...Case Two: Coke and Pepsi learn to compete in India 1) The political environment has played key role in the following ways: Indian government viewed as unfriendly to foreign investors. Outside investment have been allowed only in high-tech sectors and was almost entirely prohibited in consumer goods sectors. If an item could be obtained anywhere else within the country, imports of similar items were forbidden. This gave Indian consumers have little choice of products or brands and no guarantees of quality or reliability. Also, Indian Laws, the government mandated that Pepsi’s products be promoted under the “Lehar Pepsi” name. For Coca-Cola, they attempted to enter into Indian market by joining with Parle and became “Coca-Cola India”. Some of these things may have been anticipated, especially the corruption within Indian government. As far as the contamination issues goes, that might not have been so easy to anticipate. Both companies held their own when trying to prove their products were within safe limits compared to other food products. They could have developments in political arena; Coke could agree to start new bottling plants instead of buying out Parle, and, therefore, wouldn’t agree to sell 49% of their equity. 2) Coca-Cola entered the market again a few years after Pepsi entered. While Coke's application was being denied, Pepsi's was being approved which gave them a head start in the market. Although it would seem that Pepsi would benefit from getting a head...
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...little doubt that the most spirited and intense competition in the beverage world is between Coca-Cola and Pepsi Co., the two main players in the carbonated soft drink (CSD) production market. The competition between the two giants has benefited not only the consumers but also the companies. By checking and challenging each other in the market, the competition has lead to improvement and diversification of products and has forced each company to be creative and innovative. Throughout time, both companies have employed a number of diverse strategies to differentiate their products and to gain market share. Each successful tactic by one company would be copied by the opponent almost in the same manner or countered in a different fashion. As the CSD market has become more consolidated and saturated and as consumer demand and taste has changed, both companies shifted their attention to emerging nations and other major international markets as well as on other areas where they could grow their businesses (e.g. non-cola beverages and snack foods). The CSD industry involves the concentrate producers selling syrup (and sometimes sweetener) to bottlers, who add carbonated water and high fructose corn syrup to the concentrate, bottle or can, package and ship it food stores, fountain outlets, vending machines, convenience stores, and other outlet. Recently, both Coca-Cola and Pepsi Co. have pursued a strategic plan of backwards integration, consolidating their bottlers into one company...
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...2007-2008 School of Sustainable Development of Society and Technology Malardalens University Vasteras, Sweden. Marketing Communication of Pepsi & Coca Cola in Pakistan! Muhammad Kashif Omer Malik 840310-P655 E-mail: m_04119_omer@hotmail.com Tutor: Leif Linnskog Date: 01 Sep 2008 Marketing Communication of Pepsi & Coca Cola in Pakistan 2008 Extracts Date Author 01 September 2008 Muhammad Kashif Omer Malik Qilah Lachman Sing, Ravi Road, Lahore, Pakistan. m_04119_omer@hotmail.com +923214912558 Master level thesis in Business Administration (15 ECTS) Marketing Communication of Pepsi and Coca Cola in Pakistan Leif Linnskog How the marketing communication of Pepsi cola and Coca cola is seen in Pakistan and how come the strong position of Pepsi cola? The research is done basically on the qualitative format in which some facts and figures are used for the support of the central issue of research. The data was collected by approaching different sources including primary and secondary styles. The purpose of this research is expose the facts of the appearance of both Pepsi and Coca Cola in Pakistan in terms of marketing communication. This research is mainly based on the marketing communication in which the purpose is to expose the either company’s marketing communication on the media and contribute the matter to the fact of Pepsi cola’s strong position. The appearance can be better in seen in the physical manner and the marketing communication is the best possible activity...
