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Cola wars continue: coke and pepsi in the 21st century summary
Cola wars continue: coke and pepsi in the 21st century summary
Cola Wars Continue: Coke and Pepsi in 2010 case solution
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Our American market when it comes to snack foods and soda have ballooned into a billion dollar business with more choices than there are consumers. The problem is it is only a few different manufacturers who are making all of these different brands and flavors. Throughout the 80’s we had a very entertaining marketing ploy where Pepsi and Coke slugged it out in what was called the cola wars. Although these two soft drink giants have claimed most of this market there are other smaller companies who pop up every now and then with new products and unique marketing strategies. New drinks such as Fanta, Gatorade, and Snapple showed promise only to have them scooped up by Coca-Cola, PepsiCo, and Dr. Pepper respectively which pretty much speaks for itself. Its either be …show more content…
Jones Soda started out with a strong cult following with American youth, especially alternative driven teens who liked specific activates like music and skating. The company sold its product bottle by bottle and offered unique bottles with sent in photos of its customers which targeted a popular marketing strategy which I like to call the “ME” market. By getting its unique flavors out into a more alternative market like Seattle and offering free bottle and other prizes, Jones was able to slowly pick up sales by finding its niche in a specialty soda market. With success comes ambition to grow and I feel like Jones wanted to be more than a specialty item so the company decided it was going to go national and try to compete with the big boys. By doing this the company had to redesign its marketing as well as its products to offer price breaks in bulk sales. To make product placement more common with big box stores Jones had to go from glass bottles to cans and pray on the fact that a lot of consumers had heard of them. It didn’t go well as indeed consumers had heard of the product but that didn’t mean they tried or liked the product. The reasoning behind this marketing and production change
Coca-Cola and PepsiCo, for example, are the leading companies in the soft drink sector highly outselling the competition. With an ‘ever-new-launching’ strategy of actually very little differentiating products they try to touch many different target groups – the ‘size’ itself, makes them ‘main-stream’.
Coca- Cola has always been popular with America and in the 1950s; it became the main soda to drink during the 1950s and also the golden age for the product. One glass of Coca- Cola was only five cents. The soda was a symbol of social status. If you wanted to be refreshed and satisfied, then you have to drink Coca- Cola. Celebrities, actors, athletes, workers, kids and even Santa Claus had to have Coca- Cola in their hand. With the boom of television in households, Coca-Cola became more popular because of the advertisements contain relaxing and being comfortable with the soda in their hand. It became so appealing that Time’s Magazine stated that, “It is simpler, sharper evidence than the Marshall Plan, or a voice ...
Coke continuously out-stands Pepsi, even though they share a very similar taste and colour, however Coke should not be the drink that receives all the love and attention for what it offers. Despite their similar soda colour, the drinks actually contain some different ingredients, which produce a different taste, and affect the body differently. Furthermore, the way the companies markets their drinks makes a huge contribution to how successful their products will become. The major element for success however stems from their impact on society and how the companies utilize their social power to evolve. The two major soda companies are constantly head to head with one another, yet it is what they do that sets them apart.
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten brands sold. Colas are the dominant flavor in the U.S carbonated soft drink industry; however, popularity for flavored soft drinks has grown in recent years. The changing demographics of the U.S population have been an important factor in the growing popularity of these flavored soft drinks. The possible impact of this factor will be addressed later in the case.
They are the ones mixing the syrups together and creating the perfect formula of Coke. These companies are purely just trying to make as much money as they can. They aren’t actively trying to hurt the people but instead make the most profits. By scientifically studying 3,904 different tasting Dr. Pepper batches they were able to create the best tasting soda thus, creating the most profitable soda as well. By barely changing the number of milliliters in a soda can result in the savings of millions of dollars. For instance, “…they could use 1.69 milliliters and achieve the same effect. The potential savings is merely a few percentage points, and it won’t mean much to individual consumers who are counting calories or grams of sugar. But for Dr. Pepper, it adds up to colossal savings….a lot of money. Millions” (265). This quote shows that companies aren’t thinking about how they are going to hook the buyer to their product but rather how can they keep the customer happy and be the most cost effective. Another example of this is with line extensions. After Lunchables notices the potential that arose by offering multiple different versions their sales soared. “Annual sales kept climbing, past $500 million, past $800 million; at last count, including sales in Britain, they were approaching the $1 billion mark” (268). Food giants were putting money into new ideas and new ways to make money and it was paying off. In no way
The “rock and roller cola wars” refers to the battle for supremacy in the market share between the Coca-Cola Company and PepsiCo since the 1980s. Both of the companies hired musicians and celebrities to promote their drinks in TV commercials. Paula Abdul, a 18-year-old girl who is rising to prominence as a highly sought-after choreographer at the height of the music video era, appeared on the face of Coke. While Pepsi had Michael Jackson, who became a dominant figure in popular culture for over four decades.
