territory...(Yoffie‚ 2007)" Concentrate price. Coca-Cola was able to determine its concentrate prices since 1987 when the Master Bottling Contract was established. Pepsi ’s Master Bottling contract was a bit different to Coke ’s as it obliged bottlers "to purchase raw materials from Pepsi at prices‚ and on terms and conditions‚ determined by Pepsi". They based the price of the concentrate on CPI and negotiated it with bottlers. "From the 1980s to the early 2000s‚ concentrate makers regularly raised concentrate
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Coca Cola as they entered the market. Timing of Entry: PepsiCo formerly known as Pepsi Cola Company was formed in 1898‚ 12 years after its closest rival Coca Cola was formed. Due to strict regulation in entering the Indian market companies could only enter by means of a joint venture with another Indian company as part of their anti-foreign policy laws which lead to it trading under the name of Lehar Pepsi. Coca Cola was formed in 1886‚ it is today the world’s largest soft drink manufacturing
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others as superior to lead the market. Looking back at the 70’s we can see the brawl between the two highly popular brands Pepsi and Coca-Cola. The brawl started with the Pepsi challenge. The consumers were offered a choice of colas between Coca Cola and Pepsi. As it was a Pepsi challenge‚ they were the obvious winner. Moreover‚ in the 70’s‚ people preferred sweet colas. So‚ Pepsi was the obvious choice. Later though Coca- cola came back with the launch of ’Coke’‚ and boasted its taste better‚ the very
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Analysis on Cola Wars Case Threat of New Entrants The threat of new entrants in the soft drink industry is low. Barriers to the CSD industry are extremely high because customers have high brand loyalty towards to either Coke or Pepsi. As the case mentioned‚ Coke and Pepsi spend millions of dollars on advertising even though they are already the dominant companies in the industry. Thus‚ heavy investment on advertising and promotions is necessary for any new entrant to change persisting customers tastes
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that Coke India should focus and how well-prepared was them in dealing with the crisis‚ as well as the key constituents and communication strategies that Coke India must do to endure the problem along with the conclusion of whether they have avoided the crisis or vice versa. The conclusion of study and references will also be inserted at the end of paper. I. What are the key problems that Gupta should focus on in the short term and in the long term?
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New Launch Marketing Plan III Tawanna Davis‚ Trisha Eisele‚ Gail Eluwa‚ and Eugenia Washington MKT/571 July 14‚ 2014 Professor: Melodi Guilbault New Launch Marketing Plan III Executive Summary Coca-Cola continues to be an industry leader in offering and reinventing some of its core drink products in new global markets. The company currently has captured over 50% of the soft drink market and seeks to obtain 55% or better in the next three years. With the introduction of its latest product‚ millions
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$350-$400 million a year ... forever" (Marketplace Roundup‚ 2004). Pepsi-Cola: The Challenger With the exception of brief bankruptcy stints in 1923 and 1932‚ Pepsi-Cola assumed its place at the heels of Coca-Cola through its creation of an extensive franchise bottling network and distribution outlets (Yoffie‚ 2004). Over the years‚ the Pepsi-Cola company has expanded its product offerings‚ through R&D and acquisitions‚ to include: Diet Pepsi‚ Mountain Dew‚ Mug Root Beer‚ Slice‚ Sierra Mist‚ Lipton‚ Aquafina
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the introduction of New Coke. Coca Cola had been battling with Pepsi Cola since Pepsi’s introduction in 1903. Until just after World War II‚ Coca Cola had a commanding 60% market share1. Pepsi’s superior management decisions and marketing mix with the aging of the baby boomers enabled them to close the gap in the soft drink market segment. As the baby boomers got older and more health conscious coca cola began to lose market share. Pepsi‚ which was already the favorable product for the younger less
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Cola Wars Continue: Coke and Pepsi in 2010 1. Why‚ historically‚ has the soft drink industry been so profitable? Soft drink industry is profitable because the industry has concentrated revenues between 2 major players and it is virtually impossible for a new player to compete with the key players. The industry giant’s wield power over the retail outlets. Convenience stores‚ vending machines‚ fountains are widely distributed and hence they don’t have the power to bargain over pricing issues and
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the consumer‚ have had the pleasure of enduring the “Cola Wars” between Coke and Pepsi. This has been an ongoing battle between the big two cola manufactures for over one hundred years. John Pemberton‚ a pharmacist in Atlanta‚ Georgia‚ invented Coca-Cola in 1886; pharmacist Caleb Bradham invented Brad’s Drink‚ later to become Pepsi-Cola‚ in 1893 in New Bern‚ North Carolina. In 1938‚ Coke filed suit against Pepsi‚ claiming trademark infringement. In 1941‚ the court ruled in Pepsi’s favor‚ thus
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