Cola Wars Continue: Coke and Pepsi in 2010 Pepsi and Coke fought over the 74 billion CSD (carbonated soft drinks) industry. --> Nothing contribute as much to the success of Pepsi than Coke and vice-versa What had to be done to ensure sustainable growth and profitability? Economics of the U.S CSD Industry 1970 - consumption grew by an average of 3% per year --> increasing availability of CSD + intro of new diet and flavoured variety + Declining real prices --> CSD more affordable -->
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31% for Pepsi) and almost 72% in 2009 (almost 42% for Coca Cola and almost 30% for Pepsi). The barriers to enter the CSD market are very high mainly because of the economies of scale enjoyed by Pepsi and Coca Cola. These two firms produce a very large portion of the total output of the market and they reach their MES (minimum efficient scale) when they cover for over 70% of the market. Another important barrier to enter this industry is the well-known reputations that Coca Cola and Pepsi have. It
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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 the eleven step strategic model‚ SWOT‚ and Porter
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stay in line with their PESTLE situations. Pepsi is a big brand‚ currently holds the 23rd place in the Interbrands report of the World’s Leading Brands. Their advertisements feature major celebrities and athletes like David Beckham‚ Robbie Williams‚ Britney Spears‚ and Michael Jackson etc. Their market reach is also very diverse‚ as they’re present in almost every country from the US to New Zealand. Their PESTLE analysis is given below: Political: Pepsi is a non-alcoholic beverage and is therefore
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competitors. Pepsi was stealing a portion of the younger generation with their advertising campaign‚ and they proved that consumers liked Pepsi better with the “Pepsi Challenge.” To combat their falling market share Coke decided to introduce a new formula. This formula was based on the fact that people preferred the sweeter taste of Pepsi. Once the new formula was finished‚ Coke conducted close to 200‚000 taste tests to find out what consumers thought. New Coke outperformed both Pepsi and the original
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Date: May 21‚ 2015 Subject: Case Analysis of Cola Wars Continue Coke and Pepsi in 2010 Essentially the case discusses about the rivalry of Coca-Cola and Pepsi throughout the years from the beginning‚ and how they manage to come up with a more lucrative way to establish more market share. The case mentioned the reasons profitability of the soft drinks industry. The reasons for this profitability are: Both Coca-Cola and Pepsi have an agreement with their own bottler who specializes in this field. Moreover
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Introduction: Donald M. Kendall of Pepsi-Cola and Herman W. Lay of Frito-Lay founded PepsiCo‚ Inc. through the merger of both companies in 1965 (PepsiCo Our History ‚nd ). Caleb Bradham‚ who was a N.C. pharmacist‚ created the Pepsi-Cola company itself during the 1890s (PepsiCo Our History ‚nd ). The Frito-Lay‚ Inc. was formed during 1961 through a merger of the Frito Company and the H. W. Lay Company(PepsiCo Our History ‚nd ). Herman Lay is the chairman of the Board of Directors of the newly
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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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In1898‚ Caleb Bradham created the Pepsi Company (PepsiCo). The Pepsi-Cola Company merged with other companies (Frito-Lay‚ Tropicana and Quaker Foods to list a few) between 1965 and 2001 and is now referred to as PepsiCo‚ Inc. PepsiCo‚ Inc. has many headquarters worldwide for the several different companies. The main world PepsiCo headquarters residing in New York. These mergers made PepsiCo‚ Inc. a refreshment and snack company ranking 5th in the world (Pepsi). PepsiCo‚ Inc. is listed on four
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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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