Coke Is Better Than Pepsi Pepsi and Coca Cola have long been rivals in the marketing industry and two most recognizable names in soft drinks. Together they produce the #1 (Coca Cola)‚ #2 (Diet Coke) and #3 (Pepsi) soft drinks in the United States and each make tens of billions of dollars in profits every year. Since 1886‚ Coke has been going strong holding the award of "Best Soda Drink in the World." In 2011‚ Coke still beats Pepsi in sales and long-term taste tests. I totally agree because to
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characteristics of this global battle. For a better understanding‚ let’s take first a look to the principal features of both companies. The Coca-Cola Company dominates the market by owning four of the global top five soft-drink brands: Coca-Cola‚ Diet Coke‚ Fanta and Sprite. Its main activity consists on producing syrup concentrate which is then sold to various bottlers throughout the world who hold a Coca-Cola franchise. The firm makes or licenses more than 400 drink products in more than 200 nations
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Strategy – NCC 5090 Cola Wars Continue: Coke and Pepsi in 2006 Case Part 1: Why was concentrate manufacturing profitable until the late ‘90s? Porter’s Five Forces provides an in-depth understanding as to how the interconnected relationship between Entrants‚ Buyers‚ Suppliers‚ Substitutes‚ and Rivals allowed concentrate producers to increase profitability. Entrants: Existing Concentrate Producers create high barriers to entry Despite low capital requirements to enter the
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weighted average cost of capital (WACC) to be 8.3%. I find error in this calculation as a result of the following points of disagreement: a) Weighting of Capital Structure: Use of book values of capital rather than the market values b) Cost of Debt Calculation: Incorrect method for calculating debt c) Tax Rate: Use of a tax rate derived from the summation of state and statutory taxes instead of the firm’s marginal tax rate 2. Revised Calculation of WACC: WACC reflects the weighted average
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The case of Coke and Pepsi in India is a lesson that all marketers can observe‚ analyze and learn from‚ since it involves so many marketing aspects that are essential for all marketers to take into consideration. Both companies had many difficulties‚ especially Coca-Cola‚ and it’s useful to observe how it dealt with the different aspects‚ stating from the political environment of the Indian market and the trade barriers it faced‚ going through the market entry and penetration strategies considered
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ISSN: 2249-4588 & Print ISSN: 0975-5853 Consumer Preference Coca Cola versus Pepsi-Cola By Abdul Munam Jamil Paracha‚ Muhammad Waqas‚ Ali Raza Khan & Sohaib Ahmad University of Lahore‚ Pakistan. Abstract - This study is conducted between two global giants Coca Cola & Pepsi-cola. This research paper is basically a comparative study of two well known competitors in beverage industry of Pakistan which are Pepsi Cola & Coca Cola. The primary purpose of this paper is to find out which
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Cola Wars Continued – Coke vs. Pepsi in 2006 Reading the case‚ special attention should be paid to the underlying economics of the soft drink industry and its relationship to average profits‚ the relationship between the different stages of the value chain in the industry‚ the relationship between competitive interaction and industry profits‚ and the impact of globalization on industry structure. While preparing the case‚ you should start by carefully characterizing the carbonated soft drink
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Case 2.4 Coke and Pepsi Learn to Compete in India BRIEF SUMMARY OF CASE CONTENT: This is a detailed and comprehensive case describing the market entry of two global consumer product companies‚ PepsiCo and Coca-Cola Corporation into a Big Emerging Market (BEM)‚ India. It traces the history of the challenges encountered by these two companies in the developing country environment of India from the late 1980s to the present time. Emphasis is placed on lessons learned by the two companies as they
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COKE CLASSIC VERSES PEPSI THE CHOICE OF A NEW GENERATION 11/15/99 The American Soft drink has become an internationally recognized icon. As a children we choose our preference Coca-Cola or Pepsi-cola. We go to restaurants and ask for it by name‚ and if for some ungodly reason‚ we are forced to submit to one or the other we do it with reluctance and hesitation. Coke-cola and Pepsi-cola have integrated and weave itself‚ into our daily lives‚ through fast food‚ celebrities‚ and controversy
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MARKET IN INDIA In India‚ cold drink market is growing exuberantly day-by-day and coming out as a most profitable business. All the activities of cold drink market are revolving around three major competitors i.e. coke‚ Pepsi and cad buries. Out of these three‚ two coke and Pepsi have a face-to-face competition with unequal brands. Cold drink market is flourishing rapidly with a total market of 3000 crores from which Rs 1800 crores market is snatched by cola flavor and market
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