...managers in the airline industry, while dramatic, is not unique. The work of all managers is affected by two main environments: the external environment and the internal environment. The external environment constitutes everything outside a firm that might affect the ability of the enterprise to attain its goals. The external environment itself can be subdivided into two main components. There is the industry or taskenvironment confronting the organization, which typically includes actual and potential competitors, suppliers, and buyers (customers or distributors); firms that provide substitute products to those sold in the industry; and firms that provide complements. Then there is the more encompassing general environment within which the task environment is embedded. The general environment includes political and legal forces, macroeconomic forces,...
Words: 6133 - Pages: 25
...Discuss whether price is the main factor affecting the demand for Pepsi The question is telling us to discuss the whether price is the main factor which would affect the demand (the quantity of Pepsi consumers are willing to buy each month or so) for the product in this case Pepsi, this basically means to analyse the alternate factors (non price) which would also alter the demand for the product for example: price of substitute, the quality of substitute, the number of substitute, the quality, the customers income, trend of the time and also factors such as the price of the complement (a product bought with my product i.e. an association). Which in this case would be a complementary food item, like a chocolate bar or sandwich, as Pepsi may be part of a meal deal involving these category of items. The factors which will affect the demand can most generally be categorised into two groups ‘price’ and ‘non-price’ factors, and can most simply be categorised into having two affects on demand these being a direct affect (if this goes up or down the demand will move in sync) which are always non-price as price is an inverse factor which means if it rises or falls the demand will move in the opposite direction. In sum an increase in demand is caused by either an increase in a direct factor, examples: quality, income, advertising and price of substitutes, and a decrease in an inverse factor, examples: quality of substitute, price of complements. And a decrease is caused by the...
Words: 1591 - Pages: 7
...…………………………………………………………10 INTRODUCTION Over the years Coke and Pepsi managed their rivalry in the carbonated soft drinks (CSD) industry by following some of the tactics identified below. Both companies came up on the market with the same product coca-cola, two different recipes. Coca-Cola was discovered in 1886 in Atlanta Georgia, by pharmacist John Pemberton, while Pepsi-Cola was formulated 7 years later, in New Bern, North Carolina, by pharmacist Caleb Bradham. Since then the two giants, Coke and Pepsi are on a continuous “battle without blood” over the $74 billion CDS industry in the United States. One of the first tactics identified is that Coke first introduced its product in grocery stores and other channels through open-top coolers. Also, they developed automatic fountain dispensers and introduced vending machines. Pepsi had a rough start, but they were willing to achieve. In this way after bankruptcies in 1923 and again in 1932, they came back and the business started to pick up. Their first move was to price their 12-oz container to a nickel, same as Coke would charge for a 6.5-oz. After that Pepsi started focusing more on take-home sales to target family consumption. With an aggressive marketing campaign, called “Pepsi Generation” Pepsi targeted the young and “young at heart. Not only that, but Pepsi put a special accent on quality by working to modernize their plants and the store delivery. In the 1960s, both Coke and Pepsi experimented with cola and non-cola flavors and...
Words: 3025 - Pages: 13
...process 6 Identify customer's buyer behaviour and explain the factors may affact it ……………………………………………….7 Evaluate the relationship between brand loyalty, corporate image and repeat purchasing……………………….8 Task 2 13 Evaluate different type of market research techniques 14 Use source of primary/secondary data to achieve marketing research objectives 16 Assess the validity and reability of market research findings 17 Prepare a market research plan to obtain information in a given company 19 Task 3 22 Assess market size trends for a chosen target market 23 Plan and carry out a competitor analysis on a rival 24 Evaluate organization's opportunities and threats 27 Task 4 30 Evaluate various techniques of assessing you customers responses 31 Design and complete a customers satisfaction survey 32 Review the success of a completed survey 31 Appendix 34 References 36 Task 1 Task 1 (Outcome 1) a. Describe the main stages of the purchase decision-making process within your chosen company * Refreshing drink is the basic human’s demand. Therefore, it is understandable when people expect to have a comfort drink to satisfy thirst. In Vietnam, Pepsi and Coca Cola took large amount of market share in beverage industry, applying consumer buyer decision process will help them a part in purchasing battle. * As usual buying decision process will cover through 5 steps. However, buying Pepsi does not need that much. Before any purchasing decision was make...
