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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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.
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“Cola Wars Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.org/management/1441168-cola-wars.
The company intends to be a great place to work for its employees and at the same time be a highly effective, lean and fast-moving organization. Coca-Cola strives to maintain lasting relationships with its suppliers and customers. As a responsible citizen of the society, the company works for the betterment of the communities that it operates in.
About 30 years ago, the company was the sole maker of soft drinks worldwide although some small companies existed. However, the company’s competitive advantage has been greatly diminished with the advent of the Cola Wars in which Pepsi-Cola was involved.
The economics and profile of the US carbonated soft drinks (CSD) industry was initially presented, prior to delving into the evolution of the US soft drink industry, where the cola wars started and transcended through diverse time periods. With new challenges that emerged in the late 1990s, Coke and Pepsi’s struggles to adapt to the changing environment and competitive pressures were expounded to finally seek the paths available to both institutions in the CSD industry.
The author states that in most countries, famous celebrities including film stars have been used as brand ambassadors for Coke. These endorsements have created a strong bondage between the product and its users. In most of its ads, Coke has made effective use of music and catchy jingles to promote the product to its target market.
("Make Every Drop Count", 2006) The Energy Drinks are featured by higher caffeine content, which could keep people awake even when they lack of sleep. Juices/Juices Drinks target at health -conscious consumers. The Soft Drinks segment is further divided into different segments, a wide range of products are offered to fulfill the needs and wants of different consumers, from those on diets to those who look for caffeine-free drinks.
Since non-alcoholic beverages fall within the food category under the FDA, the government plays a dominant role in the manufacture of products like Coca cola by setting out regulations within which the firms have to operate. If these standards are not met the firms are subject to heavy penalties.
ehind Coca-Cola and Pepsi-Cola; the two soft drinks that have defined out lifestyle with Coke being a product of Coca-Cola while Pepsi-Cola is a product of Pepsi.
Coca Cola is the older of the two Colas. In 1886, Dr. John Pemberton produced Coca Cola in his lab while he was in
Suppliers have high bargaining power. Cola’s substitutes are from outside the soft drink industry. There is significant rivalry between the competitors, though the industry is generally dominated by Coca Cola and Pepsi. Coke and PepsiCo have both
However, this is largely due to the lack of innovative product varieties available from other cola producers and limited advertising budgets. This proposal identifies a new type of soft drink, Bubble Up Cola, that allows consumers to create their own flavors with just a drop of a tablet fortified with unique flavor varieties.
With advancements in technology comes a need for improving production efforts as packaging and cycle times become more sophisticated in order to meet customer demand. In 2008, Coca-Cola realized that its policing of coding used for production was insufficient to meet quality and cost expectations
6 Pages(1500 words)Essay
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