COLA WARS : COKE AND PEPSI IN THE 21ST CENTURY” INTRODUCTION "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
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competitive 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
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Product and Brand Strategies Cola Wars Continue: Coke and Pepsi in 2010 1. Why, historically, has the soft drink industry been so profitable? Coca Cola was formulated in 1886 by a pharmacist in Atlanta who started to sell it in drug stores as a ‟portion for mental and physical disorders.“ Five years later the Asa Candler acquired the formula for Coca-Cola syrup which was a well-protected secret of the company. He also granted the first bottling franchise which grew qucikly. In the following
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Introduction Company Overview Coca-Cola is the most recognized brand name in the world. Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy the Company’s beverages at a rate of 1.6 billion servings a day. Their product portfolio includes sparkling beverages such as Coca-Cola®, Coke Zero™, Diet Coke®, Sprite® and Fanta®, and still beverages, such as juice and juice drinks, waters, enhanced water, sports and energy drinks, teas, coffees, dairy and
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Historically, the soft drink industry has been profitable for a variety of reasons. The traditionally large share of market for Coca-Cola and Pepsi establishes a large barrier of entry for others to enter the market. This results in an ability to charge higher retails, and thus preserve margin. In addition, both the Coca-Cola Company and Pepsi have franchisee agreements or own their bottlers. This controls access of the distribution network to other beverage companies. Due to the size of these two
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COCA COLA VENDING MACHINES COCA COLA VENDING MACHINES 11/22/2015 Selling coke through interactive vending machine a good or bad idea? From the coke’s perspective, selling through vending machine is a good idea because they have earned higher margins for the firm. This channel has been untouched by the price wars unlike the distribution through supermarket where price wars have lowered the margins considerably. Sales of soft drinks from vending machines have risen steadily over the
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Carolina, United States, in 1893 by Caleb Bradham, who made it at his drugstore where the drink was sold. It was later labeled Pepsi Cola, named after the digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy. In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce
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University July 2014 BUSI 1023 A pharmacist named Caleb Bradham invented Pepsi in 1893, it was originally named “Brad’s Drink”, before changing to it’s widely recognized name Pepsi-Cola, in 1898. Although Pepsi has faced many tough financial times historically, two bankruptcies and three offers to Coca-Cola to purchase the company between 1922-1933, the company has always managed to reinvent itself, and carve out its own market share, and today is not any different. In order for PepsiCo to
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Assignment 1 The Coca Cola Company is a multinational corporation with a portfolio of more than 3,500 beverages, from diet and regular sparkling beverages to still beverages such as 100 percent fruit juices and fruit drinks, waters, sports and energy drinks, teas and coffees, and milk-and soy-based beverages which are sold in stores, restaurants, and vending machines in more than 200 countries. Based on Interbrand's best global brand 2011, Coca-Cola was the world's most valuable brand. Originally
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Cola Wars Continue: Coke and Pepsi in the Twenty-First CenturyI. Case issue: Implications of strategic rivalry on cola industrys structure and performance (See Exhibits 1 & 2 for analysis) A. Implications on structure of cola industry 1. Bottlers have been consolidated by concentrate producers (CP), placing smaller CPs at the mercy of Pepsi and Coca-Colas distribution systems (See Exhibit 3) a. Making it tougher for smaller CPs like Cott Corporation to compete and leaving them open to the threat
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