Coke vs. Pepsi

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Text of Coke vs. Pepsi

  • BEVERAGE INDUSTRYAuthors: Jurgea Gabriela Tigan Larisa

  • Coke is it -- itbeing the #1 nonalcoholic beverage company, as well as one of the world's most recognizable brands. The Coca-Cola Companyis home to 20 billion-dollar-brands, including four of the top five soft drinks: Coca-Cola, Diet Coke, Fanta, and Sprite.Other top brands includeMinute Maid, PowerAde, and vitamin water. All told, the company owns or licenses and markets more than 500 beverage brands, mainly sparkling drinks but also waters, juice drinks, energy and sports drinks, and ready-to-drink teas and coffees. With the world's largest beverage distribution system,The Coca-Cola Companyreaches thirsty consumers in more than 200 countries.

  • Coca-Cola is recognized by 94% of the worlds population.Coca cola owns more than of the worlds beverages. Coke is affordable in all the countries. It was not out of the price range for an afternoon snack. Coke comes in a variety of sizes worldwide so you can use it for a crowd or as a personal snack drink .

  • Coca-ColaIntroductionAs we all know, the Coca is todays one of the biggest corporation that offers different refreshment in form of a soft-drink. These carbonated drinks are consumed at the rate of more than one billion drinks per day. But aside from their historical success, the Coca Cola Company is still a typical business that is affected and at the same time affecting the different type of communities.

  • HISTORYCoca-Cola history began in 1886 when the curiosity of an Atlanta pharmacist, Dr. John S. Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda fountains. He created a flavored syrup, took it to his neighborhood pharmacy (JACOBSPHARMACY), where it was mixed with carbonated water and deemed excellent by those who sampled it. Dr. Pembertons partner and bookkeeper, Frank M. Robinson, is credited with naming the beverage CocaCola as well as designing the trademarked, distinct script, still used today.

  • Type: ColaManufacturer: The Coca-Cola CompanyCountry of origin: United StatesIntroduced: 1886Color: Caramel E-150dFlavor: ColaVariants: Diet Coke, Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Zero, Coca-Cola Cherry, Coca-Cola with Lemon, Coca-Cola Vanilla, Coca-Cola with Lime, Coca-Cola Raspberry, Coca-Cola Black Cherry Vanilla, Coca-Cola Blk, Coca-Cola Citra, Coca-Cola Orange, Coca-Cola Life

  • Prior to his death in 1888, just two years after creating what was to become the worlds #1-selling sparkling beverage, Dr. Pemberton sold portions of his business to various parties, with the majority of the interest sold to Atlanta businessman, Asa G. Candler. Under Mr. Candlers leadership, distribution of CocaCola expanded to soda fountains beyond Atlanta.

  • In 1894, impressed by the growing demand for CocaCola and the desire to make the beverage portable, Joseph Biedenharn installed bottling machinery in the rear of his Mississippi soda fountain, becoming the first to put CocaCola in bottles.

  • Large scale bottling was made possible just five years later, when in 1899, three enterprising businessmen in Chattanooga, Tennessee secured exclusive rights to bottle and sell CocaCola. The three entrepreneurs purchased the bottling rights from Asa Candler for just $1. Benjamin Thomas, Joseph Whitehead and John Lupton developed what became the CocaCola worldwide bottling system.

  • The new beverage packaging is aimed at the Diet coke range of Coca-Colas product portfolio. It is a refillable bottle aesthetically styled to appeal to sports/fitness audience. The new beverage container is made from sustainable sourced materials and production methods. The beverage container is unique in the way the consumer is encouraged to re-use/refill it. Being the first to offer a new product feature is a proven competitive strategy. Future improvements to the product create the impression the company cares about satisfying its customers, material technology improvements in the future would further the design. Product Description

  • SLOGANS"Dill Hai To Mango Aur" (If you have a heart ask for more") "Khulein Khushian" (Open Happiness") "Kha Le Pee Le Jee Le" (Eat Drink Live")


