Pepsi and Coca-Cola Wars the Hundred Wars

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I. EXECUTIVE SUMMARY

Pepsi Cola produces Philippine Inc (PCPPI) grew its net income last year by 192 percent to 44 million on the back of double digit growth in volume and softer sugar prices. For the fourth quarter alone, net profit doubled to 147 million on gross sales of 6.2 billion. Volume grew by 21 percent for the quarter; bringing full-year volume growth to an average of is percent across brands and categories. Gross sales for the full year rose percent to P22.73 billion. “This is a significant feat given the aggressive competition, marketplace challenges and heavy monsoon rains. We focused on driving growth of both the carbonated and non-carbonated drinks segments, in line with the strategy on ensuring affordability and availability across the Philippines, “said Jika Dalupan, PCPPI’s vice president for corporate affairs and communications. Cost of sales which consist primarily of raw and packaging materials, direct labor and manufacturing overhead, increase by 6 percent for a year ago, driven mainly by higher sales volume. However, as a percentage of net sales, cost of sales decreased by 6 percentage points due to the price rollback of sugar, a major cost competent. As a result, the company’s gross profit reached P5.29 billion, an increase of 44 percent from 2011.

II. STATEMENT OF THE PROBLEM

* Why the competition of PEPSI and COCA-COLA still existing? * Is the merger of PEPSI and COCA-COLA is possible?

III. CAUSES OF THE PROBLEM

* The war begins because a PHARMACIST forwards a soda drink and it was named “BRADHAM’S DRINK” and also known as PEPSI. That time COCA-COLA has been selling the soda and exceeds 1 million gallons annual sales that’s why PEPSI and COCA-COLA become a rivalry, also that’s why the two soda company having a war because they having a competition to their soda product, because in every product the other soda company make a competitive product to beat the other product of the other company. * NO, because as we all know that the PEPSI and COCA-COLA is over 100 years now. Also the PEPSI and COCA-COLA is always competing to their new product so the merger of PEPSI and COCA-COLA is impossible

IV. THEORITICAL FRAMEWORK OF THE CASE

ADVERTISMENT
Advertising informs consumers about existence benefits of product and services and tries, and tries to persuade consumer to buy them claim that advertising aims at attaining target consumers to either think or react to the product or brand. As a method of achieving advertisement goals, advertisements as well as their content play a vital role in the process of commercial communication. More specifically, it is the advertised product and brand as well as the content of the advertisement to determine greater or lesser memory retention among the consumers.

Objectives of advertising campaign:
To inform| To persuade| To remind|
Telling the market about the new product| Building brand preference| Reminding buyers that the product will be needed in the near future| Suggesting new issues for a product| Encouraging switching to your brand| Reminding the buyers where to buy the products| Explaining how the product works| Changing buyer perception of product attributes| Keeping the product in buyers mind during off season| Informing the market for a price change| Persuading buyers to purchase now| Maintaining top-of-mind product awareness|

STANDARDIZATION AND ADAPTION
International marketers and advertisers can approach the market in different ways when advertising a product or service internationally. They can either take a standardized advertising campaign is used for all markets, an adapted campaign consider the use of different advertisement that are adapted for different markets because of local conditions. However many different opinions exist about the best way to achieve success in advertising campaigns, and even though research has shown that...
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