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Rivalry between coca cola and pepsi
Rivalry between coca cola and pepsi
Essay on rivalry between pepsi and Coke
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1) Political – like tobacco companies in the late 20th century, food and beverage companies can now be targeted with lawsuits relating to health issues - PepsiCo fought tooth and nail against regulations, taxes and initiatives that aimed to reduce obesity - In 2001, Boston, MA mayor Thomas Menino banned junk food and soda from the public schools in the city, and in addition banned the selling of high sugar/high calorie drinks on city property - New York City’s Mayor Michael Bloomberg tried to ban the sale of drinks with high sugar in containers bigger than 16 ounces, but this ban was opposed and halted, with the New York State Supreme Court judge ruling Bloomberg must go through city council and the board of health to institute the ban - The The industry is concentrated, with a few major companies owning the majority of brands. The Coke vs Pepsi rivalry itself is very intense. Market growth is not as high as it once was, and the market appears to be fragmenting because of obesity concerns and the need to develop more nutritious offerings 3) Strengths – PepsiCo owns 22 mega-brands that each topped $1 billion in sales globally in 2011, with Pepsi the leading mega-brand - PepsiCo has segmented their products into three segments: fun-for-you (Doritos), better-for-you (diet soda), and good-for-you (Quaker), meaning they able to better target consumers - PepsiCo has heavily invested in R&D - PepsiCo’s products were used by roughly 3 billion people each year Weaknesses – Nooyi’s strategy to grow the “Good-for-you” product category is seen by some as taking away from PepsiCo’s major brands - PepsiCo seen as disingenuous in their “health-conscious” efforts because of their fighting regulations and taxes aimed at reducing What are - keep the offerings the way they are: don’t change anything, this could be seen as a negative thing, as they aren’t really committing to either side. They are not greatly contributing to help lessen PepsiCo’s impact on obesity rates. This will likely gain the ire of the previously mentioned NGOs, as well as the government - focus more on the fun-for-you, major brands: ignore the other two segments, and focus on PepsiCo’s core products. The issue is that it may seem as though PepsiCo is going back on their word and Nooyi’s strategy. As well, PepsiCo might be seen as unethical for pushing their high-sugar, high-calorie drinks and junk food, while Americans and those of other nationalities are facing higher and higher levels of obesity. o This would be playing to PepsiCo’s current image, as mentioned, at PepsiCo’s “core they are a sugary, fatty cola company, and people like that" - focus more on the good-for-you: focus efforts on the good-for-you, healthy alternative products. This would be seen as shunning the products that PepsiCo was fundamentally built on. In addition, despite Nooyi’s best efforts, they haven’t been able to shake their poor health image. This alternative is risky, because it could be seen by consumer stakeholders as ignoring what they
Nestle, Marion. Food Politics: How the Food Industry Influences Nutrition and Health. Berkeley: University of California Press, 2002.
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 soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten brands sold. Colas are the dominant flavor in the U.S carbonated soft drink industry; however, popularity for flavored soft drinks has grown in recent years. The changing demographics of the U.S population have been an important factor in the growing popularity of these flavored soft drinks. The possible impact of this factor will be addressed later in the case.
Similarly, the author holds that the Food and Drug Administration’s complicity in Americans’ waning health goes beyond safety to a broader lack of concern for our consumption patterns, but without compelling evidence that top-down protection measures work—like the recently invalidated New York City soda ban—his call-to-action stalls. The strongest takeaway from Salt Sugar Fat is that CEOs of major food companies don’t eat their products, so why should you? Indeed, of the authors best examples of behavior change come from some of his former product leads, including a former president of Coca-Cola now pitching baby carrots as the next great junk food. But company CEOs alone can’t fix the public-health issues the author isolates as if they were
Many Americans assume that junk food company giants, like Coca Cola and General Mills, only care about making a profit off the obesity epidemic that is plaguing the United States. These companies are earning millions of dollars in profit from the mostly unhealthy products they sell in stores. In recent years, these same companies have been reducing the amount of fat, salt, and sugar in their products in order to make them ‘healthier’ and appeal to the more health-conscious crowd.
