Macro-Environmental

Economy: Famous brands need to be able to respond to the current and anticipated economic factors by promoting the welfare of all their stakeholders through marketing as well as environmental scanning to determine the needs of the

In Asian population, the satisfied consumers of Coca-Cola, is around 3.2 billion and the average consumer enjoys close to two servings of their products each month. Through intense focus on Coca-Cola, innovation and new quencher, the company has achieved the growth of 10% in 2010. With developing population & economy, the company is building and exciting the family of beverage brands, in order to expand the popularity of the core brands, led by Coca-Cola. In China, for example, sale of Coca-Cola is increased by 6%. The total unit case sale of Coca Cola in Asia can be shown by the following pie chart.

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.

The 2 companies already strong brand equity, increasing marketing budget for their flagship brands and constant innovation (e.g. freestyle soda machine) should retain customers’ loyalty. By diversifying their product portfolio through new acquisitions and introduction of a variety of new CSDs such as diet products that already proved their profitability and non CSDs, the two companies should be able to respond and adapt to the customers changing demand and preferences such as increasing health concerns, rising interest in sports and nutritional drinks. The international market remains a key opportunity for Coca cola and Pepsi to sustain and increase their profitability. Even though Coca Cola is already a leader on the international level with 80% of sales in contrast with roughly 50% of sales for Pepsi, many foreign untapped markets are still far from being saturated and constitute a good profitable business, especially within the rising economies in Asia, Africa and the Middle East as growth means higher purchasing power. Finally, the two companies’ consolidation of their bottling system again in 2009 should cut down operating costs and increase

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)

The Coca Cola company is perceived to be the most famous trademark on the globe, and it is equally so. The company claims more than 400 brands that appeal to a wide range of individuals throughout the world. They are in a position to fulfill needs of every one of their buyers making their experience with their beverages a better one. The entity’s drinks entice a lot of people across all races, age, and gender. Coca Cola is outstanding for its overall popularity as its items are sold in over four hundred countries in the world, while major contenders like Pepsi are just available in very few countries. Such a competitive advantage has placed

Economically, soft drinks are not expensive and they are consumed by most everyone. The soft drink industry is not influenced significantly by economic influences. However, the raw materials used to create soft drinks and in juices like sugar, fruits and vitamins may affect production costs and PepsiCo’s costs of production and the profit margin (Finch, 2012). The distribution channel and transportation also affect the price of the product and the commercial tax rates can vary (Finch, 2012). Socially (Finch, 2012), people today are sensitive towards the content of advertisements. Taking this into account, PepsiCo is targeting the next generation of consumers, and they differentiate

Partially due to decreasing interest in colas by consumers, PepsiCo faces increased competition in the fight for market share in the cola industry. Pepsi and Coke have gone head to head for years, with Dr Pepper and other smaller brands running a distant third, but with a shrinking consumer base, companies are left to fight over the remaining consumers. PepsiCo has usually played a close second throughout the years, but continuing to invest in a dwindling industry is no way to achieve sustainable profitability. Increased investment would be a wasted effort mainly because of the brand recognition and loyalty that Coca-Cola enjoys. While Pepsi does have its own brand recognition and loyal customers, it is not to the same degree that it is for Coke. In the fight for the remaining cola consumers, it is not likely that Pepsi will win out after being in second

Situation Analysis: Soft drinks are a multibillion dollar global commodity in the 21st century Coke alone produces over 400 brands in 250 countries, serving an average of 1.5 billion servings of some type of beverage per day (Warner, 2005). However, in the last decade or so, soft drink sales

This paper focuses on global business strategy of The Coca-Cola Company, who is the leader in the beverage industry as well as, the world?s leading soft drink maker that operates in more than 200 countries and owns or licenses 400 brands of nonalcoholic beverages. The paper will concentrate on the PESTEL analysis of the organization focusing on the external factors of the business and the environment where it operates. All of the following environments will be discusses in the research; Political, Economic, Sociological, Technological, Legal, and Environmental as they the changes in the market segment. Within this paper it will discuss some of thr

What environmental factors could have an impact on the selected marketing mix e.g. economic conditions, the political or legal environment, etc?

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

PepsiCo, one of the leading beverage and snack companies in the United States and abroad, is affected by both global and domestic environmental factors. These factors, along with changes in technology, all impact and shape the organization and affect marketing decisions. The article “PepsiCo Pops for China,” written by Ruthie Ackerman and published by Forbes.com, reviews Pepsi’s decision to invest billions into the Chinese market audience. This paper will review the article, identify environmental factors that shape the organization and impact marketing decisions, and discuss how technology plays a role in those decisions. Alternatives

Coca Cola is the leading manufacturer, marketer and distributor of soft drinks in the world. With domestic market nearing saturation, the potential for growth lies in international markets. In recent years, economic, political and social changes have made the global environment more uncertain, forcing Coke to reevaluate its strategy, structure and culture to maintain a competitive advantage. The following is a dynamic analysis that tracks the evolution of Coke’s strategy from global standardization to a multi-domestic strategy that emphasizes national responsiveness.

An analysis of a product’s external environment can be very taxing to an organization. The framework for analyzing external environmental factors include: competition, economic growth and stability, political trends, legal and regulatory, technological advancements and sociocultural trends (Ferrell & Hartline, 2014). Coca-Cola is the #1 nonalcoholic beverage company, as well as one of the world’s most recognizable brands (need citation). It owns or licenses and markets more than 500 beverage brands in more than 200 countries. In an attempt to provide an external environment analysis of Coca-Cola Company, we first examine competition. Coca-Cola has a net revenue of $63 billion and a brand value of $77,839 billion with 123, 200 employees (need citation). Its competitors are PepsiCo, Inc., Nestle, and Dr. Pepper Snapple Group, Inc. According to the New York Stock Exchange, PepsiCo has a market cap of $105.45 billion, 297,000 employees with revenue per employee at $221.199. Dr. Pepper Snapple Group has a market cap or $8.95 billion, 19,000 employees with revenue per employee at $314,368.