...Problem For many years, Coke and Pepsi have been the two largest soft drink companies competing for the highest market share in the nation and the world. The Coke formula was created in 1886 by John Pemberton, and later acquired by Asa Candler, who expanded the coke formula and converted it into syrup, which was then sold to bottlers to produce carbonated drinks. Coca-Cola had great success during World War II; the brand expanded internationally with the help of the U.S Government. The company promised Coca-Cola to U.S soldiers for five cents, regardless of its production cost. An estimated 64 Coca-Cola bottling companies were opened overseas resulting in a positive overall company market share in Europe and Asia. Since 1950, Coke’s marketing strategy has always been targeting family consumption, especially in supermarkets. In addition, Coke has mainly focused on fountain sales at major restaurant franchises, like McDonalds and Burger King. They are considered Coke’s main source of revenue. Throughout the years and due to demand, Coke has created non-cola flavored carbonated drinks such as Fanta, Sprite, etc., to broaden their carbonated drink consumption. Later on, the company purchased Minute Maid, Duncan Foods, and Belmont Springs Water. Coke also expanded its brand with the creation of Diet Coke. Diet Coke was a huge success for the company, making it the nation’s third-largest-selling carbonated soft drink in the Eighties. In 1986, the company created a bottling company...
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...country had stopped selling Coca-Cola3 and only six weeks into his new role as CEO, Gupta was embroiled in a crisis that threatened the momentum gained from a highly successful two-year marketing campaign that had given Coca-Cola market leadership over Pepsi. On August 5th, The Center for Science and Environment (CSE), an activist group in India focused on environmental sustainability issues (specifically the effects of industrialization and economic growth) issued a press release stating: "12 major cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide residues" (See Exhibit 1). According to tests conducted by the Pollution Monitoring Laboratory (PML) of the CSE from April to August, three samples of twelve PepsiCo and Coca-Cola brands from across the city were found to contain pesticide residues surpassing global standards by 30-36 times including lindane, DDT, malathion and chlorpyrifos (See Exhibit 2). These four pesticides were known to cause cancer, damage to the nervous and reproductive systems, birth defects, and severe disruption of the immune system.4 In reaction to this report, the Indian government banned Coke and Pepsi products in Parliament and state governments launched independent investigations, sending soft drink samples to labs for testing. The Coca-Cola Bottling Company (Coke) stock dipped by five dollars on the New York Stock Exchange from $55 to $50 in the six sessions following the August 5 disclosure, as did shares of Coca-Cola...
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...country had stopped selling Coca-Cola 3 and only six weeks into his new role as CEO, Gupta was embroiled in a crisis that threatened the momentum gained from a highly successful two-year marketing campaign that had given Coca-Cola market leadership over Pepsi. On August 5th, The Center for Science and Environment (CSE), an activist group in India focused on environmental sustainability issues (specifically the effects of industrialization and economic growth) issued a press release stating: "12 major cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide residues" (See Exhibit 1). According to tests conducted by the Pollution Monitoring Laboratory (PML) of the CSE from April to August, three samples of twelve PepsiCo and Coca-Cola brands from across the city were found to contain pesticide residues surpassing global standards by 30-36 times including lindane, DDT, malathion and chlorpyrifos (See Exhibit 2). These four pesticides were known to cause cancer, damage to the nervous and reproductive systems, birth defects, and severe disruption of the immune system. 4 In reaction to this report, the Indian government banned Coke and Pepsi products in Parliament and state governments launched independent investigations, sending soft drink samples to labs for testing. The Coca-Cola Bottling Company (Coke) stock dipped by five dollars on the New York Stock Exchange from $55 to $50 in the six sessions following the August 5 disclosure, as did shares of Coca-Cola...
