Coca Cola and Pepsi Cola Case Study

The first risks of running business in India is consumer market risks that is also the common risk that faces in most multinational’s business strategy because different market have different demand, satisfying every demand in different country is a challenge. Thus, Indian market and huge customer demand are different from other country markets that need to be modified. Foreign company entering India market is tend to use the workforce at a lower cost as they predict that India has large workforce but illiteracy rates are high in Indian population. Furthermore, urban people in India are mostly self-employed and with increase in urban middle class incomes, the percentage of working women has decreased. Therefore, those well train English speaking workforce is lesser than the

The Coca-Cola organization has made exemplary strides mainly to offer a variety of products to its clients even with the competitive nature of the market. Consumers’ choice gets based on the brand aspect in which the organization wins most customers' heart against its rivals. Even though a significant number of people deny cases to having inclination picking between Coca-Cola items or its rivals', many have a strong desire in some way. Many inclines toward Coca-Cola products since the organization has more than hundred years of history and predictable brand image. This picture is engraved in a lot of people subsequently end up purchasing their beverages. It is out rightly conspicuous in the company’s high market share in the field of soft drinks.

Reading the case, special attention should be paid to the underlying economics of the soft drink industry and its relationship to average profits, the relationship between the different stages of the value chain in the industry, the relationship between competitive interaction and industry profits, and the impact of globalization on industry structure.

The following is a case study referring to two major soft drink organizations. These two major organizations have been popular throughout their life time. But before getting into all of that first let 's have a background to both of the companies so let 's begin with PepsiCo. It began with the merger of Pepsi-Cola and Frito-lay. Caleb Bradham was the creator of PepsiCo. Donald M. Kendall, former president and CEO of PepsiCo, he was the present and also chief executive officer. Another huge announcement that PepsiCo had was acquiring Quaker Oats, so PepsiCo would gain access to Gatorade and control 83.6 percent of the sport drink market. PepsiCo would control around 33 percent of the U.S. uncarbonate-beverage. Now giving the background to Coca-Cola their annual sales were around 20.5 billion, and market value reached 110.1 billion. The company was the largest manufacturer and distributed, and marketer of soft-drink concentrate and syrups. One of the main reasons for this was the company 's strategy of spinning off its bottling operations to avoid consolidation on is balance sheet.

Coca Cola and PepsiCo, Inc are both universally recognized companies. Introducing these companies is not a necessity as everybody in the world knows about them and their products. These companies have been producing soft drinks, drinking water and flavored waters for centuries and have been competing in the same market for ages. We have come to know about this rivalry as “Cola War” which has its own celebrated history. In this market, there are many players, some are regional companies and some are multinational companies but main competitor of PepsiCo, Inc is Coca Cola and vice versa. The operations of the companies are beyond the national boundaries. Coca Cola and PepsiCo, Inc targets all income segments of customers in the entire world

The Uniform Commercial Code defines a contract as “the total legal obligation which results from the parties’ agreement as affected by the Uniform Commercial code or any other applicable rules of law” (Liuzzo, 2016, p.106). The purpose a contract is to create an oral or written agreement between two parties. In the mid 1990’s PepsiCo. ran a promotional campaign “Pepsi Stuff,”(nonfps, 2007). The campaign attempts to engage and reward the consumer who bought PepsiCo products. Consumers would earn Pepsi points for any Pepsi products they bought. When a person earns a certain quantities of points he or she receives certain prizes. One commercial advertises a Harrier Jet in exchange for 7,000,0000 points (Haoues, 2015). In

The beverages segment primarily produces its soft drinks such as Pepsi, Mountain Dew, Tropicana, Lipton tea and other brands worldwide and 7-UP outside the U.S. markets. These are positioned in close competition with Coca-Cola Inc. of USA. Coca-Cola gets most of their profits of around 80 percent for International operations while PepsiCo gets 6 percent profits. In a joint venture with spray juice products PepsiCo also manufactures and distributes fruit juices.

In economics, competition is where rivalry is portrayed in terms of achieving the goal such as increasing profits, market share and sales capacity by varying the elements in general marketing, products, prices, distribution and promotion. The microeconomic theory differentiates between perfect competition and imperfect competition, summarizing that no system of resource allocation is much more efficient than perfect competition.

focused not only to purchase but to consume the product. Marketing in the 1980’s for PepsiCo

Coca Cola and Pepsi vied for "throat share" of the world's beverage market for over a century. The biggest battles of the cola wars were fought over the $60 billion industry in the U.S, where the average American consumed 53 gallons of carbonated soft drinks per years. In a carefully waged competitive struggle, from 1975 to 2000 both Coke and Pepsi achieved annual growth of around 10% as both U.S and worldwide carbonated soft drink consumption consistently rose. This cozy relationship was threatened in the late 1990's , however , when U.S carbonated soft drink consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi. In response both firms began to modify their bottling, pricing and brand strategies. They also looked to emerging international markets to fuel growth and broadened their brand portfolios to include non-carbonated beverages like tea, juice , sports drinks and bottled water.

Pepsi-Cola is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in stores, restaurants and from vending machines. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1903, including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and Brazil), Pepsi Next (available in Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico, Pepsi One, and Pepsi Ice Cucumber in Japan .Pepsi cola is situated is an Industry that is dominator by two Competitors Coca

Who would have known that Coca-Cola debut to the world was all because of a pharmacist? And just a touch of carbonation has truly made it a refreshing and an enjoyable carbonated soft drink. It is within “arms reach of desire” as former CEO Robert Woodruff notes. The Coca-Cola Company ultimately cares about its customers and prides itself into providing good citizenship. One of Coca-Cola’s largest international investors was India, from 1993 up until 2003, Coca-Cola invested more than US$1 billion into the country. In August of 2003, CEO of Coca-Cola India, Sanjiv Gupta came to a standstill where he had to further anticipate his next move for the company. The company faced a crisis where the Center for Science and Environment (CSE) issued a press release affirming that three samples of the 12 cold drink brands sold in and around Delhi containing pesticide residues were of Coca-Cola and PepsiCo brands.

PepsiCo started its dominance of the food industry in 1898, and has grown into the corporate power house that exists today. PepsiCo is now a huge corporation and has a large impact on our society. PepsiCo had an annual net revenue of $62.799 Billion (USD) in 2016. With the large companies PepsiCo owns and the huge revenue they generate each year, it is obvious that PepsiCo has a good outlook on the future, and they know their worth.

1.) Why do companies like Pepsi need to globalize? What are the various ways in which foreign companies can enter a foreign market? What hurdles and problems did Pepsi Face when it tried to enter India during the 1980s?

Long before now has branding been considered as one of the peripheral aspects of business. Manufacturers, investors and other key players focused on the product without paying much attention to the consumer. But as the business landscape got tougher, marketing became not just an integral part of business but one of the fundamental principles of success.