...Running head: COCA-COLA AND PEPSICO Coca-Cola and PepsiCo: Similarities and Differences Lamar Smith Michel Brown Annette Pete May Valencia Cardinal Stritch University MGT 426 August 18, 2011 Submitted to the faculty of Cardinal Stritch University in partial fulfillment of the requirements for the degree of Bachelor of Science in Management. Introduction Two of the largest and most profitable corporations in the United States are the Atlanta, Georgia based Coca-Cola Company and the New York based Pepsi Cola Company. While both are called "colas" they both attempt to address the same target tastes but from different approaches. Coke was the first on market with what is still a "secret" formula and Pepsi followed with a similar (not exact) taste. Since taste is very much a factor of your personal likes, either or neither may appeal to you or seem sweeter (Inforefuge.com. 2011). This paper will discuss the similarities and differences in the processes used by Coca-Cola and PepsiCo for place, price, and promotion. Place and Price The marketing exposure of PepsiCo and Coca-Cola is everywhere ranging from commercials, billboards, and mail advertisements all over the world. Although they target the same markets, they both use different approaches to their marketing strategies. This is evident when comparing the two companies’ websites. When browsing the Coca-Cola website you will experience a more conservative style; there is...
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...In 1886, the Coca Cola Company was developed but it wasn't until 1898 that the fierce competitor Pepsi-Cola entered into the market. These two companies are the two major players that dominate the consumer beverage industry. Historically, the carbonated soft drink industry in the United Stated has been profitable for various reasons. The industry's two dominant players Coke and Pepsi have both grown their revenues by 10% annually from 1975 to 1994. By 1998, the US beverage industry reached stability with gallons of carbonated soft drinks consumed per capita on an annual basis floating between 54 and 52.3. Before the market reached this plateau, Coke and Pepsi were able to maintain high profitability simply because the market kept growing, which allowed for profitable sales growth. Coke and Pepsi have since been competing to rein the global market in consumer beverages. The global soft drink market is large at approximately US$ 410 billion (2002). In volume terms, the market size is estimated at 72 billion cases. US is the largest soft drink market and accounts for approximately 23% of global volumes. In terms of per capita consumption, US is ranked third behind UAE and Mexico. U.S. annual sales of refreshments total approximately US $88 billion. The Coca-Cola Company (TCCC) owns four of the top five soft-drink brands (Coca-Cola, Diet Coke, Fanta, and Sprite). Its other brands include Minute Maid, Powerade, and Dasani water. In North America it sells Groupe Danone's Evian;...
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...3 STRATEGIES 2 SALES FORCASTING 3 COCA-COLA SWOT ANALYSIS 4 PEPSICO SWOT ANALYSIS 4 CONCLUSION 4 EXECUTIVE SUMMARY Purpose Recently our company has been interested in the comparison of other companies so that we may learn from the successes and mistakes of others. With an analytical view, companies that have failed can be broken down and show the decaying process that lead to their demise. On the other hand, we can also break down a successful company and adopt a similar business approach in hopes that we can understand and be even more successful than our predecessors. The nature of our business led me to compare Pepsico and Coca-Cola. Both of these companies have had major ups and downs, and on the contrast they have also been very successful companies. This report will analyze the company history, mission statements, business strategy and financial history. Results in Brief Once upon a time, in a simpler more innocent world, one could order a cola without being asked “Which one?” That world is no more. Over the years, companies like Pepsi and Coca-Cola have spent a great deal of time and energy encouraging people to choose soft drinks more than any other beverage because soft drinks have become part of American life. Coca-Cola is a 100-year old soft drink that started out as anything but soft. It was, first and foremost, a medicine. However, as a result of Robert Woodruff’s brilliant perception, Coca-Cola evolved into an experience that...
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...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...
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...The Coca Cola Company and Pepsi Inc. Both of these companies provide a rich source of services and products but you will always find that consumers are still stuck with the question of which company provides the best overall product. Simply said.. Are you a Coke or Pepsi fan? I will examine both Coca Cola and Pepsi roots and determine which will provide the optimal solution for investors. John Pemberton an Atlanta pharmacist created Coca Cola by accident. In 1886 while in his home mixing some caramel and colored liquid Pemberton tasted what would soon be the first sampling of the future Coca Cola. Pemberton decided to take his mixture to a nearby pharmacy and add carbonated water to change the taste. He was determined this was the next big invention and convinced Jacob’s Pharmacy to allow him to let customers sample his product for five cents a glass. Knowing that the sampling was a success Pemberton took the idea to his friend and bookkeeper Frank Robinson who helped to name and create the signature script for Coca Cola that would be still used to today. During its first year in Jacob’s Pharmacy nine glasses of Coca Cola was served per day. Only two years into its discovery John Pemberton would pass away but his ideas would evolve as did the people involved with Coca Cola’s development (“Heritage timeline,”2012). Soon after Pemberton’s passing Asa Griggs Candler an Atlanta businessman secured rights to the business and became the first President of Coca Cola...
