Comparison Of The Structure Of Coca Cola And Pepsi

The Coca-Cola Company is America’s number one soda brand and has been consumer’s drink of choice for decades. Coca-Cola does not sell just for its great taste, but also for its effective marketing strategies and sustainability. According

Coca-Cola is the provider of carbonated and non-carbonated beverages that can be found in many homes, businesses, and almost everywhere you go in your daily routine. As follows in this plan, Coca-Cola renovates their concept and strategic focus by adding importance to target segments with new and evolving

The existing concentrate business is largely controlled by Coca-Cola Company (Coca-Cola) and PepsiCo (Pepsi), together claiming a combined 72% of the U.S. carbonated soft drink (CSD) market sales volume in 2009. Refer to Exhibit 1 for an illustration of the CSD industry value chain. For more than a century, Coca-Cola and Pepsi have maintained growth and large market shares through mastering five competitive forces, shown in Exhibit 2, that drive profitability and shape the industry structure.

The market share of soft drink industry actually has to maintain by spending and investing huge amount of money on advertisement and marketing. The advertising cost of Coca-Cola was $3.3 billion in 2012. Such a high cost makes it very hard for a new competitor to survive in the market and expand visibility. Moreover, due to the highly recognized brand name of Coca-Cola, the strong loyal customers’ base would not easy to switch to a new product. Therefore, it is nearly impossible for a new comer to compete in the soft drink industry.

Performing a financial analysis is very useful for any businesses to enhance the knowledge of performances, strengths and stability of their financial. This paper intends to compare and contrast the qualitative and financial statements of the past three years of the Multinational companies of soft drinks, Coca-Cola and PepsiCo. Currently, both companies are business competitors and they highly regard their customer’s base loyalty. To familiarize ourselves with these two successful companies, we have to focus on their differences. Coca-Cola was founded in 1886, nowadays is available in more than 200 countries being the most popular beverage with its 94% worldwide recognition and being world’s third valuable brand.

Coca Cola and Pepsi are the brands with the highest brand equities. Both, Coca Cola and Pepsi have gone through the highs and lows of their business to reach that position. Coca Cola’s marketing has been changing over time with more and more products being added every day, while Pepsi has implemented several smart marketing strategies to improve its turnover and profits. So, let’s see what were the marketing strategies implemented by Coca Cola and Pepsi.

By consulting the above graphs and charts it can be concluded that Pepsi has been a strong competitor to Coke and that throughout history they have been performing at comparable rates. Each has a similar background and customer base, but there are some differences between the two companies and their individual performance overall. It is clear that Pepsi holds a major stake in the market and is somewhat ahead of Coca-Cola in market share and productivity. Although both companies appear to be competing neck-to-neck Pepsi appears to be performing at a slightly higher rate than Coke, despite the popularity of both. Coke is wildly popular and is considered an American institution, but many seek different tastes and this is where Pepsi has been taking some of the market share as some consumers opt for Pepsi as their choice of beverage.

Coca-Cola management should seek new ways to regain its market share as Pepsico seems to be acquiring more market share as clear from comparing the percentage increase in sales of the two companies.

The argument is which taste better, and is more appealing to the average person. A general study was done where they blind folded people, and put both drinks in front of them. Majority of the people surveyed, agreed they liked Pepsi more when not knowing which was what. Even though majority of them originally said they prefer Coca-Cola over Pepsi. Coca-Cola has a very secret ingredient called “7x” this is most likely the key factor in its goodness. Once before Coca-Cola used to contain more dangerous ingredients such as cocaine. They also use many simple ingredients such sugar, high fructose corn syrup, caffeine, cane sugar and other basic ingredients that most soft drinks have. Pepsi does not how ever have a secret ingredient, but they have high fructose corn syrup, sugar, and caffeine. It is practically the same as Coke just without the formula “7x”. Coca-Cola has a smoother taste and goes down easier then Pepsi, making Coca-Cola more favorable. Pepsi is also a little more sweeter and not as carbonated.

In 1886, the Coca Cola Company was developed but it wasn't until 1898 that the fierce competitor Pepsi-Cola entered into the market. These 2 companies are the two major players that dominate the consumer beverage (soft-drink) industry. Coke and Pepsi have since been competing to rein the global market in consumer beverages. The market of drinks in the United States alone is valued at more than thirty million dollars annually. With the growth of these two companies, PepsiCo has developed and acquired additional products outside the scope of just the consumer beverage industry, these products have helped the company to increase their exposure and position in the global market. This has not been the case for the Coca Cola Company; they

In carbonated soft drink market since 80s to till coca-cola and Pepsi are rival company and trying to dominating each other via advertising war through printing media, video advertising, campaigns, event and doing experiential marketing.

When there are industries you can always count on them having competition. The bigger the player, the harder they can play. The big players always attempt to take many of the small competitors. When this happens they can expand their market share. A perfect example for this is the soft drink business; Pepsi and Coke have always been rivals to each other.

As mention before, Coca-cola has 47.3 percent market share in the country’s cola market versus Pepsi which hold 44.5 percent. Coca-cola is also the brand known around the worlds, which are the largest producer and distributor of ark colas in the world. Even in the current monetary crisis, the company continues to expand and the financial position shows that Coca-cola has a strong cash position in compare to PepsiCo which the long term debt of PepsiCo is so high.

It has taken much more than simply the brand and product to grow Coca-Cola in the number one leader in the soft drink market. Over the past 100 plus years, Coca-Cola has built a huge network of distribution and manufacturing networks. These collaborations that are superior to all others and all types of relationships are a distinctive competency for Coca-Cola. The way that they organize and plan their contracts has proven to be extremely successful and continues to keep Coca-Cola at the top of the market. They have been able to build relationships with suppliers, buyers, bottlers, manufactures, retailers and consumers that are strengthened by the degree of loyalty from both sides of these relationships. They continue to manage their company

“Coca-Cola brands are available to consumers throughout the world. Today they account for 1.7 billion servings of all beverages consumed worldwide daily. Coca-Cola has the edge in the market and because they are first to capitalize on new consumer trends. They continue to focus on continuous operating improvements, and they are ever changing to meet market demands. Pepsi Co satisfies the needs of its customers with the wide variety of products offered. They also have the different type of beverage or snack and its brands can substitute for each other. Coco-Cola and Pepsi Co is known as the top 100 most valuable brands in the world.