Thesis Statement
Dubai Refreshments Company, the sole franchisee and distributor for Pepsi Co. in UAE, is facing serious government regulations owing to various environmental and health hazards arising from the company’s manufacturing process and from excessive consumption of soft drinks, respectively. The company should resort to floating the market with healthier alternatives and making use of improved recycling practices to prevent losing market share to competitors.
Company’s History and Growth
Dubai Refreshments Company originally located in Deira on the Maktoum Street was endowed in 1959. By 1962 they became the distributor and solo franchisee of PepsiCo within United Arab Emirates. They inaugurated their sponsorship in 1997 with the Dubai Shopping Festival which runs every year and gained 7 UP from NRC by 2003. 2004 was a turning point for the company as they launched Aquafina the brand and set up factories on Sheik Zayed Road and Dibba Mountains. The company was listed under the Dubai Stock Exchange and increased its production facility for better success rate within the UAE by 2007.
Strengths
Dubai Refreshment Company 's huge customer base and hold over majority of the market
All products are non-alcoholic, catering perfectly to the UAE market
Cost effectiveness maintained across all products
Vast variety of drinks compared to its competitors
Weaknesses
Competition with other local groups like Al Ahlia Gulf Line and Aujan Industries
High calorie and sugar
Over the last century, Coke and Pepsi have been waging war over the $74 billion carbonated soft drink industry in the United States. The degree of this competition has changed over the last decade as carbonated soft drink (CSD) consumption in America decreased to 46 gallons per year per person. To investigate these changes and evaluate the reasons why the industry has been so successful over the years, it is important to do an industry analysis looking at the different forces that affect both Coke and Pepsi as well as the changes in these forces and their effects on the industry competition.
The sustainability also works in alliance with the companies mission of refreshing the world, creating moments of happiness, creating value and making a difference. The leadership of the company is focused on the so called ‘Three Ws’: women, water and well being. The company is striving to work together with their partners, government agencies, universities and others. The company is trying to enable empowerment of 5 million women by 2020. Also they are working in the direction of balancing the water they use on beverages by 2020, by returning to communities and nature the amount of water equal to the amount used on producing the beverages. And they have already made a difference returning 68% of the water in 2013. As for well-being they want the customers to be informed and choose their preferred drink, by providing a greater variety of reduced or no calorie beverages. They also try supporting physical activity programs in each of the markets they operate. The sustainability framework of the Coca-Cola Company is what they call ‘Me, We, World’. Me stands for increasing personal well being like, offering low or no calorie drinks, providing transparent nutrition information and supporting physical activity. We stands for building stronger communities like, empowering women, comply with norms and standards and charity contribution. And finally World stands for protecting the environment like, water, climate protection, packaging and sustainable
Moreover, in attempts to keep up with its rival, PepsiCo, in the acquisition of different brands, Coca-Cola acquired the juice brand Odwalla in 2001 since PepsiCo had already began acquiring a variety of healthful brands that claimed to be earth-friendly and a healthy choice for the consumer. Odwalla is an all-natural juice brand, which sells popular juice drinks, smoothies, and nourishment bars, which are produced, from all-natural and the best quality ingredients without any artificial additives or preservatives. Moreover, Odwalla boasts that all of its processes are eco-friendly. Thus Coca-Cola may inevitably benefit a great deal from the acquisition of such an earth-friendly brand because it may help to reduce the company’s ecological footprint. So, the question that we present and analyze throughout this investigation is, whether Coca-Cola – the all-American company – has succeeded in reducing its carbon footprint with the procurement of a greener motto.
In year 1965, PepsiCo Inc. is founded by Donald M. Kendall and Herman Lay. PepsiCo Inc. was merged by Pepsi-Cola and Frito-Lay in 1965. PepsiCo is an American multination industry that selling food and beverage. PepsiCo Inc. is the second-largest organisation that produces food and beverage in the world.
