Coca-Cola and Pepsi are the two greatest competitors in the soft drink industry. A brief introduction and history of the two companies will provide a basis for understanding how the companies have come to be where they are today and how they run their companies. The company structure of each will also be briefly explained to provide an understanding of how management style is impacted.
Marketing and Advertising
The marketing skills that these companies possess are the reason both Coca-Cola and Pepsi are so successful. Our research will provide an in-depth look at the marketing tactics that these companies use and how they compare to each other. The use of new technologies, forecasting, advertising, and political environments will all be included when determining what affects the marketing strategies the companies choose to take.
To gain a better understanding of each company, we determined some strengths, weaknesses, opportunities, and threats of each company. Each company has brand recognition on their sides and threats such as foreign, political, and economic situations in countries that Coke and Pepsi are established in. Comparing these aspects of each company will provide a good idea of future successes.
After a detailed look into Pepsi and Coke’s tactics for managing and successfully running their businesses, a summary of how each company manages its resources ties the research together and compares the overall management of the two companies.
The Coca-Cola Company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, with world headquarters in Atlanta, Georgia. Coca-Cola, the Company's flagship brand, and over 230 other soft-drink brands are manufactured and sold by the Coca-Cola Company and its subsidiaries in nearly 200 countries around the world. The Company and its subsidiaries employ nearly 31,000 people around the world. Dr. John Stith Pemberton first introduced Coca-Cola in Atlanta, Georgia in 1886. The pharmacist concocted a caramel-colored syrup in a three-legged brass kettle in his backyard.
The Coca-Cola Company’s operating management structure consists of five geographic groups plus The Minute Maid Company. Other Coke products are: Barq’s Root Beer, Cherry Coke, Powerade, Citra, Mel...
Simao, Paul (2000), SoBe deal may spur Coke into new age drinks—analysts, http://biz.yahoo.com/rf/001101/n1340525.html (accessed 11/2/2000)
Thompson, Mark (1999), Coca-Cola and PepsiCo find their fizz, http://moneycentral.msn.com/articles/invest/sectors/3080.asp?Printer (accessed 11/9/2000)
“When Coke and Pepsi Battle, More than Cola is at Stake”; Kiplinger’s Personal Finance Magazine; Feb 1992
In this essay, the author
Explains that coca-cola and pepsi are the two greatest competitors in the soft drink industry. a brief introduction and history will provide a basis for understanding how the companies have come to be where they are today.
Explains that coca-cola and pepsi's marketing skills are the reason for their success. their research will provide an in-depth look at the marketing tactics that these companies use and how they compare to each other.
Explains coke and pepsi's strengths, weaknesses, opportunities, and threats. comparing these aspects of each company will provide an idea of future successes.
Analyzes how pepsi and coke's tactics for managing and successfully running their businesses tie the research together and compare the overall management of the two companies.
Explains that as internet popularity swells, pepsi and coke continue to make efforts to create effective web sites to advertise their products.
Compares coca-cola and pepsi's sales forecasting methods, stating that both companies use automated systems for time series analysis and bottoms-up sales estimation.
Opines that pepsi's weakness is that it must compete with the most recognized brand name in history, coca-cola.
Explains certo, samuel c., modern management, eighth edition, upper saddle river, new jersey, prentice hall.
Describes enrico, roger, "the other guy blinked, how pepsi won the cola wars" and bantam books, inc.
Explains that law firm chitwood & harley announces class action lawsuit against coca-cola company.
Analyzes how the sobe deal may spur coke into new age drinks—analysts.
Opines that coca-cola and pepsi are at stake when they battle, according to kiplinger’s personal finance magazine.
Describes the coca-cola company as the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups.
Compares coca-cola's "i'd like to buy the world a coke" campaign with that of pepsi.
Analyzes how coca-cola's promise to put a coke in the hands of every american soldier inspired the government to exempt it from sugar rationing. pepsi was left with an inferior reputation and took on the even tougher task of changing its image.
Explains that coca-cola's greatest strength is its brand name, which helps the company when competing with others in the soft drink market.
