Consumers today are not as much joyous to cola products as they were before. Age and ethnicity are two main characteristics that affect consumer preference for soft drinks and alternative beverages. With age, health concerns become more of a factor when choosing a beverage. To illustrate, some studies show that cola products or soft drink in general may cause kidney stones and other related diseases. In contrast to older consumers, younger consumers—particularly teens and those in their twenties—have less attention spans for products and are more likely to prefer products that seems to be fun and different . Although PepsiCo is the number one seller in carbonated beverages, it lost is market share in 2000 as consumers seek for alternative beverages. As the matter of fact, PepsiCo switches to non-cola products such as bottle-water, ready-to-drink tea and sports drinks. In turn, bottled water gained the market share up to 12.8% in unit sales.
2-Internal Analysis of Coke and Pepsi (Appendix A)
In this session, we would analyze Coke and Pepsi internally using SWOT analysis. SWOT is the short form of Strengths, Weaknesses, Opportunities and Threats. In Appendix A, we can see that the major strength for Coke is its name value. Coke is the World’s leading brand for CSD. Marketing and advertising is the major battleground for the CSD industry, from the SWOT analysis, we can see Coke did a great job for that. Being the market leader is definitely a huge advantage. It will in turn increases Coke’s bargaining power to the bottlers and retailers
For Pepsi, we think that their aggressive and fast adapting working team is contributing a lot to their success. In 1978, they entered the fast food business by acquiring Pizza Hut, Taco Bell and KFC before other CSD. In 1950, the CEO of Pepsi, Alfred Steele made “Beat Coke” as his motto. Moreover, Pepsi was more aggressive than Coke in shifting to non-CSD. Pepsi developed a portfolio of...