4.1. Cross- cultural risk
The situation/ event where cultural misunderstanding puts some human value at stake.
The problem
In VN, In the case of PepsiCo, Aquafina is a popular product of PepsiCo, manufactured in accordance with American standards. Aquafina has so far earned good reputation in consumers’ mind.
Nevertheless, in 2015, PepsiCo officially recognized that the water used for Aquafina is treated public water (water from tap). Because of misunderstanding of some definitions, Vietnamese people assume that Aquafina is unqualified. The differences in mind-sets, culture makes the problems become bigger.
In America, the entire tap water system can be drunk directly from the tap. However, it is very risky if someone drinks water from
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At the time of 5-7 years ago, Coca-Cola persisted in its aggressive market share strategy with its retail strategy. In addition, Coca Cola compete by monopoly strategy in caferias, fast food chains, cinema theaters. With Coca Cola, there will be without PepsiCo and vice versa.
In 2012, when Pepsi co-operated with Suntory, Coca-Cola announced an additional $ 300 million in Vietnam to compete with each other.
However, lately, with content-rich marketing strategies, bringing meaningful messages, Coca Cola has captured the majority of consumer sentiment. In the middle of the year 2016, Coca Cola accounted for 41% of the beverage market while Pepsi only 22.7%.
- Tan Hiep Phat: When Vietnamese soft drink brands like Chuong Duong, Tribeco gradually fallen by the opponent's take over, Tan Hiep Phat became the only Vietnamese brand that stands steadily in the competition. In the middle of 2016, Tan Hiep Phat holds 25.5% of soft drink market.
"The only reason is that Tan Hiep Phat became alone in the fight with foreign brands to develop the national products, because other domestic enterprises do not have enough financial resources, technology to catch up with the market. While the competition is getting harder, "said one industry
Firstly, the author introduces the history of the Coca-Cola; and how the brand is successfully developing into the most popular brand and ruling the soft drink world by outstanding products, good leadership, correct strategic decisions, completely distribution system, significant culture accomplishment, impressive marketing campaigns and publicities. But, they also had several problems in the 70s, which result in losing the market position at retail. At the same time, Pepsi, as the main competitor of Coca-Cola, started to make inroads by successfully launching the “Pepsi Generation” and “Pepsi Challenge”. Those kinds of efforts led to a rapid increase in Pepsi market share and strongly hit the brand image of Coca-Cola. Because of the severe situation, the leaders of Coca-Cola decided to change the formula of old Coke with marketing research supporting. So, the New Coke with a smoother and sweeter taste had been launched in April 1985. But out of expected, after launching the new taste soon, many customers boycotted the New Coke, and the market share of the company still decline. The company had to re-launch classic
Pepsi Co. and Coca Cola, both are very well known multinational companies. They are so famous that they perhaps don’t need any introduction since almost everyone knows basic info about these companies and their widely used products. Both of these companies have been dealing in the production of flavored waters, plain drinking water and soft drinks for decades now and have always been each other’s competitors in almost all the mainstream products they have been producing.
In the United States not only does every state have tap water running through its veins but also varying brands of bottled water in every supermarket, corner store, and gas station.
An official financial analysis for a specific company needs two years of financial data from the company and from a competitor in the same industry. This financial analysis is between PepsiCo, Inc. and Coca-Cola. Pepsi and Coca-Cola dominate the beverage market worldwide. In addition to sodas, they also distribute a variety of water and energy drinks. Based on the analysis, the investor will be able to make a better investment choice.
“But no one should think that bottled water is better regulated, better protected or safer than tap,” says Eric Goldstein. Most people don’t know that they are drinking “glorified tap water” when they are drinking a bottle of water that claims it is from a pristine source but is actually from a public water source. About 25% of bottled water comes from municipal supply. Water coming from areas near hazardous sources sell water to bottlers. This water may then be passed off as “spring water” or “pure glacier water.”
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000, carbonated soft drink retail sales were estimated $60.3 billion, however, soft drink consumption growth has slowed in recent years. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the U.S. They are the Coca Cola Company with 44.1% market share, The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/ Seven Up, Inc. with 14.7% market share. These three companies market the top ten brands account for 73% of soft drink sales in the U.S. Dr. Pepper/ Seven Up, Inc. owns two of the top ten brands: Dr.
For more than a century, Coca Cola and PepsiCo have been the major competitors within the soft drink market. By employing various advertising tactics, strategies such as blind taste tests, and reward initiatives for the consumer, they have grown to become oligopolistic rivals. In the soft-drink business, “The Coca-Cola Company” and “PepsiCo, Incorporated” hold most of the market shares in virtually every region of the world. They have brands that the consumers want, whether it be soft-drink brands or in PepsioCo’s case, snacks. With only one soft-drink market, the two competitors have no choice but to increase sales by stealing the other competitor’s clients. This led to the term, the “cola wars” which was first used
Based on the Web site of Nestle Company, bottles of Nestle water must be through the strict process from the initial inspection after collecting water from the sources to the control of the package into cases of bottles before being delivered to retailed stores or consumers (1). In comparison, residents living city of Fairfax, Falls Church are receiving tap water from the Fairfax Water Board. In the 2014 Annual Water Quality Report, the sources of raw water in Fairfax mostly come from the Potomac River and the
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.
Lastly, the internal weakness of PepsiCo is that the company is facing a negative publicity. There are doubtful practices which accused PepsiCo is using and selling tap water. However, the company places view of mountains on its water bottle labels. The public claim that the company deceiving people to believe it
Coca-Cola Company has realized significant growth since its establishment to become a global leader in the marketing, manufacturing, and distribution of syrup and soft drinks. Out of the four generic strategies, the company has followed the differentiation strategy to make its products unique in the market. Its interest is to maximize the market share through the development of the most innovative products and the establishment of effective strategies to influence the customer’s decisions. In such a way, the company has integrated various strategies to ensure that desirable results are attained in the market. Its strategic choices align with the differentiation strategy in an attempt to make its products unique and meet diverse market requirements. To reduce its weaknesses, the company should consider exploiting key opportunities in the market including venturing in the packaging of water, promotion of new brands, and launching of healthy products. In particular, the vision and mission statement of Coca-Cola seems to have reconfirmed and changed in this process of company’s strategic analysis.
“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.
Few resources are essential to human survival. Access to clean water is the most critical of all. Water is a vital resource responsible for sustaining all life on earth. However, clean water is in short supply, but in high demand in all parts of the world. It is thought that most Americans have access to safe, affordable, clean water right from their taps. However, the media is uncovering the true nature of America’s deteriorating water situation. Americans have reason to be seriously concerned about the state of their drinking water. So what really is on tap in America?
Also, Coca-Cola has very strong rivalries. The main one is of course PepsiCo, which is very famous all over the world and has a great variety of products. Thus, Coca-cola can’t afford its image to be damaged because if that happens PepsiCo will become the leader of the industry very fast. Right now Coca-Cola needs a new Strategic Communication Plan to try to overcome the issues.
The focused Corporation of the subject strategic proposal is PepsiCo Beverages North America. This company was originally founded in 1898 by a North Carolina druggist. PepsiCo Beverages North America (herein referred to as the ‘Company’) sells several brands of consumer beverages in the United States and Canada. The various beverage products span through carbonated soft drinks, juices, readymade teas, isotonic sports drinks, bottled water, and enhanced waters. Several established brands include Diet Pepsi, Mountain Dew, Gatorade, Tropicana products, Aquafina Water, Sierra Mist, Mug, Propel, Sobe, and Dole. Refer to the Competitor Analysis section for in depth product information and listings.