...9/8/2015 PGDM/MBA Material: Case Study- Cola Wars Continue: Coke and Pepsi in the Twenty-First Century www.mbapgdmstuff.blogspot.com Home Human Resource Marketing Information system management Images You are visitor # Case Study- Cola Wars Continue: Coke and Pepsi in the Twenty-First Century 110,588 Search This Blog Translate Select Language ▼ Category Assignment Business Communication Business Environment Business Law Case Study Compensation MAnagement E- Business Summary: "Cola Wars Continue: Coke and Pepsi in the 21st Century” explains the economics of the soft drink industry and its relation with profits, taking into account all stages of the value chain of the soft drink industry. By focusing on the war between Coca‐Cola and PepsiCo as market leaders in this industry – with a 90% market share in carbonated beverages – the study analyses the different stages of the value chain (concentrate producers, bottlers, retail channels, suppliers) and the impact of the modern times and globalization on competition and interaction in the industry. Analysis: It is quite clear that there was a “war" between Coca‐Cola and PepsiCo: not only have they been rivals for entrepreneurship For your Information Formates Human Resource Management Human Resource Mangement Human resource Planning Indian Labour Law Industrial Relation Information system Management International Marketing ...
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...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...
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...COCA COLA CASE STUDY « Think global, act local » T. Levitt 1) What is the primary basis for Coke’s past international marketing success? Is it only advertising? The Coca Cola Company expanded slowly abroad in the early 1920’s. Coca Cola presented the beverage with different logos which are culturally symbolic. However the true growth of Coca Cola beverages in the world had been possible during the World War II. Coca Cola Company delivered beverages to the US soldier in Europe and Asia. Marketing: understanding the market Marketing philosophy: A good understanding of customer needs and providing a good offer. Coca Cola: in America is a ritual, you open the fridge and drink a coca cola. Abroad, drink coca cola is to live the American dream. Many will say that it is the level of advertising. But the better answer may be the consistent and effective, locally oriented global marketing, aimed carefully at targeted markets around the globe. Coke and other brands have become leaders in their product categories by understanding consumer motivations and desires and by creating relevant and favorable image associations. Image association: Pavlov theory Cowboy Marlboro Coke Soft drinks Cigarette Pleasant There is nothing fly-by-night in such activities. 2) Given the growing political and economic uncertainty, what changes can Coke make to its global marketing strategy? During the 1990’s, the marketing strategy of Coca Cola Company was described by...
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...Coca Cola’s Marketing Challenges in Brazil: The Tubaínas War Case Analysis I. Summary The case study deals with Coca Cola’s attempt to pursue different strategies in order to stand up to the strong growth of the so called tubaínas. Tubaínas is defined as the numerous brands of inexpensive, carbonated and sweet beverages which are manufactured and distributed locally throughout Brazil by hundreds of small companies. Due to the significant growth of the tubaínas in Brazil, Coca Cola intended to find a way to impede and even defeat the steady increase, to sustain their performance and strength. II. / III. Statement of the problem / Causes of the problem One of the biggest problems Coca Cola faced was its declining market share in 1999 which dropped to 48%. It became evident that Brazil seemed to be a challenging market for Coca Cola concerning sales, market share and profitability despite the existing high brand awareness all over the world. The decline was the result from the rising social class C which included typical workers in the lower middle class and accounted for around 28% of total national consumption of soft drinks. The outcome of a market study conducted by Boston Consulting Group showed that brand awareness was the least significant factor in the beverage purchase decision of Class C. However lower-priced products, also referred to as B brands, played a decisive role and were preferred. Another market study, published by A.C. Nielsen/CBPA study supported the...
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...CHU HAI COLLEGE OF HIGHER EDUCATION 2010-2011 SEMESTER 2 BBA 353 STRATEGIC MANAGEMENT Group Case Study Project The Coca-Cola Company Tsang Hoi Ki Chan Ho Yin Fung Tsun Wai Chan Ka Po Yuen Sze Wing Chan Tai Hoi Yan Yue Kan (200826001H, (200826002H, (200826004H, (200826019H, (200826020H, (200826027H, (200926024E, FNE) FNE) FNE) FNE) FNE) FNE) FNE) Abstract This paper is a strategic analysis of The Coca-Cola Company (Coca-Cola), a leader in the beverage industry. Coca-Cola, the world’s leading soft drink maker, operates in more than 200 countries and owns or licenses more than 500 brands of nonalcoholic beverages. The company faces challenges in today’s market because of market changes, socio-economic changes and globalization. An external analysis of the soft drink industry is performed to understand the impact of environment. An internal analysis of Coca-Cola is performed to understand the internal capabilities. The conclusion of this case study emphasizes that the company needs to reduce its dependence on carbonated beverage and diversify its product portfolio into the noncarbonated sector to remain competitive. 2 Table of Contents Abstract .............................................................................................................................. 2 Section 1: Introduction ................................................................................................... 5 1.1 1.2 1.3 Mission and Objectives ..........