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...Coca-Cola and Pepsi are the two greatest competitors amongst the soft drink industry today. They are both legendary brands and have been battling each for many years. I would first like to provide a little history about both companies. Coca-Cola was invented by pharmacist John Stith Pemberton in Columbus, Georgia around 1886 (Coca-Cola Journey, n.d.). The creation of the beverage was in a pharmacy by mixing Coca-Cola with carbonated water. The drink is well-known in over 200 countries with more than 500 brands and serves over 1.7 billion servings each day (Coca-Cola Journey, n.d.). United States is origin for Coca-Cola but its reputation has made it truly universal. Pepsi was first introduced in 1893 by Caleb Bradham at his drugstore in New Bern, North Carolina (Sodamuseum.com, n.d.). Bradham’s later labeled the drink Pepsi-Cola on August 28, 1898 which was named after the digestive enzyme pepsin and kola nuts ingredients used in the formula. Upon completion of this paper, there will be a general idea about Coca-Cola and Pepsi-Cola. First, there will be a discussion on how each corporate culture differs from the other. Second, I will then analyze three ways that each unique culture has benefited by the other’s competition. Finally, I will hypothesize how each would continue to thrive if its current corporate culture would need to change in the near future. Determine how each corporate culture differs from the other: The people’s two favorite soft drinks have always been...
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...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...
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...You are an Analyst Coca Cola vs Pepsi | | | | | | | | | | | | | | | | | | | ...
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...Coca Cola and Pepsi Company are two of the largest producers and distributors of beverage in the world. They manufacture, markets and sells variety of carbonated, non-alcohol beverages. They continued to lead the industry with their commitment to healthier food and maintaining the high quality of their beverages. Pepsi and Coca Cola has been known to have history of competition to maintained share of world mark, where both companies need each other in order to remain competitive. Pepsi is known to offer culture that encourage their employee to be initiative, risk taking and free to pursue their goals. Senior management door are always open to question and ideas from junior employees. Diversity is a way of business to Pepsi, Pepsi President Walter Mack; in his diversification he hired Hennan Smith a black executive to lead an all-black sales team. While Coca Cola general culture is defined as leadership, passion, integrity, and diversity. To attain this Coca Cola Company create a worldwide tam that is full of diverse people, talent and ideas. If we discuss diversity Pepsi has proven to be ahead of Coca Cola, by recruiting people of color and give them early opportunity for advancement. Though Coca Cola has claim that, their workplace diversity program is design to attract, retain, and develop talent. This really did not provide a true count of what they did to woman and minority in our communities, unlike what Pepsi could actually show, and people can see in Pepsi corporate...
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...Qiaona Wan @03428256 EXP 102-004 Professor Jacob 10/08/2014 Coca-Cola v. Pepsi: Cola Changes the World When I eat at a restaurant which I have never been to, I always order Coke without knowing what the restaurant’s special is. And my friends who join me the meal do the same thing. Nowadays, cola is becoming an important even necessary part of our daily life. Even though we are informed that cola is relatively unhealthy, we still cannot resist the incomparable taste. Unlike other industries which consists of numerous manufacturers, in “cola industry”, Coca-Cola and Pepsi are prevailing. But do you know thoroughly about these two products even you think you do? Meanwhile, some customer still struggle in choosing one of them. So it is meaningful to compare such two successful products in several aspects, which turns out that they do have similarities and differences. Both Coca-Cola Company and PepsiCo Inc. are magnates in manufacturing beverages. According to their company names, it is clear that they became famous essentially for Coca-Cola and Pepsi. You may ask how these two incredible drinks were invented. Luckily, they hold distinct but similarly wild early stories of birth to tell. Coca-Cola came to the world with the help of one man called Colonel John Pemberton. Pemberton became seriously injured during the Civil War and consequently became addicted to morphine. However, abusing morphine was the...
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...Comparative Essay _ Coca Cola VS Pepsi While there are a lot of soda companies out there not all of them are similar, especially there marketing strategies and how they make use of their websites. A couple of the mainstream companies are Coca-Cola and Pepsi. While some people will make a very strong case that they are vastly different in taste, this is especially true with their websites and the way they present themselves. Let’s compare the Coca-Cola’s website with Pepsi’s website, the biggest different is the color. Coca-Cola uses red as their main color and Pepsi uses blue. On the first page of their website, Coca-Cola shows the 2015 official commercial “Big Game” linked with YouTube and on the right side of video, they display latest social media trends such as Facebook, Twitter, Flickr, and YouTube. The upper left side is a “AHH” campaign, which is a collection of mini Flash games that the public creates. Coca-Cola stows away these games, in an archive, which can be found on their website. The lower part of website, there is “Live Positively” campaign logo with a link, which is about Coca-Cola’s corporative social responsibilities. The website also has a tab that directs its guests to Coca-Cola’s beverage collection page. The first thing a guest will notice on Coca-Cola’s website is that the way the links are set up is extremely disorganized. They can make it look more professional, if they stop re-directing their links to different websites. For example, if someone...
