Coke Vs Pepsi Essay

As per the 2009 comparative cost of the United States concentrate producer and the bottler, the concentrate producers have a net income value of 32% as compared to the bottlers who have a net income of just 8 percent. In the case of the concentrate, the cost of goods sold is $0.22 and for the bottlers, the cost of goods sold is $2.67. The concentrate producers are concerned with blending the raw materials as well as ingredients and packaging the mixture together with shipping them to the bottling company. The main difference between the concentrate business and the bottlers is the added value (Yoffie & Kim, 2011). The greatest source of added value for the concentrate business is the proprietary branded commodity. Coke has for so long protected its recipe as a trade secret and has even moved to greater heights just to deter others from learning its product formula. The concentrate companies have a complicated strategic as well as operational management practice. The bottlers have less added value; they lack branded product as well as unique formulas. Their source of added value

Although consumers still take the carbonated soft drinks, it is better that both the companies stick to the move of producing the non-carbonated soft drinks to curb the issues between the carbonated soft drinks and the health issues like obesity as well as nutrition. Expanding the product mix will also ensure that the Coke and Pepsi companies make so much money (Yoffie & Kim, 2011). It includes the production of diet sodas which has been shown to rise and capture 30 percent of the carbonated soft drinks in 2009. They should also adapt and implement the strategy of producing energy together with sports drinks which have proved to offer better margins as compared to the carbonated soft drinks because these are brands which are seen to command prices hence the companies will make so much