...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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...investigates the strategic management of Pepsi Cola and Coca-Cola in an effort to make recommendations on how Pepsi Cola can build strategies in gaining a larger share of the market. The assessment of strategic management begins with the vision and mission of both organizations, which leads into literature review that identifies the consumer preferences of both Pepsi Cola and Coca-Cola. Following the literature review is the teams’ own personal assessment of consumer preferences for the Pepsi Cola and Coca-Cola brand (Please refer to Appendix A for the assessment). Finalizing the investigation are recommendations for Pepsi Cola to gain a larger share of the market. The Cola Wars Research Paper According to an industry report from Hoover’s (2014), the U.S. soft drink industry yields $34 billion annually and continues to grow internationally. The largest markets of consumption for soft drinks outside the U.S. are: Mexico, Chile, Argentina, and Uruguay (Hoover’s, 2014). The constant change of consumer preferences is what drives Pepsi Cola and Coca-Cola to compete for a larger share of the market. The intense rivalry between Coca-Cola and Pepsi Cola have been going on since the late 1800’s (Economy Watch, 2011); when Pepsi Cola was born from a “combination of: carbonated water, kola nuts, vanilla, and rare oils” (Pepsi Legacy Book, p.7. 2005). This paper focuses on the diversified strategies of both Pepsi Cola and Coca-Cola in their efforts to gain the largest share of...
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...SIZER COMPETITIVE STRATEGIES : PEPSICO VS. COCA-COLA AKIN DUNDAR 200068711 MBA/FINANCE 1/30/2013 Every company has a descripted or non-descripted competitive strategy if they have at least a competitor in the industry. To have the conversion rate of the investment, the company should have a desired and defensible position and power to defence this position. Sometimes, even a company has a really successful product it still tries to produce a new item or improve the one it has and this decision could be one of the biggest fail of marketing history. According to some marketing experts; the reason of the success of coke drink in the beverage industry is the advertisement competition and marketing war between PepsiCo and Coca-Cola since years ago. If there was not a PepsiCo in the industry, Coca-Cola could not make a billion bottles of daily sales. Both companies are in top of the list of most valuable brands list. They had many successes during their 120 years of rivalry but both of them also made high-cost mistakes during that time. The competition between the ‘Enemy Brothers’ is one of the good sample of rivalry which is based on a lot of interesting cases,different strategies and cultures. Differences between Coca-Cola and PepsiCo cultures and strategies was the main result announcer. In the middle of 1880’s, Coca-Cola was unrivaled in the industry. When the industrial war begun, was the time that PepsiCo showed up in the industry. There were...
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...Cola Wars Case Study DMBA 630 Marketing and Strategy Management in the Global Markeplace Introduction Carbonated Soft Drinks (CSD) have been around for over a century and now accounts for a $60 Billion market with the average American consuming about 53 gallons a year. Coca-Cola was invented in 1886 by John Pemberton as a “potion for mental and physical disorders.” Asa Candler acquired the formula and began marketing it as Coca-Cola. The first bottling franchise was accorded in 1899 for a sum of one dollar. Pepsi-Cola was invented in 1893 by Caleb Bradham a pharmacist from North Carolina. Pepsi also franchised its bottling operations. Pepsi struggled over the years going bankrupt twice within a decade, first in 1923 and again in 1931. Pepsi competed aggressively against coke offering almost twice the amount of Pepsi for the same price in the 1930s. Coca –Cola or Coke on the other hand was the market leader through the early 20th century with numerous imitators popping up trying to clone Coke. Coke fought back in the courts to aggressively deter imitators and counterfeiters. During the 1920s and 1930s, Coke was marketed to multiple market segments making it available to anyone desiring the brand. Eventually Coke sued Pepsi for trademark infringement in 1938 and lost. Pepsi gained market share and became a titan competitor in the market for CSDs beating out all other brands except Coke. Thus began the “Cola Wars” in 1950 with Pepsi’s aggressive “beat Coke”...
