finding new opportunities in the unrevealed markets. STRUCTURE OF THE SOFT DRINK INDUSTRY : 1. Concentrated Producers Main activities includes : Blending new material ingredients ‚ packaging in plastic containers‚ shipmen 2. Developing the program includes product planning‚ marketing research‚ advertising. 3. Main activities includes combine carbonated water and syrup ‚ bottling/ canning‚ delivery to customers. 4. Focus lies on product management‚ product positioning‚ continual brand
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mid-1970s‚ business journalists had labeled this competition "The Cola Wars." The launching of the Pepsi Challenge in 1977 propelled the wars into the 1980s‚ considerably altering the landscape of the soft-drink industry. History of Soft-Drink Concentrate Producers Soft drinks had existed since the late 1800s‚ when many American druggists concocted blends of fruit syrups and carbonated soda water that they sold at their soda fountains. During the 1880s‚ the formulas for Coca-Cola‚ Pepsi-Cola‚ and Dr Pepper
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the Company has built an organisational structure that is robust and yet also flexible enough to meet these particular requirements. A global and local strategy The Coca-Cola Company is the world’s largest beverage company and is the leading producer and marketer of soft drinks. The Company markets four of the world’s top five soft drinks brands: Coca-Cola‚ Diet Coke‚ Fanta and Sprite. The success of The Coca-Cola Company revolves around five main factors: 1. A unique and recognised brand
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Coke on owned a smaller percentage of the bottler’s market share (about one third as illustrated on Page 4). This meant it lacked control over the independent bottlers who did not have long term commitment in satisfying its corporate goals. Also the bottling process was capital intensive. Change of distribution channels and increase in private label Low costs‚ privately labeled sodas would be preferred by consumers making Coca -Cola and Pepsi lose potential revenues in sales. The emergent of a
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Introduction • Company Introduction The Coca-Cola Company is an American multinational beverage corporation and manufacturer‚ retailer and marketer of non-alcoholic beverage concentrates and syrups and one of the most highly recognized soft drink brands in the world.(1) The company is best known for its flagship product Coca-Cola‚ invented in 1886 by pharmacist John S. Pemberton in Columbus‚ Georgia. (2) The Coca-Cola formula and brand was bought in 1889 by Asa Candler (co-founder of Coca-Cola)
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Cola Wars Case Analysis 1. The main way in which my case notes would be different for Cola Wars if I were to have a second try at writing them would be to include a breakdown of how they are able to apply to Porter’s five forces. For example‚ it is evident after reading this case that the soft drink industry is an extremely profitable one (especially for Coke and Pepsi). The reasons for this were discussed in class‚ and I will quickly explain each: There are great barriers to entry when trying
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involve concentrate producers (basic flavors)‚ bottlers (add sweetener and carbonated water)‚ and retailers. Of all the retailers available for distribution to customers‚ grocery stores and supermarkets account for about 31% of sales. There are three major competitors in the soft drink market (Coca-Cola‚ 44.1%; Pepsi-Cola‚ 31.4%; Dr Pepper/Seven Up‚ 14.7%). Each competitor spends a lot of money on advertising their brand through promotions‚ and consumer price discounting. Concentrate producers
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Strengths • The Brand Name • They appealed to the youth "Pepsi Generation" to help build it consumer base and increase its market share. The youth is a large majority of the population. • Core Strong Competencies in managing the capital-intensive bottling business. Weaknesses • Location- little efforts in the international market. • Spread too thin with other acquired companies outside of the soft drink beverage industry. • Sold a 12 ounce bottle for 5-cent when their competition sold a 6 ounce
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enter the soft drink market include: Network Bottling: Both Coke and PepsiCo have franchisee agreements with their existing bottler’s who have rights in a certain geographic area in perpetuity. These agreements prohibit bottler’s from taking on new competing brands for similar products. Also with the recent consolidation among the bottler’s and the backward integration with both Coke and Pepsi buying significant percent of bottling companies‚ it is very difficult for a firm entering to
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the value chain of the soft drink industry. By focusing on the war between Coca-Cola and PepsiCo as market leaders in this industry with a 90% market share in carbonated beverages‚ the study analyses the different stages of the value chain (concentrate producers‚ bottlers‚ retail channels‚ suppliers) and the impact of the modern times and globalization on competition and interaction in the industry. Analysis There was a “war" between Coca-Cola and PepsiCo‚ not only have they been rivals for ages
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