...COKE CASE STUDY: ISSUES IN THE GLOBAL SECTOR BY COREY J. GRIFFIN Coke is a major product brand that has grown from 1886 to becoming the number 1 brand in the world according to Interbrand’s Global Scorecard in 2003. All this success has not come with a little hardship, due to the fact that Coke is a global brand. Just as it was seen in the Nike case study, when a company becomes globalized it is hard to monitor and maintain every sector of the product name. On August 5, 2003 the CSE (Center for Science and Environment) released a critical press release that name 12 soft drinks brands, Coke brand included, that were sold in and around Delhi to have contain a deadly pesticide residues (CSE Press Release, “Hard Truths about Soft Drinks, 5 Aug 2003). CSE claimed that these dangerous pesticides were known to cause cancer, cause failure of the nervous and reproductive systems, birth defects, and damage to the immune system. Along with the hazardous chemicals found by CSE, there were very limited regulations in place for this industry to follow. These soft drink companies were receiving exemptions for the industrial licensing under the Industries (Development and Regulation) Act of 1951 that would have probably had a chance to take notice to these soft drink contamination events (CSE Press Release, 5 Aug 2003). In response to these very strong allegations from the Center for Science and Environment, Coke Enterprise of India launched their own internal investigation...
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...Chapter Eight Case Study - Coke Zero Coke Zero Coca Cola has been the leader in the soft drink market for decades, consistently besting their nearest competitor, Pepsi. The struggle for the top spot has been on-going for over one hundred years, and at times has been fairly interesting. Both companies have been trying new strategies, flavors; can designs and even recipe changes in order to gain market share, niche competitive advantage as well as a sustainable competitive advantage. (Lamb, Hair Jr., & McDaniel, 2013, p. 26) Both companies constantly change their products and their marketing techniques in order to secure an advantage over one another. Coca Cola over the years has used common good business practices in order to evaluate their business, so they would know which direction to take it, next. Sometimes their choices were effective, other times they were not. A Coca-Cola marketing situation comes to mind going back to 1985, when seemingly out of the blue, Coke changed their formula. The onslaught of public outcry then began, forcing Coca Cola to re-think their strategy and into damage control mode. It was either a brilliant strategy designed to be a publicity stunt, or one of the worse blunders ever in corporate America. The answer is still not clear to this day, however the results were interesting and have been fodder for Marketing classes ever since. News about the “New Coke” dominated the airwaves for weeks on end, and people rushed out to try it. Most did...
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...Case assignment: Coke Zero Do Real Men Drink Diet Coke? 1. Describe the specific type of consumer that the Coca-Cola Company is targeting with each of the following products: Diet Coke, Coke Zero, Diet Coke Plus, Coca-Cola Blak, and Full Throttle Blue Demon. What types of demographic segmentation is each product’s marketing most likely to include? Coke Zero for customer who are becoming more health conscious customers of regular carbonated soft drinks Diet Coke Plus: Was targeted to consumer who are becoming more health-conscious. Everyone who is concerned about their health but want the product sweeter Coca-Cola Blak Was targeted to more sophisticated consumers who are willing to pay more. People who more busy and on the go. Full Throttle Blue Demon this product was designed for Hispanic men. The men who want a more Hispanic taste like enjoy alcoholic beverages. 2. Some industry analysts think soft-drink companies should develop products that will bring new customers into the market rather than just creating variants on the old. They warn that products like Coke Zero will cannibalize lost market share from other soft drink categories instead of increasing the number of consumers overall. Which Coca-Cola products are most likely to lose customers to Coke Zero? The products that will be lost customers will be the Diet Coke because it taste same as consumer isn’t going to pay for the same or even more for a product that taste similar. 3. Why do you think...
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...Case Study – Coke in India Adapted by Lesley Fleischman from: Hills, Jonathan and Welford, Richard. Corporate Social Responsibility and Environmental Management. 12, 168–177 (2005) August 2003 • • • • • October 2003 • • Coke has 44 wholly owned and franchise owned bottling plants in India Indian NGO finds that Coke and Pepsi products bottled in India contain pesticides. Immediate impact on Coke stock price. Coke threatened legal action over allegations. Indian government tests confirm findings. Coke hires PR firm, develops strategy to deflect media attention away Escalating community protests at bottling plants, demonstrations, hunger strikes, etc. December 2003 February 2004 March 2004 • • • • • • • • June 2004 • • • September 2004 • • October 2004 • • • February 2005 • • April 2005 • • May 2005 • • Ordered by Indian court to stop drawing groundwater for its bottling plant in Plachimada, Kerala Judge ruled that no power to allow a private party to extract such a huge quantity of groundwater Protesters claim that Coke water use was reducing agricultural yields Coke cited lack of rainfall, not their operations, as cause of crop declines Parliamentary committee finds high amounts of pesticide residue in Coke and Pepsi products bottled in India Not illegal, Indian safety standards weak Coke application for new bottling plant in Plachimada denied by local authorities because...
