decisive role and were preferred. Another market study, published by A.C. Nielsen/CBPA study supported the...
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...COCA COLA CASE STUDY « Think global, act local » T. Levitt 1) What is the primary basis for Coke’s past international marketing success? Is it only advertising? The Coca Cola Company expanded slowly abroad in the early 1920’s. Coca Cola presented the beverage with different logos which are culturally symbolic. However the true growth of Coca Cola beverages in the world had been possible during the World War II. Coca Cola Company delivered beverages to the US soldier in Europe and Asia. Marketing: understanding the market Marketing philosophy: A good understanding of customer needs and providing a good offer. Coca Cola: in America is a ritual, you open the fridge and drink a coca cola. Abroad, drink coca cola is to live the American dream. Many will say that it is the level of advertising. But the better answer may be the consistent and effective, locally oriented global marketing, aimed carefully at targeted markets around the globe. Coke and other brands have become leaders in their product categories by understanding consumer motivations and desires and by creating relevant and favorable image associations. Image association: Pavlov theory Cowboy Marlboro Coke Soft drinks Cigarette Pleasant There is nothing fly-by-night in such activities. 2) Given the growing political and economic uncertainty, what changes can Coke make to its global marketing strategy? During the 1990’s, the marketing strategy of Coca Cola Company was described by...
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...Coca Cola Wars Case Analysis July 31, 2010 Executive Summary Coca-Cola was invented and marketed in 1886 by a pharmacist named Dr. John Pemberton he named Coca-Cola after the coca leaves and kola nuts he used in order to create the product. Twelve years later in 1898 Caleb Bradham created Pepsi Cola for the beneficial effects it claimed to have on upset stomachs and indigestion. The enmity between the two soda companies are known as the “Cola Wars”. The war began in the 1960’s when Coca-Cola’s supremacy ruled the market as the beverage of choice above Pepsi Cola. Due to the competition between the two rival cola companies actions became extreme and forced both companies to implement strategic methods in order to keep the competitive edge over the other. Coca Cola Wars Case Analysis I. Current Situation: Coca-Cola's and Pepsi Cola’s marketing strategies has been as impossible to tell apart as the products themselves, both companies rely on vibrant colors, catch phrases, attractive people, and famous entertainers to grab consumer’s attention and to entice them into purchasing their products. In 1941 Coca-Cola officially renamed their product to “Coke” as an official trademark with a series of advertisements informing consumers that “Coke” means Coca-Cola (Coca-Cola, 2011). Pepsi was first introduced as " Drink" in 1898 by Caleb Bradham its inventor who created Pepsi at his home, it was later that Bradham changed the name and officially named the beverage Pepsi...
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...<Strategic management case analysis-“Cola wars continue”> 1. There are several reasons for soft drink industry to have been so profitable. To calculate profit, we use this formula “Profit=Price*Quantity-Cost”. The sales of soft drink soared after the 1970s based on its increasing availability and diverse flavors. People literally demanded soda more than any other beverages so it affected the quantity. Due to inflation that made overall price higher, consumers felt the real price of CSD lower than before so the quantity demanded went up. In accordance with this, in my personal opinion, other than the large sales quantity of CSDs, the cost of this category is very low. The materials for soda are mainly concentrate, sweetener, and water-and it costs very low. With certain price and this cheap cost, its gross margin is very high. 2. Concentrate producer’s most significant costs were for advertising, promotion, market research and bottler support. Due to its industrial properties, the concentrate manufacturing process needed little capital investment in machinery, overhead or labor as you can figure out from what its major costs are. Building one plant only costs about $25million to $50million which serves the entire United States. On the contrary, the bottlers purchase concentrate, add additional materials, bottle it and deliver it to customer accounts. As you can see, most part of the manufacturing cycle that we can think of occurs in the hand of the bottlers...
