...Cola Wars Continue Description: The competition between Coke and Pepsi is a classic corporate battle, which began in America at the turn of the century and has expanded into worldwide competitive warfare in the 21st century. We will use the case to examine competition and strategy in the carbonated soft drink industry. 1. Why has the carbonated soft drink (CSD) concentrate industry been so profitable for Coke and Pepsi over many decades? * Soft drinks industries have so profitable because of their market strategies, the cost of the their products/bottlers, and competition with one another. * Pepsi mentioned they would not have been as successful without Coca-Cola and Coca-Cola without Pepsi. * Coca-Cola, was very popular during World War II, offering soldier soft drinks at lower prices. Soft drinks industries constantly adapt to changes with bottling companies, competition and different cultures worldwide. * They also grew the company from primarily CSD to include non CSD, diet soda with less sugar options, and eventually to snack foods. 2. Why was Coke able to dominate the U.S. soft drink industry through the 1950s? How was Pepsi able to catch up in the United States? * The reasons come from internal factors and external environments. Because of Coke’s secret formula and marketing strategy, Coke was considered as a good quality carbonated drink and you can always get a coke since 1920s (very good distribution channels). They quickly grew a franchisees network...
Words: 380 - Pages: 2
...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” focuses...
Words: 3073 - Pages: 13
...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 ...
Words: 1069 - Pages: 5
...because of its tasty product, focuses on marketing and advertising to make a profit. Coke and Pepsi employed the following technique to make the soft drink industry profitable: marketing (Yoffie 21). Coke and Pepsi have dominated the market on soft drinks by offering a product that people enjoy, at a price that the average Joe can afford, and by utilizing marketing strategies and campaigns. Through effective leadership, an environment was created which enabled success and profitability as well as creative strategies and campaigns. Both Coke and Pepsi developed and deployed aggressive marketing campaigns which began generations ago by fighting trademark infringements and continued with cleaver and aggressive sales techniques. By branching into other flavors and types of drinks via mergers and acquisitions, both Coke and Pepsi generated additional revenue from more than just their core beverage. The fierce competition the two Cola Giants created, ensured profitability and world recognition of the American developed carbonated soda. 2. Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? The concentrate business has been historically dominated by large magnates such as Coca-Cola and Pepsi. Data, from the case study, detailing the industry breakdown indicates that Coke held 51% of market share in 2003 while Pepsi and Cadbury Schweppes held 22% and 6% of international market shares for that year...
Words: 1960 - Pages: 8
...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”...
Words: 3445 - Pages: 14
...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 are driven by Pepsi in some...
Words: 975 - Pages: 4
...Bottling business Compare the economics of the concentrate business to the bottling business: why is the profitability so different? (50%) Pepsi-Cola and Coca-Cola were both established at the very end of 19th century. Their history is more than a hundred years old and the size of these two companies is huge. Both of them work in the consumer goods industry providing beverages and other drinks to the customers (http://www.thecoca-colacompany.com/ourcompany/historybottling.html) . Pepsi and Coke dominate the market in this sector and form oligopoly in the US and even in the world market: "Among national concentrate producers, Coca-Cola and Pepsi-Cola claimed a combined 74.8% of the U.S. CSD market in sales volume in 2004, followed by Cadbury Schweppes and Cott Corporation." (Financial data for Coca-Cola, Pepsi-Cola, and Their Major Bottlers.) Their businesses are structured in the same way. They are the biggest concentrate producers. They sell ready concentrate to the bottlers which after convert it into the ready product which is brought to the shop shelves. Bottlers are situated all over the world as the principle of franchising is used. That greatly helps in the spread of CSDs across the globe. However, the returns received by concentrate producers differ from those received by bottlers for several reasons (Yoffie, 2007). Concentrate producers: Capital investment. Concentrate production business is less capital intensive than bottling. It requires less funds to be invested...
Words: 2244 - Pages: 9
...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 project...
Words: 10538 - Pages: 43
...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 ..........
Words: 4631 - Pages: 19
...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 ..........