  • In 2009, the Open Happiness campaign was unveiled globally. The central message of Open Happiness is an invitation to billions around the world to pause, refresh with a CocaCola, and continue to enjoy one of lifes simple pleasures. The Open Happiness message was seen in stores, on billboards, in TV spots and printed advertising along with digital and music components including a single featuring Janelle Monae covering the 1980 song, Are You Getting Enough Happiness? The happiness theme continued with Open the Games. Open Happiness featured during the 2010 Winter Olympic Games in Vancouver, followed by a 2010 social media extension, Expedition 206 an initiative whereby three happiness ambassadors travel to 206 countries in 365 days with one mission: determining what makes people happy. The inspirational year-long journey is being recorded and communicated via blog posts, tweets, videos and pictures. campaign

  • A Healthy Growth to The Indian EconomyEver since, Coca-Cola India hasmade significant investments to build and continually consolidate its business in the country, including newproduction facilities, waste water treatmentplants, distribution systems, and marketing channels.Coca-Cola India is among the countrys top international investors, having invested more than US$ 1 billion in India in thefirst decade, and further pledged anotherUS$ 100 million in 2003for its operations.

  • STRENGTHSThe best global brand in the world in terms of value $77,839 billionWorlds largest market share in beverageStrong marketing and advertisingMost extensive beverage distribution channelCostumer loyaltyBargaining power over suppliersCorporate social responsibility

  • WEAKNESSESSignificant focus on carbonated drinksUndiversified product portfolioHigh debt level due to acquisitionsNegative publicityBrand failures or many brands with insignificant amount of revenues

  • OPPORTUNITIESBottled water consumption growthIncreasing demand for health food and beverageGrowing beverages consumption in emerging markets (especially BRIC - Brazil, Russia, India and China)Growth through aquisitions

  • THREATSChange in consumer preferencesWater scarcityStrong dollarLegal requirements to disclose negative information on product labelsDecreasing gross profit and net profit marginsCompetition from PepsiCoSaturated carbonated drinks market

  • Political analysis examines the current and potential influences from political pressures. The non-alcoholic beverages falls in the category under the FDA and the government plays a role within the operation of manufacturing these products. In terms of regulations, the government has the power to set potential fines for the companies that did not meet their standard law requirement.The political conditions of the country are also basis of the study, especially in internal markets and other governmental changes that affects their ability to penetrate the developing and emerging markets that involves the political and economic conditions. However, Coca Cola continuously monitoring the policies and regulations set by the government.MARKETING AUDITPOLITICAL ANALYSIS

  • Economic analysis examines the local, national and world economy impact which is also includes the issue of recession and inflation rates. The non-alcoholic beverage industry has high sales in countries outside the U.S. According to the Standard and Poor's Industry surveys, "For major soft drink companies, there has been economic improvement in many major international markets, such as Japan, Brazil, and Germany." These markets will continue to play a major role in the success and stable growth for a majority of the non-alcoholic beverage industry. There is a low growth in the market for carbonated drinks, especially in Coca Colas main market, North America. The market growth recorded at only 1% in 2004 for North America.


  • This analyzes the ways in which changes in society affect the organization such as changing in lifestyles and attitudes of the market. Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition. There is a large population of the age range known as the baby boomers. Since many are reaching an older age in life they are becoming more concerned with increasing their longevity. This will continue to affect the non-alcoholic beverage industry by increasing the demand overall and in the healthier beverages. The demand for carbonated drinks decreases and this pulled down the revenues of Coca Cola.


  • TECHNOLOGICAL ANALYSISTechnology is the main focus of the analysis where the introduction and the emerging technological techniques are valued. This creates opportunities for new products and product improvements in terms of marketing and production. As the technology advances, new products are introduced into the market. The advancement in technology has led to the creation of cherry coke in 1985 but consumers still prefers the traditional taste of the original coke.


  • These are related to the legal environment in which firms operate. In recent years in UK therehave beenmany significant legalchanges that haveaffected organizations behaviour. The introductionofagediscriminationanddisabilitydiscriminationlegislation,anincreaseinthe minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organizations actions. Legal changes can