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... Coca-Cola Executive Summary This paper is a comprehensive audit of Coca-Cola's marketing program and recommendations developed for future marketing plans. I provide recommendations for Coca-Cola's marketing efforts as well as product line enhancements, as Coca-Cola faces stiff competition and changing consumer tastes. These recommendations include: • Pursuing a multi-pronged marketing strategy, including growth into geographic regions like Russia, China, and Turkey. • Leverage the company assets by brand extension into water-based, slightly sweetened refreshment drinks to meet more health-conscious consumers. • Diversify offerings outside the non-alcoholic beverage market, leveraging the vast distribution network. Introduction Coca-Cola was born in Atlanta, Georgia, on May 8, 1886 by Dr. John Stith Pemberton, a local pharmacist. Dr. Pemberton produced the syrup for Coca-Cola®, and carried a jug of the new product down the street to Jacobs' Pharmacy, where it was sampled, pronounced "excellent" and placed on sale for five cents a glass as a soda fountain drink. Carbonated water was teamed with the new syrup to produce a drink that was at once "Delicious and Refreshing," a theme that continues to echo today wherever Coca-Cola is enjoyed. During the first year, sales averaged a modest nine drinks per day. Today, over 6 trillion servings of Coca-Cola have been enjoyed worldwide and Coca-Cola has over 400 brands. Coca-Cola's Key Success Factors Coca-Cola has several...
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...University Coca-Cola vs. PepsiCo — A "Super'' Battleground for the Cola Wars? Steve M. McKelvey Overview of the Soft Drink Industry Coca-Cola: The Defending Champion Since its inception in the late 1800s, Coca-Cola has experienced meteoric growth, progressing from nine glasses per day to nearly 4.5 billion cases on an annual basis ("Top 10," 2004). Today, Coca-Cola offers nearly 400 brands in over 200 countries and controls the highest market share (44%) in the soft drink market ("Top 10," 2004). In addition to its leading global market-share, Coca-Cola also retains the title of having the most popular individual beverage in the world in Coca-Cola Classic, with an 18.6% market share ("Top 10," 2004). Additionally, in 2003 it placed four beverages in the top 10 for individual product sales: Coke Classic (#1), Diet Coke (3), Sprite (5), and Caffeine Free Diet Coke (8) ("Top 10," 2004). Through Research & Development (R&D) and acquisitions, Coca-Cola has also expanded its product line to include non-carbonated beverage products, including: Dasani, Fanta, Fruitopia, Hi-C, Minute Maid, and Mr. Pibb. In 2003, Coca-Cola spent approximately $1.9 billion on marketing and advertising. In November 2004, Coca-Cola CEO Neville Isdell stated that "[Marketing expenditures] would rise by $350-$400 million a year ... forever" (Marketplace Roundup, 2004). Pepsi-Cola: The Challenger With the exception of brief bankruptcy stints in 1923 and 1932, Pepsi-Cola assumed its place at the heels of Coca-Cola...
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...“WHAT HAPPENED AT COCA-COLA?” The mission of the Coca- Cola Company is to strive to refresh the world, inspire moments of optimism and happiness, create value and make a difference (www.coca-colacompany.com, 2009). The article, “What Happened at Coca-Cola” demonstrates that one of the world’s most recognized brands was not “walking the walk” but merely just “talking the talk” when it pertained to their expressed mission, vision and values. The undiversified actions of the top executives at Coca-Cola caused minorities of the company to file a lawsuit claiming unjust treatment of Blacks and other minorities through promotions, pay and other disparate actions. Issues In 1999, a lawsuit was filed against Coca-Cola for allegations stemming from discrimination against Black employees in promotions, evaluations, terminations and compensation. In addition, the Black ex-employees that filed the suit claimed that since around 1995, Coca-Cola systematically paid them lower salaries than whites for the same work and suffered from harassment on the job. The lawsuit brought to the forefront the companies lack of managing diversity and issues of addressing employee concerns. The Coca-Cola Company hired and retained minorities in their workforce; however, they “dropped the ball” when representing the correct percentage of minorities in top higher management positions. A major part of showing diversity in the workforce is having employees represented not only in the service capacity but...
