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Cola Wars: Case Write-Up
For many decades, the market for cola could be easily summed up as follows: Coca-Cola vs. Pepsi-Cola. Although Coke clearly dominated, Pepsi was a strong 'also ran,' particularly after branding itself as the taste of the Next Generation. However, in the 1990s, the palates of American consumers began to change, resulting in a sharp leveling off, and then a decline in soda consumption. The major soft drink companies had negotiated reasonably competitive agreements with the 'links' of their supply chains: smaller bottlers were dependent upon the major brands to survive and the major cola companies negotiated specific arrangements with bottlers to distribute only specific brands (such as Sprite rather than 7-Up, in the markets where these two uncolas were competing against one another). Coca-Cola dominated fountain sales, Pepsi concentrated on the retail market.
Analysis: Marketing gaffs and internal trouble at the organization caused Coca-Cola to lose market share. Pepsi engaged in more effective risk management by expanding into other retail venues, such as buying up well-known fast food chains; placing its emphasis on diet beverages; and promoting non-carbonated beverages. Although the individual markets for specific non-cola beverages like sports drinks were smaller, the profits on such products were often higher than those of carbonated soft drinks. This gave Pepsi a considerable image advantage over Coca-Cola. It also had a more friendly relationship with its bottlers.
Recommendation: Coca-Cola's greatest strength in relation to Pepsi was in its international dominance, particularly in Europe and Latin America, despite regulatory hurdles within those nations it was forced to overcome. As the taste for carbonated beverages bottoms out in America, Coke could further expand its outreach abroad, although Pepsi still has stronger roots in the former Soviet block nations and Middle East. Coke's failure to find a winning strategy in terms of new beverages, and its unilateral focus on soft drinks vs. Pepsi's more broad-based strategy will continue to hamper its development unless it can re-configure its image. Concerns about obesity in America will cause soda to become an even greater target in the future -- Coke must shift its focus to more diet-friendly cola products, changing with the times and playing to its strengths. A new Diet Coke campaign, and using smaller amounts of 'real' sugar in regular Coke, rather than glucose-spiking high-fructose corn syrup would be recommended.
Lastly, there were also the issues that had long since followed the brand that Martin, reports on his article that deal with consumer concerns regarding past business practices, tainted soda cans and prejudice against Coke employees. If I were the CEO of Coke, there are quite a few things that I would change within the structure of the company, branding and techniques. The first thing that I would do is
Instead, the Cola Wars helped the industry grow. In 2000, for example, 41% of total non-alcoholic beverages sold were CSDs. In the late 1990s and into the 21st century, the drinks with high growth (and media hype) were non-carbonated juices, sports drinks, tea drinks, dairy drinks, and bottled water. Pepsi dominated this market with Gatorade, Lipton and Aquafina. The bottlers were also required to reinvest in more complex equipment
Coca-Cola Company. Specifically it will discuss and analyze the case study, including relevant facts and recommendations regarding the study. Coca-Cola is one of the most well-known and famous brands in the world, and it has been in existence since the late 1800s. This case study indicated that it faced several ethical issues in the last decade that eroded its credibility and created strife inside and outside the company. Facts The facts
, relevant to considerations of the impact of locally adapted TV advertisements on sales revenues of Coca-Cola Company in Morocco during the Holy month of Ramadan. Chapter III: Methodology During Chapter III of the study, the researcher relates the methodology, which includes a survey, utilized to investigate the impact of locally adapted TV advertisements on sales revenues of Coca-Cola Company in Morocco during the Holy month of Ramadan. Chapter IV: Analysis During Chapter IV
New, cheaper 200 ml bottles for example are aimed at rural and low-income urban markets. In a country where poverty is the plight of the majority of the citizens, such a strategy shows particular awareness of the specific culture and market. Market and cultural awareness is therefore of utmost importance when entering a foreign market such as India. Characteristics and Importance of the Indian Market It has been mentioned above that
" Fiscal year 2007 was ended with sales worth more than $37 billion and with a total staff number of 103,000 employees. The Ongoing Battle against Coca Cola PepsiCo and Coca Cola's endless disputes have been organized by the specialized literature under the syntax 'cola wars'. They generally received this name due to their intensity and their continuous occurrence, but also for the not always positive effects they had upon the two