...| 9/26/2014 | | | | | | | | | | | | Coke vs PepsiWeek 5 Case Study | | | | | | | | | | | | | | | | | | | | | | | | Artesia Stivison, Robert Higdem & Rocky Edmondson | Coke vs Pepsi Week 5 Case Study Question #1 Question #2 Question #3 Question #4 Can you make poor investment decisions and be profitable? What evidence do you see from the companies’ results that indicate how well they made investment decisions (capital budgeting). A company can make poor investment decisions and still remain profitable, but only for a time. A company cannot continually make poor investment decisions and remain profitable forever. When looking at the Coke vs Pepsi case study, we find that Doug Ivester, then CEO of Coke, made a bad investment decision when he chose to increase the rate charged for syrup to franchisers. As a result, bottlers raised prices to improve profitability, and in turn there was a decrease in overall sales volume. During the time Ivester was CEO, the net income for Coke fell 41% and he ended up without a job. Had this been a trend that continued, Coke would have been out of business, but they rebounded and remain profitable. This example shows that a company can make a bad decision and continue to be profitable in the long run. But, repeat bad investment decisions and a company will go broke. Question #5 How does WACC change over time? What do you think might drive the changes? WACC...
Words: 1434 - Pages: 6
...Coke vs. Pepsi Case Study Control of market share is the key issue in this case study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year (98). Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share. The creativity and effectiveness of each company's marketing strategy will ultimately determine the winner with respect to sales, profits, and customer loyalty (98). Not only are these two companies constructing new ways to sell Coke and Pepsi, but they are also thinking of ways in which to increase market share in other beverage categories. Although the goals of both companies are exactly the same, the two companies rely on somewhat different marketing strategies (98). Pepsi has always taken the lead in developing new products, but Coke soon learned their lesson and started to do the same. Coke hired marketing executives with good track records (98). Coke also implemented cross training of managers so it would be more difficult for cliques to form within the company (98). On the other hand, Pepsi has always taken more risks, acted rapidly, and was always developing new advertising ideas. Both companies have also relied on finding new markets, especially in foreign countries. In the foreign markets, Coke has been more successful than Pepsi. For example, in Eastern...
Words: 591 - Pages: 3
...marketing has many dimensions. Coca Cola and Pepsi Cola Companies have chosen to be socially conscious through their marketing efforts to improve its positive effects on society and reduce it negative effects through the way they manage brands, marketing strategy, positioning strategies and how they market to their consumers while striving for prosperity. How Coca Cola and Pepsi Cola Company does advances and manages its brand? According to Ahmet, C Bozer, president of the Coca-Cola Company’s Eurasia and Africa Group, states in the article, “How Coca-Cola Manages 90 Emerging Markets” that Coca Cola advances and manages its brand by finding the right mix. Coca Cola is a global company, therefore, it is important the brand is relevant locally also. To do this is to treat each country differently, while keeping and communicating the same message and brand architecture (www.coca cola.com). Pepsi Cola’s plan for how the company advances and manages its brand, is similar to Coca Cola, in that Pepsi Cola is also global and maintaining relevance locally and globally in products that appeal to local tastes and needs, and also working with local supply chain and encouraging people to live balance and healthy lives (www.Pepsi Cola.com). Coca Cola and Pepsi Cola Company marketing strategy In reading the 60 marketer, Coke vs. Pepsi: Why Coke is a More Valuable Brand than Pepsi, the founder, Jamie Turner states that when you think about Coke you think of more grounded traditions, like...
Words: 1536 - Pages: 7
...strategy of Coca-cola and Pepsi over 100 years of rivalry. New challenges of the 21st century included boosting flagging domestic cola sales and finding new revenue streams. Both firms also began to modify their bottling, pricing, and brand strategies. They looked to emerging international markets to fuel growth and broaden their brand portfolios to include noncarbonated beverages like tea, juice, sports drinks, and bottled water. For over a century, Coca-Cola and Pepsi-Cola had vied for the "throat share" of the world's beverage market. The most intense battles of the cola wars were fought over the $60 billion industry in the United States, where the average American consumes 53 gallons of carbonated soft drinks (CSD) per year. In a "carefully waged competitive struggle," from 1975 to 1995 both Coke and Pepsi had achieved average annual growth of around 10% as both U.S. and worldwide CSD consumption consistently rose. This cozy situation was threatened in the late 1990s, however, when U.S. CSD consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi. The case considers whether Coke's and Pepsi's era of sustained growth and profitability was coming to a close or whether this apparent slowdown was just another blip in the course of a century of enviable performance. A rewritten version of an earlier case by Michael E. Porter and David B. Yoffie. Essay: The case study “Cola Wars Continue: Coke and Pepsi in the Twenty-First Century”...