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...investigates the strategic management of Pepsi Cola and Coca-Cola in an effort to make recommendations on how Pepsi Cola can build strategies in gaining a larger share of the market. The assessment of strategic management begins with the vision and mission of both organizations, which leads into literature review that identifies the consumer preferences of both Pepsi Cola and Coca-Cola. Following the literature review is the teams’ own personal assessment of consumer preferences for the Pepsi Cola and Coca-Cola brand (Please refer to Appendix A for the assessment). Finalizing the investigation are recommendations for Pepsi Cola to gain a larger share of the market. The Cola Wars Research Paper According to an industry report from Hoover’s (2014), the U.S. soft drink industry yields $34 billion annually and continues to grow internationally. The largest markets of consumption for soft drinks outside the U.S. are: Mexico, Chile, Argentina, and Uruguay (Hoover’s, 2014). The constant change of consumer preferences is what drives Pepsi Cola and Coca-Cola to compete for a larger share of the market. The intense rivalry between Coca-Cola and Pepsi Cola have been going on since the late 1800’s (Economy Watch, 2011); when Pepsi Cola was born from a “combination of: carbonated water, kola nuts, vanilla, and rare oils” (Pepsi Legacy Book, p.7. 2005). This paper focuses on the diversified strategies of both Pepsi Cola and Coca-Cola in their efforts to gain the largest share of...
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...CHU HAI COLLEGE OF HIGHER EDUCATION 2010-2011 SEMESTER 2 BBA 353 STRATEGIC MANAGEMENT Group Case Study Project The Coca-Cola Company Tsang Hoi Ki Chan Ho Yin Fung Tsun Wai Chan Ka Po Yuen Sze Wing Chan Tai Hoi Yan Yue Kan (200826001H, (200826002H, (200826004H, (200826019H, (200826020H, (200826027H, (200926024E, FNE) FNE) FNE) FNE) FNE) FNE) FNE) Abstract This paper is a strategic analysis of The Coca-Cola Company (Coca-Cola), a leader in the beverage industry. Coca-Cola, the world’s leading soft drink maker, operates in more than 200 countries and owns or licenses more than 500 brands of nonalcoholic beverages. The company faces challenges in today’s market because of market changes, socio-economic changes and globalization. An external analysis of the soft drink industry is performed to understand the impact of environment. An internal analysis of Coca-Cola is performed to understand the internal capabilities. The conclusion of this case study emphasizes that the company needs to reduce its dependence on carbonated beverage and diversify its product portfolio into the noncarbonated sector to remain competitive. 2 Table of Contents Abstract .............................................................................................................................. 2 Section 1: Introduction ................................................................................................... 5 1.1 1.2 1.3 Mission and Objectives ..........
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...Case Study #2 Cola Wars Management 5650 Fall 1 October, 17, 2013 Introduction There has been stiff competition between companies that produce similar goods. This competition is alive and well, especially in situations where there is need for a multiple of companies that offer similar goods and services to counter monopoly. However, these wars can take a different turn and bring changes to general operations of some firms (Long & Harding, 1998). Coca Cola and Pepsi are such companies that produce soft beverages, and the wars between these cola firms are far from over. In the recent past, Pepsi has made essential changes in its line of production, and this decision has enabled the beverage firm earn more revenue than Coca Cola. This case study will look at the strategies that both Coca Cola and Pepsi have adopted in their recent operations and the effects of these policies on the two beverage firms’ operations. Pepsi has made use of the application of the Pearce and Robinson Strategic Management Model to outplay Coca Cola in most of its internal strategic operations. This strategic management model has eleven components, and each component plays an important role toward the full implementation of the model as a system (Pearce-Robinson, 2010). Indra Nooyi, the boss at the Pepsi Co. has made several steps to counter Coca Cola’s high quality products. One of her major concern has been to produce less sugary goods at fairly pocket friendly prices. She has applied the eleven...
