CASE 1-3: Coke and Pepsi Learn To Compete in India The political environment in India proved critical in that their government was unfavorable to foreign investors. They prohibited the import of soft drinks since they felt it could be gotten anywhere. They also prohibited the foreign brand name and wanted the name Lehar Pepsi and Coca-Cola India, an indigenous name. These effects couldn’t have be anticipated prior to entering the market because the trade policies, rules and regulations of India were difficult and unpredictable. Development in the political arena would have been handled well if Coke would have evaded having to sell 49% of its equity by approving to start new bottling plants. The timing of entry into the Indian markets brought In terms of promotional activities, the advertising and giving away of free offers and vacations by Coca cola and Basmati rice by Pepsi, the coca cola’s goal in connecting the youth to the market, the different promotional TV campaigns in India using of celebrities, and the Pepsi sponsorship of cricket and soccer sports. In terms of pricing policies, Pepsi got a quicker market share by their belligerent pricing policies and coca cola’s 15-25% price cut down in the market. In terms of distribution arrangement, the bottling and packaging of products for better distribution around Also, to save and recycle the usage of water. To defuse further boycotts or demonstrations against their products, they need to set up specific funds to have people cultivated on certain awareness, help fund agricultural products and set up seminars in schools to make people aware of certain information they need to know. The furor will definitely subside in long-term if Coca-Cola doesn’t talk to the people but the best way is to face the situation directly by giving a statement to the
Opinions coupled alongside historical accounts provide a lesson demonstrating the truths of Coke’s corporate greed. Elmore’s argument development progresses in a way that the reader becomes furthered dismayed as the history lesson goes on. Coca-Cola ravaged precious water resources in third world countries which eventually resulted in a scale of humanitarian crisis, yet today The Coca-Cola Foundation’s mission statement reads: “…[We have] Committed ourselves to improving the quality of life in the communities where we do business”. Television commercials depicting delight paired with the soft drink, Coca-Cola’s slogan of, “open happiness” along with massive international event sponsorships that universally are recognized currently label the company as having a positive impact in communities. Elmore’s arguments successfully connect the dots, illustrating to the reader on the dissolute framework which held together and lead to the rise in Coca-Cola’s present day
Pepsi was first represented in the beginning of 1890 with the purpose to relieve indigestion. Not until 1960’s, Pepsi received successes that competed against Coca-cola. Pepsi has always been a drink for the young generation, but now they want to change the association.
These flavours were also made available in the host countries like Sri Lanka and Bangladesh .Before the launch the campaign was considered to be an innovative measure and was a 360o communication of the campaign was done across multiple mediums ranging from print to TV to radio. The company aimed to increase the brand share through the campaign. The marketing manager Ved Vyas said ,” Event-focused branding is an effective marketing strategy to excite the consumer about any launch. It works even better if we offer something unique that is engaging and experiential. We are a global corporation and we pick and borrow ideas from other countries to devise strong marketing strategies. We are also considering the upcoming IPL matches as an opportunity and would come up with innovation and strategy around that time” . India was decided to be the key market, as we were hosting the event and Pepsi being the youth brand expected the sales to boost due close connection between World Cup, Youth and
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.
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.
Profitability in the soft drink industry is a major benefit for both parties that partake in the making of soft drinks, the bottlers and the concentrate producers. They share responsibility for costs in multiple functions of the process including production, procurement, distribution and marketing. The two entities, concentrate producerss and bottlers, interact interdependently sharing some promotional and bottling activities also. The soda business is already vertically integrated in some aspects. Additionally the two, concentrate producers and bottlers, deal with similar suppliers and buyers. Entry into the industry would include establishing operations in either or both elements and a lot of capital in order to do so strategically. The soft
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 products which target similar groups of customers, 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. Why is the soft drink industry so profitable? Compare the economics of the concentrate business to the bottling business: Why is the profitability so different?
