...For their target market and any new product entering a saturated market, the pricing should be low if not the cheapest product out in the market. It should cater for customers who value pricing in choosing their products. The pricing should appeal to their target market and help create a young and hip image. This structure should accomplish the goal of attaining a sizable amount of the market share and stay profitable at the same time. It should convey the message that their product has a higher quality than the other options available in the market, and it should be priced that it is not the most expensive, so more consumers could afford it. This pricing structure will create the air about the product as being the new hip product to have which this generation wants the latest products that will make them look cool or good. The case presents 3 different options each one of these provides a unique way Virgin Mobile USA can enter the market and gain a following. However, one option stands apart from the others and fits with what Virgin Mobile is trying to convey. Q3. Virgin Mobile’s targeted market selection of 15-29, if marketed successfully, had the greatest potential for growth since it was the least penetrated. Consumers are often very brand loyal, especially with products or services that take up a larger part of their income. This meant that Virgin Mobile must promote their own products and services, and also concentrate on why they differ from the competition to avoid...
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... : XII-E CBSE ROLL NO. : ACADEMIC YEAR : 2012-2013 TEACHER IN CHARGE : MR. JAMES THOMAS INDEX SL. NO. | TITLE | SOURCE OF THE PROJECT | PAGE NO. | SIGN OF THE TEACHER | 1 | Acknowledgement | - | | | 2 | Brand RivalryAn INTRODUCTION | www.wikipedia.org | | | 3 | PepsiAn Introduction | www.wikipedia.org | | | 4 | Pepsi the history | www.wikipedia.orgwww.pepsiarabia.com | | | 5 | Products Of Pepsi | www.wikipedia.org | | | 6 | Coca-Cola An Introduction | www.wikipedia.org | | | 7 | Coca-Colathe history | www.cocacola.com | | | 8 | Products Of Coca-Cola | www.wikipedia.org | | | 9 | Pepsi Vs Coca-Cola A Comparison | www.versus.com | | | 10 | Pepsi Vs Coca-Cola THE COLA WAR | www.slideshare.netwww.scribd.com | | | 11 | Pepsi Vs Coca-Cola Which Cola brand is the Better Investment? | - | | | 12 | Pepsi Vs Coca-Cola PRESENCE IN INDIA | www.infobarrel.com | | | 13 | Pepsi Vs Coca-Cola Marketing | www.google.com | | | 14 | Pepsi Vs Coca-Cola Advertising Strategies | www.google.com | | | 15 | Pepsi Vs Coca-Cola Conclusion | - | | | 16 | BIBLIOGRAPHY | - | | | ACKNOWLEDGEMENT I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I thank my God for providing me with everything that I required in completing this...
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...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 drink industry leader controlled Indian soft drink industry till 1977. Then Janta Party beats the Congress Party and the Central Government was changed. This change brought problems for Coca-Cola principle bottler, who was a big supporter of Gandhi Family. Now Janta Party government demanded that Coca-Cola should transfer its syrup formula to an India subsidiary (Chakravarty, 43). Because of...
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...Managerial Economics Coke vs. Pepsi: An Economic Analysis Rebecca Simmons Managerial Economics Dr Sol Drescher December 4, 2012 Executive Summary In this case study we will do an economic analysis of two major competitors; Coke® and Pepsi®. We will look at the history of these to competitive giants and discuss how they have evolved over the years to become rivals in the 21st Century. In this case study we will also look at the supply and demand of each company’s products. Coke and Pepsi are not only in the beverage business they have branched out into other arenas to continue being the leaders in their market. Both companies do business all over the world; we will also look at how they size up internationally as well as nationally. We will look at production and cost in the short run and long run by analyzing each company economically. Each company has foreta where they will be financially in the 21st Century and in this analysis we will calculate if they have forecasted close to where they are today. Management is a big part of the success of large firms such as Coke and Pepsi so we will look at the management styles of each one. By looking at management will analyze the strategic decision making of each firm and note any issues they have had in the past or present with upper management. Finally strategic decisions in oligopoly markets with regards to profit maximization is vital to the...