Words: 7107 - Pages: 29
...strategy of Coca-cola and Pepsi over 100 years of rivalry. New challenges of the 21st century included boosting flagging domestic cola sales and finding new revenue streams. Both firms also began to modify their bottling, pricing, and brand strategies. They looked to emerging international markets to fuel growth and broaden their brand portfolios to include noncarbonated beverages like tea, juice, sports drinks, and bottled water. For over a century, Coca-Cola and Pepsi-Cola had vied for the "throat share" of the world's beverage market. The most intense battles of the cola wars were fought over the $60 billion industry in the United States, where the average American consumes 53 gallons of carbonated soft drinks (CSD) per year. In a "carefully waged competitive struggle," from 1975 to 1995 both Coke and Pepsi had achieved average annual growth of around 10% as both U.S. and worldwide CSD consumption consistently rose. This cozy situation was threatened in the late 1990s, however, when U.S. CSD consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi. The case considers whether Coke's and Pepsi's era of sustained growth and profitability was coming to a close or whether this apparent slowdown was just another blip in the course of a century of enviable performance. A rewritten version of an earlier case by Michael E. Porter and David B. Yoffie. Essay: The case study “Cola Wars Continue: Coke and Pepsi in the Twenty-First Century”...
Words: 3073 - Pages: 13
...a pharmacist named Dr. John Pemberton carried a jug of Coca-Cola syrup to Jacobs’ Pharmacy in downtown Atlanta, where it was mixed with carbonated water and sold for five cents a glass. (Our Heritage, 2012) Three years later in the summer of 1898 a young pharmacist named Caleb Bradham began experimenting with combinations of spices, juices and syrups, trying to create a refreshing new drink to serve to his customers. His success came in the form of the beverage now known around the world as Pepsi-Cola. (Pepsi Legacy, 2005) And from that day forward the rivalry between Coca-Cola and Pepsi would become legendary. These two beverage companies are competing for the top spot in a massive global market. The cola and carbonated beverage industry reaches to nearly every corner of the planet, and the vast majority of the market share belongs to the two giants Coke and Pepsi. With such a huge market and enormous revenue potential in an industry such as this, it is no wonder that the Coke versus Pepsi competition is so fierce. So how does either of these companies create an advantage over the other? We will compare and contrast the business and marketing strategies of these businesses in...
Words: 6544 - Pages: 27
...3 Segments 3 Caveats 4 Socio-Economic 4 Relevant Governmental or Environmental Factors, etc. 4 Economic Indicators Relevant for this Industry 4 Threat of New Entrants 5 Economies of Scale 5 Capital Requirements 6 Proprietary Product Differences 7 Absolute Cost Advantage 8 Learning Curve 8 Access to Inputs 8 Proprietary Low Cost Production 8 Brand Identity 9 Access to Distribution 9 Expected Retaliation 9 Conclusion 10 Suppliers 10 Supplier concentration 10 Presence of Substitute Inputs 11 Differentiation of Inputs 12 Importance of Volume to Supplier 13 Impact of Input on Cost or Differentiation 13 Threat of Backward or Forward Integration 13 Access to Capital 14 Access to Labor 14 Summary of Suppliers 14 Buyers 15 Buyer Concentration versus Industry Concentration 15 Buyer Volume 15 Buyer Switching Cost 15 Buyer Information 16 Threat of Backward Integration 16 Pull Through 16 Brand Identity of Buyers 17 Price Sensitivity 17 Impact on Quality and Performance 17 Substitute Products 18 Relative price/performance relationship of Substitutes 18 Buyer Propensity to Substitute 18 Rivalry 18 Industry Growth Rate 20 Fixed Costs 21 Product Differentiation 21 Brand Identity 21 Informational Complexity 22 Corporate Stakes 22 Conclusion 23 Critical Success Factors 23 Prognosis 24 Bibliography 26 Appendix 27 Key Industry Ratios 27 Introduction ...