Explains that douglas ivester created a huge weakness within coca-cola. he took over in 1997 when ceo robert goizueta passed away.
Explains that alternative drink companies like nantucket nectars and arizona beverage co are open to the possibility of making a deal with coke.
Explains that coke lost a deal with sobe to pepsi while waiting for bank negotiations. this loss could cause the company to lose some of its competitive edge against its biggest competitor.
Explains that pepsi's brand name is a key asset for the company, as it focuses on profit, growth, and market share. the company is informal and entrepreneurial with an open work environment that respects personal and professional growth.
Explains that pepsi supports global expansion because it produces more revenue, recognition, opportunity, and keeps the brand young. the environment plays a crucial role in the way that it views in light preservation and responsibility.
Explains that pepsi's biggest competitor is the coca-cola company. coke was considered a cash cow and many imitators were trying to cash in on this opportunity.
Explains that coca-cola is a 100-year-old soft drink that started out as anything but soft, but it evolved into an experience that captured the spirit of america.
Coca-Cola has been around for generations with the same iconic taste, logo and symbolism. Its brand has represented family and the memories of good times, celebrations and comfort of being with those we love. Unfortunately, the company has not made good marketing decisions in the recent past and has lost relevancy. The purpose of this essay is to assess the conditions that created Coca-Colas marketing problems, evaluate the future of healthy beverages and non-carb drink brand extensions, and provide recommendations to the management.
In this essay, the author
Explains that coca-cola has been around for generations with the same iconic taste, logo and symbolism. however, the company has not made good marketing decisions in the recent past and has lost relevancy.
Explains that coca-cola company began its legacy in 1886 when dr. john pemberton created the patented coca - cola syrup for sale in fountain drinks. today, it is one of the world's largest and leading manufacturers of beverages.
Explains that mary minnick believes there are 10 primal "need states" that all consumers have, including mental renewal, health and beauty, and hunger and digestion.
Opines that coca-cola's decline shows better marketing decisions and a strong relevant marketing of the brand is necessary.
Cites martin lindstrom's buyology: truth and lies about why we buy.
Explains that coca-cola's marketing and opportunities are expansive, and that the company needs innovation and an excellent marketing strategy to exceed previous sales and profits.
Explains that market development is exploring new markets for the products you are already selling. coca-cola has succeeded in focusing on brand image, customer retention, and adding social and ethical benefits to every bottle they sell.
Explains that coca-cola is vulnerable to the drop in consumer's purchase of carbonated drinks. the company has launched 18 clinical trials to test the health benefits of different new ingredients.
Analyzes how coca-cola's non-carb strategy will be the backbone of its innovations.
Compares coca-cola's performance against its primary competitor pepsico.
Analyzes how ad campaigns are more accessible to young people, based on their lifestyles and lifestyle. coca-cola needs to find that simplified message and take it directly to the core of its desired segmentation.
Cites cravens, d. w., & piercy, n. f. (2009). strategic marketing (9th ed.). boston: mcgraw-hill.
The history of Coca Cola began in 1886 when Dr. John S Pemberton, an Atlanta pharmacist created a tasty soft drink which could sell at soda fountains. Since then, Coca Cola grew to be a global brand and touched great heights. Today, it sells across 200 countries and is just as popular across all the markets and nations. The company today, owns or licenses and markets more than 500 non alcoholic beverage brands. The brand has only few major competitors in the global market. The daily servings of coca cola are estimated to be at 1.9 billion globally. (Coca-Colahellenic, n.d.) This is just another proof of the popularity of the brand which has a very large and diversified product portfolio also. The mission of coca cola is ‘to refresh the world, to inspire moments of optimism and happiness and create value and make a difference’.
In this essay, the author
Explains that coca cola's history began in 1886 when dr. john s pemberton, an atlanta pharmacist created a tasty soft drink which could sell at soda fountains. the company owns or licenses and markets more than 500 non alcoholic beverage brands.
Explains that robbins, s., and coulter, m. (2014). management (12th ed.). upper saddle river, nj: pearson education, inc.