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...Continue: Coke vs. Pepsi in the Twenty-First Century The Soft Drink industry has been assigned as the vehicle for tackling the topic of industry analysis and competitive dynamics. The case covers developments in the soft drink industry through 1993. It describes how the industry evolved into its current structure largely following Coca-Cola’s leadership. What is particularly interesting is determining why the major competitors in the industry have been able to earn above normal returns for close to 100 years, and why the industry is organized the way it is. The case allows us to analyze how the actions and reactions of competitors over time work to create their own industry structure. The case also allows us to examine how prior strategic commitments to particular strategies create competitive positions, which in turn constrain the future competitive moves of firms. Since competitive positioning determines a firm’s long-run performance, we need to thoroughly grasp the essentials of what makes some competitive positions and competitive strategies more viable, and others not, and why. Case Analysis of Cola Wars Continue: Coke vs. Pepsi in the Twenty-First Century 1. Why has the soft drink industry been so profitable? a. Since 1970 consumption grew by an average of 3% b. From 1975 to 1995 both Coke and Pepsi achieve average annual growth of around 10% c. American’s drank more soda than any other beverage d. Head-to-Head Competition between both Coke and Pepsi reinforced...
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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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...Coke Vs. Pepsi As brands and markets go through different stages in their life cycles, advertising keeps pace and goes through transformation in concept and execution elements. By Rohantha N.A. Athukorala As we can see advertising is the coin that is played by companies to implement their strategy in focus and whether they are brand focused or market share focused. Analyzing their numbers gives us a clear view of it. Coca Cola company and Pepsico are the world’s two largest soft drinks companies. They were in neck to neck competition to capture each other’s market share and no 1 position. However, Coke managed to retain the position throughout though in certain regions Pepsi was able to overtake coke such as in India. Each came with new strategies to put down other’s strategy. In recent past there has been pressure in the carbonated drink market from a strong health and well being movement. At Pepsi the CEO Nooyi decided to add more of its advertising budget towards snack business to keep the company healthy while the flagship soda business was in decline. Pepsi's marketing budget was almost halved from 2005 to 2010, as Nooyi tried to grow the healthy foods and snack businesses. On the other hand Coca Cola has responded to this by creating two sub brands which are variations of the original product but with 0% sugar. In 2009 brand value of Coke increased by 6.5% while sales and profit increase by 13.3% and 12.7% respectively. This was achieved with the increase of...
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...Background For over a century, Coca-Cola and Pepsi- Cola vied for “throat share” of the world’s beverage market. In a “ carefully-waged competitive struggle”, from 1975 to 1995, both Coke and Pepsi achieved annual growth of around 10%; this was largely attributed to the effectiveness of their marketing efforts. Analyzing the environment and understanding the market Instead of engaging in a “head-on confrontation” and getting involved in the largely dreaded price wars that promise to inflict much impact on the financials of both parties, both companies would always select customers that it can serve well and profitably. For instance, Pepsi “[is] going after the younger consumer… where the profits are”. This is an illustration of concentrated marketing, which has been Pepsi’s strategy since 1970s. It allowed Pepsi to gain a better foothold against Coca-Cola, the market giant, and eventually grew into a stronger competitor. Till now, Pepsi still practices demographic segmentation where it divides the market into smaller groups of customers in accordance to their age. They then targeted the niche group, youths or Generation X, whom Pepsi has always believe that it is the group with better segment structural attractiveness. Teenagers have distinct and unique behaviors such as “purchasing a single-serve product at a convenience store like 7-11”, thus when Pepsi offers such convenience services, it has created a loyal base of young customer who are the largest consumer market...
