Cola Wars Continue: Coke and Pepsi in 2010 Report prepared by Bruno Arnaud Executive Summary Coke and Pepsi have competed for more than a century for the world’s beverage market share. In all this time they have executed many different strategies and taken various decisions concerning the future of their companies. However, during this period, they had always experienced an increasing domestic carbonated soft drink (CSD) consumption. Now, that the CSD consumption is declining, and the non-CSD
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Cola Wars Continue: Coke and Pepsi in 2010 I. Key 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
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the competition to enter the soft drink market include: • Bottling Network: Both Coke and PepsiCo have franchisee agreements with their existing bottler’s who have rights in a certain geographic area in perpetuity. These agreements prohibit bottler’s from taking on new competing brands for similar products. Also with the recent consolidation among the bottler’s and the backward integration with both Coke and Pepsi buying significant percent of bottling companies, it is very difficult for a firm
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ABSTRACT This article focuses at the actions of Coca-Cola and Pepsi in America and Europe since both of theirs’ inception. The article is divided in three different parts. Part I – In this part of the article, author has made an attempt to briefly discuss about the history of incorporation of both the companies i.e., PepsiCo and Coca Cola. The saga began in 1886, when John S. Pemberton developed the original recipe for Coke. Pepsi-Cola was created in 13 years later by pharmacist Caleb Bradham.
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Courtney Lee Cola Wars 1) Why, historically, has the soft drink industry been so profitable? The increase in available concentrate flavors upped the desirae for soft drinks. Accessing more channels (vending machines, fast food chains, markets, etc.) Advertising budgets increase. 2) Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? * Sales strategies for pepsi and coke/big companies is via direct delivery as opposed
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2. Why did Coke change its formula for the New Coke in the eighties? Why did it fail? a. Cola wars begin, Pepsi become stronger. In1950, Pepsi targeted family consumption. In 1963, Pepsi launched “Pepsi Generation” marketing campaign, targeted the young and “young at heart”, this action helped Pepsi narrow Coke’s lead to a 2-to-1 margin. In 1960s, Coke focused on overseas markets, Pepsi battled Coke aggressively in U.S. doubled its U.S. share between 1950 to 1970. b. The Pepsi challenge. In 1974
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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
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for the manufacture of carbonated beverages. Soft drink industry is very profitable, mainly for the concentrate producers than the bottler’s. The leading players of the market are Coca-Cola, Pepsi Cola, and Cadbury Schweppes. In this industry, fierce rivalry between dominant producers Coca-Cola & Pepsi and the bargaining power of the buyers who place huge orders for soft drinks are strong, while the threat of new entry and the threat of substitutes are mild. And, bargaining power of the suppliers
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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
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HTML Full Text HOW COKE IS KICKING PEPSI'S CAN Contents 1. THE NIGHT PROWLER AND THE SWAN 2. WHERE'S OSWALDO? 3. HOSING THE SODA JERKS 4. THE REAL SECRET FORMULA 5. THE PEPSI CHALLENGE 6. IS BIGGER BETTER? Listen Pause Loading | Download MP3 Help | | | It's the bloodiest clash yet of the cola titans. Coke, with its relentless focus--and a surprise attack--has stolen enough Of pepsi's market share to ask, is the war finally over? Inside the chairman's office
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