Bibliography Associated Press. "Coca-Cola Recalls More Tainted Drinks." Boston Globe [CD-ROM], 3 July 1999, National/Foreign Section, p. A4. Available: BOSTON GLOBE File: 631. Coca-Cola Enterprises, Inc. "Facts 1999." Atlanta: Coca-Cola Enterprises, Inc., 1999. "Coca-Cola's Global Dominance." https://www.wiley.com:8082/schermerhorn/ oc/page01.htm (13 Oct. 1999). "Coke Insider." Investors Business Daily. Mahoney, Ed. Distribution Manager for Coca-Cola Enterprises. Group Interview. 4 November 1999. Pendergrast, Mark. For God, Country, and Coca-Cola. New York, N.Y.: Charles Scribner's Son Publishing Co., 1993. The Coca-Cola Company. "Facts, Figures, and Features." Atlanta: The Coca-Cola Company, 1996. "The Coca-Cola Company Overview." Hoover's Company Profiles. wysiwyg:// bodyframe.14/http://ehostweb14.epnet.com/fulltext.asp (23 Sept. 1999). "The Coca-Cola Company." Profiles. http://www.coca-colacompany.com/ world/world.html (10 Nov. 1999). The Coca-Cola Company. "The Chronicle of Coca-Cola: Since 1886." Atlanta: The Coca-Cola Company, 1950.
As the world 's largest manufacturer and distributor of non-alcoholic beverages, Coca-Cola is certainly no stranger to global marketing. Established in the US, Coca-Cola initiated its global expansion in 1919 and now markets to more than 200 countries worldwide. It is one of the most recognizable brands on the planet and also owns a large portfolio of other soft drink brands including Schweppes, Oasis, 5 alive, Kea Oar, Fanta, Lilt, Dr Pepper, Sprite and PowerAde. Despite this, Coca-Cola often struggles to maintain its market share over its main rival PepsiCo in some overseas markets, particularly Asian countries.
The two companies in the same industry used for this assignment will be Coca-Cola and Pepsi-Cola. These companies are similar because they are in the beverage industry. They were both established in the 1800’s and to this day are expanding more and more. This report will examine the financial analysis of each company as well as different business aspects that they convey such as type of business ownership, how economics affects business, the role of the government in business, leadership styles, motivating employees and promotional and marketing strategies.
Coke Facts The Coca Cola Company Coca Cola India: Key Facts - Coca Cola Business, website: http://www.cokefacts.com/facts/facts_in_keyfacts.shtml
Competitive pricing is a factor, which the firm should keep in mind all the time. The scenario is very important because there can be civil disturbance, fall in sales due to inflation, or cross-border situations. As a result, Pepsi has to stay updated with all changes and policies in order to adapt.
Coke as a founder of the industry still holds the largest market share and sizable tangible and intangible resources. Lately Coca-Cola has been noted for its instability in the human capital, especially on the executive level. Even though the company has been fairly consistent, frequent changes in the decision-making workforce may plant unnecessary concerns across various levels of stakeholders. The company should bear in mind the consequences hefty employee cuts could bring along, main being damaged morale in the workplace and wracked brand loyalty, even if those cuts are supported by improvements in the efficiency and value chain. The Coca-Cola initiated “green policies” and made a lot of effort to transform the company into sustainable one. By minimizing environmental footprint, implementing water neutrality concept, reducing calorie count in the beverages and providing scholars programs, Coca-Cola began to slowly shift away its association with unhealthy type of business and therefore expanding its outreach. Hence, the Coca-Cola’s capabilities are the power of its brand name, strong financial position and high brand
Ultimately, Coca-Cola has influenced many different aspects of life. It has connected cultures all over the world, and brought happiness to many across the nations. The United States and Coca-Cola mirrored in their rise, and brought the world closer together. It is amazing how one drink can influence so many different types of people. Life as we know it today would be totally different without Coca-Cola.