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Cola Wars - Essay Example

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The paper "Cola Wars" describes Coca-Cola and Pepsi cola are the leading organizations in the world market for carbonated soft drinks. Strong competition between Pepsi and Coca-Cola has been in the soft drink industry for more than a century. As the competition becomes stiff, creativity…
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Cola Wars
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Download file to see previous pages Coca-Cola intensified its marketing effort from 74 million dollars to 1818 million dollars in a span of 4 years (1980-1984). Pepsi, on the other hand, also intensified its advertising from 66 million dollars to 125 million dollars during the same period. Another change in management style is the introduction of new products. Coca-Cola introduced eleven new products and Pepsi introduced thirteen new products. The two also increased their types of packaging sizes and they offered more than ten major brands. Another change in management of the two bodies is seen in the two venturing into new business areas, for instance, Coca-Cola has expanded to North America, Europe, and Asia. The Pepsi challenge in Dallas saw Pepsi eroding coke’s market, this in turn had Coca-Cola obtaining flexibility by having the franchising bottle contract approved and this boosted it past Pepsi maintaining the lead (Yoffie, 2004). There have been changes in the carbonated soft drink environment. For instance, the growth rate of the market size was predicted to decelerate. This is due to the cropping up of other non-alcoholic sectors: coffee, tea, energy drinks, bottled water, and sports drinks. This has caused market prices stagnation. Growth rate is decelerating due to the saturation of the market. This has made the soft drink companies look for alternative markets like bottled water, sports drinks, snacks and confections. Looking at the financial statements of the two bodies, it is clear the industry competition is high but the growth is stunted. Expanding of product lines have although kept their quick ratios inside a reasonable range. The sales and income trend is seen to be stagnant. Varying societal alarms, attitudes,...
There have been changes in the carbonated soft drink environment. The growth rate of the market size was predicted to decelerate. This is due to the cropping up of other non-alcoholic sectors: coffee, tea, energy drinks, bottled water, and sports drinks. This has caused market prices stagnation. The growth rate is decelerating due to the saturation of the market. This has made the soft drink companies look for alternative markets like bottled water, sports drinks, snacks, and confections. Looking at the financial statements of the two bodies, it is clear the industry competition is high but the growth is stunted. Expanding of product lines have although kept their quick ratios inside a reasonable range. The sales and income trend is seen to be stagnant. Varying societal alarms, attitudes, and lifestyles are significant trends that are affecting the industry. Individuals are becoming more cognizant of their health - rise in obesity, not active lifestyles are a potential threat to the industry. Much of the success of these two companies can be attributed to them having an attitude that is progressive to the current competitive environment. In addition, their ability to adapt new technologies in production, packaging, and distribution gives them the opportunity to cater to the needs of the consumers more precisely and immediately than before. They do this in a way that they can still keep up with the market that is changing and the changing trends and maintain the capability to fine-tune with the changing market. ...Download file to see next pagesRead More
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