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...English 181 10/9/12 The Unknowns of the Coca-Cola Company One would expect a 150 billion dollar company to handle their business without jagged edges; however, this frequently is not the case. Many multibillion-dollar companies break the law in ways that their customers more often than not are not aware of. The Coca-Cola Company is one of the most egregious, making the company look as bad as their product is for your body. These wrongdoings consist of using different drugs to make their product addictive, mistreating employees, supporting malicious groups such as the Nazis to increase their profits and worst of all, exploiting natural resources of developing countries such as India. Perhaps if Coca-Cola drinkers were familiar with these inexplicable acts, they would stop drinking Coke. This paper will provide evidence that shows how Coca-Cola has broken both political laws and widely shared moral values in several different ways. The company’s name, Coca-Cola, was not just a random thought that came to Dr. John Pemberton’s mind, the creator of the soft drink. In May of 1886, Dr. Pemberton, who was a morphine addict, created Coca-Cola as a nerve tonic. Nerve tonics provide calming and soothing feelings, as well as relaxation and pain relief (Lynne, 2009). No one today drinks Coke for those reasons, but there certainly was and still might be today an addictive drug in Coke which Pemberton used—cocaine. Of course Coca-Cola denies ever using the drug in their drinks even...
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...organizations, Pepsi and Coca Cola. Here, in the present paper, various information will be considered. The information will include company history, products and services, customers and suppliers, leadership, stock prices, the impact of news events on stock prices, and an overall financial analysis. Pepsi versus Coca Cola History Pepsi is an American multinational corporation which is engaged in the beverage and food industry. It was originated in 1893 by a young pharmacist named Caleb Bradham who experimented combinations of juices, syrups, and spices to create a new refreshing drink for customers. His unique mixture of kola nut extract, vanilla and rare oils became popular and customers named it Brad’s drink. Caleb decided to rename it to Pepsi-Cola and began advertising his new soft drink. In 1902, he applied to the U.S. Patent Office for a trademark. Pepsi was first sold through soda fountains until Caleb recognized a greater opportunity existed to bottle Pepsi for people to drink anywhere. People responded, sales began to grow, convincing him to form a company to market his new beverage. Pepsi-Cola was officially registered with the U.S Patent Office in 1903. It is consider to be today’s global food and beverage leader. The organization has moved leaps and bounds since the date of its formation. The company reports sales of $510 million and has 19,000 employees. Coca Cola History Coca Cola is an American multinational beverage corporation. Coca-Cola...
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...PepsiCo: Case Study. Problem Identification Problem PepsiCo is a world leader in convenience foods and drinks, the company portfolio consists of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America. The brand is represented nearly over 200 countries. Pepsi co is really a leader when it comes to convenience foods and drinks but it always come second best. It always comes behind Coca- cola, which is the world leader in soft drink. In 2006 Pepsi co was the world leader in this market we will study what strategy they used to be able to determine what is the problem since 2006 . Analysis of the problem. Problem Analysis. On December 12, 2005, for the first time in the rivalry of over a century, PepsiCo (Pepsi) surpassed its biggest foe Coca-Cola (Coke) in market capitalization. It had much higher operating revenue than Coke. Acquiring many companies is a strategy that propelled Pepsi ahead of it longtime concurrent Coca-cola. (.ibscdc2006) The Quaker Oats acquisition at $13.9 billion brought Quaker’s most valuable asset Gatorade under PepsiCo. After the completion of Quaker Oats acquisition in August 2001, PepsiCo made a number of small, tuck-in acquisitions. The combination of acquisitions coupled with PepsiCo’s core snacks and beverage businesses allowed the revenues to increase from approximately $20 billion in 2000 to more than $35 billion in 2006. PepsiCo’s corporate strategy was diversification...
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...Case Study #2 Cola Wars Management 5650 Fall 1 October, 17, 2013 Introduction There has been stiff competition between companies that produce similar goods. This competition is alive and well, especially in situations where there is need for a multiple of companies that offer similar goods and services to counter monopoly. However, these wars can take a different turn and bring changes to general operations of some firms (Long & Harding, 1998). Coca Cola and Pepsi are such companies that produce soft beverages, and the wars between these cola firms are far from over. In the recent past, Pepsi has made essential changes in its line of production, and this decision has enabled the beverage firm earn more revenue than Coca Cola. This case study will look at the strategies that both Coca Cola and Pepsi have adopted in their recent operations and the effects of these policies on the two beverage firms’ operations. Pepsi has made use of the application of the Pearce and Robinson Strategic Management Model to outplay Coca Cola in most of its internal strategic operations. This strategic management model has eleven components, and each component plays an important role toward the full implementation of the model as a system (Pearce-Robinson, 2010). Indra Nooyi, the boss at the Pepsi Co. has made several steps to counter Coca Cola’s high quality products. One of her major concern has been to produce less sugary goods at fairly pocket friendly prices. She has applied the eleven...
