Cola Wars Continue: Coke and Pepsi in 2006

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Cola Wars Continue: Coke and Pepsi in 2006

Question: Identify the key marketing issues (Company weakness and the main opportunities and threats for company) met by Coke and Pepsi. SWOT| Cola| Pepsi|
Strengths| * The flagship of soft drink global market share, approximately 40% * High profit margin by shifting some cost to bottlers * Strong marketing campaign * Expanded manufacturing and distribution system that kept prices low, Coke located in more than 200 countries.| * The biggest market share of non-carb productions in US and the second best selling soft drink brand in the world. * Aggressive marketing strategies using the target customer, Pepsi Generation. * Offered the product innovation.| Weakness| * Decreasing in CSD market. * Having a complex relationship with North American bottlers. * Reacting slowly with new market trends.| * Decreasing in CSD market. * Lack of sensitivity in expanding the global system. * Focusing only young people.| Opportunities| * The soft drink demand in Pacific-Asia Countries increases over 40% steadily. * Entry in the fast growing of energy-drink segment and new packages. * Dominating in Western Europe and much of Latin American.| * Positioning in the Middle East and Southeast Asia. * Growth in healthier beverages. * Growth in Tea Asia and functional drink beverages. * The younger generation structure of the global population.| Threats| * The powerful competitor Pepsi and the growth of new local rivals. * Obesity and other health-related. * A contamination scare causing of the product process. * Bad financial situation with decreasing in net income.| * Coke has become the icon and image of soft drink beverage for a long time in the world. * Obesity and other health-related. * Coke increases the marketing and innovation spending to $400 million. | According the case study data, it can be analyzed with some marketing issues in the table below:...
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