worldwide sales and produced 47 percent of operating income. Strategic Focus and Plan The Mission Crush brand of fruit flavored carbonated beverages. Three issues were prominent. First‚ immediate efforts were needed to rejuvenate the bottling network for the Crush soft drink bard. Second‚ accounting to one executive‚” to sort through and figure out what the Crush brand equity is‚ how the brand was built… and develop a base positioning.” Third‚ a new advertising and promotion program for
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Coke strayed from its Coca-Cola Classic formula‚ its customers demanded a return to the original recipe. Pepsi and Coke also share an absolute cost advantage over others in the industry. They developed superior production operations by buying up bottling companies and performing the service in-house. These companies also have large economies of scale‚ as they both operate internationally and together control 84% of the market worldwide. Additionally‚ government regulations have prevented competitors
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COCACOLA STRENGTHS Brand Image Brand image is very high throughout the world. It’s so famous that almost everyone knows about it. It develops so strong image that also has a great effect on the corporate image as well. It is rated as the world’s number one cold drink and is famed for its internationally well-known brand name “Coca-Cola”. Coke is well supported by Coca-Cola Ltd. in the local market and enjoys distinct position. Brand Positioning The brand positioning of the Coca Cola is very strong
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industry such a lucrative market. The concentrate producers have high profit margin and little relatively low operating cost compared to bottlers. Not only is the bottling process capital intensive which resulted in a lower margin‚ the bottlers provides distribution and stocking service to the retail channels and suppliers resulting in additional cost to the bottlers. The concentrate producers franchise their product to bottlers. In the agreement‚ the producers prohibit bottlers from working with direct
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holding the rest of marketing mix? 14 Bottling drinking water‚ should the strategy be the same as CSD? 15 Should Coca-Cola and PepsiCo going in different strategies? 16 Industry Marketing Mix 16 Appendices 20 Figure A1: U.S. Liquid Consumption 1970 - 2004 20 Exhibit 1: U.S. Bevearage Industry Consumption Statistics 21 Exhibit 2: U.S. Soft Drink Market Share by ase Volume (percent) 22 Exhibit 4: Comparative Costs of a Typical U.S. Concentrate Producer and Bottler‚ 2004 24 Financial Analysis
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have the final say in the matter. 2. Compare the economics of the concentrate business to that of bottling business. Why is the profitability so different? A concentrate producer has to blend the raw materials and ship them to bottlers in plastic canisters. A typical concentrate manufacturing plant has an initial capital investment of 25-50 million and is capable of meeting the needs of an entire nation. Therefore the concentrate producer’s main line of work shifts to advertising‚ research and bottler
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Financial Analysis of Coca-Cola Company - February 7th‚ 2011 The Coca-Cola Company (NYSE: KO) is a beverage retailer‚ manufacturer and marketer of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola‚ invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage‚ Coca-Cola currently offers more than
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most popular fountain drinks. After 1905‚ coca leaves were no longer used as one of the main ingredients in Coca-Cola. In time‚ fructose syrup replaced the crystal sugar used in the soda‚ allowing for cheaper and faster manufacture of the syrup. The bottling industry also allowed for a wider distribution of the soda‚ further increasing its sales and its popularity. During 1960’s Coke launched Fanta‚ Sprite and Tab. Today‚ Coca-Cola products are consumed at a rate of more than one billion drinks per
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promotion‚ market research‚ and bottler relations were significant. On the other hand‚ bottling industry is the mid-way player in the soft drink industry. There are two suppliers and one buyer involved in its value chain (Exhibit 1). Whether two industries are profitable depends on soft drink consumption‚ which had increased for more than 20 years and plateaued in the 1990s. The economics of the CP and bottling is very different from each other in terms of number and size of rivals‚ and the scope
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1923‚ and later developed Coca-Cola ’s international business and was instrumental in cooperation with U.S. Armed Forces during WWII. Caleb Bradham‚ a North Carolina pharmacist‚ invented Pepsi in 1893. Like Coca-Cola‚ Pepsi developed a franchised bottling system in the year 1910. Pepsi had a much more difficult time surviving and becoming successful‚ as it declared bankruptcy in 1923 and 1932. However‚ today Pepsi is a strong company that is competing with Coca-Cola. I will discuss the Cola Wars using
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