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Case study of pepsi cola
Coca-Cola vs Pepsi case study
Coca-Cola vs Pepsi case study
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The underlying logic of the non-carbonated drinks strategy was to introduce a new brand of drinks into a market that had become more health conscious. As previously mentioned, carbonated drinks or the conventional soft drinks have been increasingly associated and criticized for increase in obesity cases across the globe. Therefore, the introduction of non-carbonated drinks is vital towards addressing the health and nutrition concerns of consumers who continue to search for alternative beverages. The non-carbonated drinks strategy would therefore act as a means for the company to assure its customers that it is sensitive to the emerging health issues and concerns throughout the world. In essence, the underlying logic of Coca-Cola’s non-carbonated …show more content…
One of the similarities in the performance between Pepsi and Coca-Cola is obtaining significant competitive advantage and market share in the beverage industry across the world. Actually, by the end of the 20th Century, Pepsi and Coca-Cola were regarded as the two largest beverage firms throughout the world (“Coke versus Pepsi”, 1998). Secondly, Pepsi and Coca-Cola have been forced to transform their business strategies and operations in order to respond to the ever changing needs, tastes, and preferences of consumers. The beverages market has been characterized by increased shift towards healthy products since carbonated drinks have generated significant health issues and concerns in the recent past. Pepsi and Coca-Cola have developed new strategies and approaches to their business operations in order to respond to these needs. Third, Pepsi and Coca-Cola’s performance have been affected by market factors, particularly the shift to alternative beverages that are more healthy and nutritious. In addition to contributing to transformation of business strategies and operations, the changing consumers’ tastes and preferences have had considerable impacts on the firm’s operations and performance in the market. These impacts have been widely experienced in the entire beverages industry, especially by the largest market …show more content…
The need for effective business strategies by Pepsi is also attributed to the nature of the industry which requires certain factors for success. Some of these important factors for success in the beverages industry include customer satisfaction, developing strategic agreements, low pricing approaches, and product differentiation (Srivastava & Verma,
Pepsi needed a strong regional partner. Pepsi had been falling behind to Coke in Mexican market. However, changes in the regulatory environment had cut Coke’...
Coke continuously out-stands Pepsi, even though they share a very similar taste and colour, however Coke should not be the drink that receives all the love and attention for what it offers. Despite their similar soda colour, the drinks actually contain some different ingredients, which produce a different taste, and affect the body differently. Furthermore, the way the companies markets their drinks makes a huge contribution to how successful their products will become. The major element for success however stems from their impact on society and how the companies utilize their social power to evolve. The two major soda companies are constantly head to head with one another, yet it is what they do that sets them apart.
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
aspects: Carbonated soft drinks industry's structure, evaluation of driving change factors in this industry and finally analysis of key strategic factors it is faced with.
The Beverage Industry is a highly competitive one and tends to be dominated by a few major actors. The two biggest worldwide known and most influential companies are Coca-Cola and Pepsi. The limited growth opportunities make this competition very intense, requiring companies to follow the trends and be always aware of the competitors' progress. However, the demand for the products depends a lot on the economic conditions within the society. Those few big players enjoy the benefits of the strong loyal customer base during the growth and stability stage in the economy, whereas in times of economic difficulties customers turn to cheaper substitutes. Thus, although the key feature of the industry is that it is very difficult for a new unknown company to enter the market and compete with well-known long-established businesses, the companies should pay significant attention to the new entrants, especially in times of economic instability. Consumer tastes are also seasonal, meaning that the demand for the carbonated beverages is higher during the hot months of the year. Shifting consumer preferences bring the concern of operating uncertainty, which greatly affects pricing strategies. The large companies pay reliable dividends...
Picture this: Beyonce, Britney Spears, and Pink dressed as ferocious gladiators, drinking a sparkling, blue can of soda, after singing a representation of Queen’s “We Will Rock You.” Did a Pepsi commercial snap into mind? Well it should have. Pepsi is known for using celebrities and creativity in essentially every one of their advertisements. From bashing other companies to generating controversies, Pepsi’s advertisements have changed dramatically throughout the years.
