...Competitive Strategies Coca-Cola vs. Pepsi Co Joyce Conyers Strayer University 3 May 2013 BUS 508 Online Course Instructor: Dr. Phyllis Parise Dowers Grove Campus Phone Number: (630)874-6128 / (630)456-2348 Cell phone Question: Choose an industry in which two or more companies has historically competed to maintain a significant share of the marketplace. These could include: Coca-Cola and Pepsi-Cola, Apple and Microsoft, GM and Ford Motor Company, or any other well-known pair of competitors. 1. To thoroughly determine how each corporate culture differs from the other, I will start with the history of Coca Cola. Type of the company: Public Website: http://www.cocacola.com Employees: As of 2010, The Coca-Cola Company employed just under 140,000 people worldwide. Let’s began with the background on the Coca-Cola Company history from 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. The bottling business however, began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. See “LONNIE, 2003” This agreement stayed in place and operated solely as and independent, local business until the beginning of 1980s with certain bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged some of its company-owned operations...
Words: 1402 - Pages: 6
...Coca Cola vs. Pepsi: Competitive Strategies Christoper Gilchrist BUS 508 7/28/2013 Coca Cola and Pepsi marketing are a consumer products company operating in highly competitive markets. They heavily rely on continued demand for products. To generate profit and bonus, they both must sell products that appeal to our customers and to consumers. Any significant changes in consumer preferences or any inability on the part to anticipate or react to such changes could result in reduced demand for our products and erosion of our competitive and financial position (Dyer, Jeffrey H., page 3). The achievements of Pepsi and Coca Cola relies on being able to answer to daily needs of buyers, concerning health and wellness, obesity, product attributes and ingredients, and to broaden into similar categories. Changes in product category consumption or consumer demographics could indicate a deductible demand for the good that’s produced. Consumer preferences could change for many reasons, such as generations being affected by the age (Hoffman, Benjamin, page 17). Socializing has also expanded and became very diverse. Traveling, vacation or leisure activity patterns, weather, seasonal consumption cycles, negative publicity resulting from regulatory action or litigation against companies in our industry, a downturn in economic conditions or taxes specifically targeting the consumption of our products. Any of these changes may reduce consumers’ willingness to purchase the goods of Pepsi...
Words: 994 - Pages: 4
...CONTEMPORARY BUSINESS DR.MAGGIE 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...
Words: 1671 - Pages: 7
...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
...important to the success of any firm. Today 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...
Words: 1536 - Pages: 7
...Background For over a century, Coca-Cola and Pepsi- Cola vied for “throat share” of the world’s beverage market. In a “ carefully-waged competitive struggle”, from 1975 to 1995, both Coke and Pepsi achieved annual growth of around 10%; this was largely attributed to the effectiveness of their marketing efforts. Analyzing the environment and understanding the market Instead of engaging in a “head-on confrontation” and getting involved in the largely dreaded price wars that promise to inflict much impact on the financials of both parties, both companies would always select customers that it can serve well and profitably. For instance, Pepsi “[is] going after the younger consumer… where the profits are”. This is an illustration of concentrated marketing, which has been Pepsi’s strategy since 1970s. It allowed Pepsi to gain a better foothold against Coca-Cola, the market giant, and eventually grew into a stronger competitor. Till now, Pepsi still practices demographic segmentation where it divides the market into smaller groups of customers in accordance to their age. They then targeted the niche group, youths or Generation X, whom Pepsi has always believe that it is the group with better segment structural attractiveness. Teenagers have distinct and unique behaviors such as “purchasing a single-serve product at a convenience store like 7-11”, thus when Pepsi offers such convenience services, it has created a loyal base of young customer who are the largest consumer market...
Words: 2205 - Pages: 9
...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
...Conditions Competitive Analysis Paula Collins, Candesse Ediger, Kristi Shimmin, Chadrick J. White ECO 365 September 2, 2013 Krissa Wrigley Current Market Conditions Competitive Analysis Determining the most appropriate product to launch into the market is a difficult process. This market analysis will help determine the 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...
Words: 1615 - Pages: 7
...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 drink...
Words: 13697 - Pages: 55
...Detailed 4P analysis and Competitive environment (Do NOT use a SWOT) This may be presented as multiple sections, but the key is to go into detail on breaking down all relevant aspects of the four Ps as well as how each competitor’s mix is the same or differs. Be sure to go into detail about which products are REALLY the primary competition (have the same targets) and which are lesser competitors and why. How do they address the target, what is the share (if possible, if not try to infer it from other data), how do they compete on price and quality elements? Keep in mind that there is no way to understand the competitive environment if you don’t know your product’s position and the position of its competitors in terms of relevant characteristics including its competitive advantages and disadvantages and its position in all aspects of the four Ps. Place The Coca-Cola Company is the world’s largest beverage company with more than 500 brands. They are the number one provider of sparkling beverages, ready-to-drink coffees, and juices/juice drinks. They also sport the world’s largest beverage distribution system that distributes in more than 200 countries. Coke Drinks are sold in convenience stores, Price In 2012, The Coca-Cola Company had a net operating revenue of $48,017,000, a 3% increase from 2011’s sales, which were $46,542,000. This is more than thirty percent of their net operating revenue in 2010. ( , 2012) This is due to the fact that Coke-a-Cole offers not...