Control of market share is the key issue in this case study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share.
Additionally, the company employs the use of promotional recreational vehicles that travel to schools and alternative sports and music events across the country. A couple of the option psychographics Jones Soda particularly targets are skate and snowboarders, outside the box music fans, bikers, elective producers – essentially anybody hoping to convey what needs be or herself in an elective way. While this is the gathering Jones Soda basically markets to, its auxiliary market contains 20-34 year olds, once more, particularly focusing on "option" people. This gathering incorporates more pioneers that see drinking Jones as an option explanation that is hip and fun. Jones Soda is keen to target elective young people. The company is often looking the brand of as a deviation of the mainstream - it is becoming increasingly popular. Its brand of beverages is often defining itself in the carbonated soft drink industry as an alternative and new age beverage. In the minds of the public, Jones Soda is certainly an alternative to major soft drinks like Coke and Pepsi and as far as new age goes Jones Soda is a highly unique drink that is for younger, modern, and pop culture oriented consumers. The company see the future in the fields such as, Extreme sports and indie music as a form of mainstream for
Coke and Pepsi have been raging war for over a century now, turning their sodas into a multi-billion-dollar industry. Coke has been able to drive more earnings for its bottom line, and while Coke’s net income has been trending downward in recent years, it manages to stay ahead thanks to superior margins. Pepsi, on the other hand, has produced consistent net profit margins of around 10%, while Coke margins have been in the 15-18% range for the past several years (O’Brien). Every company has a Market Cap, which is basically a fancy way of saying how much the company is worth, and Coca-Cola’s market cap is a whopping $180 billion. Pepsi’s Market Cap is $150 billion, which may not seem like a big difference, but $30 billion is a lot of cheddar. Therefore, Coca-Cola owns 51% of the soft drink market, whereas Pepsi only owns 22% of it. Coke claims to own a total of 35 different brands, including Fanta, Sprite, Powerade, Vitaminwater, and many others. Pepsi owns 22 different brands, including 7up, Gatorade, and Mountain Dew “Coke (Coca-Cola) vs Pepsi - Soda
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
Pepsi Blue was first test-marketed in Bahrain for three reasons: first, the majority of residents drank Pepsi; second, regional marketers and bottlers had already begun re-evaluating the effectiveness of the company's white logo (which didn't work well in their market); and third, the city was a small test market with a tightly controlled sample population. The Pepsi Blue logo, tagline and new marketing materials were rolled out in half the market and its results were highly successful. Purchasers liked the new logo design and the majority believed that the packaging had improved and the taste remained the same. For those who believed that both the taste and packaging were different, the majority enjoyed the "new" taste.
Experimentation with the new market for carbonated beverages on the decline coke has done experiments in new flavors and healthier alternatives to try to stay competitive. As well as investing in “Keurig Green Mountain is a K-Cup maker but has a new Keurig Cold that can deliver Coca-Cola through the new system.” (Cooper, 2014)
COLA WARS Introduction Nice play is a rare word to be found in closest rival competitor companies. Since time in memorial brutal wars have been going on in form of comparative advertisement, these advertisements focuses on comparing the competitors others companies products with their products as well as looking at what the competitor is doing wrong in order to use that as a strength. In most cases the competitor company fires back or in rare cases ignore the rival competitor’s adverts, of such cases is that of Coca-Cola and Pepsi-Cola which its history can be traced back in 1970's. The war intensified from the beginning of year 1980 all the way through to the present, there has existed advertising wars between Coca-Cola and Pepsi Cola Company (Russell, 2012).
Thanks to my fascination with PepsiCo and partly because this is an assignment, I went online and search for some of PepsiCo’s most successful and ongoing marketing campaigns and strategies. During my research I noticed several daring marketing strategies Pepsi employed throughout the years. For example, gaining the support of Michael Jackson in the 1980’s and latest gaining the endorsement of global pop star Beyoncé.
The case study "Cola Wars Continue: Coke and Pepsi in the Twenty-First Century" 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. Furthermore, the case also focuses on the Coke vs. Pepsi products which target similar groups of customers, and how these companies have had and still have great reputation and continue to take risks due to their high capital. This analysis of the Cola Wars Continue case study will focus mainly on the profitability of the industry by carefully considering and analyzing the below questions. Why is the soft drink industry so profitable? Compare the economics of the concentrate business to the bottling business: Why is the profitability so different?