Coca Cola Vs Pepsi An International Battle

1101 words - 4 pages

In the summer of 1898 an hot humid day in New Bern, North Carolina a young Pharmacist named Caleb Bradham began experimenting with combination water, cane-syrup, and an extract from tropical kola nut. He prepared the Cola. It's as easy as 1-2-3. Selling Pepsi in North America isn't just the second-biggest endeavor in the soft-drink business (behind #1 seller, Coca-Cola), it's the third-biggest enterprise at PepsiCo itself. (PepsiCo's International division and Frito-Lay are bigger in terms of sales). Pepsi-Cola North America manages the network of independent and Pepsi-owned bottlers, which help make and distribute beverages such as Pepsi-Cola, Mountain Dew, Sierra Mist, 7UP, Aquafina water (#1 in the US ahead of Coke's Dasani), Lipton teas and Starbucks Frappuccinos (through joint ventures).OVERIVEWThe soft drink industry has been engulfed by an ongoing cola war stemming from a long-time battle between Coca-Cola and Pepsi Co. Recently both companies have introduced their products to the foreign market, but in order for either company to turn a profit, there is a large amount of red tape they must cut before production can begin. This paper will examine the new markets and the roadblocks that have stopped these companies for so long.Established in 1886 and 1889, Coca-Cola and Pepsi Co., respectively, were among the first soft drinks invented and their popularity grew rapidly. By the 1930's, Coca-Cola appeared on over 20,000 walls, 160,000 billboards, 5 million soda fountain glasses and 400 million newspaper and magazine advertisements. When the war (Second World) ended, the Coca-Cola Company had sixty-three overseas bottling plants in operation in venues as far-flung as Egypt, Iceland, Iran, West Africa and New Guinea. Since then, international marketing has become more complex and the following will study the new territories and the advancements that the companies have made.PepsiCo is a world leader in convenient foods and beverages, with revenues of about $25 billion and over 142,000 employees. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International; the beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North America and PepsiCo Beverages International, and Quaker Foods North America, manufacturer and marketer of ready-to-eat cereals and other food products. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. PepsiCo's success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people.Coke and Pepsi have been fighting for the supremacy of the global market in refreshments. The market of drinks in the United...

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