Words: 730 - Pages: 3
...Communication Strategies of Pepsi Cola Table of Contents Executive Summery 3 Introduction 4 History 5 Effective Marketing and communication strategies of Pepsi 6 Media Commercials 6 Advantage of media commercials 6 Disadvantages of media commercials 7 Sponsorships 7 Advantages of Sponsorships 8 Disadvantages of Sponsorships 8 How to enhance the effectiveness of Sponsorship 8 Community Activities 8 Advantages of Community activities 9 Disadvantages of community activities 9 How to enhance the effectiveness of CSR projects 9 Product Diversification 10 Advantages of Product diversification 10 Disadvantages of product diversification 10 How to enhance the effectiveness of Product Diversification 11 Cross Comparison between the marketing strategies of Pepsi, Coca Cola, V and Red Bull 11 Conclusion 13 References 14 Executive Summery Pepsi is an aerated Soft drink that is produced by Pepsi Co. Inc. Pepsi Cola is using most of the modern communication and marketing methods to enhance their brand awareness among its consumers. Mainly they are advertising their brand on Television, Face book, Twitter and YouTube. In this report I have outlined the overview of the Pepsi Cola Corporation and its history, and the most effective communication strategies that are used by them to enhance their brand equity. These strategies include Advertisements, Sponsorships, Online promotions, Community activities and Product diversification of Pepsi Cola Corporation...
Words: 3206 - Pages: 13
...marketing mix to expand and grow their product and brand. 2. Summary The outcome of the report is to identify what parts of the marketing mix need to be altered to meet the needs of the critical success factors. 3. Coke – The Company Coca Cola have evolved over the last century into a multinational leading manufacturer, distributer and marketer in the soft drinks industry that currently operates in over 200 countries (Coca Cola 2013). Based in Atlanta, Georgie, the Coca Cola company sells more than 400 different brands that produce over 3000 different products include Coke Zero. Coke Zero is a zero sugar drink introduced in 2005 and is designed to taste exactly the same as regular Coca Cola. It was primarily targeted towards the young male audience of ages 16-24, because Coca Cola realised that young men didn’t want to purchase drinks that had the word “diet” in. This was due to diet drinks being seen as feminist to this target market. Coke Zero biggest current competitor is Pepsi, Pepsi have their own zero sugar drink “Diet Pepsi”. Coca Cola holds a much larger market share than Pepsi with over 50% in the global market. (IBTime 2013). However this is not the case for the Middle Eastern and Asian markets where per capita consumption is higher for Pepsi than Coke (Tamara Rutter 2013) 4. Coke – Critical Success Factors “Critical success factors (CSFs) refer to specific activities, procedures or areas that a business or organization depends on for its continued survival. Critical...
Words: 1603 - Pages: 7
...Coke vs. Pepsi: Battle of the Brands Posted Apr 10th 2007 4:40PM by Eric Buscemi Filed under: Products and services, Consumer experience, Competitive strategy, Coca-Cola (KO), PepsiCo (PEP), Marketing and advertising, Coca-Cola Enterprises (CCE), Battle of the Brands This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and watch out for more Battle of the Brands posts. Some people drink Pepsi, some people drink Coke, The wacky morning DJ says democracy's a joke. -- Cake, Comfort Eagle Unless you are a rare RC Cola drinker, your carbonated beverage decision in the supermarket comes down to the two heavyweights: the flagship products from the Coca-Cola Company (NYSE: KO) and PepsiCo Inc (NYSE: PEP). But the battle between these brands spans much further than the supermarket shelves. From which brand restaurants stock, to what countries each operates in, this rivalry is all-encompassing and global. But instead of a list of countries or restaurant chains, lets take a deeper look at the actual products. Cola and Beyond We don't have space to list, nor would you have time to read, every different variant of Coca-Cola and Pepsi, which would force me to include failed ideas such as Crystal Pepsi. Suffice it to say, you won't find many original ideas here, and when a successful idea comes from either company, an imitator just as quickly appears from the other. Coke/Pepsi, Diet Coke/Diet Pepsi, Cherry Coke/Wild Cherry Pepsi, Coke with Lime/Pepsi...
Words: 827 - Pages: 4
...Market Structures ECO/365 April 13, 2015 Benjamin Zuckerman Differentiating Between Market Structures Coca-Cola Company is one of the world’s leading soft drinks manufacturers. Since its creation, the company has been growing constantly. Today Coca-Cola manufactures more than 500 brands of products sold in more than 200 countries all over the world. Coca-Cola’s main competitor is Pepsi. Therefore, the two companies make up a duopoly where only two companies dominate the market. Both companies sell soft drinks. They also sell homogeneous products so that they can be able to control the price in the market. Coca-Cola Company depends upon the demand curve to adjust the price of its products. Specifically, the company pays great attention to the state of the kinked demand curve. To attract more customers, Coca-Cola uses cut-throat competition to outdo its main competitor: Pepsi (Henry, 2012). Since its inception, Coca-Cola’s main goal has been to emerge as the world’s number one provider of quality branded beverages. The duopoly enables Coca-Cola to use a low-price strategy to maximize its profits. In particular, during holidays, the company uses cut throat price competition to increase its sales and profits. The duopoly gives Coca-Cola the power to raise its product price above the market price without worrying about losing its customers. The duopoly that Coca-Cola is a part of undermines new competitors from entering the soft drinks market. What they do is simply lower their...
Words: 1471 - Pages: 6
...structure and competitive 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...
Words: 3073 - Pages: 13
