Cola Wars Stephen Brennan Accounting II Tue/Thur. 3-4:30 The Wall Street Journal recently did an article on how the soft-drink battleground has now turned toward new overseas markets. While once the United States‚ Australia‚ Japan‚ and Western Europe were the dominant soft-drink markets‚ the growth has slowed down dramatically‚ but they are still important markets for Coca-Cola and Pepsi. However‚ Eastern Europe‚ Mexico‚ China‚ Saudi Arabia‚ and India have become the
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rP os t 9-709-451 REV: SEPTEMBER 30‚ 2009 FRANK V. CESPEDES Cola Wars: Goin Global ng op yo By 2008‚ per capita consumption of carbonated soft drinks (CSDs) in the United States had declined in seven of the past ei ht years. Annual consumption of CSDs was 740 eight-ounce drinks ig per person in the U.S. versus 288 in the rest of the developed world and 77 in developing countries.1 As a result‚ the Coca-Cola Co. (Coke) and PepsiCo (Pepsi) increasingly looked abroad for growth
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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
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Cola Wars Continue: Coke and Pepsi in the Twenty- First Century As given in exhibit 1. Per capita consumption of carbonated soft drinks has rose from 1970 to 1999 but in year 2000 there has been a slight drop in per capita consumption. However if we see the similar data for other drinks‚ there has either been a slight rise or fall in per capita consumption in the year 2000. So the per capita consumption data reveals that other drinks are not necessarily eating up the market share of carbonated
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known beverage companies‚ Coco-Cola and Pepsi. They have competed considerably and distributed the beverage market profit for several decades. In the open market‚ it is difficult to exactly tell which one is the winner within the perfect competition‚ since both companies use different style of promotion and product to expend their markets. The competitive environment of the carbonated soft drinks started about three decades ago. In the beginning of 1960 Coco Cola was dominating the market but this
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Cola Wars (Porter’s Five Forces) Barriers to entry The barriers to entry are high for new companies; therefore‚ the threats of new entrants are low. For example‚ retailers enjoy significant margins for their bottom-line. This makes it tough for the new entrants to convince retailers to substitute their new products for Coke and Pepsi. There are an economy of scale‚ high required investment‚ high costs for advertising and marketing promotion‚ high channels of distribution‚ and high products differentiation
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Cola Wars Case Analysis 1. The main way in which my case notes would be different for Cola Wars if I were to have a second try at writing them would be to include a breakdown of how they are able to apply to Porter’s five forces. For example‚ it is evident after reading this case that the soft drink industry is an extremely profitable one (especially for Coke and Pepsi). The reasons for this were discussed in class‚ and I will quickly explain each: There are great barriers to entry when trying
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packaging and sweeteners and it accounts for high portion of sales. However‚ the bottlers are allowed to handle the non-cola brands as well and they have the right to decide on final retail pricing; and top bottlers get contribution from the main companies such as Coca-Cola. 2. How has the competition between Coke and Pepsi affected the industry’s profits? In the 1980s‚ Cola Wars between Coke and Pepsi started to heat up. To get more profits than the other‚ they tried in doing so many things
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Cola Wars Pepsico – Profile PepsiCo is one of the world’s leading producers of snack foods and beverages including Pepsi soda. Its principal businesses include: Frito-Lay snacks‚ Pepsi-Cola beverages‚ Gatorade sports drinks‚ Tropicana juices and Quaker foods. PepsiCo brands are available in nearly 200 countries and territories. The company operates in four divisions: PepsiCo Americas Foods (PAF)‚ PepsiCo Americas Beverages (PAB)‚ PepsiCo Europe‚ and PepsiCo Asia‚ Middle East and Africa (AMEA).
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HTM 4101 Strategic Management Cola Wars case study – Five forces analyses Concentrate producers: Bargaining power of buyers: Refer to the case‚ direct buyer is the bottler and indirect buyers are the end consumer and suppliers such as supermarkets and other outlets. Bargaining power of buyers for concentrate producers refers to the bargaining power of the bottlers. From the industry perspective‚ it is true that bottler could choose to switch their concentrate producers. Bargaining power
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