Alternative solutions: 1. Coca Cola can start using healthy sweeteners like Stevia‚ Agava juice or honey. There is a growing trend of getting closer to nature all around the world. This is in accordance with lifestyle strategy: “Cola is good for you and makes you feel better”. This would make people realize that company cares about their health and way of living. Advantages: * trend of healthy living * lower price sensitivity of the market for healthy or bio food * relatively
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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
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were usually on a long term contract with the big companies and could not easily sign a contract with a new direct competing enterer. Two major players Coca cola and Pepsi have about three quarters of the soft drinks market were fiercely competing with advertising‚ creating new products and expanding new territories‚ without going into price war. The major products for the soft drink industry were not hard to find – carbonated water‚ sugar‚ bottles‚ so the only one that gave power for the suppliers
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The New Cola Wars: Coca-Cola Still Number One Coca-Cola has long been a world leader in cola products‚ with Pepsi being the only competitor coming even remotely close to removing them from their number one spot. However‚ with increasing globalization comes increasing fear that the success of domestic products may falter. In turn‚ this results in an increase in domestic producers of similar products in an effort to increase domestic success and limit control of foreign
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9-711-462 REV: MAY 26‚ 2011 DAVID B YOFFIE RENEE KIM Cola Wars Contiinue: Coke C an nd Pepsi in 20110 oke and Pepsi vied for “t hroat share” o of the world’ss beverage m market. For more than a century‚ Co The most intense battles in the so-called colla wars weree fought over the $74 billio on carbonated soft drink (CSD) industry in the Un nited States.1 In a “carefu ully waged co ompetitive strruggle” that llasted from 1975 through the mid-199 90s‚ both Cok ke and Pepsi achieved average annual
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products that go head to head. Coca Cola and Pepsi are an example of such reveries. There has been many taste test and competitions that involved the soda kings. This reverie has been going on for over a century. (See appendix 1) The start of this long standing soda war began 1886 when creator John S. Pemberton developed the original recipe for Coke. Then 13 years later Pepsi creator pharmacist Caleb Bradham developed his formula. By this time Coca-Cola was already fulfilling order that totaled
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Cola Wars Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? The returns received by concentrate producers differ from those received by bottlers for several reasons … Concentrate producers: Capital investment. Concentrate production business is less capital intensive than bottling. It requires less funds to be invested in machinery‚ labor and modernization. "A typical concentrate manufacturing plant cost about $25 million
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Cola Wars in China Ryan Criscione Alfred State College Cola Wars in China Wahaha Group was founded in 1987 and since then has become China’s leading soft drink producer. In fact‚ the company maintains a leading position in a number of product categories such as; water‚ milk drinks and mixed congee‚ and tea and juice drinks (Cravens‚ 2009). The Wahaha Group began as a children’s company and even though it is still considered one today‚ the company has really evolved into something much more
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designed to help companies find ways to off-set a rival company and to help develop a more solid business plan. It has been known over the years a rivalry has existed been two of the biggest soda companies‚ Coca Cola and Pepsi. Three of Porter’s forces that are exemplified in this “coke war” are buyer power‚ barriers to entry‚ and rivalry which will be explained and elaborated on in the following essay. Buyer Power The retailers have a low to moderate buyer power over the consumer soft drink
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in 2008 indicating growth. • As of 2003‚ the Coca Cola brand (regular and diet) was the leader in the Brazilian soft drink market with 35.6% market share. Second closest was Guarana Antartica with 7.9% market share followed by Fanta with 7.1% market share. • Coca Cola is the leader in Brazilian market holding 50.1% market share‚ AmBev with 17.2% market share is at 2nd position and others-Tubainas accounting for the rest (Dec’ 2003). • The cola flavor accounted for 45% of the Brazilian soft drink
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