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...PEPSICO a Solid Investment. By: Alexandra Fell For: Dr. Guendo0 Yorkville University July 2014 BUSI 1023 A pharmacist named Caleb Bradham invented Pepsi in 1893, it was originally named “Brad’s Drink”, before changing to it’s widely recognized name Pepsi-Cola, in 1898. Although Pepsi has faced many tough financial times historically, two bankruptcies and three offers to Coca-Cola to purchase the company between 1922-1933, the company has always managed to reinvent itself, and carve out its own market share, and today is not any different. In order for PepsiCo to see continued success they must be able to expand into different markets, increasing their consumer base and maximizing profits. PepsiCo is broken down into these four operating units: PepsiCo Americas Foods, which includes food and snack businesses in North America and Latin America. PepsiCo Americas Beverages, which includes all of their North American and Latin American beverage businesses. PepsiCo Europe. PepsiCo Asia, Middle East and Africa. PepsiCo’s main competitors in the non-alcoholic beverage industry are the Coca-Cola Company and Dr. Pepper Snapple Group Inc, their main competitor and long time rival is Coca-Cola. Coca-Cola has the larger market share of carbonated soda drinks, however; PepsiCo holds strong with its larger market share in liquid refreshment beverages like Gatorade and Tropicana. PepsiCo also has a leadership position in the snack industry world wide, against other food and...
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...exceptional marketing programs and well as aggressive business strategies have become recognized the world around. Many of these are part of our everyday life and if not then we see them every day in our comings and goings. Two of these world-wide brands that many of us know are also extremely similar in both product as well as marketing strategy. Those two brands are The Coca-Cola Company and PepsiCo, Inc. On May 8, 1886, 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...
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...| Coca-Cola Versus Pepsi | The Coke Wars Financial Analysis | | Accounting 557: Financial Accounting Sumadi, Mohammad | | 12/15/2012 | | Possibly one of the biggest rivals in Corporate America today, the battle between Coca-Cola (KO) and PepsiCo (PEP) continues to baffle not only consumers but investors as well in determining which product is a better buy. While both companies have had recent problems in emerging nations such as India by having their products be condemned for improper ingredients, a shakeup like this might be necessary to promote future growth for possibly undersold equities. Coca-Cola Company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, with world headquarters in Atlanta, Georgia. 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. The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886.About nine servings of the soft drink were sold each day. Sales for that first year added up to a total of about $50. The funny thing was that it cost John Pemberton over $70 in expanses, so the first year of sales were a loss...
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...The Cola Wars are a campaign of mutually-targeted television advertisements and marketing campaigns since the 1980s between soft drink manufacturers Coca-Cola Company and PepsiCo Incorporated. * | [edit]Competition Many of the brands available from the three largest soda producers, The Coca-Cola Company, PepsiCo and the Dr Pepper Snapple Group, are intended as direct, equivalent competitors. The following chart lists these competitors by type or flavor of drink. Flavor/type | PepsiCo | The Coca-Cola Company | Dr Pepper Snapple Group | Cola | Pepsi | Coca-Cola | RC Cola | Diet Cola | Diet Pepsi / Pepsi Light Pepsi ONE Pepsi Max Pepsi Next | Diet Coke / Coca-Cola Light Tab Coca-Cola Zero | Diet Rite Diet RC | Cherry-flavored cola | Pepsi Wild Cherry | Coca-Cola Cherry | Cherry RC | "Pepper"-style | Dr Slice | Mr. Pibb / Pibb Xtra | Dr Pepper | Orange | Mirinda Tropicana Twister Tango Slice | Fanta Minute Maid | Crush Sunkist | Lemon-lime | Teem Sierra Mist 7 Up (in countries other than US) | Sprite Lemon & Paeroa | 7 Up | Other citrus flavors | Mountain Dew Kas Izze | Mello Yello Vault Fresca Lift Lilt | Sun Drop Squirt | Ginger ale | Patio | Seagram's Ginger Ale | Canada Dry Schweppes Vernors | Root beer | Mug Root Beer | Barq's Ramblin' Root Beer (until 1995) | A&W Root Beer Stewart's Rootbeer Hires Root Beer | Cream soda | Mug Cream Soda | Barq's Red Creme Soda | A&W Cream Soda | Juices | Tropicana Dole (prepackaged...