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...Case Study: Coke Zero I highly agree with the statement that “companies should develop products what will bring new customers into market rather than just creating variants on the old” (Lamb et al. 289) because when old products failed, it is an opportunity for the company to invest in different market segments— “a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs” (Lamb et al. 261)—that could potentially increase additional consumers. For instance, Coke Cherry has been the “dog”— a “poor performer [and]it has only a small share of a slow-growth market” (Draft 213)— product line compared to other successful drinks such as Diet Coke, Coke Zero, and regular Coke. Thus, managers must foresee the concept: why continuing to invest in older products that do not produce profits and lose additional money in the investment; hence, why not take the risk of manufacturing new products that could be the “cash cow”—the “dominant business in the industry, with a large market share” (Daft 213)—in the market? Diet Coke and Coke Zero are the “star”, which have “additional growth potential” (Daft 213) and “will generate profits and a positive cash flow” (Daft 213). Both Diet Coke and Coke Zero are concentrating on the demographic segmentation—“segmenting markets by age, gender, income, ethic background, and family life cycle” (Lamb et al. 265)—by particularly age; therefore, the target market of Diet Coke and Coke...
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...5) How can Pepsi and Coke confront the issues of water use in the manufacture of their products? How can they defuse further boycotts or demonstrations against their products? How effective are activist groups like the one that launched the campaign in California? Should Coke address the group directly or just let the furor subside? Pepsi and Coke should have responded faster to the concerns of the general public. The companies formed committees within India and the United States to work on legal and public relations issues. They commissioned their own laboratories to conduct tests and waited until the results came through before commenting in detail. Their approaches backfired. Their reluctance to give details fanned consumer suspicion. If the companies acted faster to the situation when it first came to light, the could have spared a lot of grief. Pepsi and Coke can defuse further boycotts by speaking directly to the cause of the boycott/demonstration or by allowing demonstrators to investigate their product themselves. The activists groups have proven to be very effective in their efforts. Fear campaigns (like the ones assembled in California) can do a great deal of damage to the brand. They are even more effective when the people targeted are not in the country being referred to as in this case (America/India). They are unable to use their own judgement to dismiss the campaign. Moreover, Coke should address the group directly in order to sort out any misunderstandings as...
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...successful, especially Coke and Pepsi. Coke started as a “potion for mental and physical disorders,” sold by a pharmacist named John Pemberton. The Coke business evolved quickly and reached franchises by 1910. The concentrate business and the bottling business, though closely related have very different economic dynamics. The profitability of concentrate producers was much more successful than bottler’s. Even though the profitability of concentrate producers is higher than bottler’s they are still inter-reliant; they share cost in things such as marketing and production. There are many reasons why concentrate was financially successful; using Porter’s five forces we can noticeably see how each force plays an intrical role in profitability. Bottlers and concentrate businesses deal with the same buyers and suppliers. There were many suppliers that could provide raw material to concentrate business owners; therefore suppliers could not ask a premium and their power was low. Bottling businesses, much like suppliers were dependent on concentrate businesses. In reference to the five forces model, concentrate producers supplied bottlers with raw material necessary to make soft drinks. Concentrate businesses took management roles in product development and even negotiated with bottlers. Therefore, it is evident that concentrate business had control in the industry. In addition, there was a high volume of suppliers so that made negotiations impossible. Both Coke and Pepsi made strategic...
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...Managerial Economics Coke vs. Pepsi: An Economic Analysis Rebecca Simmons Managerial Economics Dr Sol Drescher December 4, 2012 Executive Summary In this case study we will do an economic analysis of two major competitors; Coke® and Pepsi®. We will look at the history of these to competitive giants and discuss how they have evolved over the years to become rivals in the 21st Century. In this case study we will also look at the supply and demand of each company’s products. Coke and Pepsi are not only in the beverage business they have branched out into other arenas to continue being the leaders in their market. Both companies do business all over the world; we will also look at how they size up internationally as well as nationally. We will look at production and cost in the short run and long run by analyzing each company economically. Each company has foreta where they will be financially in the 21st Century and in this analysis we will calculate if they have forecasted close to where they are today. Management is a big part of the success of large firms such as Coke and Pepsi so we will look at the management styles of each one. By looking at management will analyze the strategic decision making of each firm and note any issues they have had in the past or present with upper management. Finally strategic decisions in oligopoly markets with regards to profit maximization is vital to the...