Coca- Cola is a world largest soft drinks company, which holds approximate 62 percent of the market share. The firm owns most popular brands like Coke, Sprite, Dr. Pepper, and Fants. Additionally, Coca-Cola has added other exotic brands include Powerade and Dasani. There are two major nonalcoholic firms in the market, Coca-Cola and Pepsi, which accounts for over 85 percent of the market share. Although Cola-Cola revenue has slightly declined in the last couple years, the firm still dominates in the soft drink industry due to its recognition brands and delightful products. Interestingly, in the past few decades, Pepsi was able to manage incredible performance in their revenue and financial results. However, recently, Pepsi experiences the decline in sales admit the change of consumers to healthier products and intensive competitions. Besides, Pepsi acknowledges the economic difficulties and the competition factors, therefore, the firm has been done intensive reform in the organization. This reformed activity conducted by Pepsi is that to ensure its competitiveness and product quality in the market place. Equally, Coca-Cola is revived their sales and ensure maintaining their domination in the market share. Therefore, Coca-Cola
In the 21st century, the beverage industry has been become one of the fastest developing industries and the competition in this industry become significantly. Even in this market share campaign, The Coca Cola Company still remains its leader position in the beverage industry. The Coca-Cola Company and six of their largest bottling partners developed a strategy for sustainability in 2002. That plan focuses on the role and impact of the Coca-Cola system in four key areas: workplace, marketplace,
McDonald’s and Restaurant Brands International are some of the major companies in the burger factory. McDonald’s has been in the food business since the early 1950s but Restaurants Brands International was created in 2014 by the merger of Burger King and a Canadian coffee shop and a restaurant called Tim Hortons. There isn’t much data on Brands International since its merger in 2014 so current data being shown will come from the annual reports of 2014. Before the merger, both McDonald’s and Burger King were competing for the most customers and quality of food. The research paper will try to provide all the financial statements of both food companies. All information will try to be retain within the year of 2014 considering the merger of Burger King has to also collect with the other two companies. Most people know that McDonald’s is highest major burger company; however, with the merger of Burger King and the other two food companies, it rose up to the top 5 burger companies in the world. Now these food companies are fighting for amount of revenue or customers to increase their size more. Restaurant Brands International has greatly rose Burger King to close to McDonald’s level by increasing the customers and ideas. This report will compare how their business’s financial statements are working so far and show how wide the gap is between each other.
Pepsi have started its product diversification in 1965 after they have merged with Frito-lay. They have started to manufactured different snacks item for different region under the brand name of Pepsi co. Some of the popular products are:
As the titans of the soft drink industry, Coca-Cola Enterprises Inc. (Coca-Cola) and PepsiCo, Inc. (PepsiCo) battle daily for consumers’ tastes buds. Each day, consumers choose to enjoy brands from one of these two companies. So much so, that Coca-Cola states, “There are nearly 10,450 soft drinks from Coca-Cola consumed every second of every day including Diet Coke, Fanta and Sprite” (Coca-Cola). This ability to capture the market has also fueled Coca-Cola and PepsiCo’s longevity for over 100 years. To put this in perspective, Fox News illuminates that PepsiCo was, “One of the first companies in the U.S. to do away with the horse-drawn carriage method of transporting product…” (Tierney).
A significant external change and threat for carbonated soft drink (CSD) producers has been growing steadily for years due to an “[i]ncreased focus on the health problems and the dangers associated with consuming high amounts of sugar
Threat of new entrants: The soft drink industry is highly competitive. The barrier to entry is relatively low for a new comer with a single beverage but the established players like Coca-Cola and China, who with their experience have achieved economies of scale. Huge capital investments are required to create a brand awareness among the consumers, though the process of bottling, distribution and storage could be outsourced. The
Pepsi, as one of the most successful drinks brands, has more than 100 years’ history since it established. At the beginning of Pepsi, it was made by a pharmacist to treat stomach illness in 1898. Nowadays, PepsiCo is an international corporation within more than One hundred and forty thousand employees around two hundreds countries. During the evolution of Pepsi, it insisted consistently on its marketing position which concentrates on the youth market. As a coordination of the target market, Pepsi had to permeate fresh element into the production continually to attract younger customers’ attention. Instead of increased the production of traditional product, PepsiCo has
Consumers are able to choose from a large variety of soft drinks despite the fact there is a limited number of manufactures. When you consider the industry at a glance it is a very competitive market for the four United State manufactures, and the largest private label manufacture in the world (Chrystalleni Stivaros, 2016). Looking specifically at the Coca-Cola Company it will become clear how their strengths and them capitalizing on various opportunities, makes them the number one soda company in the world. This type of behavior is due to Coke’s strategies and being able to minimize their weaknesses and threats as they deliver 500 different flavors to over 200 countries daily (Chrystalleni Stivaros, 2016). Additionally,
This report will analysis the industry of carbonated soft drink (CSD) and presents Coke and Pepsi 's advantages. Explain the issue of this case is the new challenges that Coke and Pepsi faced: how to boost flagging CSD sales and keep sustainable growth and profitability; how could they compete with marketing planning. Finally,there are some suggestions.