Words: 4641 - Pages: 19
...1. INTRODUCTION 1.1 Brief History History of Pepsi:- Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina, United States, in 1893 by Caleb Bradham, who made it at his drugstore where the drink was sold. It was later labeled Pepsi Cola, named after the digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy. In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1909, automobile race pioneer Barney Oldfield was the first celebrity to endorse Pepsi-Cola, describing it as "A bully drink...refreshing, invigorating, a fine bracer before a race." The advertising theme "Delicious and Healthful" was then used over the next two decades. In 1926, Pepsi received its first logo redesign since the original design of 1905. In 1929, the logo was changed again. In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered bankruptcy – in large part due to financial losses incurred by speculating on wildly fluctuating sugar prices as a result of World War I. Assets were sold and Roy C. Megargel bought the Pepsi trademark. Megargel was unsuccessful, and soon Pepsi's assets were purchased by Charles Guth, the President of Loft Inc. Loft was a candy manufacturer with retail...
Words: 9255 - Pages: 38
...I. Introduction Coca-Cola and Pepsi have been competitors for over a century, but their fiercest competition has risen out of the fight to gain an advantage in the carbonated soft drink (CSD) industry, specifically in the United States. In the beginning, the competition yielded benefits for both firms. They were constantly trying to keep up with the other, which proved to be a mutually beneficial relationship. However, following the end of the millennium, US CSD consumption began to decline. By 2009, Americans were consuming CSDs at the lowest rates since 1989. During this decline, Coca-Cola struggled operationally and Pepsi attempted forays into new products and new markets. Forging ahead into the 21st century, both Coca-Cola and Pepsi faced the problems of sustaining growth and profitability in a declining CSD market and the challenges associated with non-CSD products. The ever-famous Coca-Cola formula was created by John Pemberton in 1886 and was marketing as a “potion for mental and physical disorders.” It was acquired in 1891 by Asa Candler and with marketing help, grew enough to grant a bottling franchise in 1899. Candler thought the company would perform better in fountains than bottles. Candler sold the company to investors in 1919, the same year Coca-Cola went public. Robert Woodruff took the reigns as CEO in 1923. He not only oversaw the pioneering of many technical innovations that would become critical to the CSD industry, but he also introduced the “lifestyle”...
Words: 3914 - Pages: 16
...INTRUCTION With modern international marketing being more prosperous , the majority of firms are eager to globalize their productions in order to be more competitive ,therefore, advertisement design is increasingly significant for business.Advertising is a favorable representation of product to make consumers, customers and general public acquainting of the product. It enables the potential buyers, general public and end users to be aware and familiar with the brands, their goods and services.(Hassam ,2004),so the firms will have a superb reputation. When the companies put an emphasis on advertising and globalizing merchandises, one of the primary projects which cooperations must implement is to improve the advertising to their productions.However, international advertising entails dissemination of a commercial message to target audiences in more than one country, target audiences differ from country to country in terms of how they perceive or interpret symbols or stimuli, respond to humor or emotional appeals, as well as in levels of literacy and languages spoken. How the advertising function is organized also varies.Therefore,companies decentralize their budgets and placed in the hands of local subsidiaries, resulting in greater use of local advertising agencies.(Susan P. Douglas and C. Samuel Craig New York University).As the result of local advertising agencies, the advertising strategies are different for the multiple cultures and diverse religious believe to some extent...
Words: 3446 - Pages: 14
...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……………………………………………………………………………………...
Words: 4249 - Pages: 17
...A Report on Strategic Management Case Of COCA COLA (Year 2007) Subject: Managerial Policy Section: “B” [MBA – Evening Program] Faculty: Brig. (ret.) Shakeel Ahmed Prepared & Presented by: |Group 2 | |Faraz Ahmed |Zohaib Genda |Mehboob Hassan |Zakia Rasheed | |Arshad Khan |Muhammad Tabish Taha |Sehrish Anwar |Obaid Ullah Aleem | |Mohammad Waqas |Ashok Kumar |Tariq Khan | |Zeeshan Ul Haque |Tariq Hamidi |Babar Raza | Table of Contents 1- EXECUTIVE SUMMARY 3 2- HISTORY OF COCA COLA 4 3- BRANDS OF COCA COLA 7 3.1- Energy Drinks 7 3.2- Juices/Juice Drinks 7 3.3- Soft Drinks 8 3.5- Tea and Coffee 8 3.6 Water 8 3.7- Other Drinks 9 4- CONSUMER CHOICE AT A GLANCE 10 5- DIFFERENT PLAYERS IN THE SOFT DRINKS MARKET 11 5- DIFFERENT PLAYERS IN THE SOFT DRINKS MARKET 12 6- OUR MISSION 12 6- OUR MISSION 13 7- OUR VISION ...
Words: 7593 - Pages: 31