Words: 4699 - Pages: 19
...because of its tasty product, focuses on marketing and advertising to make a profit. Coke and Pepsi employed the following technique to make the soft drink industry profitable: marketing (Yoffie 21). Coke and Pepsi have dominated the market on soft drinks by offering a product that people enjoy, at a price that the average Joe can afford, and by utilizing marketing strategies and campaigns. Through effective leadership, an environment was created which enabled success and profitability as well as creative strategies and campaigns. Both Coke and Pepsi developed and deployed aggressive marketing campaigns which began generations ago by fighting trademark infringements and continued with cleaver and aggressive sales techniques. By branching into other flavors and types of drinks via mergers and acquisitions, both Coke and Pepsi generated additional revenue from more than just their core beverage. The fierce competition the two Cola Giants created, ensured profitability and world recognition of the American developed carbonated soda. 2. Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? The concentrate business has been historically dominated by large magnates such as Coca-Cola and Pepsi. Data, from the case study, detailing the industry breakdown indicates that Coke held 51% of market share in 2003 while Pepsi and Cadbury Schweppes held 22% and 6% of international market shares for that year...
Words: 1960 - Pages: 8
...Table of Contents 1 Overview 2 General environmental analysis 3 Industry Analysis 3.1 Industry Structure - U.S. soft drink market share of concentrate producers - Suppliers within the carbonated soft drink industry 3.2 Market Structure - U.S. Liquid Consumption Trend (gallons/capita) - U.S. non-alcoholic refreshment beverage volume 2009 - U.S. soft drink market share – soft drink brands 3.3 Marketing Channels 3.4 Porter’s five forces 4 5 4 2 2 2 2 4 Competitive / corporate strategies of Coke and Pepsi 5 SWOT Analysis 6 Questions 6.1 How has the competition between Coke and Pepsi affected the industry’s profit? 6.2 If it has been such a profitable industry, why have so few firms successfully entered this business over the last century? What are the barriers? Why have Coke and been so successful in launching their products? 6.3 Why, historically, has the soft drink industry been so profitable? 6.4 Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? 6.5 How can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-CSDs? 7 9 11 Exam Case Study Cola Wars Continue: Coke and Pepsi in 2010 1 Overview (Power Point Page (PPP) 2) For more than a century, Coke and Pepsi compete for market share within the world’s beverage market. The most intense battles were fought over the $74 billion carbonated soft drink (CSD) industry in the United States...
Words: 5585 - Pages: 23
...PROJECT REPORT On MARKETING STRATEGIES OF COCA COLA Submitted By – Name : Pinak Paul MANAV RACHNA INTERNATIONAL UNIVERSITY ACKNOWLEDGEMENTS I am sincerely thankful to Miss Kanupriya (Project Faculty Guide), under whose guidance I have successfully completed this project and time spent with her had been a great learning experience. I think her constant encouragement, warm responses and for filling every gap with valuable ideas has made this project successful. She made it possible for me to put all my theoretical knowledge to work out on the topic: “MARKETING STRATEGIES OF COCA COLA. A mammoth project of this nature calls for intellectual nourishment, professional help and encouragement from many people. We are highly thankful to all of them for their help and encouragement. We wish to acknowledge our great debt to all of them whose ideas and contribution influenced me to complete the project work. TABLE OF CONTENT 1. TITLE PAGE 2. ACKNOWLEDGEMENT 3. INTRODUCTION 4. INDUSTRY PROFILE 5. COMPANY PROFILE 6. PORTER'S FIVE FORCES 7. PEST ANALYSIS 8. RESEARCH OBJECTIVES & METHODOLOGY 9. REVIEW OF LITERATURE 10. PRIMARY FINDINGS & ANALYSIS 11. CONCLUSION & RECOMMENDATION 12. BIBLIOGRAPHY 13. ANNEXURE INTRODUCTION This project is focused on studying the various marketing strategies of Coca-Cola and the scenario of Indian soft drink industry in the 1990’s. Coca-Cola Co., the global soft...
Words: 13697 - Pages: 55
.................................................14 V. References……………………………………………………………………………15 iii. List of Charts/Figures/etc 1. Introduction Product management is whereby an organization is able to define, develop, deploy and at the same time maintain the organizations’ products and services. These roles are basically to be able to deliver more value as to compare to the organizations’ competitors. Besides that, the product management is able to help build more sustainable competitive advantages towards their competitors. Obviously this will create more advantage for the organization as it will bring more benefits in terms of profit towards the organizations’ business. (Brainmates, 2010) On the year of 1985, New Coke that was reformulated by the original classic Coca-Cola was introduced to the market. The Coca-Cola Company initially wanted to replace their existing...