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...Executive Summary Prior versions of the case have been used to teach various subjects, including industry analysis, competitive dynamics, and vertical integration. While this case tries to incorporate some of the essential elements about the history of competitive dynamics and the historical patterns of vertical integration the primary teaching purpose of this case is to discuss the economics of the U.S. soft drink industry. Concentrate producers (CPs) sold syrup and concentrate to franchised of company owned bottlers, and made gross margins of 83% and a pretax profit margin of 30%. The best-know CPs were Coke and Pepsi. Historically, Coke and Pepsi were also major bottlers, but in the mid-to late 1990s, both had divested their bottling operations while maintaining significant equity ownership and indirect control of bottling networks. CPs invested heavily in advertising and marketing. One of the key issues for students to understand is why most of the profits in this industry are earned upstream in the concentrate business. The bottling business was much less profitable than concentrate, particularly in the mid- 1990s. Bottling profits improved somewhat in recent years, in part because the concentrate manufacturers could no longer squeeze the bottlers without disrupting their own distribution. Bottlers invested in bottling and caning lines, trucks, and warehouses and earned gross margins 40% and pretax profit of 9%. Coke and Pepsi bottlers delivered their products directly...
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...Pepsi Learn to Compete in India A. Identification of issues and Problems Step 1—overview of the case study During the 1900s and the beginning of the new millennium India’s government had opened its doors wide open to foreign investors, but the Coca-Cola Corporation and PepsiCo experienced many difficult challenges. Both companies were engulfed with unexpected problems and difficult situations that led to the recognition that India’s market was very different and special knowledge, skills and local expertise was needed to be obtained if the two companies were to succeed. As Ronald McEachern, PepsiCo’s Asia chief, stated, “India is the beverage battlefield for 2003”. Pepsi entered into the Indian beverage market in July 1986 as a joint venture with two local partners, Voltas and Punjab Agro, forming ”Pepsi Foods Ltd.” Coca-Cola followed suit in 1990 with a joint venture with Britannia Industries India before creating a 100% owned company in 1993 and then ultimately aligning with Parle, the leader in the industry. In many ways, Coke and Pepsi managers had to learn the hard way that ‘what works here’ does not always ‘work there’. In India, there are two main high seasons for the consumption of soft drinks. First being the summer session which lasts about seventy-five days in mid-April to June. The second major opportunity for Coca-Cola and PepsiCo in India is the annual Navratri celebrations. Another issue that the Indian market...
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...12 COLA WARS CASE Table of contents Introduction……………………………………………………………3 Question no. 1…………………………………………………………4 Question no. 2………………………...……………………………….4 Question no. 3………………………………………………………….7 Question no. 4………………………………………………………….9 Bibliography …………………………………………………………10 INTRODUCTION Over the years Coke and Pepsi managed their rivalry in the carbonated soft drinks (CSD) industry by following some of the tactics identified below. Both companies came up on the market with the same product coca-cola, two different recipes. Coca-Cola was discovered in 1886 in Atlanta Georgia, by pharmacist John Pemberton, while Pepsi-Cola was formulated 7 years later, in New Bern, North Carolina, by pharmacist Caleb Bradham. Since then the two giants, Coke and Pepsi are on a continuous “battle without blood” over the $74 billion CDS industry in the United States. One of the first tactics identified is that Coke first introduced its product in grocery stores and other channels through open-top coolers. Also, they developed automatic fountain dispensers and introduced vending machines. Pepsi had a rough start, but they were willing to achieve. In this way after bankruptcies in 1923 and again in 1932, they came back and the business started to pick up. Their first move was to price their 12-oz container to a nickel, same as Coke would charge for a 6.5-oz. After that Pepsi started focusing more on take-home sales to target family consumption. With an aggressive marketing campaign...
