packaging (bottles and cans), the suppliers of these raw materials have less bargaining power against the concentrate producers (CPs) and bottlers. i. Sugar: Sugar can be obtained from various sources on an open market and if price of sugar increases, the cola companies can easily switch to low price artificial sweeteners or high-fructose corn syrup. Though aspartame, used in diet beverages, gained the bargaining power for time-being while it was under patent protection ii. Cans: With abundant supply of
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CALEB BRADHAM BEGAN EXPERIMENTING WITH COMBINATIONS OF SPICES, JUICES AND SYRUPS, TRYING TO CREATE A REFRESHING NEW DRINK TO SERVE TO HIS CUSTOMERS. HE SUCCEEDED BEYOND ALL EXPECTATIONS, INVENTING THE BEVERAGE NOW KNOWN AROUND THE WORLD AS ... PEPSI-COLA. 3 PEPSI’S BEGINNINGS PEPSI’S BEGINNINGS Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn it into a gathering place. Like many pharmacists at the turn of the century, he had a soda fountain in his drugstore
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Sterling Group Culture: Coffee lovers in south – who prefer to have a cup of coffee early in the morning Intellectuals who shared a strong bond with coffee, made coffee houses a place for exchange of literary thoughts and ideas. Substitutes: Tea Colas like Coke & Pepsi Consumption – 68000 (2002) – 80000 tonnes (2005). Per capita consumption = 10 cups / person. Coffee Market – US$ 234 million Instant coffee – 40% + Filter Segment – 60% Exhibit 2 - North - Strong tea culture, Instant coffee
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and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care,
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salesman in order to sell the sewing machine to the end users. Though, Singer Sewing Machine was the first U.S. product name or identity franchisor in America, but it was outpaced rapidly by another significant franchisor i.e., Coca Cola. Early, in 1890, Coca cola has chosen to franchise rights in order to bottle carbonated beverage to various businessmen that were doing business independently and and received limited territories in order to deliver the product in response of paying for and also
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Customer Value and Satisfaction ROAD MAP: Previewing the Concepts Fasten your seat belt! You’re about to begin an exciting journey toward learning about marketing. To start you off in the right direction, we’ll first define marketing and its key concepts. Then, you’ll visit the various philosophies that guide marketing management and the challenges marketing faces as we move into the new millennium. The goal of marketing is to create profitable customer relationships by delivering superior value to customers
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and threats. Successful global marketers such as Nestle, Coca-Cola, and Honda use familiar marketing mix elements – the four Ps – to create global marketing programs. Marketing, R&D, manufacturing, and other activities comprise a firm’s value chain; firms configure activities to create superior customer value on a global basis. Global companies also maintain strategic focus while pursuing competitive advantage. The marketing mix, value chain, competitive advantage, and focus are universal in their
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Innovation” of products and brands. Their portfolio ranges from baby foods, bottled water, coffee, chocolate, drinks, ice cream, and petcare Mergers and Acquisitions with Peter, Cailler, Kohler Chocolats Suisses S.A and joint ventures with L’Oreal, Coca-Cola, and General Mills Low Cost Strategy Majority of products are produced in-house Operational Effectiveness Nestlé Continuous Excellence (NCE) program addresses increasing efficiency in standard operating procedures, consistency and manufacturing management
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Strategy Roger Enrico the CEO of PepsiCo (1996-2001) got involved in restricting PepsiCo’s business portfolio. Company had three business segments restaurants, beverages and snack foods. He found number of problems at PepsiCo. Company fall behind, Coca-Cola, the competitor by a growing margin in both domestic and international markets. The restaurant business declining and profit margin were slim. To get the company by on track Enrico developed a restricting strategy, which is: Related Diversification:
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Beverages North America (Pepsi-Cola North America and Gatorade/Tropicana North America) and Quaker Foods North America. PepsiCo International includes the snack businesses of Frito-Lay International and beverage businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana
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