a variety of salty‚ sweet and grain-based snacks‚ as well as carbonated and non-carbonated beverages. The company has 19 brands in its portfolio which generate over $1‚000 million each in annual retail sales. Some of these include: Pepsi-Cola‚ Mountain Dew‚ Diet Pepsi‚ Gatorade‚ Lay’s and Tropicana. PepsiCo is headquartered in Purchase‚ New York and employs about 294‚000 people. The company recorded revenues of $57‚838 million during the financial year ended December 2010 (FY2010)‚ an increase of
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higher and isn’t really suitable for Vietnam average income. There are two main environment elements which affect the price of the Gatorade: Micro environment -Competitors: There are many other products to choose in the soft drink market include Pepsi Co product ‚ the different is those products are cheaper than Gatorade * In order to attract more customers‚ Gatorade has improved its product quality and spent lots of money on advertising. -Selling products Gatorade mostly is the imported
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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 to dive into the soft drink industry‚ and because of this companies who have a competitive advantage will make it rather
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and Pepsi. There are an economy of scale‚ high required investment‚ high costs for advertising and marketing promotion‚ high channels of distribution‚ and high products differentiation from the new entries. Capital requirement for an efficient new plant could range as much as $75 million. Both Coke and Pepsi pursued a backward integration strategy‚ buying significant percent of bottling companies‚ and then creating independent bottling subsidiaries such as Coca-Cola Enterprises (CCE) and Pepsi Bottling
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listening to and catering to the requests and needs of its consumers. This is why its attempt to launch new flavors must be carefully considered to ensure not only acceptance by the target market‚ but continued loyalty to the brand. While Coke and Pepsi are the major players in the soft drink competition and by far have seen the most success‚ both have struggled in competition with each other. Recently both companies have introduced their products to the foreign market‚ but in order for either company
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increasingly challenged by Pepsi Cola... • Cola Wars domestically and abroad (See Exhibit 3) C. Cola industry leaders‚ Coca-Cola and Pepsi‚ should practice game theory to better understand their competitive market... • Cola Wars with the well established brands of Coca-Cola and Pepsi. Organization Due to the cola wars both Coca Cola and Pepsi have a similar organizational structure. By... • Cola Wars Continue: Coke And Pepsi In 2006 from the other company to battle with. Pepsi and Coke had a vast
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WEEK 1 DISCUSSION STRUCTURAL FORCES EFFECTS on COLA DRINKS INDUSTRY SUPPLY CHAIN by GIDAGA ALFRED HOOO31960 ABSTRACT Carbonated soft drinks branded under Coca Cola and Pepsi Cola remain major household names in the soft drinks industry. Spanning operation from the original Franchise agreement of 1899 to-date‚ is an indication of managerial ingenuity of strategy design‚ implementation and control. Profitability and sustainability as a key issue in business operations necessitates these
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post-liberalization period in India saw the re-entry of Coca-cola. But Pepsi had already gained an edge by creatively entering the market in the 1980’s in advance of liberalization by way of a joint venture. It allowed Pepsi to gain precious early experience with the Indian market and also served as an introduction of the Pepsi brand to the Indian consumer such that it was well-poised to reap the benefits when liberalization came. Though Coke benefited from Pepsi creating demand and developing the market‚ Pepsi’s head-start
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PepsiCo India decided to run a Reach Block on February 11‚ 2011 to guarantee that it would reach 100 percent of its target audience over a 24-hour period. “With cricket and Pepsi‚ practically every single person in India is the right customer‚” the brand says. “So the Reach Block had open targeting.” A main push of the campaign was amplifying the effectiveness of PepsiCo India’s “Change the Game” campaign on television by allowing people on Facebook to watch the content and interact with it inline
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Q1. Why is the soft drink industry so profitable? OR Why is it not easy for new players to enter the industry? Already a mature market‚ coke & pepsi spent a lot of money‚ time & effort on all things e.g. networking‚ manufacturing Q2. Why CPs are more profitable than bottlers? The concentrate manufacturing process involved little capital investment in machinery‚ overhead‚ or labor. A typical concentrate manufacturing plant cost about $25 million to $50 million to build‚ and one plant could
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