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...« Previous Post - Next Post » Coke vs. Pepsi The Dilemma: You’re at a restaurant. You’ve specifically asked for a Coke when you get handed a Pepsi, or vice versa. You tell the waiter what you requested, and he gives you the “What’s the difference?” shrug. Perhaps it’s time you laid it on him. People You Can Impress: “Impressed” probably doesn’t accurately reflect the aforementioned waiter’s likely response. The Quick Trick: If you drink them side by side, Pepsi is the sweeter of the two (which is why people tend to prefer Pepsi in the Pepsi Challenge). The Explanation: Although the fantastic ad campaigns run by both companies would have you think otherwise, the soft drinks’ similarities are pretty striking. For starters, Pepsi and Coke were both the brainchildren of Southern pharmacists. Coca-Cola was invented by Atlantan Dr. John Pemberton in 1886. And yes, there was originally a concentration of cocaine in the soda, but it was reduced to a tiny amount (1/400th of a grain per ounce) by 1902 and removed altogether by 1930. Th e Coca-Cola Company changed hands a few times, and after Prohibition Coca-Cola was sold to the Woodruff family for $25 million. Pepsi, on the other hand, was born a few years after Coke. In 1893, pharmacist Caleb Bradham began experimenting withvarious drink mixtures in New Bern, N.C. His 1898 concoction, then known by the creative name “Brad’s Drink,” became an overnight success, and “Doc” Bradham began selling his “Exhilarating, Invigorating...
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...Mr. ADESH TRIPATHI (AREA MARKETING MANAGER) SUBMITTED BY: Divya Tiwari MBA 3rd SEMESTER 2009-2010 DECELARATION I Divya Tiwari declare that this project report titled “Comparative Survey of Coke vs. Papsi” is an original work done by me under the guidance of Mr. ADESH TIWARI (AREA MARKATING MANAGER). I further declare that it is my original work as a part of my academic course. PLACE: KANPUR DATE: Aug. 16th, 2010 Divya Tiwari INDEX TITLE PAGE AKNOWLEDGEMENT MEANING OF PROJECT INTRODUCTION CHAPTER 1: PROFILES * HISTORY OF THE COMPANY * EARLY GROWTH * WARTIME DEVELOPMENT RECENT DEVELOPMENTS * * POSTWAR GROWTH CHAPTER 2: INDUSTRIAL PROFILE * SOFT DRINK INDUSTRY IN INDIA * COCA-COLA IN INDIA * VISION OF COCA-COLA IN INDIA * MISSION OF THE COCA-COLA IN INDIA CHAPTER 3: PRODUCT PROFILE * SOFT DRINK INDUSTRY IN INDIA * COCA-COLA IN INDIA * VISION OF COCA-COLA IN INDIA * MISSION OF THE COCA-COLA IN INDIA CHAPTER 4: THE COMPETITIVEAREA * THE COMPETITIVE AREA AMONG COKE AND PEPSI * ADVERTISING CHAPTER 5: MARKETING DEPATMENT * MARKETING DEPARTMENT * SALES PROMOTION TECHNIQUES OF COMPANY * CRITERIA FOR PROVIDING FREE CHILLING EQUIPMENTS * S.G.A PROVIDING COMPANIES CHAPTER 6 INTRODUCTION ...
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...Cola Wars Continue Coke vs Pepsi in 2010 Submitted by: Dinesh MR (13141) Submitted to: Prof. NR Govinda Sharma Case Description Carbonated soft drinks (CSD’s) are popular drinks constituting very attractive and profitable business for more than a century. This business is capital intensive and was and still dominated for long period by few giants who had patent rights and who gained very high brand recognition over the years. The competition between Coca Cola and Pepsi was very aggressive and caused the industry profitability to fluctuate up and down. The rivalry in this industry was fatal for small concentrate producers as well as small bottlers and lead to merging and acquisitions that left the industry controlled by big players of huge firms. Since the year 2000, the industry is facing a big challenge with the increase in the popularity of the non-CSD drinks especially with the multiple warnings issued by the health organizations against the carbonated soft drinks. With huge market size in US and worldwide, with few giants existing in the market for more than a century mainly Coca and Pepsi controlled more than 70% total of market share and constituted a duopoly market in this industry, with low product price, with perfect setup of the business, with vertical integration pattern and with the huge marketing campaigns that created strong brand names with high customer loyalty. Analysis through Porter’s Five Forces Model Barriers to Entry Barriers to entering...