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...brands of beverages and snack foods and generates over $98 billion in retail sales. PepsiCo encompasses the Pepsi Cola, Frito-Lay, Tropicana, Quaker, and Gatorade brands and offers products in over 200 countries. It currently holds 36 percent of the total snack food market share in the U.S. and 25 percent of the market share of the refreshment beverage industry. The company’s headquarters are in New York and employs over 200,000 people. In 2006, Michael D. White became the CEO of PepsiCo International, and in 2007 Indra K. Nooyi became the CEO of PepsiCo. PepsiCo has received many awards and recognitions over the years, including being ranked in the top 25 of the best global brands, ranking number four overall by Diversity Inc, and earning the Green Award by the Environmental Protection Agency. COMPANY AND MARKETING HISTORY The Pepsi recipe was developed by pharmacist Caleb Bradham in the 1890s. Originally marketed under the unassuming name “Brad’s Drink,” Bradham’s creation was renamed Pepsi-Cola in 1898 due to the pepsin and kola nut ingredients used. Awareness of Bradham’s new creation spread quickly, and in 1902 he decided to create the Pepsi-Cola Company so people everywhere could enjoy the drink. In 1903 the patent became official, and by 1910 Pepsi-Cola had franchises in 24 states and sold over 100,000 gallons of the syrup annually. However, the Pepsi brand would encounter several rocky situations before becoming the success that it is today. World War I proved ...
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...opportunities or threats they may pose for the company in the future. Lo; illustrate how marketing decisions are affected by various forces in the external business environment “WATER is to Coca-Cola as clean energy is to BP.” So declares Jeff Seabright, Coca-Cola's manager of environmental affairs, when asked about the firm's new global water strategy. The fizzy-drinks maker unveiled that strategy as part of its annual environmental report, released this week. “We need to manage this issue or it will manage us,” says Mr Seabright. At first sight, the analogy with oil may seem odd, but it is not so far-fetched. Big Oil has long been the target of activists clamouring for action on global warming. BP stole a march on its oily brethren by accepting that climate change is a real problem, making smallish investments in clean energy, and grandly proclaiming itself “beyond petroleum”. Coca-Cola has also been targeted by activists, but over the issue of water rather than energy. The firm has been hit hardest in India. First, experts from Delhi's Centre for Science and Environment, a green think-tank, tested various soft drinks and determined that they contained high levels of pesticide. It turned out that Coca-Cola was not the cause of the problem. But its inept handling of the accusations left the firm exposed to a much more damaging allegation: that it is aggravating the growing global problem of fresh-water scarcity. An ongoing controversy in India concerns allegations that some of...
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...STARBUCKS IS COMING TO INDIA INTRODUCTION As we all may know, behind any successful achievement, there is a long story of withstanding hardship and endeavouring persistently behind any success. The Starbucks’ case of successfully bringing the brand into the Indian market is one example. This paper is to study the (3) reasons why Starbucks International decided to expand its market scale internationally and to figure out the initial criteria required for Indian Market. This is also to analyse appropriate circumstances at that time for Starbucks to be able to earn its foothold there provides us with valuable business guidance. Besides, this study by pointing out key factors which lead to Starbucks’ success in launching its brand in India demonstrates how Starbucks applied sustained competitive advantage and dealt with obstacles during the launching period, which created significant courage for Starbucks International to move next steps to fulfil its ambition for international expansion. COMPANY’S OVERVIEW Founded in 1971 in Seattle, Starbucks was started as a store to roast and sell coffee bean by three partners. Its name and logo were named after the famous novel Moby Dick. In 1987, Howard Schultz who is currently the company’s CEO acquired Starbucks and single-handedly converted it into a national, publicly owned company. Having more than 11,000 stores in 36 countries worldwide and over 10,000 employees in 2006 (Case Study), the company grew to about 17,000 stores (starbucks...
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...The Coca-Cola Company Struggles with Ethical Crisis Lisa San MGMT 366 6/30/13 The Coca-Cola Company is one of the most well known companies in the U.S. and quite possible the world since its origination in the late 1800’s. Coca-Cola’s rapid expansion and innovation have provided ample evidence that the company is here to stay. However, after the death of the companies CEO, Robert Goizueta, the company has faced multiple ethical dilemmas. These problems have had a direct negative impact on Coca-Cola’s financial expansion, corporate culture, business relations, as well as their shareholder. Through thorough examination of past ethical dilemmas, grievance resolution, and utilizing third party consulting, Coca-Cola is on route to regain trust from consumer and business partners. Coca-Cola began to struggle in 1997 shortly after CEO Robert Goizueta passed away and Doug Ivester was appointed CEO after years of training from his mentor, Goizueta. Doug Ivester was a strong leader for the company in terms of financial flow; however, Ivester was not equipped to handle many of the ethical crises that arose. Ivester left the company in 2000 leaving Dough Daft CEO and leaving Daft with a company that was somewhat tarnished after having a relatively perfect record for 100 years. Daft reputation while as CEO was unsound and caused the company to face allegations of racial discrimination with distributors. Daft left Coca-Cola in 2004 and left the CEO position to Neville Isdell. ...