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...Cola Wars Case Study DMBA 630 Marketing and Strategy Management in the Global Markeplace Introduction Carbonated Soft Drinks (CSD) have been around for over a century and now accounts for a $60 Billion market with the average American consuming about 53 gallons a year. Coca-Cola was invented in 1886 by John Pemberton as a “potion for mental and physical disorders.” Asa Candler acquired the formula and began marketing it as Coca-Cola. The first bottling franchise was accorded in 1899 for a sum of one dollar. Pepsi-Cola was invented in 1893 by Caleb Bradham a pharmacist from North Carolina. Pepsi also franchised its bottling operations. Pepsi struggled over the years going bankrupt twice within a decade, first in 1923 and again in 1931. Pepsi competed aggressively against coke offering almost twice the amount of Pepsi for the same price in the 1930s. Coca –Cola or Coke on the other hand was the market leader through the early 20th century with numerous imitators popping up trying to clone Coke. Coke fought back in the courts to aggressively deter imitators and counterfeiters. During the 1920s and 1930s, Coke was marketed to multiple market segments making it available to anyone desiring the brand. Eventually Coke sued Pepsi for trademark infringement in 1938 and lost. Pepsi gained market share and became a titan competitor in the market for CSDs beating out all other brands except Coke. Thus began the “Cola Wars” in 1950 with Pepsi’s aggressive “beat Coke”...
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...INNOVATION: THE COCA-COLA CHALLENGE Abstract The Coca-Cola Company fully understands the meaning of innovation as evidenced by their ever-growing brand portfolio and internal processes. In this paper, I discuss Coke's three cola strategy as both a product and service innovation. Such strategy was implemented to widen the market presence of Classic Coke, Diet Coke and Coke Zero. The three cola strategy was developed initially for the purpose of rekindling the growth of the sparkling beverages. The strategy is basically a campaign to boost public confidence wherein an array of marketing, advertising and promotion was implemented. The three cola strategy was backed by Research Council towards the development of consumer-centered innovation. Introduction Overview of the Organization The Coca-Cola Company Founded by Asa Griggs Candler in 1882 in Atlanta, Georgia, a company that fully understands the importance of innovation in business is the Coca-Cola Company. Coca-Cola, or simply Coke, chose to concentrate their operation on production of soft drink syrup while maintaining an intimate relationship with its bottlers and distributors at the retail level. Basically, the company is engaged into blending raw material ingredients (product planning), packaging in plastic canisters (market research) and shipping to bottlers (advertising). In 1886, John Stith Pemberton invented the company’s flagship product Coca-Cola. Today, Coca-Cola Company offers more...
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...Cola Case Study 1: Attractiveness of the Carbonated Soft Drink Industry By Section 1_8 Paul Ponomaryov (100390461) Gerald-René Goldwater (100491316) Eric Packer (100481757) Course Name: Strategic Management for Professionals BUSI-3700U- 001 Submitted to: Hamid Akbari Due Date: September 30, 2015 Word Count: 798 Introduction The carbonated soft drink industry has been a very competitive industry over the last hundred years. The two main players in the carbonated soft drink (CSD) market, Pepsi and Coca-Cola, have been in a nonstop rivalry to become the market leader. Smaller players also exist, but how attractive is the industry as a field to do business? We will use Porter’s Five Forces to analyze the market’s overall attractiveness. 1. Buyer Bargaining Power Buyer Bargaining Power has always been high in the CSD industry. Although brand loyalty has always been important, it’s very easy for most customers to change products if they don’t like the price or taste. In the case of New Coke, the outcry from Coca-Cola’s consumers caused Coca-Cola to revert their entire formula. The consumers quickly let it be known that they did not like the change, and Coca-Cola had no choice but to acquiesce. By the early 2000s US soft drink consumption began falling, but by as little as 3% - CSDs still held the majority of market share; around half of the total drinks market (Yoffie & Kim, 2011, pg. 13). In response to this slight decline another outbreak in...
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...Chapter Eight Case Study - Coke Zero Coke Zero Coca Cola has been the leader in the soft drink market for decades, consistently besting their nearest competitor, Pepsi. The struggle for the top spot has been on-going for over one hundred years, and at times has been fairly interesting. Both companies have been trying new strategies, flavors; can designs and even recipe changes in order to gain market share, niche competitive advantage as well as a sustainable competitive advantage. (Lamb, Hair Jr., & McDaniel, 2013, p. 26) Both companies constantly change their products and their marketing techniques in order to secure an advantage over one another. Coca Cola over the years has used common good business practices in order to evaluate their business, so they would know which direction to take it, next. Sometimes their choices were effective, other times they were not. A Coca-Cola marketing situation comes to mind going back to 1985, when seemingly out of the blue, Coke changed their formula. The onslaught of public outcry then began, forcing Coca Cola to re-think their strategy and into damage control mode. It was either a brilliant strategy designed to be a publicity stunt, or one of the worse blunders ever in corporate America. The answer is still not clear to this day, however the results were interesting and have been fodder for Marketing classes ever since. News about the “New Coke” dominated the airwaves for weeks on end, and people rushed out to try it. Most did...
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