Coke/Pepsi Swot Analysis
Coke
Strengths:
1. In 1993 Coke held a 59% share of the fountain market—using it to promote the brand further. 2. Coke earned a high percentage of its profits in the international market. They established themselves with the help of “ ‘anchor bottlers’—large, committed, and experienced bottling outfits like Norway’s Ringnes and Australia’s Amatil” 3. During WWII Coke was able to establish itself in the European and Asian markets with the help of the government because it was being sold to the American troops in those regions
Weaknesses:
1. Coke’s imagine could not compete with Pepsi’s “Pepsi Generation” campaign because it was perceived as being one of small town and outdated 2. Business relationships with bottlers have not been standardized 3. Carbonated drinks faced completion of “new age” drinks.
Opportunities:
1. Quick response to “new age” beverages with the introduction of PowerAde, Nordic Mist, Tab Clear and its partnership with Nestea. 2. The potential growth of the international market of 7% to 10% per year (Eastern Europe, China India) 3. Overhauling image to target the youth market
Threats:
1. India’s government requesting that the formula be disclosed to them 2. Pepsi’s marketing campaigns like the “Pepsi Challenge” & the “Pepsi Generation” 3. FTC looking into the franchise territory agreements
Pepsi:
Strengths:
1. Aggressive and innovative marketing campaigns 2. Acquisition of restaurants 3. Introduction of 13 new products 4. Michael Jackson as a celebrity endorser
Weaknesses:
1. Carbonated drinks faced completion—“new age” drinks 2. Youth was main target group 3. Lack of presence in the international market
Opportunities:
1. Acquiring Seven-Up’s international operations 2. Acquired bottling operation systems 3. Response to growth in the Tea market –partnership with Lipton
Threats:
1. Coke’s quick responses to all marketing strategies
Strengths:
1. In 1993 Coke held a 59% share of the fountain market—using it to promote the brand further. 2. Coke earned a high percentage of its profits in the international market. They established themselves with the help of “ ‘anchor bottlers’—large, committed, and experienced bottling outfits like Norway’s Ringnes and Australia’s Amatil” 3. During WWII Coke was able to establish itself in the European and Asian markets with the help of the government because it was being sold to the American troops in those regions
Weaknesses:
1. Coke’s imagine could not compete with Pepsi’s “Pepsi Generation” campaign because it was perceived as being one of small town and outdated 2. Business relationships with bottlers have not been standardized 3. Carbonated drinks faced completion of “new age” drinks.
Opportunities:
1. Quick response to “new age” beverages with the introduction of PowerAde, Nordic Mist, Tab Clear and its partnership with Nestea. 2. The potential growth of the international market of 7% to 10% per year (Eastern Europe, China India) 3. Overhauling image to target the youth market
Threats:
1. India’s government requesting that the formula be disclosed to them 2. Pepsi’s marketing campaigns like the “Pepsi Challenge” & the “Pepsi Generation” 3. FTC looking into the franchise territory agreements
Pepsi:
Strengths:
1. Aggressive and innovative marketing campaigns 2. Acquisition of restaurants 3. Introduction of 13 new products 4. Michael Jackson as a celebrity endorser
Weaknesses:
1. Carbonated drinks faced completion—“new age” drinks 2. Youth was main target group 3. Lack of presence in the international market
Opportunities:
1. Acquiring Seven-Up’s international operations 2. Acquired bottling operation systems 3. Response to growth in the Tea market –partnership with Lipton
Threats:
1. Coke’s quick responses to all marketing strategies