Words: 3073 - Pages: 13
...CASE STUDY : COLA WARS CONTINUE : COKE AND PEPSI IN 2006 The case study “Cola Wars Continue: Coke and Pepsi in 2006” focuses on describing Coke and Pepsi within the CSD industry by providing detailed statements about the companies’ accounts and strategies to increase their market share. ‘ Cola war’ is the term used to describe the campaign of mutually targeted television advertisement & marketing campaigns between Coke & Pepsi. Furthermore, the case also focuses on the Coke vs. Pepsi goods which target similar groups of costumers, and how these companies have had and still have great reputation and continue to take risks due to their high capital. Both Coke & Pepsi have segmented the soft drink industry into two divisions, via – 1.Production of soft drink syrup. 2.Manufacturing & distribution of soft drinks at retail level. Coke & Pepsi have chosen to operate primarily on the production of soft drinks syrup,while leaving independent bottlers with more competitive segment of the industry.The purpose of this report is to gain insight into the possible strategies that can be applied, in order to expand the overall throat share in the future. History revealed that a highly competitive strategy that was utilized in the past by both companies resulted in cannibalization. Because of this, the report is described from the perspective of both Coca-Cola and Pepsi. This report focuses on increasing the overall share and finding new opportunities in the unrevealed...
Words: 1192 - Pages: 5
... : XII-E CBSE ROLL NO. : ACADEMIC YEAR : 2012-2013 TEACHER IN CHARGE : MR. JAMES THOMAS INDEX SL. NO. | TITLE | SOURCE OF THE PROJECT | PAGE NO. | SIGN OF THE TEACHER | 1 | Acknowledgement | - | | | 2 | Brand RivalryAn INTRODUCTION | www.wikipedia.org | | | 3 | PepsiAn Introduction | www.wikipedia.org | | | 4 | Pepsi the history | www.wikipedia.orgwww.pepsiarabia.com | | | 5 | Products Of Pepsi | www.wikipedia.org | | | 6 | Coca-Cola An Introduction | www.wikipedia.org | | | 7 | Coca-Colathe history | www.cocacola.com | | | 8 | Products Of Coca-Cola | www.wikipedia.org | | | 9 | Pepsi Vs Coca-Cola A Comparison | www.versus.com | | | 10 | Pepsi Vs Coca-Cola THE COLA WAR | www.slideshare.netwww.scribd.com | | | 11 | Pepsi Vs Coca-Cola Which Cola brand is the Better Investment? | - | | | 12 | Pepsi Vs Coca-Cola PRESENCE IN INDIA | www.infobarrel.com | | | 13 | Pepsi Vs Coca-Cola Marketing | www.google.com | | | 14 | Pepsi Vs Coca-Cola Advertising Strategies | www.google.com | | | 15 | Pepsi Vs Coca-Cola Conclusion | - | | | 16 | BIBLIOGRAPHY | - | | | ACKNOWLEDGEMENT I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I thank my God for providing me with everything that I required in completing this...
Words: 10538 - Pages: 43
...Influence of Exposure to Coke Brand Identification on Taste Perception (JC, LK, SS, ND) 1. Abstract Short abstract, which describes the core of your study and main findings. 1. Introduction Here you describe why your study is interesting/ important; your problem statement and research question. 1. Theory Theory This study aims at affirming that the taste perception of the participants will be highly influenced on whether they are exposed directly to the brand-label, are only aware of the brand or blindly tested. A previous study about the “ Influence of Beer Brand Identification on Taste Perception” proved that in a blind taste, beer drinkers “could not distinguish the taste difference among the brands on an overall basis” (Allison&Uhl, 1964, p.37), moreover did the study conducted by Allison and Uhl highlight that beer drinkers were not able to identify their favorite brand of beer in a blind beer comparison test. Another study conducted by Plassmann, O’Doherty, Shiv and Rangel about how “ Marketing actions can modulate neural representations of experienced pleasantness” also identified that when participants are not presented with any particular information about the wines they had to taste in their blind test, participants were not able to report any major “differences among the wines”. (Plassmann et. All., 2007, p. 1051) Based on these findings the first hypothesis of the study is (1) Participants tested in the blind test will taste no major...