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...gain new customers. 2. How would you evaluate the crisis? On a scale from 1-10 ten being the worst I would say it’s about an 8. No company that is involved in the food and beverage industry she be able to get away with what Coca-Cola did. Findings and statistics don’t lie, so on paper it seems as though Coca-Cola was purposefully taking advantage of the less enforced rules and regulations that they had to follow in India, most likely to save a couple of bucks though it was not violating any laws. 3. How well prepared was Coke India to deal with the CSE’s allegations? In terms of the amount of time it took them to respond to the media I think they did a great job. They denied the allegations and also made a promise to show data that proves the safety of their manufacturing and products. Both Coke and Pepsi attacked the CSE by questioning their credibility. Coke India also threatened legal action against the CSE which made it look as if Coke had the upper hand. 4. What is your recommendation for Coke’s communication strategy? Who are the key constituents? If I were Gupta I would continue handling the situation as he did right from the beginning. By questioning the credibility of the CSE and showing the public findings that their products are safe and made in a...
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...from end of case 1. Diet Coke: It seems to be common that only women drink diet coke since it has less calories, low sodium, and low carbs than the original Coke. There are only a few males that drink diet coke compared to the large amount of females that drink it. Diet coke would be based on gender segmentation. Coke Zero: This product is more of a young male drink. Although it doesn’t have sugar and the calories people tend to like the artificial sweetener, which makes it drinkable. I personally don’t see a difference in drinking Coke Zero or Diet Coke, both tastes the same to me. Males didn’t want to be seen drinking Diet Coke so they prefer drinking Coke Zero. This product would fall under gender and age segmentation. Diet Coke Plus: Diet Coke Plus would also be considered a female drink since its part of the Diet Coke family. This product is for the females who are concerned about health and nutrition as well as losing weight. Diet Coke Plus would be considered gender segmentation. Coca-Cola Blak: This product is especially for older Males and Females who are more sophisticated and are willing to pay a little extra. Coca-Cola Blak would be age, gender, and income segmentation. Full Throttle Blue Dragon: This energy drink is an attraction for young Hispanic males who want a little kick to the energy drink. This product would categorize under age, gender, and ethnic segmentation. 2. Coke Zero is most likely to affect sales of Coke and Diet Coke with selling...
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...Lauren Wang MKTG 211 002 Response 6 My biggest takeaway from this lecture was that given the number of times we use heuristics to make both everyday and large decisions, and how many errors we make when using heuristics, us as consumers must make many mistakes when using peripheral routes of processing. For example, using frequency heuristics is often inaccurate and highly subjective based on the person and the information available to them. This is definitely apparent to me when making minor decisions such as where to eat for dinner. When thinking about risk, incidences that are more interesting or shocking to consumers are a lot more known and have a lot more prevalence in media, creating the availability bias that these incidences occur more than they do. This could be hazardous for risks that are less “sexy” and that people do not think a lot about. For example, in the example of estimates of deaths from accident vs. diabetes, the actual result where diabetes is four times more likely to occur than an accident is frightening. Consumers should be more cautious of preventing diabetes. Without this awareness due to selective media coverage, consumers are focusing on the wrong things that could be detrimental to their health or wellbeing. I have learnt about the law of large numbers from my statistics classes, but learning about the law of small numbers showed me how people tend to exaggerate the degree to which a small sample will resemble...
