Introduction Coca-Cola is the largest cold and soft drink company in the world and it exists in more than 200 countries. The company brand is also much more popular than other brands in the world because they went global in the entire world and everyone can find it almost everywhere. Moreover, in 1993 the company came back to India after the new government policy that required the company to show the formula in 1977, which made Coco-Cola stop working in India at that time (Banerjee, 2009). Coco-Cola came back because they knew that the Indian population is 1 billion people which is a huge market for soft drinks. The soft drink industry grew 76% from 1998 to 2002, and Coca-Cola invested $1 billion to become the leader in India again. In addition,
However, many restaurants, cafes, and universities dropped the sale of those drinks, which made Coca-Cola sales drop by 30% in the first two weeks. Not only did the sales in India drop, but also Coke stock in the New York stock market dropped by 5% to be 50 per share. Moreover, the investors have not traded on Coco-Cola stock because they feared that what happened in India could affect the price of their shares. However, Pepsi did independent tests on their drinks, which showed negative results and they published them for the public (Banerjee, 2009). In addition, Coca-Cola’s CEO in India, Gupta, commented about the CSE and the results, but Pepsi published independent tests on their drinks, which showed negative
Because of this, the non-government organizations used this laxity from the government to make claims against Coke. In fact, Coca-Cola is the biggest international investor in India. Because of this, NGOs could use this company as a target. Coke India has huge popularity in the entire world, so any information against Coke could affect costumer loyalty. On the other hand, NGOs gained a lot of popularity with the people and they supported NGOs claims against Coke because the NGOs showed this report to avoid people from getting sick in the future. In addition, soft drink companies are very popular in India, which made any allegation against the companies grip the people and the media attention. The allegations showed pesticides in the soft drinks that might lead to cancer, skin diseases and mental illness in the future, which made the people scared of drinking soft drinks (Ravi & Lipschutz,
People can afford to buy more soft drinks under current economic situation. Recessions do not seem to affect sales of CSD. Although produced by main market players soft carbonated drinks cost more than similar products of local and private label manufacturers, consumers are willing to pay an extra price for the name, particular taste, and image. Fierce competition in 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 operation in China faced antitrust regulations, advertising restrictions, and foreign exchange control.
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
The major ethical issue face by Coca Cola in recent year was concerning sale of hazardous product which affected the health of few consumers including school children. This incident took place in Belgium where Coca Cola beverages found themselves in middle of an accusation of selling poorly processed batch of carbonated drinks which made initially 10 people ill and later the number swelled to 100 which also included school children. This was a contamination scare incident that took place in June 1999. This damaged Coca Cola customer base harming their confidence in the product as it was relating to the production and sale of hazardous product. Two main problems that were identified by the company relating to their production and distribution were ‘‘Off-quality’’ carbon dioxide that affected the taste and odor of some bottled drinks, and an offensive unusual odor on the outside of some canned drinks which were later identified as sulphur odor. This odor has an increasing intensity when the cans were placed in vending machines to sell.
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:
Along with Pepsi, Coca cola is among the two leading carbonated soft drinks brands in the world. The two companies are always competing with each other to gain market share and revenues through innovative product offers and marketing stunts. But both the companies depend on a value chain that is similar has the same properties. Concentrate producers – this component of the CSD industry has a low bargaining power. This is so because the raw materials that are used are easily available and therefore entry into the market in this aspect is easy.
In order to understand the situation of Cadbury-Schweppes in the CSD industry, the product, which is soda, needs to be analyzed.
Weaknesses – Coca-Cola is a very successful company with an impeccable social media following. Word of mouth is probably a strength, but only when feedback from consumers is positive, but there are people who are against Coca-Cola and their products. Even though Coca-Cola produces over 200 brand products, Coca-Cola lacks the social media popularity of other brands that they produce (Moth, 2013). Many drinks that they produce are extremely popular such as Coke or Sprite, but there are a lot of Coca-Cola products that are unknown, unseen, and unavailable for
Jeseph University, S. S. (2006). Evidence of The Coca Cola Company’s Human Rights Abuses and Environmental Violations brought to. Saint Joseph’s University Students for Workers’ Rights, 1, 1-78. Retrieved April 22, 2014, from Evidence of The Coca Cola Company’s Human Rights Abuses and Environmental Violations brought to
Coke Facts The Coca Cola Company Coca Cola India: Key Facts - Coca Cola Business, website: http://www.cokefacts.com/facts/facts_in_keyfacts.shtml
Coco-cola has dominated any market anywhere and keeps on maintaining a strong position (). Looking at how Coco-cola achieved their goal brings attention
They have created ways for agricultural interventions to clean water and so that committees can have food security. They have gone on to create community programs that are responsible use within its operations, and strategic engagement and advocacy in countries such India by providing access to safe water to three million people in developing countries by the end of 2015. Through their partnership with the Columbia Water Center, part of the Earth Institute is one of many examples of how PepsiCo is dedicated to find lasting solutions to the water scarcity and water security. Their goal is to provide safe water to more millions of people in Brazil, China, India and Mali for future protects. The Coca-Cola Company is the world 's largest beverage company, refreshing consumers with more than 500 sparkling and still brands. They are one of the world 's most valuable and recognizable brands There beverage distribution system has consumers in more than 200 countries. The company focuses on initiatives that reduce its environmental footprint, support active, healthy living, create a safe, inclusive work environment, and enhance the economic development of the communities where it operates. As part of a worldwide commitment to give back to the communities in which it operates, Coca-Cola in 2009 launched its Live Positively campaign. This international campaign is a set of initiatives that aim to create positive change in the world through
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.
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.
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.
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.