Coca Cola Vs Pepsi Case Analysis

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

To survive in the global competitive market, most companies keep inventing new products that enable them to remain relevant. Firms compete to create unique products or services that satisfy customer demands through differentiation. Companies can improve on existing products to make them more effective and attractive. Coca Cola founded its company in 1886, with its original recipe; however, due to consumers wants they also created diet, caffeine-free, and special flavored drinks. They created a unique line to enhance their original drink to attract more consumers. In the end, it proves to serve them well to have a wide variety of drinks because in 2016, Coca-Cola’s market cap was $192.80

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

The Coca Cola Company has been acquiring various local beverages companies aggressively over the last decade. Also, the company has increased its stake in major bottling operations.

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

Coca-Cola Company and PepsiCo are two industry leaders in the carbonated soft drink (CSD) industry and are strong rivals of each other in the world’s beverage market. From 1975 to the mid-1990s, both companies achieved a steady growth rate of 10% in terms of revenue. Between 1970 and 2000, CSD consumption grew by an average of 3% due to the fact that there were more varieties of carbonated drinks along with many flavored drinks. There were also many substitutes widely available in portable packaging, but Americans stuck to drinking more soda than the available substitutes. The competition between both companies became weak when CSD consumption diminished to 46 gallons per year at the start of the 21st century, the lowest CSD consumption level in the United States since 1989. This was followed by different internal issues faced by both the companies. In addition to this, the profitability of both companies started reducing as there were fluctuations that could be seen by incomes generated in different years. As for Coca-Cola, the net profits were $6,797, $11,787, and $8,584, all in millions, for the year 2009, 2010, and 2011 respectively. However, for PepsiCo the profits were somewhat stable through the years. The new industry environment created intense competition among CSD businesses which required the need for new strategies to be formulated and implemented to be a top competitor in the environment.

According to The Coca-Cola Company's 2005 Annual Report, the firm sells beverage products in more than 200 countries. The report further states that of the more than 50 billion beverage servings of all types consumed worldwide, daily, beverages bearing the trademarks owned by or licensed to Coca-Cola account for approximately 1.5 billion (the latest figure in 2010 shows that now they serve 1.6 billion drinks every day. Of these, beverages bearing the trademark "Coca-Cola" or "Coke" accounted for approximately 78% of the company's total gallon sales.

Coca-Cola is a carbonated soft drink. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by business man Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.

Coca Cola and Pepsi have been at odds ever since they started out at the turn of the century. Coca Cola had an early advantage but Pepsi managed to gain a strong hold in its respective markets and together the two of them have squeezed almost every other competitor out of the market. They have both, over the years, found ways to diversify their holdings and lower costs of production, seemingly steered, not by innovation or forward thinking, but as a direct response to market fluctuations and dips. Instead of foreseeing potential markets that could be accessed early, Coca Cola waited until it was desperate and floundering to make a decision. Pepsi also lacked a significant amount of foresight but were able to make smarter business decisions

Pepsi-cola aimed to tap into the pulse of the prevailing counterculture movement of the 1970s. The company recruited a unique blend of artists and engineers under the banner of Experiments in Art and Technology. The Pepsi Pavilion project served as a experiment and a landmark that integrated social interactions, electronic media, performance art, and futuristic concepts that created mind-altering realities. The Pepsi Pavilion in Osaka, Japan was built for display and therefore had significant symbolic meaning attached. The designers of Pepsi Pavilion were attracted to the aesthetic radicalism brought about by the collaboration between the arts, sciences. The Pavilion was designed to provide viewers with the opportunity to shape their own reality from the interaction of art, technology through a variety of processes within the structure.

When a business creates a new product, they consider the techniques they are going to use carefully, because the techniques will enable them to advertise and market their product to the public. If the techniques are carefully planned, then the product they create is likely to perform well in the market, which will increase the business growth. Coca-Cola puts a lot of effort in marketing their products, and it seems to have paid off as they have obtained very large amount of sales thus leading to high profit margins for the business. Coca-Cola has gradually been increasing the amount of money they spend on advertising each year. Every year, they are trying to improve the reputation of the company by making it recognised more every year,

Coca-Cola has been around for generations with the same iconic taste, logo and symbolism. Its brand has represented family and the memories of good times, celebrations and comfort of being with those we love. Unfortunately, the company has not made good marketing decisions in the recent past and has lost relevancy. The purpose of this essay is to assess the conditions that created Coca-Colas marketing problems, evaluate the future of healthy beverages and non-carb drink brand extensions, and provide recommendations to the management.

When a business creates a new product, they consider the techniques they are going to use carefully, because the techniques will enable them to advertise and market their product to the public. If the techniques are carefully planned, then the product they create is likely to perform well in the market, which will increase the business growth. Coca-Cola puts a lot of effort in marketing their products, and it seems to have paid off as they have obtained very large amount of sales thus leading to high profit margins for the business. Coca-Cola has gradually been increasing the amount of money they spend on advertising each year. Every year, they are trying to improve the reputation of the company by making it recognised more every year, because if they are increasing the amount of money spent on advertising each year, this means more people in the world are getting to know about Coca-Cola’s products. However, they still spend far less than some of its competitors, such as Pepsi which shows that apple budget their expense well, and this will help minimise their losses.

The global beverages industry is currently a low-growth market, with an expected compound annual growth rate of 5.7% between 2017 and 2025 (Grand View Research 2017). Additionally, the industry is quite saturated with firms that offer increasingly differentiated products. However, due to this low growth rate, companies have been engaging in price competition to gain competitive advantage and increase their market share. Nevertheless, Coca Cola is a dominant force in this market, controlling 40% of the industry, and is therefore at a low risk of losing its position.

Coca Cola’s Company competes in the nonalcoholic beverages segment of the commercial beverages industry. Based on internally available data and a variety of industry sources, we believe that, in 2005, worldwide sales of Company products accounted for approximately 10 percent of total worldwide sales of nonalcoholic beverage products. The nonalcoholic beverages segment of the commercial beverages industry is highly competitive, consisting of numerous firms.