machines or smart vending machines that are able to automatically change prices 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
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1) Coca-Cola Company announced in 1985 that they were going to change the brand name as well as the original taste of the cola; the very distinct and original taste that was known to the customers for almost a hundred years. Coca-Cola’s loyal customers were extremely unhappy that their trusted brand was making changes and reacted to this inundating the company with dissatisfaction, defending Coca-Cola like they held a private stake in the company. One group in Seattle threatened to sue the company
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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
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switched from focusing on localization to global standardization because the penetration levels in the international market were low, the consumption per capita of colas was only 10-15 percent of the United States figure (International Business Competing in the Global Marketplace: Coca-Cola’s Strategy, Hill, pg. 486). This made Coca-Cola a global company with great management and marketing activities at the headquarters in Atlanta. The focus was on core brands, and taking equity stakes in foreign bottlers
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the beginning, Coca-Cola and PepsiCo have shown a great ability to adjust to changes in the market, as well as a great capacity to constantly innovate their products. When facing changing trends by consumers, they were both able to overcome difficult situations, turning them into the industry favorites and to convert them into potential progress, through the creation of new products, which allowed them to keep their profit margins high. In this case, Coca-Cola and PepsiCo it is
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To: Upper Management From: Jimmy Blodgett Subject: External Analysis of U.S. Cola Industry Date: August 31, 2014 Purpose of the Report Per your request, our team has spent the last month analyzing the competitive environment of the cola industry in the United States. Utilizing tools such as the Porter’s Five Forces Framework and PESTEL (political, economic, social, technological, ecological, legal factors) we were able to better create an external analysis
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Selection Topic: Coca-Cola and Pepsi Cola – Marketing Strategies and the effects these changes have made on consumer consumption Over the years, rival soda companies Coca-Cola and Pepsi Cola, have tried an array of marketing strategies to entice the consumer. Changes surrounding marketing strategies include various techniques that include but are not limited to: product labeling, slogans, pricing, and product innovation and additions to their primary cold drinks – Coca-Cola and Pepsi. These
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Case Study #2 Cola Wars Management 5650 Fall 1 October, 17, 2013 Introduction There has been stiff competition between companies that produce similar goods. This competition is alive and well, especially in situations where there is need for a multiple of companies that offer similar goods and services to counter monopoly. However, these wars can take a different turn and bring changes to general operations of some firms (Long & Harding, 1998). Coca Cola and Pepsi are such companies
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controlled by Coca-Cola Company (Coca-Cola) and PepsiCo (Pepsi), together claiming a combined 72% of the U.S. carbonated soft drink (CSD) market sales volume in 2009. Refer to Exhibit 1 for an illustration of the CSD industry value chain. For more than a century, Coca-Cola and Pepsi have maintained growth and large market shares through mastering five competitive forces, shown in Exhibit 2, that drive profitability and shape the industry structure. Entry Barriers: Both Coca-Cola and Pepsi have strong
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Life Cycle of Pepsi: 1) Pre-launch – the 1890s In 1898, pharmacist Caleb Bradham developed ‘Brads Drink’, a formula designed aid digestion. After strong interest from consumers in his pharmacy, Brad renames the drink ‘Pepsi-Cola’ and purchases the trademark ‘Pep Cola’ for $100. The origins of Pepsi are very similar to that of Lucozade, which was also first produced for medicinal purposes. Although $100 does not appear much, adjusted for inflation that amount of money in the 19th Century is
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