BUS 508

Coca Cola and Pepsi marketing are a consumer products company operating in highly competitive markets. They heavily rely on continued demand for products. To generate profit and bonus, they both must sell products that appeal to our customers and to consumers. Any significant changes in consumer preferences or any inability on the part to anticipate or react to such changes could result in reduced demand for our products and erosion of our competitive and financial position (Dyer, Jeffrey H., page 3). The achievements of Pepsi and Coca Cola relies on being able to answer to daily needs of buyers, concerning health and wellness, obesity, product attributes and ingredients, and to broaden into similar categories.
Changes in product category consumption or consumer demographics could indicate a deductible demand for the good that’s produced. Consumer preferences could change for many reasons, such as generations being affected by the age (Hoffman, Benjamin, page 17). Socializing has also expanded and became very diverse. Traveling, vacation or leisure activity patterns, weather, seasonal consumption cycles, negative publicity resulting from regulatory action or litigation against companies in our industry, a downturn in economic conditions or taxes specifically targeting the consumption of our products. Any of these changes may reduce consumers’ willingness to purchase the goods of Pepsi Cola and Coca Cola (20).
Any damage to their reputation could have an adverse effect on our corporations, financial condition and results of operations. Changes in the legal and regulatory environment could limit their business activities, increase our operating costs, reduce demand for our products or result in litigation. Unfavorable economic conditions in the countries in which we operate may have an adverse impact on our business results or financial condition. Their