Case 1 Analysis
How has the competition between Coke and Pepsi affected the industry’s profits?
The balance scorecard is a great way to look at the health of a business and an industry. Competition between Coke and Pepsi has gradually increased the industry’s overall market share. In 1886, Coke monopolized the market for seven years until Pepsi arrived in 1893. Pepsi had a rough beginning, but began to gain market share by selling a 12-oz bottle for a nickel in th1920’s. In 1950, Coke regained most of the Carbonated Soft Drink market having 47%, as opposed to Pepsi having 10%. In 1950, Pepsi turned the page by hiring a former Coke employee as their CEO. Pepsi’s new marketing strategy was to “Beat Coke”. In response to Pepsi’s new marketing strategy, Coke developed an advertising campaign that finally acknowledged competitors. Consumer’s main concern is price, quality, performance and service, and time. Coke and Pepsi have tried to meet customer demands by making their product available to the consumer in a number of different outlets and venues. Coke focused on fountain sales, while Pepsi sought out retail stores. The price fluctuated with the economy. Coke and Pepsi fought a battle with pricing and store brand competition. During the “Pepsi Challenge” in the 1970’s, Pepsi was deemed by consumers in Dallas to be the best soda. Coke lost ground during this time, but came back in the 1980’s to go global and shoot past Pepsi in the industry. Performance and service are important to how the consumer views the brand. According to data in the case study most consumers in the US found Coke to have the superior product. In 2000, $7,870,000 in sales for Coke versus only $3,289,000 in sales for Pepsi.
We have established a history and how the customers view each company. The companies know that they have to keep up with the demand of the consumer’s wants and needs. Pepsi and Coke are both able to increase the brand portfolio by acquisition and globalization.
Pepsi and Coke have
The balance scorecard is a great way to look at the health of a business and an industry. Competition between Coke and Pepsi has gradually increased the industry’s overall market share. In 1886, Coke monopolized the market for seven years until Pepsi arrived in 1893. Pepsi had a rough beginning, but began to gain market share by selling a 12-oz bottle for a nickel in th1920’s. In 1950, Coke regained most of the Carbonated Soft Drink market having 47%, as opposed to Pepsi having 10%. In 1950, Pepsi turned the page by hiring a former Coke employee as their CEO. Pepsi’s new marketing strategy was to “Beat Coke”. In response to Pepsi’s new marketing strategy, Coke developed an advertising campaign that finally acknowledged competitors. Consumer’s main concern is price, quality, performance and service, and time. Coke and Pepsi have tried to meet customer demands by making their product available to the consumer in a number of different outlets and venues. Coke focused on fountain sales, while Pepsi sought out retail stores. The price fluctuated with the economy. Coke and Pepsi fought a battle with pricing and store brand competition. During the “Pepsi Challenge” in the 1970’s, Pepsi was deemed by consumers in Dallas to be the best soda. Coke lost ground during this time, but came back in the 1980’s to go global and shoot past Pepsi in the industry. Performance and service are important to how the consumer views the brand. According to data in the case study most consumers in the US found Coke to have the superior product. In 2000, $7,870,000 in sales for Coke versus only $3,289,000 in sales for Pepsi.
We have established a history and how the customers view each company. The companies know that they have to keep up with the demand of the consumer’s wants and needs. Pepsi and Coke are both able to increase the brand portfolio by acquisition and globalization.
Pepsi and Coke have