regional bloc. These brands include Azam energy drink and Lavita soft drink from Uganda which are taking up the market share traditionally controlled by Coca cola company products. Further, Coca cola bottling companies in Uganda and Tanzania enjoy lower taxes in their countries making their products more affordable unlike their counterparts in Kenya, and this has led to transshipments from those countries leading to intra bottler’s competition. Another factor contributing to the proliferation of brands within the local market is the influx of cheap imports from countries in the Asian continent. This has introduced even more brands in an already overcrowded market. Therefore, this means that the soft drink industry is one of the sectors of the …show more content…
However, a sales performance review in the year 2015 of new soft drinks introduced by Coca cola established that in Mount Kenya region, only 15% had succeeded, 55% were performing poorly, 17.5% had failed completely, while another 12.5% exhibited abnormally high artificial growth.(MKBL,2015) Despite the introduction of new products by the Company, its market share in the soft drinks market dropped from a high of 98% in year 2013, to a low of 93% in 2015 in Mount Kenya region, which included Nyahururu town. (Ac Nielsen, 2016). There have been complaints by customers on the products attributes, pricing, distribution and the execution of promotional activities. Still, there is scanty and inconclusive empirical data that would explain this trend of Coca cola products within Nyahururu town. A study by Migwi (2012) researched on Mount Kenya Bottlers response strategies to changes in external environment. However this research did not study the effects of marketing mix variables of new Coca cola soft drink products on sales performance as it was out of scope. This study therefore, aimed at filling this knowledge gap by examining the effects of marketing mix variables of new Coca cola soft drink products on the company’s sales performance in Nyahururu town. It aimed at providing insights towards the application and integration of the marketing mix variables by marketing managers so as to achieve the envisaged goals. By gaining insights into how sales performance is affected by the marketing mix variables, the company is going to design and integrate the marketing mix better, therefore improving sales performance in terms of market share, growth and ultimately,
Coca Cola is more interested in penetrating all markets and is willing to invest heavily in areas that will support distribution to emerging markets like South Africa. Coca Cola does this by establishing bottling plants as close to their consumers as possible. This puts the production and distribution (and jobs) directly in the hands of the local territories; this allows communities to be invested in the success and distribution of Coca Cola. As an example; in South Africa they have the first all-Black managed bottling plant which has won Coca Cola a tremendous amount of respect and continues to perpetuate brand loyalty in that region. This Model has allowed Coca Cola to expand to 56 countries with 160 plants alone on the African
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...
Over the past thirty days Coca Cola Stock seemed to remain stagnant. While over a long portion of time Coca Cola could be very profitable, as of right now it seems to be a constant range of $40 to $42. The risk with investing in Coca Cola stock is that if one were to be wanting to make money with this stock it would take a very long time. It is more the type of stock someone buys in order to retain their money instead of make money. This is not a bad thing in the long run, but if someone were obtaining their fortune in this way Coca Cola would not be the stock to buy. Something with better fluctuation would suit a person like that. Overall I lost about $1.27, which is not bad at all, considering I bought it at the highest point of the thirty day period. I learned that longevity is not always the best way to go unless someone has a long time to wait it out. Plus this type of stock can remain stagnant for a very long time before skyrocketing or falling off the stock market. Overall, Coca Cola is very risky where it is right now because it is not showing any
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.
... objects and customer regions. Do making a clear differentiation image between its soft drinks and bottled water. Because the consumers may believe that bottled water of Nestle sounds healthier than Coca-Cola brand since Nestle tend to emphasize their image on healthy food products. Then do market test for new taste, new packaging, or new innovation according to each regions, and especially for Europe, the company should launch the new one to replace Dasani image in order to seize their market shares. They may renew all nutrients and packaging. Finally Coca-Cola should continue its joint ventures with the regional companies in order to protect their products from barriers to entry both international trade restrictions and distribution channels. Furthermore, joint venture with local brand is a long term contract guarantee to make it easier for HOD to a specific region.
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.
Coca Cola faces many costs when producing their products. These cost are usually categorized into variable costs and fixed costs. Variable costs are costs that vary depending on production output. Some examples of variable costs that Coca Cola incurs include labor, raw materials, packaging, and transportation and deliver cost. Raw materials are a major variable cost for Coca Cola. When production increases more materials are need to product more product therefore the cost for raw materials increases. The main raw material in all Coca Cola products is sugar which includes high fructose corn syrup, sucrose, and sugarcane. The availability of these natural resources often depend on weather conditions making for fluctuations
introduction to young and old, are Coca Cola and PepsiCo Inc. However, these cola drinks are
Introduction: A SWOT analysis for Coke and Pepsi will cover the following: The company’s strengths and competitive advantages over the other; The weaknesses of external and internal factors leading towards a decline in revenue sales; Opportunities to buy into and make risky business decisions of either entering new markets or acquiring another company; Threats to the market and legal cases that each company faces.
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.
Consistent with its mission statement, Coca-Cola maintains a global force with it products. The company markets four of the world’s top five carbonated soft drinks; Coca-Cola “the world most valuable brand”, Diet Coke, Fanta and Sprite. The company also continues to make a difference to excel and retains an international focus, marketing and distributing its products in over 200 countries globally. Coca-Cola makes it products available to consumers thru a supply chain of its network of vertical and horizontal controlled bottling and distribution operations as well as independently bottling partners, distributors, wholesalers and retailers. Coca-Cola operating groups are all over North America, South America, Africa, Europe and Asia, Pacific, Bottling Investments, and Corporate. With a total assets of $ 90.055 billion, Coca-Cola is the dominant leader of the global soft drink and the combination between sales, technology development and marketing have made them one of the most widely recognized and profitable companies in the world.
It is difficult to satisfy all the customer needs at once. This calls for a better approach in order to ensure that the marketing success target the specific group of consumers who will be served well. This requires the selection of the best target market that will enable the company to develop a successful marketing strategy. Currently, it appears that there is a great demand for low calorie/fat content foods and drinks. This is a fast growing market segment in the soft drink market. High consumption of fat content may result to heart diseases and diabetes and many customers are beginning to adopt the healthy life style that demands low consumption of sugar contents (Nasdaq, 2014). The popularity of low calorie foods and soft drinks is going
Coca-Cola is a popular carbonated soda created in the 1880's. This beverage has become popular all over the world and can be found in nearly every country, every state, and every store. Since the Coca-Cola company was created, billions of the soda have been sold. The company has grown tremendously over the years.
There are strong factors that influence consumers buying decision making. For example, when consumers choosing between Coca cola after studying different researches concept concerning consumers buying behavior of Coca Cola and Pepsi in the UK.decide to create theoretical framework. The framework will consist of the main characteristics which have an impact on consumers buying decision of beverage in the UK. Customer approach is the main factors that influence consumers buying decision, and those who satisfy with the quality of the product and the price of that brand product will a positive attitude toward that brand for example any customer who have a positive attitude toward Coca Cola will prefer to buy coke. Consumers who, dissatisfied with the Pepsi will have negative attitudes to buying Pepsi. Ward, S., & Robertson, T. S. (1973) this research designed the framework in consideration to main factors which have influence on changing consumers mind when making their buying decision. Perceived value, perceived quality and perceived risk) whereas extrinsic cue are product related characteristics (brand, perceived price, advertise and WOM. Gendel-Guterman, H., & Levy, S. (2013). Considerate these variables are significant for this research since they have a substantial impact on buying
product was sold throughout the U.S., making new outstanding flavors and bringing people together in the community.