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...ETHICS-COMPANY PEPSICO Ethics Business ethics is the accepted set of moral values and corporate standards of conduct in a business organization. These standards of business behavior promote human welfare and the good. Business ethics are exhibited both as written and unwritten codes of moral standards that are critical to the current activities and future aspirations of a business organization. They can differ from one company to another because of differences in cultural perspectives, operational structures and strategic orientations. Therefore, different people have different beliefs about what constitutes ethical behavior. The law defines what is or not legal, but the distinctions between moral right and wrong are not always so clear. In many situations lines between right and wrong are blurred. Such situations can be helped to be cleared by using organization written codes and/or policies. Through the usage of auditors, ethics classes, written codes and policies, numerous companies have reinforced their business ethics and best practices to ensure that fraudulent activities are prevented. The food and beverage sector of the economy has faced increasing pressure from consumers to provide transparency on the sources and operations related to their products. Responsible and ethical procurement is especially challenging for food and beverage, because agricultural commodities typically rely on low-cost labor inputs and environmentally-damaging technology and practices in order...
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...« Previous Post - Next Post » Coke vs. Pepsi The Dilemma: You’re at a restaurant. You’ve specifically asked for a Coke when you get handed a Pepsi, or vice versa. You tell the waiter what you requested, and he gives you the “What’s the difference?” shrug. Perhaps it’s time you laid it on him. People You Can Impress: “Impressed” probably doesn’t accurately reflect the aforementioned waiter’s likely response. The Quick Trick: If you drink them side by side, Pepsi is the sweeter of the two (which is why people tend to prefer Pepsi in the Pepsi Challenge). The Explanation: Although the fantastic ad campaigns run by both companies would have you think otherwise, the soft drinks’ similarities are pretty striking. For starters, Pepsi and Coke were both the brainchildren of Southern pharmacists. Coca-Cola was invented by Atlantan Dr. John Pemberton in 1886. And yes, there was originally a concentration of cocaine in the soda, but it was reduced to a tiny amount (1/400th of a grain per ounce) by 1902 and removed altogether by 1930. Th e Coca-Cola Company changed hands a few times, and after Prohibition Coca-Cola was sold to the Woodruff family for $25 million. Pepsi, on the other hand, was born a few years after Coke. In 1893, pharmacist Caleb Bradham began experimenting withvarious drink mixtures in New Bern, N.C. His 1898 concoction, then known by the creative name “Brad’s Drink,” became an overnight success, and “Doc” Bradham began selling his “Exhilarating, Invigorating...
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...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 involved in racial disrupting long-term contractual arrangements with distributors. By 2004 Daft was out and Neville Isdell had become president and worked to improve Coca-Cola’s reputation. History of Coca-Cola Company The Coca-Cola Company is the world’s largest beverage company, and markets four of the world’s top five leading soft drinks: Coke, Diet Coke, Fanta, and Sprite. It...
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...Rural Marketing Post the economic slowdown, policymakers and companies are busy designing strategies to sell products and services to larger markets. While boosting profits quickly is no longer the essential parameter, Atmanand, MDI Dean of Executive Post Graduate Programs, believes that revisiting age-old management theories and sticking to basics is the most cost-effective marketing tactic. The rural focus “The strategy taken by Hindustan Unilever Ltd. (HUL) to enter the rural sector, which has remained insulated so far, is a good one,” says Atmanand. “In states like Maharashtra, Gujarat, Andhra Pradesh, Delhi and Haryana, the company is expanding steadily by expanding their network of dealers and making themselves household names.” Of course, replicating the HUL model may be difficult for a startup, but it does serve as a valuable lesson in marketing: Don’t put all your eggs in one basket. The entire gamut of white and brown goods has found a place in the rural market, driving several industries to actively explore it. “In the current scenario, companies should change their strategies for market-ing. For market sustainability, we have to look at the rural markets. This would include products that have been especially designed for these markets at prices that will suit the sector,” says Atmanand. Tailor-made products for rural India The company should provide rural folk with products and services that would meet their requirements. Take Cavin Care, for instance, which...