Explains that coca cola's diverse product portfolio drives its popularity and profitability. it is highly susceptible to negative publicity and is seen as a major cause of obesity.
Cites martin, a., and mesler, l. (2013). groups blame coca-cola for childhood obesity.
For more than a century now, two major companies of soft drinks Coca-Cola and PepsiCo have been battling. Both companies have very long history in inventing, advertising, and selling their soft drinks.
In this essay, the author
Explains that coca-cola and pepsico have a lot of comparing between them. prices, new flavors, marketing campaigns, television advertisements, and celebrities have played important roles in each cola’s popularity.
Explains that pepsi cola contains more calories, caffeine, and sugar, which makes it sweeter than coke.
Opines that coca-cola vs. pepsi: the story behind the never-ending ‘coke wars’. business insider inc.
Explains the history of coca-cola and pepsico. both companies have a long history in inventing, advertising, and selling their drinks.
Opines that the coca-cola wars are finally over. martin, jeff, mertz, richard, and lubin, gus.
The Coca-Cola Company is the world’s largest beverage Company. The firm has grown quickly becoming a real empire, which owns or licences more
In this essay, the author
Explains that the coca-cola company is an american multinational company operating in the beverage industry as manufacturer, retailler, and marketer of nonalcoholic beverage concentrates and syrups.
Explains that the coca-cola company is the world's largest beverage company, which owns or licences more than 500 brands in 200 different countries, employs 146,200 workers, and sells approximately 1.7 billion units each day.
Explains that the coca-cola company's stock is referenced on the new york stock exchange and is part of the dow jones industrial average, the s&p 500 index, and the rusell 1000 index.
Explains that coca cola company must gain a competitive advantage against other companies operating in the same industry. the company has put various strategies in order to be competition oriented.
Explains the coca-cola value chain, which includes inbound logistics, operations, outbound logistic, marketing and sales, and service.
Explains that coca-cola company has a strong brand portfolio offering highly differentiated products of more than 400 brands in order to target broader customers.
Analyzes how coca cola's porters 5 forces deal with threats of new entrants, substitute products, bargaining power, and rivalry among existing firms.
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
In this essay, the author
Explains that color is not just a visual element; it has psychological effects and can trigger different feelings in the human body and mind of thought.
Compares coca-cola and pepsi's profits and market cap. coke owns 35 different brands, compared to the two rivals.
Opines that debates will continue over which soda taste the best, which brand looks best and which one will compete to bring more income between the two sodas.
Compares pepsi and coca-cola in terms of flavor, color, graphic design, and how coke makes more money.
Yoffie, D. B., 2002. Cola Wars Continue: Coke and Pepsi in the Twenty-First Century. HBS No 9-702-442. Boston, MA: Harvard Business School Publishing.
In this essay, the author
Opines that campio's informal market research was not misguided, as there was a market gap that his business plan could easily fill. he lacked the cultural awareness needed to complement his superior technical and culinary skills.
Explains that culture is a pertinent issue in the management arena and has been defined in various ways. it is defined as expectation and belief patterns shared by members of an organization.
Opines that organizations and managers should understand their strengths and areas that need improvement so as to manage culturally diversified workforce. an understanding of culture will help business and individuals adjust to new environment and/or conditions, reduce risk, encourage innovation and capitalize on opportunities.
Explains that the tmc group defines national/societal culture as the first level of culture in their model.
Explains that tom brown's restaurant group has shown an appreciation of national culture by incorporating their british style with chinese flavours. glocalization is termed coined from globalization and localization.
Analyzes how globalisation has standardised people, making people from less developed countries desire the culture of the western countries and in the process trying to adopt them.
Explains that the cultural oriented approach suggested by the tmc group emphasizes the importance of understanding and consequently addressing issue of culture from an individual level.
Explains that the compio was affected by western superiority complex, belittling anything that he does not understand. eurocentric is the practice of viewing and judging others based on european beliefs and culture.
Analyzes how compio quickly wrote off the cuisines in hong kong as unauthentic, indicating either eurocentric or ethnocentrism had affected him to an important.
Explains that team culture is another level of culture as defined by tmc group (2009) cultural orientation approach framework, that appear relevant to the case of la napoli.