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...COLA WARS: GOING GLOBAL 1. Reading synthesis The Harvard Review article discuss how the 2 most successful cola companies, Coca Cola and Pepsico, had been struggling in the market since they started their operations. The interesting part is how it explained how each one of the companies developed their market in different countries. In this case, it explained the companies history in Mexico, China and India. What I think is more important to understand is that each country has different cultural ideas that affect the companies development among its consumers. For example, in India they had problems with its formula, in China people identify light colored beverages to be healthier and in Mexico first they had price control problems. Another interesting point is that Pepsico has a variety of not only beverages but also their snacks part it’s pretty strong. 2. References: Investigate two references and indicate how they relate to the main argument of the reading. • Andrew Martin, “Does Coke Need A Refill?”; New York Times; May 27 2007; p,C1 The article talks about how Coca Cola’s campaign gets the company to where it is today, they in vested millions on advertising. Also it talks about Coca Cola’s new products and how they achieved even higher sales for the company. IT also explains how the trajectory of Coca Cola made the company that we know today. • “PepsiCo to Spend $1B in China Over Next Four Year,” Yahoo! Finance; November 4...
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...CHU HAI COLLEGE OF HIGHER EDUCATION 2010-2011 SEMESTER 2 BBA 353 STRATEGIC MANAGEMENT Group Case Study Project The Coca-Cola Company Tsang Hoi Ki Chan Ho Yin Fung Tsun Wai Chan Ka Po Yuen Sze Wing Chan Tai Hoi Yan Yue Kan (200826001H, (200826002H, (200826004H, (200826019H, (200826020H, (200826027H, (200926024E, FNE) FNE) FNE) FNE) FNE) FNE) FNE) Abstract This paper is a strategic analysis of The Coca-Cola Company (Coca-Cola), a leader in the beverage industry. Coca-Cola, the world’s leading soft drink maker, operates in more than 200 countries and owns or licenses more than 500 brands of nonalcoholic beverages. The company faces challenges in today’s market because of market changes, socio-economic changes and globalization. An external analysis of the soft drink industry is performed to understand the impact of environment. An internal analysis of Coca-Cola is performed to understand the internal capabilities. The conclusion of this case study emphasizes that the company needs to reduce its dependence on carbonated beverage and diversify its product portfolio into the noncarbonated sector to remain competitive. 2 Table of Contents Abstract .............................................................................................................................. 2 Section 1: Introduction ................................................................................................... 5 1.1 1.2 1.3 Mission and Objectives ..........
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...Title: Abuse of Dominant Position in reference to Coca Cola and PepsiCo in Europe and U.S ABSTRACT This article focuses at the actions of Coca-Cola and Pepsi in America and Europe since both of theirs’ inception. The article is divided in three different parts. Part I – In this part of the article, author has made an attempt to briefly discuss about the history of incorporation of both the companies i.e., PepsiCo and Coca Cola. The saga began in 1886, when John S. Pemberton developed the original recipe for Coke. Pepsi-Cola was created in 13 years later by pharmacist Caleb Bradham. Part II - This part of the article focus upon the anti competitive practices in which coca cola and PepsiCo are indulged in and also the Soda War. It is not unknown that both Coca Cola and Pepsi have been competing with one another in the global soft drinks industry for many years. Coca-Cola advertising has historically focused on wholesomeness and nostalgia for childhood. Coca-Cola advertising is often characterized as "family-friendly. Pepsi adverts often focused on celebrities choosing Pepsi over Coca-Cola, supporting Pepsi's positioning as "The Choice of a New Generation." Part III – Third part of this article explores the “Cola Wars” litigation under European laws concerning dominant abuse of market position. Also discussion has been made on the advertising policing of both the companies slandering each other. The European Commission (EC) has developed a very powerful competition policy...
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...beverage industry, PepsiCo has been taking aggressive steps to cut costs to support long-term earnings growth and reinvest savings in their business. As the company faces growing concerns in the carbonated beverage industry because of growing health awareness and obesity concerns, PepsiCo has been working to make its cost structure leaner; through economies of scale to reduce labor, by specialization and division of labor. PepsiCo is also making good progress with it cost-savings initiatives consistent with its productivity enhancement initiatives; the company expects to realize cost savings of at least $1 billion in 2014. One of the major expenses for PepsiCo is it marketing and advertising campaign which accounts as of 2013 for 5.9 of its net revenue, however PepsiCo has manage to have substantial savings in their direct fixed cost by their structural business model and through economies of scale, Moreover, PepsiCo has announced an increase cost-savings program, which is expected to result in cost savings of $5 billion for the next five years starting from 2015 " and by optimizing its production facilities globally; improving its go-to-market systems, increasing shared services, and investments in automation. One of PepsiCo state of the Art Facilities with two filling lines working can fill over 1.5 billion cans of soda in a year with just 20 employees. This is a tremendous direct labor cost savings for PepsiCo. As part of a Global Sustainable Packaging Policy PepsiCo has provides...