Brand Image / Loyalty: Coke and Pepsi have a long history of heavy advertising and this has earned them huge amount of...
Key success factors in the industry are a strong brand presence, maintaining customer loyalty as exploring new markets and distribution channels as well as offering a diversified product line. Implications of these factors are strong competition and dependency of company’s behavior and marketing strategies on competitors’ behavior. This is especially true for Coca-Cola and PepsiCo since their flagship products are very much alike in look and taste.
Inside this essay we will take a look into the two largest competing companies in the soft drink industry; Coca Cola and PepsiCo. Using financial data provided from 2004 and 2005, we will be able to use financial analysis, both vertical and horizontal, to verify the financial differences between the two companies. We should be able to make proper suggestions and recommendations with the review on both of the individual companies, income statements and balance sheets.
Campaigns touted Pepsi’s low caloric content with slogans, “The Light Refreshment” and “Refreshing without Filling.”
Our American market when it comes to snack foods and soda have ballooned into a billion dollar business with more choices than there are consumers. The problem is it is only a few different manufacturers who are making all of these different brands and flavors. Throughout the 80’s we had a very entertaining marketing ploy where Pepsi and Coke slugged it out in what was called the cola wars. Although these two soft drink giants have claimed most of this market there are other smaller companies who pop up every now and then with new products and unique marketing strategies. New drinks such as Fanta, Gatorade, and Snapple showed promise only to have them scooped up by Coca-Cola, PepsiCo, and Dr. Pepper respectively which pretty much speaks for itself.
Pepsi Cola Marketing Strategy PEPSI COLA For Pepsi Cola Ltd, marketing opportunity analysis is a continual and ongoing process. Pepsi have used the new product strategy to realise their ambitions to both defend their current market position, and reinstate their position as a product innovator. Pepsi wishes to create a clear cola that is 100% natural, low in sodium, caffeine-free, and still maintains the flavour of its original cola. They will call it Pepsi Au Naturel.
The social responsibility activities of PepsiCo emphasizes on sustainable agriculture, water use efficiency, alternative sources of energy, packaging, wasting, and recycling. The company is also promoting a healthy lifestyle with product like whole grain snack and vitamin beverage. PepsiCo makes sustainability an innate part of their company culture to improve their business strategy and gain competitive advantage. According to Triple Pundit website, PepsiCo reached two years early its 2015 goal of delivering potable water. The sustainability report shows PepsiCo’s effort to nourish customers with healthy products. By going green, companies like PepsiCo have been able to adapt to the expectation of the toda...
Place: PepsiCo uses a global network for distributing its products to consumers. Most PepsiCo products are available at retailers, such as supermarkets, grocery stores, and convenience stores. However, customers can access PepsiCo-licensed merchandise like tumblers and t-shirts through retailers and their websites. Based on this element of the marketing mix, PepsiCo’s places for distributing its products are mostly non-online
Learning from experience Coca-Cola has had some fierce competition over the years but nothing in the form of an entire health market shift like now. As well as mounting political persecution of its products like they are facing today. They must rely on past experiences to get through but likely will need to start studying the new trends to stay relevant.
Coke and Pepsi have been raging war for over a century now, turning their sodas into a multi-billion-dollar industry. Coke has been able to drive more earnings for its bottom line, and while Coke’s net income has been trending downward in recent years, it manages to stay ahead thanks to superior margins. Pepsi, on the other hand, has produced consistent net profit margins of around 10%, while Coke margins have been in the 15-18% range for the past several years (O’Brien). Every company has a Market Cap, which is basically a fancy way of saying how much the company is worth, and Coca-Cola’s market cap is a whopping $180 billion. Pepsi’s Market Cap is $150 billion, which may not seem like a big difference, but $30 billion is a lot of cheddar. Therefore, Coca-Cola owns 51% of the soft drink market, whereas Pepsi only owns 22% of it. Coke claims to own a total of 35 different brands, including Fanta, Sprite, Powerade, Vitaminwater, and many others. Pepsi owns 22 different brands, including 7up, Gatorade, and Mountain Dew “Coke (Coca-Cola) vs Pepsi - Soda