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...Assignment #1 - Segmentation and Targeting Please read the following Case Study and answer the questions at the 4 questions at the end. Segmenting and Targeting Markets: Case Study: Coke Zero When a couple of marketing managers for Coca-Cola told lawyer Elizabeth Finn Johnson that they wanted to sue their Coke Zero colleagues for “taste infringement,” she was baffled. She tried to talk them out of it, but they were determined. They argued that Coca-Cola Classic should be protected from the age discrimination it would suffer with the introduction of a newer, younger soft drink that tasted exactly the same as the original. Frustrated, Finn Johnson held up the Coke can and shouted, “It's not a person! Title VII doesn't cover these things!” What she didn't know was that the marketing managers were actors. Hidden cameras had been planted around the meeting room to capture the reactions of several unsuspecting lawyers who had been asked to consider the case, including an immigration lawyer who was asked if he could get the Coke Zero marketing head deported back to Canada. Coke Zero Immigration Lawyer Ad - YouTube The short videos were strategically placed on websites such as to promote Coke Zero as the hip, new alternative to Diet Coke for men. The Coca-Cola Company knows it has to be creative if it's going to sell more pop after sales dropped two years in a row in 2005 and 2006. Morgan Stanley analyst Bill Pecoriello explains, “Consumers are becoming ever more health-conscious...
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...The purpose of this paper, prepared by Jessica Chan under the supervision of Robert F. Bruner is about analyzing the companies Coca Cola and Pepsi after Pepsi has announced a merger with Quaker Oats Company with a deal at around $14 billion. With this deal Pepsi would have access to 83.6% of the sport drink market and around 33% of the U.S. noncarbonated-beverage market, followed by Coke with 21%. The paper wants to answer the questions how the latest announcement of Pepsi has an effect on the two companies´ prospects for value creation by showing the company background of both companies, giving a briefly industry overview of the beverage market and competitive events and establishing a financial comparison, especially with ratio and economic profit analysis. In the world Coca Cola and Pepsi have towered as the two leading brands of beverages. In the year 2000, Coca Cola was the largest manufacturer, distributor, marketer of soft-drink concentrates and syrups in the world and its market value reached $110.01 billion. On the other side Pepsi was a $20 billion worth company in 2000, acting in the snack food, soft drink and noncarbonated beverage market. Both companies have reached worldwide expansion of their markets, which include a large product range of beverages, apparel and paraphernalia with their respective logos. Both have grown into longstanding global and social industry leaders. Coca Cola´s annual sales were $20.5 billion which were earned also through a variety of...
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...9/8/2015 PGDM/MBA Material: Case Study- Cola Wars Continue: Coke and Pepsi in the Twenty-First Century www.mbapgdmstuff.blogspot.com Home Human Resource Marketing Information system management Images You are visitor # Case Study- Cola Wars Continue: Coke and Pepsi in the Twenty-First Century 110,588 Search This Blog Translate Select Language ▼ Category Assignment Business Communication Business Environment Business Law Case Study Compensation MAnagement E- Business Summary: "Cola Wars Continue: Coke and Pepsi in the 21st Century” explains the economics of the soft drink industry and its relation with profits, taking into account all stages of the value chain of the soft drink industry. By focusing on the war between Coca‐Cola and PepsiCo as market leaders in this industry – with a 90% market share in carbonated beverages – the study analyses the different stages of the value chain (concentrate producers, bottlers, retail channels, suppliers) and the impact of the modern times and globalization on competition and interaction in the industry. Analysis: It is quite clear that there was a “war" between Coca‐Cola and PepsiCo: not only have they been rivals for entrepreneurship For your Information Formates Human Resource Management Human Resource Mangement Human resource Planning Indian Labour Law Industrial Relation Information system Management International Marketing ...
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...TITLE A STUDY ON EFFECTIVENESS OF MARKETING COKE AND PEPSI IN IT CITY. OBJECTIVE 1. Finding the satisfaction of retailers towards the movement of Coke and Pepsi in terms of value addition and promotional strategies of Coke and Pepsi. 2. Products and quantities offered and the satisfaction different class of customers. Problem Statement Based on the promotional strategies, improvement of distribution efficiency and suggestions for the improvement in terms of the value addition towards the retailers by Coke and Pepsi distributors. Literature Review 1. Lemley, Mark & McKenna, Mark The article discusses market definition in terms of intellectual property (IP) and antitrust law in the U.S. as of August 2012. The carbonated soft drink products developed by the competitors Coca-Cola Co. and PepsiCo Inc. are used to address several IP and antitrust law issues, including fair use under copyright law and mark similarity under trademark law. A consideration of supply substitution under antitrust market definition is also mentioned. 2. Nair, Anil & Selover, David D (2012) The study of competitive dynamics has become a vibrant area of research within strategic management. We contribute to this research stream by examining the nature of competitive interaction between Coke and Pepsi. We found that while Coke''s and Pepsi''s strategies display interdependent relationships, the volatility of the interaction among strategies do not always attenuate over time, and Coke''s strategies...
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