industry profits‚ can be described as follows: Barriers to Entry: • Brand equity: Coke and Pepsi have established their brand identity over decades‚ and both brands have become part of the American culture. • Scale economics of advertising: Not only have Coke and Pepsi built their brands over decades but they also are much more effective at capturing the rewards of their advertising campaigns. For example‚ Coke spent about $10 million per share point in advertising‚ whereas 7-Up had to spend
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Background Coca-Cola Coca-Cola was founded in 1886 by John Pemberton who was a civil war veteran and Atlanta pharmacist. Today‚ Coca-Cola company is the world’s leading manufacturer‚ marketer‚ and distributor of nonalcoholic beverage concentrates and syrups‚ over 10 billion gallons‚ used to produce nearly 400 beverage brands. Also‚ Coca-Cola has been ranked the best value of brand name on the world for more than 10 years. Pepsi Pepsi-Cola was created in the late 1890s by Caleb Bradham‚ a New
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The Coca-Cola Co. is the leading company in the beverage Industry. It produces about 400 brands consisting of over 2‚600 beverage products. Its major rivals are PepsiCo and Cadbury Schweppes PLC. The PepsiCo obtains 60% of its Revenues from its snack division. Cadbury Schweppes PLC is the largest confectionary company and has a strong regional beverage presence in the Americas and Australia. Considering its rivals’ success in its snack division; The Coca-Cola Co. is considering
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to offer premium shelf space so they command lower prices. Convenience stores have to pay the highest prices. Vending is the segment that coca-cola is able to serve the buyer directly so it has the most profit. Substitutes: There are many different substitutes for the soft drink. These include beer‚ water‚ coffee‚ and juices. Coca-Cola and Pepsi were able to counter these substitutes through brand equity‚ advertising‚ and by making their products easily available to the consumer. They also
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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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Coca-Cola vs. PepsiCo: Financial Management Dr. Tressa Shavers Strayer University Coca-Cola vs. PepsiCo: Financial Management This paper will examine Coca-cola and PepsiCo financial ratios and profit for the year 2007 and 2008 using the liquidity measurement ratio‚ profitability indicator’s ratio‚ debt Ratio‚ Operating performance ratio‚ cash flow ratio‚ and investment valuation ratio. It will explain both company’s liabilities‚ and a few personal opinions that could better both Coca-Cola
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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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Corporate Citizenship and the Community what is what is Coca-Cola and citizenship For more than a century‚ The Coca-Cola Company has used its resources to benefit the global community and to demonstrate its leadership to such an extent that the Coca-Cola name has become synonymous with good corporate citizenship. According to a survey carried out by Fortune Magazine‚ Coca-Cola is the most admired company in the USA. The Company believes that it is important to give something back to the communities
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About Coca Cola Coca Cola sells over 400 brands in over 312 countries 90 billion servings of coke are consumed each day Coca Cola is a multinational company (MNC) it operates in more than one country across the world It is bottled in 200 countries Multi national companies MNC’s also have many other characteristics : Huge Profits Well known brands Large numbers of employees Headquarters mainly in MEDC’s Why is Coca Cola located in India? Manufacturing the product in the country
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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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