Marketing Plans At Pepsico ( N.d )

The existing concentrate business is largely controlled by Coca-Cola Company (Coca-Cola) and PepsiCo (Pepsi), together claiming a combined 72% of the U.S. carbonated soft drink (CSD) market sales volume in 2009. Refer to Exhibit 1 for an illustration of the CSD industry value chain. For more than a century, Coca-Cola and Pepsi have maintained growth and large market shares through mastering five competitive forces, shown in Exhibit 2, that drive profitability and shape the industry structure.

Recently, people have become worried about the health issues associated with consuming sugary drinks, especially soda. The rate of people being diagnosed with type-2 diabetes and cardiovascular disease has been going up primarily because of beverages with added sugar (Cited in Crawford, 2016). Several studies have found that soda is linked to over 180,000 deaths per year (Cited in Crawford, 2016). An article by the Huffington Post (2011) said that an average American drinks about 44.7 gallons of carbonated beverages a year, which adds up to over 350 pounds of soda. Comparatively, in 2005 an average American drank only 0.5 gallons, making soft drinks the most consumed beverage in America (n/a, 2011). The way the government is trying to fix

The impact sugary sodas have on our bodies is known by everybody. But this didn’t stop people consume large quantities of sugary beverages. This is what the change observed in the consumption of such drinks appears to be curious. In accordance with the report, the average American has cut down on soda consumption by 25 percent in the last 25 years.

It is no secret that one of America’s biggest health concerns is obesity. Sugar has been linked as one of the greatest causes of obesity. The amount of daily sugar intake has increased over the past years and with it so has it’s health risks. The food industry is now adding additional sugar to their products. Many of the big named companies are great contributors to the obesity rate in the United States. Those with the greatest impact are soda companies. These sugary drinks are a major contributor to this epidemic. Sadly, many people are unaware of the consequences that excessive sugar can cause. Therefore, soda companies should add to the beverages that contain

Historically, the soft carbonated soft drink (CSD) industry has been valued at $74 billion in the United States. In order to understand the reasons why the industry has been hugely profitable despite the ‘Cola Wars’, an examination of the CSD industry with Porter’s five forces analysis will be conducted. As market leaders, the analysis will be centred on both Coke and Pepsi (hereafter “C&P”).

You would never believe the impact soft drinks have on your body. Something as simple as a thirst quencher can impact society the way a soda does. Did you know that two out of three adults and one out of three children in the U.S. are overweight according to a Harvard study completed in 2012. Sugary drinks increase the risk of obesity, diabetes, and heart disease by at least 25% according to the Institute of Medicine. (Institute of Medicine)

Because of prevailing junk food, the next generation of Americans will struggle with obesity and diabetes more than any other. Thus, one of the culprits is the sugar-filled sodas and other sugar-sweetened beverages, like sports drinks or sweet-teas. At this point, Legislators in California are trying to emblazon sodas with a warning label that looks similar to the alert on cigarette packages or alcohol bottles. They believed that all beverages with more than 75 calories of added sugar in a 12 oz. will contribute to obesity, diabetes and tooth decay. Legislators’ intention is positive to protect people, however, their statement has no support by any research institutes.

It seems that over the last 10 years, there has been campaigns that promote different studies showing soft beverages or carbonated beverages are unhealthy and cause a lot of problems to individuals. Cities, in order to tackle public health, especially childhood obesity, have made efforts of to ban or tax carbonated beverages. Although some may not have been successful, such as New York City or Philadelphia, it shows the public that soda is not a healthy product. In a recent article by Sanger-Katz, she explains that over the last 20 years, the sales

“Between 1970 and 1997, the united states Department of Agriculture (UDSA) surveys indicated an increase of 118 % of per capita consumption of carbonated drinks, and a decline of 23% for beverage milk. Soft drink intake has been associated with the epidemic of obesity and type II diabetes among children. While it is possible that drinking soda instead of milk would result in higher intake of total energy” (Dehghan 3).

During the growth stage of the product life cycle, the Company has a plan to diversify to the additional major markets in other geographic locations as well as to introduce additional products in the markets. Hence, the company will face additional competition from the major brands such as Coca-Cola, Pepsi Foods, Dr. Peppers etc. to gain the market share. While Coca-Cola and PepsiCo are the market leaders, however due to the increased concern over high calorie and carbonated soda based drinks, the market share of the existing leaders are in

They have found an alarming connection between the consumption of sugar in soft drinks and cardiovascular diseases, as one soft drink a day increases the chance of death by one-third. Also, individuals who consume a quarter of the daily calorie intake from sugar increase the death risk by half. The World Health Organisation recommends that a maximum of ten percent of calorie intake comes from added sugar. ”Not only is added sugar an unnecessary cause of calories, but also predisposes to strokes and heart attacks. We need to take action now.” (Hope,

PepsiCo’s corporate strategy had diversified, in 2008, the company into salty and sweet snacks, soft drinks, orange juice, bottled water, and ready-to-eat drink teas and coffees, purified and functional waters, isotonic beverages, hot and ready-to-eat breakfast cereals, grain-based products, and breakfast condiments. Strategies that kept their brands at the top were tied to new product innovation, close relationships with distribution allies, international expansion, and strategic acquisitions. A new element of PepsiCo’s corporate strategy was product reformulations to make snack

Due to the global reach of the industry’s giants, soft drink manufactures must combat common, well of global or domestic competition for the market share. The threat of substitutes within this industry is a very real threat. Possible substitutes that continuously place pressure upon both the soft drink industry include teas, coffees, juices and waters primarily due to tradition but now due to a growing global up swell for health consciousness.

This essay presents the carbonated soft drinks in the worldwide soft drink market, and Coca-Cola and Pepsi Co, the two companies that have been competing and fighting to control profits and market share in this segment. First, this essay explains the reasons that the carbonated soft drink industry is so profitable and lucrative. Second, this essay compares the economics of the concentrate business to the bottling business, and explains the reasons that the profitability metrics are different. Third, this essay explains how the competition between Coke and Pepsi have affected the world beverage markets profits with carbonated soft drinks. Fourth, this essay forecasts the feasibility of Coke and Pepsi being able to sustain their profits as a result of demand decreasing and

Pepsi recently announced that they are releasing a new soda brand to be named 1893. Although no other official information has been released besides the name, it is said to be a “premium” soda to complement the company. The name “1983” was chosen because that is the year one of the main creators of Pepsi was born, Caleb Bradham. He created a beverage “Brad’s Drink” that would eventually change its name to Pepsi. Last year Pepsi came out with “Caleb’s Soda” which is marketed as a more premium soda, so sources are assuming this one will follow suit. Both sodas are named after Caleb Bradham, who created the original drink as a more healthy soda to aid digestion without the narcotics or caffeine (before the company would add it later on). This new product is being launched as Pepsi consumption sales are declining. The company also announced it would be releasing a “Stubborn Soda” line that will be offered to buy at select places.