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The case study of pepsi cola and coca cola
A Comparative Study on Coca-Cola and Pepsi
A Comparative Study on Coca-Cola and Pepsi
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with lemon, lime, or coffee. In 2013, Coke products could be found in over 200 countries worldwide, t has a workforce of 55,000 employees with consumers downing more than 1.8 billion company beverage servings each day.(Agarwal, about pepsi and cola in India market, 2013) Controversy in India In 2003 The 2 international brands Pepsi and Coca Cola faced a new challenge when the local governments placed a ban on their products following a report by an environmental group claiming the sodas contained high levels of pesticide. On August 5, 2003, The Centre for Science and the Environment CSE issued a news release which stated that “The soft drinks brands sold contain a deadly cocktail of pesticides residue. The CSE, a New Delhi based research and advocacy group that aims for sustainable growth, based its accusations on tests conducted by the Pollution Monitoring Laboratory in April, 2003. During the tests, pesticide residue was 24 times above limits set by the Bureau of Indian Standards in 57 samples tested. In one bottle of Coca-Cola bought in Calcutta, the level of the carcinogenic pesticide Lindane exceeded the bureau’s standards by 140 times. The pesticides – Lindane, DDT, Malathion and chlorpyrifos are responsible for cancer, damage to the nervous system and reproductive system, birth defects, …show more content…
Coke should not have asked the Foreign Investment Promotion Board to restrict shareholder voting as this will make the company lose Coke shareholders controlling 49% stake in Coke. And lobbying should not be implemented as it would be detrimental and can bring down profits. Bottling and of the processing to be renewed from buying and using the service provider or other companies. The best way for this problem is Coke needs to improve strategies and collaborative relationships in the Indian market. (Agarwal Y. , Problem,
Aaron, Daniel G. and Michael B. Siegel. "Sponsorship of National Health Organizations by Two Major Soda Companies." American Journal of Preventive Medicine, vol. 52, no. 1, Jan. 2017, pp. 20-30. EBSCOhost, doi:10.1016/j.amepre.2016.08.010. The United States has the “highest rates of obesity in the world” which can be caused by the consumption of soda. A American drinks about 46 gallons of soda in the year of 2009, which gave the United States one of the highest rates of soda consumption. Americans consume sodas every day and is one of the reason people start to gain weight. To find ways to reduce consumption of soda is very important because it
Cola Wars To begin with, the carbonated soft drink industry is a profitable industry as its products such as Pepsi or Cola sell extensively across the globe. The industry relies heavily on its concentrate producers and bottlers to reach out to its market. This is further analyzed through Porter’s five competitive forces: Threat to New Entrant: When an entrant wants to enter this industry, it would need a distribution channel. However, most of the bottlers in the industry are linked to a contract or agreement with the dominant companies such as Pepsi or Coke that does not allow them to “carry any other competing brands” (p.3). So, it would be hard for new companies to obtain a distribution channel.
Although produced by main market players, soft carbonated drinks cost more than similar products from local and private label manufacturers, consumers are willing to pay an extra price for the name, particular taste, and image. Fierce competition in the CSD industry forces Coca-Cola and PepsiCo to expand into new and emerging markets which present high potential for the company’s development. However, some foreign markets proved to be highly competitive. Coca-Cola Company’s operations in China faced antitrust regulations, advertising restrictions, and foreign exchange controls. iii.
The bargaining power of Coca-Cola’s finish suppliers is low due to several reasons. Most of the ingredients needed to make soft drinks are basic items that can be purchased almost anywhere. Flavor, color, caffeine, sugar and packaging, etc. are easily available and have low cost. The standard ingredients of raw materials which do not have substitutes. The supplier industry must maintain a good relationship with the buyers in order to continue to have their
Coca –Cola (KO) is one of the world’s largest beverage companies. Company was incorporated in September 1919 under the State of Delaware law and headquarters is located in Atlanta Georgia. But from 1886, company established its brand in US (Coca-Cola, 2012, p. 1). Currently company is providing for more than 500 varieties of non-alcoholic sparkles to the customers around the world. Apart from this, company also serve for still beverages that includes enhanced water, water, ready-to-drink, juices, energy drink, sport drinks and so on.
