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Importance of diversity in organizations
Importance of diversity in organizations
COCA-COLA COMPANY versus PEPSI COMPANY Quenching Their Customers’ Thirst for New Beverages
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With Gatorade being connected with PepsiCo, the top and number one competitor to both, Pepsi and Gatorade, would be Coca-Cola and PowerAde (under Coca-Cola). According to Hoovers, next on the list that would come close to competing with PepsiCo and Coca-Cola would be Mondelez International, Inc. (Hoovers.com). Gatorade is in the “Energy, Sports, Health & Nutritional Drink Manufacturing (primary)” industry (Hoovers.com).
With the two main competitors being with PepsiCo and Coca-Cola in the beverage manufacturing industry and both companies producing multiple products, it is no wonder why they are head to head in almost everything they produce. PepsiCo has their headquarters located in New York (Hoovers.com), with over 274,000 employees totaled for the year of 2013. PepsiCo was founded in 1919 and have their primary industry considered ‘Soft Drink Manufacturing.’ Going back on Hoovers, PepsiCo surpassed $66 billion in 2013 with a net income of $6.74 billion (Hoovers.com). PepsiCo relies heavily on their marketing skills and the ability to advertise their product and make their product the go to for consumers, “To promote its products, PepsiCo uses a combination of sales incentives, discounts, advertising, and other marketing activities. Advertising and other marketing activities totaled $3.7 billion in 2012 vs. $3.5 billion in 2011” (Hoovers.com). On Hoover, it went on further to state what PepsiCo’s strategy is, “Key to PepsiCo's growth strategy is to drive snack brands to new markets as it bolts on new and more nutritious foods categories through small acquisitions and alliances.”
When it comes to Coca-Cola, producer of PowerAde, Hoovers states, their headquarters are located in Georgia and employed 150,900 in the year 20...
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...try of sports beverages, have a low bargaining power. These particular industries of sports beverages have a low bargaining power because of the competition within the industry. Gatorade is not able to charge too much for their product because of their key competitor in PowerAde and opposite with PowerAde not being able to charge too much because of losing their consumer base to Gatorade. The two things that Gatorade and PowerAde have in common are their brands images and the loyalty created too many consumers. So their price strategies do not base completely off one another because they have buyers that will stay loyal to what they believe best works for their body, as well as taste the best and provides the highest recover factor. But, companies do have to be conscious to what their competition is doing to be able to maintain the loyal base they have created.
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.
Coca cola has always dominated the markets outside United States unlike Pepsi’s internationalization strategy that took too long. Therefore, the long-term brand of Coca cola and better pricing strategies would help in competing with Pepsi. Unlike, Pepsi, Coca cola had targeted entering into partnership and alliances with local distributors and firms. This helps to develop strong relationship within the domestic firms to reduce the domestic barriers and thus, enhance the company’s competitiveness (Thabet, 2015). Lastly, the Asian markets consist of related and supporting industries to the soft drink industry that helps the companies in gaining a strong competitive position in the markets. Based on the competitive advantage of nation’s model, Coca cola has more home based advantages to develop a competitive advantage in relation to other countries on a global
Analysis of the Coca-Cola Company The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of soft-drink concentrates and syrups. The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of soft-drink concentrates and syrups. The Company markets many of the world's top soft drink brands, including Coca-Cola, Diet Coke, Sprite and Fanta. Through the world's largest and most pervasive distribution system, consumers in nearly 200 countries enjoy the Company's products at a rate of more than one billion serving a day.
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.
Through combining beverage, fast-food, and snack-food businesses into one conglomerate, PepsiCo has implemented a strategy that encompasses an excellent opportunity for matching up the different segments value chains, enticing skill transfers, and incurring cost sharing. A great example of a value chain match up that resulted in cost sharing would be the when PepsiCo combined its original carbonated beverage business with other beverage business such as the various juice and tea brands it acquired. These two business share many similarities between value chain activities and were very easy to incorporate into the existing beverage business. Our team also sees a great opportunity for Pepsi to cross-brand market its Frito-Lay products with its beverage product lines, particularly its carbonated beverage segment.