Words: 3208 - Pages: 13
...2007 Posted by goutham in case studies. trackback 1. Soft Drink Industry Five Forces Analysis: Soft drink industry is very profitable, more so for the concentrate producers than the bottler’s. This is surprising considering the fact that product sold is a commodity which can even be produced easily. There are several reasons for this, using the five forces analysis we can clearly demonstrate how each force contributes the profitability of the industry. Barriers to Entry: The several factors that make it very difficult for the competition to enter the soft drink market include: * Bottling Network: Both Coke and PepsiCo have franchisee agreements with their existing bottler’s who have rights in a certain geographic area in perpetuity. These agreements prohibit bottler’s from taking on new competing brands for similar products. Also with the recent consolidation among the bottler’s and the backward integration with both Coke and Pepsi buying significant percent of bottling companies, it is very difficult for a firm entering to find bottler’s willing to distribute their product. The other approach to try and build their bottling plants would be very capital-intensive effort with new efficient plant capital requirements in 1998 being $75 million. * Advertising Spend: The advertising and marketing spend (Case Exhibit 5 & 6) in the industry is in 2000 was around $ 2.6 billion (0.40 per case * 6.6 billion cases) mainly by Coke, Pepsi and their bottler’s. The...
Words: 1715 - Pages: 7
...Market Research Proposal ‐ PepsiCo Is PepsiCo Healthy? Team 5: Ilaria Caputo Aneesha Duga Marga Galmes Daria Ilgen Jean‐Loup Senski EXECUTIVE SUMMARY The proposed research aims to measure the PepsiCo brand’s consumer perception as “healthy” within the North American market and to analyze the results in order to gather data to generate recommendations on the strategic marketing of the company. The research will survey a sample of 1,000 people in the US different by age, income, location and personal preferences for drinks. The population will be selected randomly by a computer by using the grocery store loyalty programs members as reference. The extent of the research is wide enough to ensure that the survey will give us a framework of the feelings towards the healthy feature of the PepsiCo brands. A questionnaire will be administered to the selected sample over the Internet and the results will be collected and analyzed by a computer. The criteria under which each question of the questionnaire has been conceived cover the main concerns for the company. For example, does the consumer perceive PepsiCo as provider of healthy drinks or not?. The research also highlights the main possible outcomes of the survey. For each type of result, the research has already identified a strategic direction the company should take. The research is extensive enough to provide a comprehensive understanding of the brand perception. The accuracy of the research is ensured...
Words: 3821 - Pages: 16
...Market Research Proposal ‐ PepsiCo Is PepsiCo Healthy? Team 5: Ilaria Caputo Aneesha Duga Marga Galmes Daria Ilgen Jean‐Loup Senski EXECUTIVE SUMMARY The proposed research aims to measure the PepsiCo brand’s consumer perception as “healthy” within the North American market and to analyze the results in order to gather data to generate recommendations on the strategic marketing of the company. The research will survey a sample of 1,000 people in the US different by age, income, location and personal preferences for drinks. The population will be selected randomly by a computer by using the grocery store loyalty programs members as reference. The extent of the research is wide enough to ensure that the survey will give us a framework of the feelings towards the healthy feature of the PepsiCo brands. A questionnaire will be administered to the selected sample over the Internet and the results will be collected and analyzed by a computer. The criteria under which each question of the questionnaire has been conceived cover the main concerns for the company. For example, does the consumer perceive PepsiCo as provider of healthy drinks or not?. The research also highlights the main possible outcomes of the survey. For each type of result, the research has already identified a strategic direction the company should take. The research is extensive enough to provide a comprehensive understanding of the brand perception. The accuracy of the research is ensured...
Words: 3821 - Pages: 16
...Market Research Proposal ‐ PepsiCo Is PepsiCo Healthy? Team 5: Ilaria Caputo Aneesha Duga Marga Galmes Daria Ilgen Jean‐Loup Senski EXECUTIVE SUMMARY The proposed research aims to measure the PepsiCo brand’s consumer perception as “healthy” within the North American market and to analyze the results in order to gather data to generate recommendations on the strategic marketing of the company. The research will survey a sample of 1,000 people in the US different by age, income, location and personal preferences for drinks. The population will be selected randomly by a computer by using the grocery store loyalty programs members as reference. The extent of the research is wide enough to ensure that the survey will give us a framework of the feelings towards the healthy feature of the PepsiCo brands. A questionnaire will be administered to the selected sample over the Internet and the results will be collected and analyzed by a computer. The criteria under which each question of the questionnaire has been conceived cover the main concerns for the company. For example, does the consumer perceive PepsiCo as provider of healthy drinks or not?. The research also highlights the main possible outcomes of the survey. For each type of result, the research has already identified a strategic direction the company should take. The research is extensive enough to provide a comprehensive understanding of the brand perception. The accuracy of the research is ensured...
