Cola Wars Continue: Coke and Pepsi in 2006 1. Why is the soft drink industry so profitable? In an industry dominated by two heavyweight contenders‚ Coke and Pepsi‚ in fact‚ between 1996 and 2004 per capita consumption of carbonated soft drinks (CSD) remained between 52 to 54 gallons per year. Consumption grew by an average of 3% per year over the next three decades. Fueling this growth were the increasing availability of CSD‚ the introduction of diet and flavored varieties‚ and brand extensions
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This report is based upon the information from the Harvard business case: “Cola Wars Continue: Coke and Pepsi in the Twenty-First Century”. Both Coca Cola Company and PepsiCo are the largest players in the Carbonated Soft Drinks (CSD) industry. The purpose of this report is to gain insight into the possible strategies that can be applied‚ in order to expand the overall throat share in the future. History revealed that a highly competitive strategy that was utilized in the past by both companies resulted
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Mountain Dew: Selecting New Creative Back Ground * Mountain Dew was invented by the Hartman Beverage Company in Knoxville‚ Tennessee in the late 1940s. The bright yellow-green drink in the green bottle packed a powerful citrus flavor‚ more sugars and more caffeine that other soft drinks and less carbonation so that it could be drunk quickly. * Pepsi co. amazed by Dew’s success in what brand manager would come to call the “NASCAR belt” * Mountain Dew is looking a new concept and
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Marketing: An Introduction Case Study — Britvic Background Founded as the British Vitamin Products Company in the mid-nineteenth century in the market town of Chelmsford in Essex‚ the company changed its name to Britvic in 1971. The company began as little more than a home business run from a chemist’s shop. Soon the company was producing all kinds of soft drinks‚ including lemonades‚ mineral waters‚ tonics and non-alcoholic ales. It wasn’t until 1938 that the Britvic range of juices that
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changes in consumer behavior (decreasing health consciousness) led Pepsi to search for new markets. In such cases companies prefer markets of emerging countries where there are less educated people who are easy to persuade to use their product. PepsiCo was also encouraged by the fact that increasing urbanization had already familiarized Indians with leading global brands. Hence Pepsi
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consumption consistently 702-442 Cola Wars Continue: Coke and P In the late 1990s‚ Pepsi moved even further away from head-to-head competition and instead concentrated on emerging markets that were still up for grabs. “We kept beating our heads in nternationally and its operating profit from overseas was up 37%. Market share gains were reported in most of Pepsi-Cola International’s top 25 markets‚ including increases of 10% in India‚ 16% in China‚ and more than 100% in Russia. By 2000
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talking about market share‚ PepsiCo and Coca-Cola have the lions share. They have dominated the industry over the past 40 years with Coca-Cola leading in the category in 2004. With little resistance from Cadbury Schweppes‚ the distant third largest company in the industry‚ the two companies’ main focus was to increase market demand by outdoing each other in promotions‚ advertisements‚ and corporate acquisitions. Rivalry and power struggle have defined the existence of PepsiCo and Coca-Cola‚ looking for
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I. EXECUTIVE SUMMARY Pepsi Cola produces Philippine Inc (PCPPI) grew its net income last year by 192 percent to 44 million on the back of double digit growth in volume and softer sugar prices. For the fourth quarter alone‚ net profit doubled to 147 million on gross sales of 6.2 billion. Volume grew by 21 percent for the quarter; bringing full-year volume growth to an average of is percent across brands and categories. Gross sales for the full year rose percent to P22.73 billion. “This is a significant
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construct of Indian folks it had been assumed that it’s terribly onerous to form and build style and preference concerning soft drinks however despite of getting numerous confusion‚ nobody was ready to assume such a large acceptance and it had been PepsiCo. UN agency can be ready to penetrate in Indian soil and it had been the Pepsi Cola that has not solely an area in Indian welcome‚ however
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Indonesia‚ which produces branded instant noodles Supermi. • 1987 - Launched a cup of instant noodles in the form of branded Pop Mie. • 1989 - acquired PT Sari Food Nusantara‚ which produces baby food branded SUN. • 1990 - Forming a joint venture with PepsiCo‚ Frito-Lay Inc. which owns the brand and started producing snacks like Chitato‚ Chiki‚ Cheetos‚ Jetz‚ Lay’s‚ and Qtela. • 1990 - After making acquisitions and merges‚ the company was founded under the name of PT Panganjaya Intikusuma. • 1994 - Changed
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