Coke’s image has been linked to the “US” lifestyle: modern/affluent 4. What was Pepsi’s strategy in competing against this strong meaning web of Coca-Cola? Pepsi has always been a follower. It challenged the Coke’s “product-centered strategy” by holding blind-tasting tests into strong coke’s markets in 1960. By 1983‚ the “Pepsi Challenge” had made its way across the
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"Cola Wars Continue: Coke and Pepsi in 2010" Read and Apply: Michael E. Porter (2008)‚ “The Five Competitive Forces that Shape Strategy”‚ Harvard Business Review‚ (January 2008)‚ pp. 2-17 Assignment Questions (AQ) (a) Why has the soft drink industry been so profitable for concentrate producers? Compare the economics of the concentrate business to the bottling business: why is the profitability so different? [50% points] The soft drink industry has been extremely profitable for Concentrate
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extremely concentrated in this industry‚ with Coke and Pepsi‚ together with their associated bottlers‚ commanding 73% of the case market in 1994. Adding in the next tier of soft drink companies‚ the top six controlled 89% of the market. In fact‚ one could characterize the soft drink market as an oligopoly‚ or even a duopoly between Coke and Pepsi‚ resulting in positive economic profits. To be sure‚ there was tough competition between Coke and Pepsi for market share‚ and this occasionally hampered profitability
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Rahul P Kumar MARKETING STRATEGY It is a complete and an unbeatable plan designed specifically for attaining the marketing objective of a firm. The marketing objective indicates what the firm want to achieve. The marketing strategy provides the design for achieving them the linkage between marketing strategies and overall corporate success is indeed direct and vital. Realizing the marketing objectives is the purpose of two generic categories. 1. Price based 2. Differentiation based PRICE
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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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Case study: PepsiCo- a view from corporate office PepsiCo is the second major food and Beverage Corporation in the world‚ with returns exceeding $43 billion. Originally started in 1890‚ Pepsi Cola became the first branded soft drink in the world with time‚ now it is available in over 200 countries around the world and own 22 brands that achieve retail sales beyond $1 billion each. PepsiCo diversification strategy yields them a great profit in return; around half of PepsiCo’s revenue is produced
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rivalry between Coca-Cola‚ the traditional market leader‚ and Pepsi Cola‚ the perennial runner up‚ took an unexpected turn in the mid-1970s. Pepsi’s consumer research had discovered in blind taste tests that a majority of consumers preferred the taste of Pepsi over that of Coke. In fact‚ even a majority of loyal Coke drinkers were reported preferring Pepsi in the tests. Pepsi began communicating these findings to consumers through "Pepsi Challenge" television ads‚ during those days‚ showing taste tests
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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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References: Behind the hype‚ in an effort invisible to consumer Pepsi pumps in Rs. 3000 crores (1994) to add muscle to its infrastructure in bottling and distribution.
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