They wanted the goods to be convenient for the consumer, but healthy as well so that they can eat these salty snacks on-the- go. The business strategy of the North American PepsiCo. beverages wanted to be innovative. They want to provide carbonated and noncarbonated beverages of all times to different consumers. Their focus is on healthier drinks, such as flavor and vitamin water.
Cola Wars Environmental Analysis 1. Introduction External environmental analysis of US carbonated soft drink (CSD) industry allows concluding that declining CSD sales call for changes in industry operations whereby market players can benefit from the fundamental shift in the industry development and maintain its leadership positions in beverage market. Analyses of macrolevel, industry, and competitive environments suggest that expansion, strong brand recognition, and changes in value chain will be key success factors in the future industry development. 2. What is the difference between a.. External environmental analysis a. Macrolevel environment (PESTEL analysis) i. Political New federal nutrition guidelines identified CSD as the largest source of obesity-causing sugars in the American diet.
Therefore, the long-term brand of Coca cola and better pricing strategies would help in competing with Pepsi. Unlike, Pepsi, Coca cola had targeted entering into partnership and alliances with local distributors and firms. This helps to develop strong relationship within the domestic firms to reduce the domestic barriers and thus, enhance the company’s competitiveness (Thabet, 2015). Lastly, the Asian markets consist of related and supporting industries to the soft drink industry that helps the companies in gaining a strong competitive position in the markets. Based on the competitive advantage of nation’s model, Coca cola has more home based advantages to develop a competitive advantage in relation to other countries on a global
Control of market share is the key issue in this case study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share.
The purpose of this report is to compare financial reports from the two largest soft drink manufacturers in the world. The Pepsi Co. and Coca Cola have been the industry's leaders in their market since the early 1900's. I will use relevant figures to determine profitability, and break down key ratios in profitability, liquidity, and solvency. By breaking down financial statements, and converting them to percentages and ratios, comparisons can be made between competitors regardless of size.
PepsiCo is a manufacturing and distribution organization of beverage, snacks, and food industry, located in Purchase, New York, known for being one of the biggest multinational food and beverage organization in the United States. Its competition consists of such organizations as Coca-Cola, General Mills, Kraft Foods and the Dr. Pepper Snapple Group. It is a global organization, which does business in Europe, Asia, Africa and the Middle East. As of 2013, it was estimated that PepsiCo had employed about 274,000 employees, with reported US earnings of $66.415 billion. The company was formed in 1965 after merging Frito-Lay Inc. and Pepsi. It was in 1998 that they then acquired Tropicana, followed in 2001 with the purchase of Quaker Oats, and
PepsiCo discloses their stakeholder engagement as a contribution towards sustainability. As part of the company social responsibility and sustainability strategic planning, the company has put in place strict policies to guarantee a long-lasting relationship with all its stakeholders. According to the company website, ‘PepsiCo has established a strong relationship with NGOs and routinely engage them to leverage their areas of expertise or interest to help shape their CSR processes and tracking methods. These relationships have helped to better identify sustainability priorities that supports both the business model and the expectations of the stakeholders’ (PepsiCo 2013). PepsiCo invests mainly in activities linked to their chain of management, they totally applied Kramer and Porter’s ideas. Porter explains that businesses are socially responsible today because they realized that socially responsible activities build and develop credibility, integrity, and give competitive advantage.
There are a variety of beverages available to us today with a wide range of differences, some are flavored, carbonated, low calorie, energy boosters, and just plain water. When it comes down to carbonated drinks there are two major rivalry soda companies dominating the market. Coca Cola and Pepsi are two well know cola distributors with very credible history, but the question still remains one is America’s favorite? With the ongoing competition between Coca-Cola and Pepsi, each company is incorporating new strategies for marketing and advertising there brands. When comparing an advertisement from each of the companies, we will review how they appeal to consumers.
In 2011 PepsiCo announced the launch of their Social Vending System. This system featured a full touch interactive screen. A consumer can select a beverage and enter the reciepent's name, mobile number, and personalized message and gift it with a video. PepsiCo uses technology to their advantage for global implementation.The company uses media sites in multiple was as advertisement and marketing tools.