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...Assignment #1 – Market Segmentation and Product Positioning Marketing Management MKT 500 Assignment #1 – Market Segmentation and Product Positioning The Product: Unique jewelry designs The jewelry I design is made from genuine stones, pearls and crystals. The plan is to make it into an e-business. I also do custom jewelry. Sometimes it is difficult to find exactly what you want and visiting store after store hoping to find what you want feels tiring. Sometimes you find what you want but it’s made of fake stone and cheap material and it does not match your style. Custom design takes a little time, but it's worth it to get exactly what you want. Famous-name designer items can be extremely expensive and are easily copied. The same jewelry which is from a famous name designer can look exactly the same as the counterfeit but the price could be less than one-tenth of the original price. Famous-name designer items are not unique. They are mass produced and are worn by so many women. It does not make me feel unique. I would rather wear something that creates queries like “Where did you get this from?”, ”Who is the designer?”, “how much does it cost?” Actresses or pop stars set the trend for women. But usually it’s the younger generation who wants to ware a brand-named jewelry. And they don’t mind so much if it’s a counterfeit or fake; as long as it looks like what the pop star wore. Nowadays the market is full of fake jewelry usually mass produced in China. ...
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...Christine Worth MBA515 Financial Statement Analysis Project Outline Compare & Contrast Coca-Cola vs. PepsiCo Financial Analysis Income Statement vs Cash Flow Accounts with greatest difference Evaluation of Fiscal Period Profitability Liquidity Leverage Financial Reporting Practices Methods for Accounting Coca-Cola Pepsi Company Disclosures Compare & Contrast Clarity & Completeness Critical Analysis Decision Investment Equity Investor Coca-Cola Company verses PepsiCo Critical Analysis of Investment The three financial statements required for external reports are the income statement, balance sheet, and statement of cash flows. The statement of cash flow highlights the major activities that impact cash flows, which affect the overall cash balance (Garrison, Noreen & Brewer, 2012). Equity investors utilize these financial statements for a critical analysis of the firm’s financial stability before making an investment. Based on a comparison of the income statements to the statements of cash flows for Coca-Cola and PepsiCo, the following accounts report the greatest differences between net income and cash flow from operations. Coca-Cola Company 2010 2009 2008 * Gain from Sale of Asset $(5,358) $(43) $(130) * Income of Equity Investments (671) (359) 1,128 * Change in Accounts Payable 656 319 (576) * Change in Other Working Capital (161) (510) (41) PepsiCo 2010 2009 2008 * Income...
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...Subject: Economics The competition between “Coca-Cola”and “Pepsi” in the market for soft drinks Abstract There are two types of people – the ones who like “Coca-Cola”, and the ones who prefer “Pepsi”. Or at least that is the fact that trying to convince us the marketing experts from both companies. The two famous brands compete with any means to persuade whose drink is better. The solution to this problem relies on both of the companies’ abilities to boost the domestic sales, to prove to new international markets, to broaden their brand for new streams of revenue and include non-carbonated beverages in their “big plan”. Competition analysis Nowadays competition is not only commonplace, every year it becomes increasingly fierce. Many companies move theor production to countries with lower standards and bring to market cheaper goods. Once the company finds it’s most important competitors, it has to analyze them by specifying their characteristics, especially their strategies, goals, strengths and weaknesses. Group of companies that follow the same strategy of a target market is called strategic group. If a company wants to enter a particular industry, it develops a strategic and discovers four groups based on product quality and the level of vertical integration. This analysis shows that the height of the barriers to entry is different for each group. Once the company finds its main competitors and their...
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...Coca-Cola vs. Pepsi Co 2 1. Using the current ratio, discuss what conclusions you can make about each company’s ability to pay current liabilities (debt). The current ratio measures the company’s ability to pay its short term obligations with its short term assets. Between Coca Cola and PepsiCo, PepsiCo has a higher current ratio implying that is more capable of paying its obligations. The debt management policies of Coca-Cola in conjunction with share repurchase program and investment activity resulted in current liabilities exceeding current assets. From the ratio Pepsi Co suddenly had to pay all its short-term creditors, it would be able to do so and have a surplus of 44% of current assets. If Coca-Cola had to pay all its short-term obligations, it would have only 13% surplus of current assets after fully repaying all short term obligations. Therefore, it can be said that PepsiCo is more liquid than Coca Cola based on its current ratio. | Coca-Cola | Pepsi Co. | Current Ratio | 1.13 | 1.44 | 2. Using the profitability ratios, discuss what conclusions you can make about each company’s profits over the past three years. The return on assets ratio is an indicator of how profitable a company is relative to its total assets. Pepsi Co’s return on assets ratio is 14.92, slightly higher than the industry’s Coca-Cola vs. Pepsi Co ...
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