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...SOCIO CULTURAL BARRIERS FACED BY COCA-COLA IN INDIA AND SOLUTIONS TO OVERCOME THE ISSUES CONTENTS 1. EXECUTIVE SUMMARY 3 2. TERMS OF REFERENCE 3 3. CURRENT SCENARIO 3 4. ANALYSIS OF THE SITUATION 4 4.1. STRENGTH 5 4.2. WEEKNESS 5 4.3. OPPORTUNITIES 5 4.4. THREATS 5 5. SOLUTIONS AND RECOMMENDATIONS 6 5.1. PUBLIC RELATIONS 6 5.2. ENHANCE RELATIONSHIP WITH GOVERNMENT 6 5.3. LAUNCH MARKETING CAMPAIGNS 7 5.4. LISTEN TO THE CUSTOMERS 7 5.5. MANAGING STYLE 7 5.6. PULL BACK PRICE- QUALITY TRADE –OFF PLANS 7 6. SUGGESTIONS 8 7. FORECASTS AND PREDICTIONS 9 8. CONCLUSION 9 9. REFERENCES 10 EXECUTIVE SUMMARY Coca – cola, the world’s largest selling soft drink company had established its strong presence in the world since 1886. Coca-Cola is the first international soft drink brand to enter the Indian market in the early 1970’s. Till 1977 Coca-Cola was the leading brand in India; later, due to FERA (Foreign Exchange Regulation Act), they left India and didn’t return till 1993. Coca-Cola had to face many issues regarding its quality, resource exploitation and market exploitation along with price-quality trade-offs. People all over India are challenging Coca-Cola for its abuse of water resource. Coca-Cola had affected both quality and quantity of ground water. Due to its waste extracts, Coca-Cola was criticized for polluting the nearby fresh water and ground water and soil; because of this issue, farmers...
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...Cultural Impact on Business: A Case Study on Coca Cola’s Cultural Issues in India admin August 20, 2012 Blog No comments Socio Cultural barriers faced by coca cola in India Coca – cola, the world’s largest selling soft drink company had established its strong presence in the world since 1886. Coca-Cola is the first international soft drink brand to enter the Indian market in the early 1970’s. Till 1977 Coca-Cola was the leading brand in India; later, due to FERA (Foreign Exchange Regulation Act), they left India and didn’t return till 1993. Coca-Cola had to face many issues regarding its quality, resource exploitation and market exploitation along with price-quality trade-offs. People all over India are challenging Coca-Cola for its abuse of water resource. Coca-Cola had affected both quality and quantity of ground water. Due to its waste extracts, Coca-Cola was criticized for polluting the nearby fresh water and ground water and soil; because of this issue, farmers are suffering from water scarcity. Despite all these social and cultural issues, customers are using Coca-Cola due to its strong brand reputation all over the world. This is because Indians are now using more soft drinks and the youngsters are more in this category. However, with many studies and policy changes, Coca-Cola will be able to establish its brand reputation and increase its market share in the near future. This report is prepared from an organizational point of view. The point here is to prepare a report...
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...communication to different audiences. This research paper is steered on the basis of the analysing the context of advertisement how a company rescues a brand that is in its downward fall within the market performance. The challenge associated with this course of rescuing the brand to reinstate its grounds on the stiff competitive market is appropriateness in decision making in the marketing mix. The paper articulates further with precision the roles and advantages attributed to advertisement. The impact of the ads methodology and resultant outcome towards the company’s stock turn-over with respect to the objectives set. Moreover, this research essay investigates on the promotional strategy towards rescuing the Coke brand of the Coca-Cola Company. This case study is picked on the basis of analysis of scrutinizing the contribution made by making a decision to...
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...A TERM PAPER ON OB PRACTICES IN COCA-COLA COMPANY Table of Contents No. Contents…………………………………………………...……………………….. Page no. 1.0 Chapter One 1. Introduction……………………………………………………………………………6 1.2 History of Coca cola…………………………………………………………….………7-8 1.3 Coca cola company in Bangladesh……………………………………………………. 9 2.0 Chapter Two 2.1 Bangladesh Beverage Industry……………………………………………….…………10 2.2 Competitive Analysis of Coca cola………………………………………………...……11 2.3 SWAT Analysis………………………………………………………………..…………12 A. Strengths…………………………………………………………………………..……12 B. Weaknesses…………………………………………………………………………….12 C. Opportunities………………………………………………………………………..….13 D. Threats………………………………………………………………………………….13 3.0 Chapter Three 3.1 Segmentation…………………………………………………………………………….14 3.2 Targeting…………………………………………………………………………………14 A. Porter’s Five Factors……………………………………………………………………14 3.3 Positioning Strategy………………………………………………………………………16 A. Points of Parity……………………………………………………………………..……16 B. Points of Difference……………………………………………………………………...16 C. Positioning Statement……………………………………………………………………16 4.0 Chapter Four 4.1 Product……………………………………………………………………………………16 A. Products in Bangladesh………………………………………………………………. …17 B. Product levels: The customer Value Hierarchy…………………………………...18 4.2 Price……………………………………………………………………………………...
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