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...Customers: 7 Competitors: 9 Climate: 11 Segmentation, Target, Positioning 13 Product Mix 21 Communication 24 Going to market 26 Pricing 27 Coca Cola pricing strategy 28 Coca Cola downgrade due to low cost rivals 29 Price gap blowout 29 Lower prices the answer 30 Profitability 30 Customer Acquisition, Retention and Development 31 Strategies used by companies in the carbonated drinks sector 32 Conclusion 33 References 35 Executive Summary Beverages are divided into 7 different categories - Energy drinks, Juices, Soft drinks, Tea and Coffee, Sports drinks and Water. This report we are concentrating on carbonated beverages. The major players in the carbonated beverage industry are The Coca Cola Company and Pepsi Co. For many years now, the cola soft drink market is led by the Coca-Cola Company and PepsiCo Inc. Besides the cola market, they have expanded their businesses to the other soft drink markets as well and achieved oligopoly positions with tremendous market shares in all of these markets. The following report explores the marketing framework of the carbonated drinks sector. The report performs an analysis of the marketing strategies used by companies to assess market opportunities, choose, design, deliver and communicate customer value and sustain growth and value. Accordingly, the report contains a 5C Analysis, segmentation, targeting and positioning of the market, Marketing Mix and Customer Acquisition, Retention and Development techniques...
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...| Coca-Cola Versus Pepsi | The Coke Wars Financial Analysis | | Accounting 557: Financial Accounting Sumadi, Mohammad | | 12/15/2012 | | Possibly one of the biggest rivals in Corporate America today, the battle between Coca-Cola (KO) and PepsiCo (PEP) continues to baffle not only consumers but investors as well in determining which product is a better buy. While both companies have had recent problems in emerging nations such as India by having their products be condemned for improper ingredients, a shakeup like this might be necessary to promote future growth for possibly undersold equities. Coca-Cola Company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, with world headquarters in Atlanta, Georgia. In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his backyard. The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886.About nine servings of the soft drink were sold each day. Sales for that first year added up to a total of about $50. The funny thing was that it cost John Pemberton over $70 in expanses, so the first year of sales were a loss...
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...COLA WARS: GOING GLOBAL 1. Reading synthesis The Harvard Review article discuss how the 2 most successful cola companies, Coca Cola and Pepsico, had been struggling in the market since they started their operations. The interesting part is how it explained how each one of the companies developed their market in different countries. In this case, it explained the companies history in Mexico, China and India. What I think is more important to understand is that each country has different cultural ideas that affect the companies development among its consumers. For example, in India they had problems with its formula, in China people identify light colored beverages to be healthier and in Mexico first they had price control problems. Another interesting point is that Pepsico has a variety of not only beverages but also their snacks part it’s pretty strong. 2. References: Investigate two references and indicate how they relate to the main argument of the reading. • Andrew Martin, “Does Coke Need A Refill?”; New York Times; May 27 2007; p,C1 The article talks about how Coca Cola’s campaign gets the company to where it is today, they in vested millions on advertising. Also it talks about Coca Cola’s new products and how they achieved even higher sales for the company. IT also explains how the trajectory of Coca Cola made the company that we know today. • “PepsiCo to Spend $1B in China Over Next Four Year,” Yahoo! Finance; November 4...
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...Cola" into the flowing letters which has become the famous logo of today. The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886. Until 1905, the soft drink, marketed as a tonic, contained extracts of cocaine as well as the caffeine-rich kola nut. Until the 1960s, both small town and big city dwellers enjoyed carbonated beverages at the local soda fountain or ice cream saloon. Often housed in the drug store, the soda fountain counter served as a meeting place for people of all ages. Often combined with lunch counters, the soda fountain declined in popularity as commercial ice cream, bottled soft drinks, and fast food restaurants became popular. On April 23, 1985, the trade secret "New Coke" formula was released. Today, products of the Coca Cola Company are consumed at the rate of more than one billion drinks per day. • • • • • Vision Statement (actual) To maintain our reputation as the leading cola company in the world. Mission Statement (actual) Everything we do is inspired by our enduring mission: • • • To Refresh the World... in body, mind, and spirit. To Inspire Moments of Optimism... through our brands and our actions. To Create Value and Make a Difference... everywhere we engage. (proposed) At Coca Cola we believe our main responsibility is providing customers (1) with refreshing beverages including soft...
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