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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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...PepsiCo – CocaCola Case Write-Up 11/09/15 Danny Blanks Ben Crook Will Dauterive Alberto Fernandez Zijian “Justus” Jia Case Questions Coke vs Pepsi 1) What is EVA? What are the advantages and disadvantages of using EVA as a measure of company performance? EVA stands for economic value added. EVA is a value based financial performance measure based on Net Operating Profit after Taxes, the invested capital required to generate that income, and the WACC. The primary advantage of EVA is that it provides a measure of wealth creation that aligns the goals of divisional or plant managers with the goals of the entire company. A primary disadvantage with EVA is that it struggles to control for size differences across organizational units compared to Return on Investment (ROI). Another disadvantage with EVA is that numbers can be easily altered or manipulated to boost EVA, therefore painting a better picture than what actually exist. EVA also places a large emphasis on producing immediate results, thereby creating a disincentive for management to invest in quality projects. 2) Please examine the historical performance of Coca-Cola and PepsiCo in terms of EVA. What trends do you observe? What are the factors behind those trends? What do you think are the key drivers of EVA? Through observing EVA for Coca-Cola and PepsiCo, we noticed a few things. First, Coca-Cola’s EVA seems to be more stable, but PepsiCo, which although was negative from 1994-1997...
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...Over the years Coke and Pepsi managed their rivalry in the carbonated soft drinks (CSD) industry by following some of the tactics identified below. Both companies came up on the market with the same product coca-cola, two different recipes. Coca-Cola was discovered in 1886 in Atlanta Georgia, by pharmacist John Pemberton, while Pepsi-Cola was formulated 7 years later, in New Bern, North Carolina, by pharmacist Caleb Bradham. Since then the two giants, Coke and Pepsi are on a continuous “battle without blood” over the $74 billion CDS industry in the United States. One of the first tactics identified is that Coke first introduced its product in grocery stores and other channels through open-top coolers. Also, they developed automatic fountain dispensers and introduced vending machines. Pepsi had a rough start, but they were willing to achieve. In this way after bankruptcies in 1923 and again in 1932, they came back and the business started to pick up. Their first move was to price their 12-oz container to a nickel, same as Coke would charge for a 6.5-oz. After that Pepsi started focusing more on take-home sales to target family consumption. With an aggressive marketing campaign, called “Pepsi Generation” Pepsi targeted the young and “young at heart. Not only that, but Pepsi put a special accent on quality by working to modernize their plants and the store delivery. In the 1960s, both Coke and Pepsi experimented with cola and non-cola flavors and new packaging options. Non-returnable...
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...issue in this case study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year (98). Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share. The creativity and effectiveness of each company's marketing strategy will ultimately determine the winner with respect to sales, profits, and customer loyalty (98). Not only are these two companies constructing new ways to sell Coke and Pepsi, but they are also thinking of ways in which to increase market share in other beverage categories. Although the goal of both companies are exactly the same, the two companies rely on somewhat different marketing strategies (98). Pepsi has always taken the lead in developing new products, but Coke soon learned their lesson and started to do the same. Coke hired marketing executives with good track records (98). Coke also implemented cross training of managers so it would be more difficult for cliques to form within the company (98). On the other hand, Pepsi has always taken more risks, acted rapidly, and was always developing new advertising ideas. Both companies have also relied on finding new markets, especially in foreign countries. In the foreign markets, Coke has been more successful than Pepsi. For example, in Eastern Europe, Pepsi has relied on a barter system that proved to fail...
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...Coca-Cola as the Leading Brand in the Soft Drink Industry A Term Paper Presented To Dr. Sterling Plata In partial Fulfillment of the Requirements for ENGLRES 2nd Trimester, A.Y. 2013 – 2014 Alexandra Beatrice Brion December 11, 2013 Life is a collection of moments. Some are great. Some are bad. Anniversaries, birthdays, gatherings, holidays, weddings, and every defining memory that is etched one’s life makes each moment uniquely significant. In all these occurrences, Coca-Cola is unnoticeably always there. It is a reminder of good times and a recollection of warm feelings (Journey Staff, 2012). The remarkable drink’s amazing journey began when it was formulated and created by pharmacist John Pemberton on May 1886 in Atlanta, Georgia. Frank Robinson, Pemberton’s bookkeeper later coined the brand Coca-Cola and designed its signature logo that is now recognized by 94% of the world’s population (Smith, 2012). In 1895, it was said that, “Coca-Cola is consumed in every state and territory in the United States” (Business Week, n.d., n.p.). The company eventually spread through Latin America, Canada, Europe, and the Asia-Pacific region. Coca-Cola continues to rapidly grow and is present in over 200 countries worldwide (Girard, 2005). Despite the company’s notable achievements, its success did not happen over night as it had its fair share of challenges and obstacles to face over the years. Up until today, the Coca-Cola Company has managed to maintain its products...