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
Considering individuals are becoming more health conscious it would be beneficial for Coca Cola to continue producing even more healthy products. Producing healthier drinks could potentially get their products back in schools. Researching into cheaper materials as well as environmentally friendly alternatives to plastic would be another recommendation. The main concern for Coca Cola is water supply. Without water Coca Cola would not be able to stay in business. It is recommended for Coca Cola to reduce the amount of water it uses. They have already begun a goal to improve water use. “Our 2020 goal is aggressive and builds on the 21.4% water efficiency improvement we’ve made since 2004. We expect to increasingly assess not just the quantity of the water used to grow our product ingredients, but the impact of that use as well” (Improving,
In India, Coca-Cola has been accused of instigating droughts since its carbonated and bottled water beverage lines rely on large volumes of water taken directly from municipal water systems tapped from local watersheds. The same instance has happened in the United States with damaging impacts on the water tables in places where bottling plants are located. Further, there are instances where traces of pesticide have been found on Coke products.
The case study "Cola Wars Continue: Coke and Pepsi in the Twenty-First Century" focuses on describing Coke and Pepsi within the CSD industry by providing detailed statements about the companies’ accounts and strategies to increase their market share. Furthermore, the case also focuses on the Coke vs. Pepsi goods which target similar groups of costumers, and how these companies have had and still have great reputation and continue to take risks due to their high capital. This analysis of the Cola Wars Continue case study will focus mainly on the profitability of the industry by carefully considering and analyzing the below questions:
...s and exceed USA in per capita consumer of Coca-Cola products. The genuine segment of Coca Cola is the most profitable. Coca Cola intend to maintain the market attractiveness and increase the business strength by keeping the Market research and R & D Team on standby, to grab new and possible approaches and ready to face the challenges. The brand consumers required huge investments, so the Company intends to invest appropriately in promotions and maintain the business relative strength and revenue. The good shape segment of Coca Cola provide negative cash flows, despite the market is growing hence putting more efforts to overcome the issues related. Coca Cola has improved the market attractiveness and relative business strength, by introducing the Coca-Cola tea product. The light on the pocket segment experienced low market growth and relative market share initially.
The Coca-Cola Company is global well known company. The Company re-entered Indian markets in year 1993. The company had to leave earli...
Furthermore, the issue with the pesticides in the product, which was tested by the Indian government gave proof of the pesticides in Coca-Cola’s product. Coca-Cola was shut down by the local government but the first video stated, “They used their political power to reopen the plant”. This statement is harsh but if you go by the perception of the people, Coca-Cola does donate to the World Environment Foundation. 2. Do you believe that the Indian government representatives were fully aware of the extent of Coca-Cola's need for water BEFORE they approved Coca-Cola's request to locate there?
Coke Facts The Coca Cola Company Coca Cola India: Key Facts - Coca Cola Business, website: http://www.cokefacts.com/facts/facts_in_keyfacts.shtml
Holistic marketing also incorporates social responsibility marketing and understanding broader concerns and the ethical, environmental, legal, and social context of marketing activities and programs. The business will tend to adopt ethical behavior in its marketing strategy and will ensure that proper and true information will be provided to the concerned parties(Homburg, Stierl & Bornemann 2013).
Coca - Cola : Claims, Values and Polices Coca-Cola is a well-known and cherished brand name. When people think of this name, memories tend to overflow in their heads. Why do you need to be a member? Because, not only does Coke taste great and refresh your own personal memories, it also fills you with memories of the Coca-Cola like "Always Coca-Cola", the antics of the Coke polar bears, and all of the different ads that have represented Coke over the years. Just about every ad you see, as a consumer, has tons of hidden meanings.