Pepsi and Coca-Cola are both sodas, but they differ in terms of the satisfying flavors, the color and the graphic design that represents their two products, and then how Coke makes more money than Pepsi. With that said, you should have gotten the ideology of what we will go further in discussing about. Everybody loves these two very well-known sodas which can inject caffeine into you, which makes you all jittery in filling you up with an energetic energy. Alright, enough of this, let's go straight in-depth in talking about the two rivals throughout this paper of how Pepsi beats Coke in sales, but Coke is usually ahead when it comes to annual net income (Feigin) or how Pepsi is a sweeter brand compared to Coke, though Coke brand is more valuable
Carbonated soft drinks lead the Soft drink market. In the U.S. the industry is majorly dominated by two companies i.e. Pepsi and Coca-Cola, whereby they dominate about 70% of the carbonated soft drinks market share. It is a high competitive market between these two giants who fight on who will have the majority of the market. Soft drinks have monopolized the industry year after year with their market dominance. The industry has massive economies of scale, large bottling and distribution networks.
Place: PepsiCo uses a global network for distributing its products to consumers. Most PepsiCo products are available at retailers, such as supermarkets, grocery stores, and convenience stores. However, customers can access PepsiCo-licensed merchandise like tumblers and t-shirts through retailers and their websites. Based on this element of the marketing mix, PepsiCo’s places for distributing its products are mostly non-online
The Coca-Cola Company is the largest non-alcoholic beverage company in the world who owns, sells and distributes more than 600 different non-alcoholic beverages in 200 countries and more. “The amount of product Coca-Cola sells equates to 1.9 billion or 3.2% of the total amount of non-alcoholic beverages served worldwide” (Jurevicius, 2017). Additionally, they have a large/dominant market share, enormous brand recognition and a huge advantage in the number of consumers they can reach. Not to mention the Coca-Cola Company also owns other reputable brands such as Sprite, Fanta, Minute Maid and even Powerade to name a few that combine to earn the company, approximately, an additional $1 billion dollars annually. Because Coca-Cola are a huge presence in this industry, the company has the ability to beat out its competitors by underpricing some of its items and can exercise market power over its suppliers. Like Coca-Cola, Snapple has a strong foothold in their diverse brands they offer as well.
PepsiCo's mission listed on their website said as follows: "Our mission is to be the world's premier consumer products company focused on convient foods and beverages. We seek to produce finanical rewards to investors, business partners, and communities in which we operate. And in everything we do, we strive for honesty, fairness, and intergrity." Their mission is done through programs with environmental care, activities that aid the society, and a commitment to build shareholder value. PepsiCo puts significant emphasis on shareholders throughout all aspects of the company.
Competitive Environment i. Market Share Coca-Cola and PepsiCo are the two largest players in the industry, with 43% and 31% of the market share, respectively. ii. Implications Key success factors in the industry are a strong brand presence, maintaining customer loyalty, exploring new markets and distribution channels, as well as offering a diversified product line.
The purpose of this report is to compare financial reports from the two largest soft drink manufacturers in the world. The Pepsi Co. and Coca Cola have been the industry's leaders in their market since the early 1900's. I will use relevant figures to determine profitability, and break down key ratios in profitability, liquidity, and solvency. By breaking down financial statements, and converting them to percentages and ratios, comparisons can be made between competitors regardless of size.
PepsiCo is one of the most recognized names in the snack and beverage industry, with brands like Frito-lay, Gatorade, Tropicana, and Quaker, however, it is best known for its flagship soft drink brand - Pepsi and its rivalry with Coca-Cola. To begin, PepsiCo first caught my Interest in the way it manages its business and markets its products. PepsiCo being a relatively young company compared to its rival Coke, has proven to be a formidable opponent going “head to head” with one of the biggest companies in the world (Coca-Cola). Now, when I notice PepsiCo’s growth, the first thing that came to my mind was that it is thanks to its great marketing campaigns, that Pepsi has grown to become the globally recognized brand that it is today. I also admire PepsiCo because I think the there is a high level of entrepreneurship in the way they acquired smaller brands like Gatorade thereby eliminating their competition before they become competition.
As a leader in the market with a product that has virtually no competition, the price should be slightly higher than current products, yet still be accessible by the target audience. “Structure determines whether limiting price competition is even feasible, while relative position dictates the degree to which a leader can set and enforce limits on price warfare” (Lele, 1992, p.15). When the competition produces a comparable product, pricing should gradually lower to remain competitive.
...e and Pepsi’s already established image as producers of premium product is key to discouraging other companies from entering the soft drink industry. However, as the market in the U.S has leveled off, they should continue to invest globally in marketing and advertising for further profit growth, which will in turn positively influence their well established brands to further increase soft drink sales and profits.