Words: 2667 - Pages: 11
... 14 Goal of coca cola 14 History of Coca Cola 15 Coca Cola in Pakistan 16 Today of coca cola 17 Market Conduction 18 Market Position 19 Organizational Hierarchy 20 Board of directors 21 Financial data 23 Business Portfolio and Growth Strategies of Coke Portfolio 24 Portfolio analysis 27 SWOT analysis 29 Five forces applied on coca cola 32(a,b) Growth strategy 33 Marketing Environments Microenvironment 36 Macro environment 40 Competitive environment...
Words: 10116 - Pages: 41
...Cola Wars Continue: Coke and Pepsi in 2010 Table of Contents 1 Overview 2 General environmental analysis 3 Industry Analysis 3.1 Industry Structure - U.S. soft drink market share of concentrate producers - Suppliers within the carbonated soft drink industry 3.2 Market Structure - U.S. Liquid Consumption Trend (gallons/capita) - U.S. non-alcoholic refreshment beverage volume 2009 - U.S. soft drink market share – soft drink brands 3.3 Marketing Channels 3.4 Porter’s five forces 4 5 4 2 2 2 2 4 Competitive / corporate strategies of Coke and Pepsi 5 SWOT Analysis 6 Questions 6.1 How has the competition between Coke and Pepsi affected the industry’s profit? 6.2 If it has been such a profitable industry, why have so few firms successfully entered this business over the last century? What are the barriers? Why have Coke and been so successful in launching their products? 6.3 Why, historically, has the soft drink industry been so profitable? 6.4 Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? 6.5 How can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-CSDs? 7 9 11 Exam Case Study Cola Wars Continue: Coke and Pepsi in 2010 1 Overview (Power Point Page (PPP) 2) For more than a century, Coke and Pepsi compete for market share within the world’s beverage market. The most intense battles were fought over the $74 billion carbonated soft drink (CSD)...
Words: 5606 - Pages: 23
...On Pepsi Cola International Nau-Bahar Bottling Company, Gujranwala Submitted To: HR Executive Mr. Basharat Zia Submitted By: Afnan Umar Khan Kashif Mahmood Salman Dar Syed Sajjad Haider Date of Submission: University of the Punjab, Gujranwala Campus University of the Punjab, Gujranwala Campus Lahore School of Economics, Lahore Baha-ud-Din Zikriya University, Multan 28.08.2010 NBC, 38 S.I Gujranwala, Pakistan. University Of the Punjab, Gujranwala Campus Page 1 Internship Report On NBC Introduction to Report This report is about Pepsi CO. (Nau-Bahar Bottling Company). This report is the part of my B.Com(Hons) degree which is compulsory for us to complete internship in any organization. The purpose of this internship is to provide an opportunity to the students to observe the practical applications of their background professional study. In this report I¶ve given the brief history of the Pepsi CO. and about Nau-Bahar Bottling Company, departments of the NBC, their functions and working of the some departments as well. I also include work done by me in NBC and Financial Analysis of the PEPSI CO and SWOT analysis of the NBC. And finally give the recommendations about the working of NBC. University Of the Punjab, Gujranwala Campus Page 2 Internship Report On NBC A brief History of Pepsi Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention of Caleb Bradham (left), a pharmacist and drugstore owner in New Bern...
Words: 18041 - Pages: 73
...I. Introduction Coca-Cola and Pepsi have been competitors for over a century, but their fiercest competition has risen out of the fight to gain an advantage in the carbonated soft drink (CSD) industry, specifically in the United States. In the beginning, the competition yielded benefits for both firms. They were constantly trying to keep up with the other, which proved to be a mutually beneficial relationship. However, following the end of the millennium, US CSD consumption began to decline. By 2009, Americans were consuming CSDs at the lowest rates since 1989. During this decline, Coca-Cola struggled operationally and Pepsi attempted forays into new products and new markets. Forging ahead into the 21st century, both Coca-Cola and Pepsi faced the problems of sustaining growth and profitability in a declining CSD market and the challenges associated with non-CSD products. The ever-famous Coca-Cola formula was created by John Pemberton in 1886 and was marketing as a “potion for mental and physical disorders.” It was acquired in 1891 by Asa Candler and with marketing help, grew enough to grant a bottling franchise in 1899. Candler thought the company would perform better in fountains than bottles. Candler sold the company to investors in 1919, the same year Coca-Cola went public. Robert Woodruff took the reigns as CEO in 1923. He not only oversaw the pioneering of many technical innovations that would become critical to the CSD industry, but he also introduced the “lifestyle”...
Words: 3914 - Pages: 16
