CASE STUDY : COLA WARS CONTINUE : COKE AND PEPSI IN 2006
The case study “Cola Wars Continue: Coke and Pepsi in 2006” focuses on describing Coke and Pepsi within the CSD industry by providing detailed statements about the companies’ accounts and strategies to increase their market share. ‘ Cola war’ is the term used to describe the campaign of mutually targeted television advertisement & marketing campaigns between Coke & Pepsi. Furthermore, the case also focuses on the Coke vs. Pepsi goods which target similar groups of costumers, and how these companies have had and still have great reputation and continue to take risks due to their high capital.
Both Coke & Pepsi have segmented the soft drink industry into two divisions, via –
1.Production of soft drink syrup.
2.Manufacturing & distribution of soft drinks at retail level.
Coke & Pepsi have chosen to operate primarily on the production of soft drinks syrup,while leaving independent bottlers with more competitive segment of the industry.The purpose of this report is to gain insight into the possible strategies that can be applied, in order to expand the overall throat share in the future. History revealed that a highly competitive strategy that was utilized in the past by both companies resulted in cannibalization. Because of this, the report is described from the perspective of both Coca-Cola and Pepsi. This report focuses on increasing the overall share and finding new opportunities in the unrevealed markets.
STRUCTURE OF THE SOFT DRINK INDUSTRY :
1. Concentrated Producers
Main activities includes : Blending new material ingredients , packaging in plastic containers, shipmen
2. Developing the program includes product planning, marketing research, advertising.
3. Main activities includes combine carbonated water and syrup , bottling/ canning, delivery to customers.
4. Focus lies on product management, product positioning, continual brand availability, maintenance.