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...The Coca – Cola Company struggles with Ethical Crises Coca-cola has the most valuable brand name in the world and, one of the most visible companies worldwide, has a tremendous opportunity to excel in all dimensions of business performance. However, over the last ten years, the firm has struggled to reach its financial objectives and has been associated with a number of ethical crises. Warren Buffet served as a member of the board of directors and was a strong supporter and investor of Coca-Cola but resigned from the board in 2006 after several years of frustration with Coca-Cola’s failure to overcome many challenges. Many issues were facing Doug Ivester when he took over the reins at Coca-Cola in 1997. Ivester was heralded for his ability to handle the financial flows and details of the soft drink giant. Former CEO Robert Goizueta had carefully groomed Ivester for the top position that he assumed in October 1997 after Goizueta’s untimely death. However, Ivester seemed to lack leadership in handling a series of ethical crises, causing some to doubt the “Big Red’s” reputation and its prospects for the future. For a company with a rich history of marketing prowess and financial performance, Ivester’s departure in 1999 represented a high-profile glitch on a relatively clean record in one hundred years of business. In 2000 Doug Daft, the company’s former president and chief operating officer, replaced Ivester as the new CEO. Daft’s tenure was rocky, and the company was allegedly...
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...specific factors to help Pepsi evaluate how well the product is received by consumers in the marketplace. This analysis is based on our competitor Coca-Cola as a comparison to our product. A brief history is discussed with a look at the demand, supply, and equilibrium prices in the market. Other elements discussed are price elasticity and cost structure, and recommendations made on how to maximize our profits and successfully compete with Coca-Cola. History The original Coca-Cola product is introduced and developed in 1886 by John S. Pemberton (Bhasin, 2013). In the next 15 years Coca-Cola is purchased and incorporated into a business by Asa Candler, and they had their first celebrity endorser musician Hilda Clark (Bhasin, 2013). Coca-Cola began to move into other foreign markets by 1906 and branched out to athletes for their endorsement of Coca-Cola. Coca-Cola was the first to manufacture a contoured glass bottle for their product, and launch production plants in the Philippines and Europe. Between 1906 and 1938 Coca-Cola had entered into numerous foreign markets including Canada, Cuba, Australia, Norway, and South Africa. By 1950 Coca-Cola was entering homes of consumers through the airwaves broadcasting a commercial on Thanksgiving Day to the radio airwaves to promote their product to consumers. Over the next 60 years Coca-Cola has continued to change their image to consumers and grow their product base to remain fresh and relevant while providing a quality product. Some...
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...PepsiCo Company-History and Mission Statement Name: Tutor: Course: Number: Date: Introduction In today’s world, nearly everybody consumes a beverage every day of which, most of what we consume, is either a soft drink or hot beverages in the form of tea or coffee. The beverage business has in the modern world emerged as the top prayer with worlds renowned companies such as Coca Cola and PepsiCo being the leaders. In our study, we will focus on the history and mission statement of the PepsiCo Company. History and Background PepsiCo was founded in 1890’s by Caleb Bradham who was by then running a pharmacy business in New Bern, North Carolina. Today, it has risen to become one of the most recognized and successful snack and beverage companies in the world. What started as an in-house production of Pepsi-cola soft drink would then grow and spread with an outstanding establishment of over 250 licensed bottlers and distributors by 1910. By this time, PepsiCo production had exceeded the 1 million gallon production mark (PepsiCo, 2012). The effects of world war two would destabilize its operations notably due to acute sugar shortage due to rationing. In 1931, PepsiCo was declared bankruptcy following financial problems due to the notable acute sugar shortage during and aftermath of world war I. during various occasions between 1922 and 1933, the coca-cola company had been approached to take over PepsiCo due to the prevailing business difficulties but declined every...
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