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...CASE: IB-84 DATE: 06/27/08 PEPSI COLA PAKISTAN: FRANCHISING & PRODUCT LINE MANAGEMENT 1 In July 1991, Irfan Mustafa faced several dilemmas. As West Asia area vice president and chief executive officer of Pepsi Cola Pakistan Incorporated (PCI), Mustafa was charged with developing a strategy to grow share and profitability across PCI sales but focusing particularly on 7-Up. Pepsi Cola International had shifted focus to its global brands and, since acquiring 7Up International in 1986, had withdrawn all marketing and technical support for Pepsi’s local Pakistani brand, Teem. As a country manager, however, Mustafa was evaluated on profitability, and Teem was a profitable brand. Mustafa knew that he would need to make important decisions about Teem in developing a brand strategy and marketing plan. Considering Teem’s success in Pakistan, Mustafa wondered how he should position the soft drink and whether to continue investing in it despite the loss of international support. With PepsiCo’s acquisition of 7-Up International, arranging for 7-Up and PCI bottlers in Pakistan to merge also became a priority for Mustafa. The ability to coordinate strategies across all bottlers producing PCI brands would be essential. By August 1990, PCI had been able to merge 7-Up and PCI bottlers in three regions. As contracts expired over the next year or two, Mustafa would need to convince the remaining 7-Up bottlers to sell their plants to PCI bottlers as well. With the mergers complete, Mustafa’s...
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...ACKNOWLEDGEMENT I am very grateful to Allah who blessed me the strength and courage to stand by the difficulties that came in the way and who enabled me to complete this project effectively. As plants cannot grow without seeds, birds cannot fly without wings. Similarly knowledge cannot be attained without proper direction and supervision. We are, therefore, also thankful to our respected teacher Mr.Rashadul Rahman, because of whose generous co-operation and help, the accomplishment of this Project became possible. i Executive Summary This project is about to study any one of companies and one of that company’s product according to marketing management perspective. In this project I have studied the different techniques of marketing that are used by company, from identifying the needs wants and demands of their product among the people, and how company developed the customer oriented marketing strategies, that are how they have done segmentation ,target marketing and positioning of their product. The strategies of 4p’s of marketing by that company on the product and strategies of maintaining profitable and long term relationship with their potential customers. I studied the strategies of social responsibility by the company, how company promotes the product with in the targeted customers and common people by promoting the interest of their potential customers. At the end I have studied the swot and pest analysis of the company and conclusion and recommendations...
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...accidents, coupled with operational inefficiencies snowballed Korean Air into troubled times. Then, at the beginning of the 21st century, its CEO/ Chairman, Yang-Ho Cho undertook various transformation initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven economy to a demanddriven economy • To identify all the possible reasons for Korean Air ’s turbulent times and assessing whether they are controllable or not • To critically evaluate Korean Air ’s transformation efforts - in terms of growth, productivity...
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...Benefit of High-Fructose Corn Syrup Soft drinks, salad dressing, breads, fruits and vegetables, and many processed snacks what is the common dominator for the following popular American food items? They’re all foods that contain a sizeable amount of high fructose corn syrup (HFCS)! HFCS is syrup from cornstarch that’s turned into Americas most popular and cheap sweetener for many food products. Starting a few years ago a slew of ad campaigns against and for HFCS invaded American television broadcasting. I was not aware of the positives of the negatives of high fructose corn syrup, and honestly didn’t even know what it was. The advertisements started my line of questioning. After reading part on of The Omnivore’s Dilemma my position on the topic of HFCS is beneficial because the production of the product allows for the development of low cost food items, due to the American government subsidies to corn production. HFCS also allows for the productions of a variety of many low cost food products, which sustain American farmers business with the use of subsidizes. Although many argue HFCS is less health than other types of sweeteners that cost more to produce, research has shown that high fructose corn syrup is chemically similar to table sugar. (Insert Cite) High fructose corn syrup is created when the “molecular composition of glucose and convert it to fructose” (oukosher., 2012). Essentially it’s a process that combines one glucose molecule with one fructose molecule...
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