Analyzes how la napoli's poor leadership practices resulted in a lack of effective team culture.
Concludes that the main cultural problem facing la napoli is management lack of understanding and/or appreciating the impact of culture on an organization.
Analyzes how management style influences perception and attitude towards leadership and management styles. leaders should possess high level of cultural understanding to establish what is expected of them by consumers, subordinates, governments and other stake holders.
Analyzes how j magretta's perspective of management is that it involves something greater than individual business leaders and should be addressed on wider cultural context.
Recommends improving the cultural competence of the current and any incoming management team through a well-designed cultural training program.
Opines that a well-designed training program will increase managers' knowledge, help them develop new skills, adjust their personal behaviour to the best and ambitiously change their attitude.
Opines that implementing such a program would require extra-effort that might put extra demand pressure on the target trainees and the organization at large.
Explains how the target trainees and the board will be influenced to convince them that the training program is the best strategic direction to be undertaken.
Cites busrton, j., and mckay, l. in composite strategy: the combination of collaboration and competition.
Describes the case studies of german companies in iran, india, and china.
Explains kats, shapiro, and merrett's principles of effective strategic marketing.
Summarizes mok, dai, x., and yeung, g. 2002. an internalization approach to joint ventures: the case of coca-cola in china.
Coca-Cola Company is the leading soft drink and beverage company across the globe that has constantly achieved tremendous success and profitability throughout its operations. The company’s success and profitability throughout the years can be attributed to effective management strategies of its business operations. This has contributed to a strong reputation that has not only attracted a huge customer base but also resulted in enhanced performance. The success and profitability can also be attributed to diversification of its products and provision of excellent customer service. However, the company has experienced significant challenges in the recent past that has forced its former executive to
In this essay, the author
Explains that coca-cola company's success and profitability can be attributed to effective management strategies of its business operations. however, the company has experienced significant challenges in the recent past that forced its former executive to come out of retirement to become the chief executive.
Explains that coca-cola's non-carbonated drinks strategy was influenced by consumers' increased awareness of health and nutrition.
Explains that marketers and researchers must identify marketing problems and opportunities before developing marketing strategies and objectives. marketing problems are issues or factors that hinder the success and profitability of a company.
Explains that coca-cola's marketing and innovation strategy for transformation is based on consumers' shift towards healthy and nutritious products rather than sodas.
Explains that coca-cola's product strategy of developing healthy beverages is influenced by the need to meet the changing tastes and preferences of consumers towards alternative beverages.
Explains that mary minnick, the head of coca-cola's strategy, marketing, and innovation, expressed dissatisfaction with the company’s business operations during the turbulent times.
In the early 1890s, a pharmacist named Caleb Bradham concocted a recipe dubbed “Brad’s Drink” consisting of sugars, carbonated water, rare oils, and a caffeine containing nut called kola. In 1898 the drink was named Pepsi-Cola, incorporated in North Carolina by 1902 and the formula patented by 1903. After two decades of expanding business, Pepsi-Cola declared for bankruptcy and was sold to Roy Megargel forming the Pepsi-Cola Corporation. Less than a decade later Pepsi-Cola declared bankruptcy for a second time.
In this essay, the author
Describes how a pharmacist named caleb bradham concocted pepsi-cola, which was incorporated in north carolina in 1898 and patented in 1903. charles guth, who supplied the syrup, purchased the company from roy megargel.
Explains how pepsi merged with frito-lay in the 1960s, expanded its horizons by penetrating the soviet union, and acquired pizza hut and taco bell.
Explains that pepsi has expanded operations to latin america, africa, middle east, europe, asia, and has invested in research and development centers in china, germany and mexico.
Explains that pepsi is not just a soft drink company as they initially thought. they do well in balancing its mix of net revenue.
Cola Wars Environmental Analysis
External environmental analysis of US carbonated soft drink (CSD) industry allows concluding that declining CSD sales call for changes in industry operations whereby market players can benefit from the fundamental shift in the industry development and maintain its leadership positions in beverage market. Analyses of macrolevel, industry, and competitive environments suggest that expansion, strong brand recognition, and changes in value chain will be key success factors in the future industry development.
