MK0272 Essay

By connecting to their consumers constantly and effectively through excellent advertising, Coca-Cola was able to provide brand loyalty. With diversification within the company’s products, the brand was able to stay relevant throughout time.

Substitutes products are bottled water, sports drinks, coffee, and tea. Bottled water and sports drinks are increasingly popular with the trend to be a more health conscious consumer. There are progressively more varieties in the water and sports drinks that appeal to different consumers’ tastes, but also appear healthier than soft drinks. In addition, coffee and tea are competitive substitutes because they provide caffeine. The

Coca-Cola and PepsiCo compete at length with each other among an extensive list of other brands. A key concern for both of these companies in 2011 was their capability to market, produce, and distribute across national boundaries of a single nation. This concern has decreased as both companies were able to push though their limitations and were able to establish manufacturing plants in countries across the globe. (Coca Cola Company, 2011)

Are you a Coca-Cola fan or do you enjoy drinking Pepsi? Chances are you’ve tried both and have noticed the difference between the two. These two soft drinks have been legendary rivals for over a decade. Coca-Cola has always came out on top winning the cola war however. The company controls 42% of the soft drink market in comparison with Pepsi who owns 30% (“Coke Vs. Pepsi: By The Numbers.”). With market power, Coke and Pepsi have accomplished manipulating prices and controlling profits for ages leading towards their success. Coke and Pepsi are two economic giants that sell similar products in the cola industry and market power keeps them both competitive.

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

The Coca-Cola Company is a strong multinational company with a well-established trademark that has done well since 1886. The company has improved its marketing strategies to satisfy customers in a better way. Since its establishment, it has effectively differentiated itself by being considered as the largest manufacturer, marketer, and distributor of non-alcoholic syrups

The U.S. Beverage Industry is compromised of concentrates including CSD’s, beer, milk, bottled water, coffee, juices, tea, sports drinks, powdered drinks, wine and distilled spirits. The consumption trends of CSD’s more than doubled from 1970 to 1990 and continued to steadily rise well into 2000. Although very small, beginning in 2000 there was a slight drop in consumption followed by another minuscule drop in 2002-2004. Although the change is slight and is not cause for alarm at this point, it does fit in with the changing environment of the industry. More and more choices are being introduced into the marketplace as well as changes in consumer behavior (dieting, changing preferences, etc.). These changes give reason to the slight

Broadened product lines by adding carbonated drinks, iced teas, diet juices ,seltzers and isotonic sports drink

In Australian, a large number of customers prefer the healthy drink rather than caffeinated beverages cause healthy and wellness are still as the main factors to impact the purchasing decisions of customers. However,

The change in the consumers' taste is another key trend in the industry. Many substitutes to carbonated soft drinks gained more popularity among consumers. Exhibit 5 shows an increase in the consumption of bottled water from 11.8 in 1998 to 13.2 gallons/capita in 2000, and that of juices from 10 to 10.4 gallons/capita at the expense of

They have succeeded in focusing on the brand image, customer retention and adding social and ethical benefits to every bottle they sell (Coca-Cola.com, 2014). “In advertising, everything depends on strategy applied on the market, which is adjusted to the positioning” (Moraru, 2010).

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.

PepsiCo has the potential to encourage consumers into drinking water and eating healthier snacks that they promote. Bottled water is rising and it is a healthy substitute to sugared drinks. Restaurants, clubs and venues are using their beverage to make special drinks. This is where alcohol industries gains more profit to their company. However, with the ability to adjust customer’s demands with new and appealing products it can dominate to success.

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.

Though Coca-cola has "won the war" over PepsiCo. Still some strategies could be taken to enhance the company forward and allow it to sustain its privileged status. To start, it could pay more attention to their numbers by offering further reduction on wholesale prices as well as offer more free products. On the other hand, Coca-cola could expand with other additional products. As trade is expanding on global base