Words: 3821 - Pages: 16
...PROJECT REPORT On MARKETING STRATEGIES OF COCA COLA Submitted By – Name : Pinak Paul MANAV RACHNA INTERNATIONAL UNIVERSITY ACKNOWLEDGEMENTS I am sincerely thankful to Miss Kanupriya (Project Faculty Guide), under whose guidance I have successfully completed this project and time spent with her had been a great learning experience. I think her constant encouragement, warm responses and for filling every gap with valuable ideas has made this project successful. She made it possible for me to put all my theoretical knowledge to work out on the topic: “MARKETING STRATEGIES OF COCA COLA. A mammoth project of this nature calls for intellectual nourishment, professional help and encouragement from many people. We are highly thankful to all of them for their help and encouragement. We wish to acknowledge our great debt to all of them whose ideas and contribution influenced me to complete the project work. TABLE OF CONTENT 1. TITLE PAGE 2. ACKNOWLEDGEMENT 3. INTRODUCTION 4. INDUSTRY PROFILE 5. COMPANY PROFILE 6. PORTER'S FIVE FORCES 7. PEST ANALYSIS 8. RESEARCH OBJECTIVES & METHODOLOGY 9. REVIEW OF LITERATURE 10. PRIMARY FINDINGS & ANALYSIS 11. CONCLUSION & RECOMMENDATION 12. BIBLIOGRAPHY 13. ANNEXURE INTRODUCTION This project is focused on studying the various marketing strategies of Coca-Cola and the scenario of Indian soft drink industry in the 1990’s. Coca-Cola Co., the global soft...
Words: 13697 - Pages: 55
...University of Jordan Faculty of Business Strategic Management “Coca-Cola Company” Case Study STRATEGIC MANAGEMENT Prepared By Fathi Salem Mohammed Abdullah 2009 History analysis • In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his backyard. Being a bookkeeper, Frank Robinson also had excellent penmanship. It was he who first scripted "Coca Cola" into the flowing letters which has become the famous logo of today. The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886. Until 1905, the soft drink, marketed as a tonic, contained extracts of cocaine as well as the caffeine-rich kola nut. Until the 1960s, both small town and big city dwellers enjoyed carbonated beverages at the local soda fountain or ice cream saloon. Often housed in the drug store, the soda fountain counter served as a meeting place for people of all ages. Often combined with lunch counters, the soda fountain declined in popularity as commercial ice cream, bottled soft drinks, and fast food restaurants became popular. On April 23, 1985, the trade secret "New Coke" formula was released. Today, products of the Coca Cola Company are consumed at the rate of more than one billion drinks per day. • • • • • Vision Statement (actual) To maintain our reputation as the leading cola company in the world. Mission...
Words: 4609 - Pages: 19
...a pharmacist named Dr. John Pemberton carried a jug of Coca-Cola syrup to Jacobs’ Pharmacy in downtown Atlanta, where it was mixed with carbonated water and sold for five cents a glass. (Our Heritage, 2012) Three years later in the summer of 1898 a young pharmacist named Caleb Bradham began experimenting with combinations of spices, juices and syrups, trying to create a refreshing new drink to serve to his customers. His success came in the form of the beverage now known around the world as Pepsi-Cola. (Pepsi Legacy, 2005) And from that day forward the rivalry between Coca-Cola and Pepsi would become legendary. These two beverage companies are competing for the top spot in a massive global market. The cola and carbonated beverage industry reaches to nearly every corner of the planet, and the vast majority of the market share belongs to the two giants Coke and Pepsi. With such a huge market and enormous revenue potential in an industry such as this, it is no wonder that the Coke versus Pepsi competition is so fierce. So how does either of these companies create an advantage over the other? We will compare and contrast the business and marketing strategies of these businesses in...
Words: 6544 - Pages: 27
...available in more than 200 countries being the most popular beverage with its 94% worldwide recognition and being world’s third valuable brand. Its headquarters are in Atlanta Georgia and they employ nearly 30,000 individuals around the world. PepsiCo was created in 1893 in North Carolina and is sweeter than coke. PepsiCo is one of the World’s top consumer products company with one of the best valuable trademarks, also available in more than 200 countries worldwide. Coca-Cola and PepsiCo control nearly 40% of the entire beverage market but based on Interbrand’s best global brand 2011, Coca-Cola is world’s third most valuable brand; however PepsiCo is number 25 in the list (Saeidinia M., 2010). Moreover, competitors are catching up. The Coca-Cola company main rival is PepsiCo, being the second in the soft drink industry. Coca cola global products are 100% soft drinks and beverage, while PepsiCo global is both 48% snacks and 52% beverage corporation. PepsiCo contains more sugar and caffeine than Coca-Cola; each can of Pepsi contain approximately 8 teaspoons of sugar so if consumer’s need sugar and energy, PepsiCo appropriate better fit. According to studies, in December 2005, PepsiCo surpassed Coca-Cola in market value for the first time. PepsiCo has more extended...
Words: 1668 - Pages: 7