2. External environmental analysis
a. Macrolevel environment (PESTEL analysis)
In this essay, the author
Concludes that declining csd sales call for changes in industry operations whereby market players can benefit from the fundamental shift in the industry development and maintain its leadership positions in beverage market.
States that new federal nutrition guidelines identified csd as the largest source of obesity-causing sugars in the american diet. schools throughout the us banned the sale of soft drinks.
Explains that people can afford to buy more soft drinks under current economic situation. recessions do not seem to affect sales of csd.
Explains that media and advertising can create a strong brand presence and distinctive image of csd that appeals to particular social/age groups. consumers influence the market with their changing needs and wants.
Explains that the cost of developing new products and technologies is relatively low, but the costs of opening new bottling plants are very high. competition forces coca-cola company to innovate and develop technologies that help to keep prices from growing while maintaining high margins.
Explains that obesity and health concerns were identified as a number one risk factor that resulted from soft drinks consumption.
Explains that new and emerging markets provide opportunities for expansion and increase of market share that will allow to outperform other brands. new domestic regulations reflect concerns about public health recognized csd as harmful beverages.
Explains that the level of rivalry is high both in domestic us market since the number of csd producers has fallen from 2000 to 300 from 1970 till 2009. lower price points play a significant difference in marketing of nearly identical products.
Explains that the threat of new entrants is low in domestic us market due to high costs associated with entering the industry and high level of competition among existing brands.
Explains that coca-cola relies heavily on promotions and advertising because the market has a large variety of drinks to offer instead of coke and other company’s soft drinks.
Explains that the relative power of buyers is very high in the csd industry. bottlers can influence the price of the products and retailers who maintain economies of scale.
Explains the relative power of suppliers on coca-cola’s operation is relatively low and becoming lower for few reasons.
Explains that csd producers created strong brand presence and brand loyalty through promotions and creating a brand image that consumers want to associate with. big brands expanded and drove sales higher for decades.
Explains that levels of rivalry, the threat of substitute, and relative power of buyers are the forces that reach ‘driving force’ status.
Explains that key success factors in the industry are strong brand presence, maintaining customer loyalty, exploring new markets and distribution channels, and offering a diversified product line. strong competition and dependence of company’s behavior and marketing strategies on competitors’ behavior.
Explains that the us carbonated soft drink industry consists of 300 brands, including coca-cola, pepsico, dr pepper, cott corporation, royal crown, nestle waters, and other national and regional producers.
As we all should know, PepsiCo is one of the world’s leader in convenient food and beverages. PepsiCo shares are traded worldwide and particularly in NYSE (United States). PepsiCo is in the same line with Coca cola and Cadbury Schweppes as the dominating beverage companies. PepsiCo has successfully built a great brand name rivaling with coca cola, probably because PepsiCo unlike coca cola has its own bottling companies. With a competitive strategy based on differentiation rather than cost leadership like its fellow competitors PepsiCo invests highly in new packaging, flavors, formulas to outsmart their competition. Founded in 1919, producing a variety of sweet and grain-based snacks, carbonated and non-carbonated
In this essay, the author
Defines business analysis as a practice of enabling change in an organization setting, by defining needs and recommending solutions that deliver value to stakeholders.
Explains that pepsico is one of the world's leader in convenient food and beverages and is in the same line with coca cola and cadbury schweppes as the dominating beverage companies.
Explains that business analysis has had a great impact on pepsi co., especially as the company continues to register and increase growth as it expands to overseas countries.
Explains that pepsi co. has been able to manufacture new brands of beverages by enhancing its competitiveness in the beverage industry.
Explains that business analysis has helped pepsi co make various business decisions faster and way more efficiently. coordination and productivity have been promoted and greatly enhanced.
Explains that apple inc. is one of the world's most innovative companies in the field of mobile communication as well as technology.
Explains that apple has its own weaknesses, such as incompatibility with other operating systems, lack of product breath, and offerings at different price points. apple is a monopoly because of its business strategy.