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...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”...
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...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...
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...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...
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...Case 1-3 Coke and Pepsi Learn to Compete in India Tyler McBee MKT 3450- 01 17 September 2013 3. Both Pepsi and Coca-Cola have effectively attempted to accommodate their products to the tastes and preferences of India. As an advertisement and sponsorship method, both companies have partnered with cricket, movies, and music. These three entertainment industries are very popular in India. Something that has set Pepsi and Coca-Cola apart from other companies in the food industry is partnering with religious and other festivities. Serving or sponsoring events like Navratri makes a huge impact on society’s eyes causing them to see Coca-Cola and Pepsi as socially responsible companies. Pricing policies in India is difficult to work with, because of the restrictions by the government. Pepsi has had a leg up on Coca-Cola because of their early entry into the industry. Obviously they have had better reactions from consumers because Pepsi seems to care, simply because it reached to smaller villages and different communities than Coca-Cola; in consumers’ eyes this appears that Pepsi just cares more. 5. An idea to help with their water issues within each company’s plants is to recycle water. If water is needed to run a machine or make a certain ingredient for the finished product and the water isn’t contaminated or altered by any way, why not reuse it? I believe that Coca-Cola approached the retalaliation of the water issue with a bad attitude. A foreign company such...
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...Coke or Pepsi, what would you choose? xxxxxx XACC/280 xxxxxx teacher name Everyone in the civilized world recognizes two companies as kings of the soda pop, Pepsi-Cola and Coca-Cola. These two companies have battled for over one hundred years to be top dog in the beverage business. In 2005, Coca-Cola (Coke) led the race by just over 7% in net income over Pepsi-Co (Pepsi). This essay will compare these two beverage giants side by side and analyze the financial statements of both as well as making suggestions about ways the each company may be able to improve their earnings. Pepsi-Cola was born in North Carolina, in 1898, as the invention of a pharmacist named Caleb Bradham. He put together various combinations of juices, syrups, and spices to try to come up with a new drink to serve to his customers at the soda fountain in his pharmacy. His drink, originally called “Brad’s drink” was soon renamed Pepsi-Cola (using a combination of the names of two of the ingredients Pepsin and Kola nuts). The drink was incredibly successful and soon took off beyond Bradham’s wildest expectations. In 1902, the Pepsi-Cola company was officially formed and the brand was patented. The beverage quickly moved from a soda fountain product to a bottled beverage (PepsiCo, Inc, 2010). The second half of this duo is Coca-Cola. Coca-Cola was invented in 1886, twelve years before Pepsi. It was created by Doctor John Pemberton, also a pharmacist...
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...India with a population of more the 100 cores is potentially one of the largest consumer markets in the world. With urbanization and development of economy, tastes and interests of the people changes according to the advance nation. Marketing is about winning this new environment. It is about understanding what consumers want and supplying it more conveniently. Marketing deals with identifying and meeting human needs and social needs. One of the shortest definitions of marketing is “meeting needs profitably”. The consumer market may be identified as the market for product and services that are purchased by individuals as household for their personal consumption. soft drinks is a typical consumer product purchased by individual primarily quench their thirst and also for refreshment. Different types of soft drinks are available in the market and more or less content of all soft drinks is same. The market of soft drinks is facing a cutthroat competition and many companies are floating in the market with their product with different brands names. Thus in a country like India where more than 50% of total population exists below poverty line, the consumer cannot afford such high price for soft drinks. As a result the trading activities of the soft drinks industry are concentrated in and around big cities and town where the purchasing power of population is considered comparatively high. Soft drinks industry in India has an annual sale of about 4000crores, with per capita consumption...
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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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