Cola War

Table of Contents Works Cited 2 Executive Summary 3 21st Century Major Trends 4 Value Chain and their relationships 5 Industry Analyses 6 CSD Industry Analysis 6 Porter’s Five Forces for Bottler & Distribution 9 Profitability Analysis 11 Financial Analyses 12 SWOT and Ansoff Matrix Analyses 12 Where Should Pepsi and Coca-Cola head? 14 Keep status quo price competition and marketing mix? 14 Initiate Price War to enhance profitability while holding the rest of marketing mix? 14 Bottling drinking water, should the strategy be the same as CSD? 15 Should Coca-Cola and PepsiCo going in different strategies? 16 Industry Marketing Mix 16 Appendices 20 Figure A1: U.S. Liquid Consumption 1970 - 2004 20 Exhibit 1: U.S. Bevearage Industry Consumption Statistics 21 Exhibit 2: U.S. Soft Drink Market Share by ase Volume (percent) 22 Exhibit 4: Comparative Costs of a Typical U.S. Concentrate Producer and Bottler, 2004 24 Financial Analysis 25 Exhibit 3: Financial Data for Coca-Cola, Pepsi-Cola, and their Largest Bottler ($millions) 25 Figure A2: Selected health conditions and risk factors: United States, 1988–1994 through 2005–2006 27 Industry Analysis, full report 28 CSD Industry Analysis 28 The impact of Globalization on an industry 30 Pepsi: Ansoff Referrence 35 Contribution part: 37

Executive Summary For over a century, carbonated drink was introduced to mankind. Two major contenders in the industry stand Coca-Cola and PepsiCo. The two soar in the industry as they compete with each other. There were amazing monopolistic behaviors found in their doings. Have you ever wondered why such drink without any redeeming health benefits, but rather sublimely known as one of the causes to sugar and fat related diseases, can be so profitable? By setting the health benefits aside, have you ever wondered why such drinks are so popular yet a lot of competitors are unable to imitate and stand up to beat them? The secret lies

Cited: U.S. Department of Health and Human Services. (2009). Health, United States, 2009 with special feature on Medical Technology. Retrieved October 17, 2010, from Centers for Disease Control and Prevention: http://www.cdc.gov/nchs/data/hus/hus09.pdf -------------------------------------------- [ 1 ]. (U.S. Department of Health and Human Services, 2009)