1) Why, historically, has the soft drink industry been so profitable? Coca-Cola and Pepsi are 2 common soft drink companies that have been in existence for many years. Coca-Cola was founded in 1886 by a pharmacist, and the company grew from there. During World War II, soldiers were given reduced price Coca-Cola. Similarly, Pepsi (called Pepsi-Cola) was invented by a pharmacist in 1893. During the Great Depression, a 12 ounce bottle of Pepsi cost the same as a 6.5 ounce bottle of Coke, thus keeping
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his new role as CEO of Coke India found himself in a contemplating event of sale drop 30-40% in two weeks. This crisis for the company took place just after the momentum gained from a highly successful two-year marketing campaign that had given Coca-Cola market leadership over Pepsi. This scenario takes back to august 5th when The Center for Science and Environment (CSE), an activist group in India focused on environmental sustainability issues press release stating: "12 major cold drink brands sold
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beverage now known around the world as Pepsi-Cola. After the first advertisement the sales of the new soft drink began to go up. Knowing the importance of good distribution system Pepsi was one of the first to switch from horse drawn transport to motor vehicles. Throughout its existence Pepsi adjusted its marketing strategies trying to keep up with the social and economic conditions of its consumers. During the Great Depression and continuing into the World War II Pepsi emphasized the low prices of the
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Porter's Five Forces Model of Coca Cola Bargaining Power of Suppliers Most of the ingredients needed for beverages and snacks are basic commodities such as potatoes, flavor, color, caffeine sugar, packaging etc. So the producers of these commodities have no bargaining power over the pricing for this reason; the suppliers in this industry are weak. Bargaining Power of Buyers Buyers in this industry have the bargaining power, because main source of the revenue and market share in beverage and
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COCA COLA VENDING MACHINES COCA COLA VENDING MACHINES 11/22/2015 Selling coke through interactive vending machine a good or bad idea? From the coke’s perspective, selling through vending machine is a good idea because they have earned higher margins for the firm. This channel has been untouched by the price wars unlike the distribution through supermarket where price wars have lowered the margins considerably. Sales of soft drinks from vending machines have risen steadily over the
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------------------------------------------------- Introduction The Coca-Cola Company is a beverage company, manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than 400 brands in over 200
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ratio suggests investor's confidence in the future growth prospects of the company and Pepsico has the highest P/E ratio as compared to its major competitors in the sparkling soda industry including Coca-Cola and Dr. Pepper. Even though it can be interpreted that PEP has lagged behind Coca-Cola over the years in US market but it is very important to understand that the majority of PepsiCo's revenues do not come from carbonated soft drinks.In fact, beverages account for less than 50% of total revenue
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of this report is to identify and analyze the two dominant companies in the soft drink industry and determine the strongest performer as an investment opportunity. Coca-Cola and PepsiCo have been competing in the soft drink sector for over a century and both companies enjoy a high degree of brand consciousness globally. Coca-Cola has, until recently, outpaced its number two rival considerably, both in the U.S. and overseas. I will compare the two companies using the following criteria: (a) comparative
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Assignment 1 The Coca Cola Company is a multinational corporation with a portfolio of more than 3,500 beverages, from diet and regular sparkling beverages to still beverages such as 100 percent fruit juices and fruit drinks, waters, sports and energy drinks, teas and coffees, and milk-and soy-based beverages which are sold in stores, restaurants, and vending machines in more than 200 countries. Based on Interbrand's best global brand 2011, Coca-Cola was the world's most valuable brand. Originally
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The Price theory of Coca-Cola Company Coca-Cola is a well-recognized soft drink brand in United States. According reports from Coca-Cola in 2012.Coca-Cola Company sells its product around the world in more than 200 countries and has a product portfolio of more than 35,000 drinks. Based on Interbrain’s best global brand 2011, The Coca-Cola brand is worth $74 billion and therefore was the world's most valuable brand. The market type of the Coca-Cola Company The Coca-Cola Company is a monopoly,
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