Cola Wars Continue: Coke and Pepsi Case Analysis 1. Soft Drink Industry (SDI) overview The industry considered in this analysis is Soft Drink Industry (SDI). SDI serves customer needs for refreshing and cold non-alcoholic beverages, with main industry sectors being: carbonated drinks, fruit punches, and bottled water sectors. There are three dominant companies in the industry, namely: Coca-Cola, Pepsi, and Schweppes. The soft-drink industry includes the following four major types of participating
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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 bottlers 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 entering
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maintenance costs. With one concentrate manufacturing plant, it can serve the entire United States. Second, a concentrate producer’s COGS is little relative to that of a bottler. Third, this is due to the power over both the buyers and the suppliers of Coke and Pepsi, making profitable pricing for the products possible. On the other hand, the bottling businesses have little bargaining power with both their buyers and their sellers. Last, bottling businesses have large amount of fixed costs which, for the
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according to ambient temperature. How it works: ▪ If the temperature is high then price will be high. ▪ If the temperature is low then price will be low. Coca Cola tried to maximize profit from these smart vending machines, after facing war price in supermarkets. This practice is called price discrimination, where a company is charging different prices for the same product to different consumer. In the Coke’s vending machine case, the differentiation is on how consumer values cold drinks
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competition between Coke and Pepsi. • Much expansive advertisement for their brand equity Alternative • In this case the second important thing is that the alternative of the CSDs. The local brand in different areas available and these local brands are very low cost and low price. • Consumers using non-CSDs brand. They are moving non-CSDs brands. Introduce New Brands • For Coke and Pepsi have more opportunity to introduce new brands in different taste. These both brand Coke and Pepsi have very
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Pepsi Project Table of Contents Executive Summary Pepsi (PEP) Background Statement of Cash Flows Analysis of ‘Cash Flow to Net Income’ Analysis of ‘Cash Flow Adequacy Ratio’ Analysis of ‘Free Cash Flow / Operating Cash Flow’ Competition Marketing Campaign Innovation References Pepsi (PEP) Background PepsiCo, Inc. is a global food, snack and beverage company. The Company's brands include Quaker Oats, Tropicana, Gatorade, Lay's, Pepsi, Walkers, Gamesa and Sabritas. Pepsico
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Coca-Cola and Pepsi are the two greatest competitors in the soft drink industry. The marketing skills that these companies possess are the reason both Coca-Cola and Pepsi are so successful. 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 have since been competing to rein the global market in consumer beverages. The market of drinks in the United States alone is valued at more than thirty million
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Submitted to: Hamid Akbari Due Date: September 30, 2015 Word Count: 798 Introduction The carbonated soft drink industry has been a very competitive industry over the last hundred years. The two main players in the carbonated soft drink (CSD) market, Pepsi and Coca-Cola, have been in a nonstop rivalry to become the market leader. Smaller players also exist, but how attractive is the industry as a field to do business? We will use Porter’s Five Forces to analyze the market’s overall attractiveness.
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Environment MIRBIS Exchange Student, Sweden 2011-05-16 Cola Wars; Going global 1. Compare and analyse market strategies of Coca Cola and Pepsi in the following ways; Country Market entry strategy China Coke used a three-step strategy where the first sold concentrate to franschised Chinese bottle-owners who were fully responsible for production and distribution. This step made Coke their name in China. In the second step Coke bought shares in the bottling business to reduce the effect
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Case Study, Coke & Pepsi Shuang Li Integrated Marketing, Section 008 September 12th, 2015 1. Why, historically, has the soft drink industry been so profitable? Customer High consumption need in the market. Since 1970 consumption of CSDs grew by an average of 3% per year for 30 years. Compare to other beverage, Americans drank more soda. Market Environment The soft drink industry just likes an oligopoly market, and Coke and Pepsi have too big market share to affect the industry
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