Coke Vs. Pepsi Essay

2149 words - 9 pages

Coke vs. Pepsi

The company known as Coca-Cola today was started in September of 1919, but the first Coke brand was served as early as 1886. Since that time it has grown to be one of the most globally recognized brand names with a stock value of $167 billion. Coke’s plan has always been developed with the future in mind. Right away the company realized that it was more profitable to manufacture the concentrate used to make carbonated drinks than to bottle it. From that point on they saw the entire world, not simply the originating country, as their desired market. It seems only practical that the company should pursue this agenda until conquered then focus the effort on expanding into different product lines. This logical idea has catapulted them into the much sought after position of number one.
Manufacturing the concentrate requires only a limited capital and a minimal reinvestment, but yields huge profits. The company focuses their efforts on capturing more buyers for the most profitable product while distancing itself from the less profitable operations. In order to do this; Coke must have a loyal relationship with its bottlers in order to insure the completion and delivery of its product. They have found that maintaining a close association, as well as partial ownership in the less profitable business encourages both businesses to work together because they depend on one another. More importantly, it gives Coke the cash needed to chase after customers because they operate only in the highly profiting part of operations.
Pepsi operates its beverage business quite differently than Coke. Coke sells concentrate to independent bottlers while Pepsi owns its bottling and concentrate operations. This makes Pepsi more vulnerable to price wars that put pressure on its bottling margins. For years, Pepsi operated under the so-called three-legged stool strategy-drinks, snacks, and restaurants (Sellers 26). When Roger Enrico, Chief Executive Officer for PepsiCo, took over he began to examine the corporation. Going on the belief that if you can't make diversification work, give it up. For nearly three years PepsiCo has been undergoing a major strategic transformation. PepsiCo's chairman, Roger A. Enrico, stated in his letter, "…And while 1998 certainly offered its share of challenges, I'm very pleased to report that our strategy is beginning to payoff."
Consumers around the world bought more snacks and beverages than ever before. They have gained market share in both snacks and beverages in the United States, their biggest market. Internationally snack and beverage units both posted healthy volume growth, even amid economic turbulence.
In 1996 Coca-Cola began the jump on its competition by sponsoring the Summer Olympic Games. This event was a marketing gift. Not only because it was globally televised, but it also projected the idea of countries coming together to compete, but also promoting sportsmanship, wholesomeness,...

Find Another Essay On Coke vs. Pepsi

Case Study on Coke versus Pepsi

1106 words - 4 pages The case study "Cola Wars Continue: Coke and Pepsi in the Twenty-First Century" focuses on describing Coke and Pepsi within the CSD industry by providing detailed statements about the companies’ accounts and strategies to increase their market share. Furthermore, the case also focuses on the Coke vs. Pepsi goods which target similar groups of costumers, and how these companies have had and still have great reputation and continue to take risks

Coke and Pepsi, The War Continue

594 words - 2 pages Coke and Pepsi, The War ContinueControl of market share is the key issue in this case study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year (98). Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share. The creativity and

'The Cola Wars Continues: Coke and Pepsi in the 21st Century': Competitive Strategy Case Study

4581 words - 18 pages snack food complements (FritoLay).- Posses an innovative and creative team. The goals set are challenging yet achievable ("Beat Coke") and they have a clear mission.- Wide non-alcoholic beverage portfolio. Coca-Cola extended their product range with products such as Pepsi (Twist, One, Lime, Vanilla, Cherry…), Aquafina, Lipton Tea, Mountain Dew, Amp Energy, Mirinda, Starbucks Double Shot, Milk Chillers and more [2].Weaknesses:- Pepsi is

Cola Wars Continue: Coke versus Pepsi in the 21st Century. Industry Structure and Competitive Interaction

1123 words - 4 pages Industry Wrap.The soft drink industry is largely a duopoly. Coke and Pepsi were among the first to launch carbonated soft drinks (CDS). For over a century other companies tried to enter the market but had to face fierce competition and lawsuits from Coke and Pepsi. The worldwide demand for soft drinks in 1999 was 31 billion cases. Coke and Pepsi together held 74% of market share followed by Cadbury Schweppes at 6%. In this duopoly, participating

This is acomparison and contrast essay of the different advertising strategies that are used by Coke and Pepsi.

1170 words - 5 pages The Cola WarThe cola war between Coca-Cola and Pepsi is still raging, and the soft drinkbattle ground has now turned toward cyberspace. This assumption wholes true asone begins to study the web sites of these soft drink giants. The Coke and Pepsiwebsites both advertise and entertain their consumer, appeals to a youngerand trendier

Maketing strategy "PEPSI IN CHINA"

1303 words - 5 pages increased its sales volume as well.Table One: Pepsi vs. Coca Cola (Market shares in Guangzhou)Year 1997 1998 1999The Three Brands of Pepsi 10.90% 15.50% 28.50%The Four Brands of Coca Cola 48.80% 51.50% 45.80%l The three brands of Pepsi in the Guanzhou market are Pepsi, 7 up and Minute Maidl The four brands of Coca Cola in the Guanzhou market are Coke, Joy Cola ASprite, and Fanta.Table Two: A Comparison of the Market Shares of Pepsi and Coke in

The Coca-Cola Company - Overview

1030 words - 4 pages as a whole will be satisfied through later session long project assignments.References UsedLa Monica, Paul R. 2002. Coke vs. Pepsi: the new cola wars. Forget about how Vanilla Coke and Pepsi Blue taste. Which stock is better: Coca-Cola or PepsiCo? CNNMoney. Retrieved from the World Wide Web on 01 April 2004:, Alice. 2004. Pepsi's Cutting Edge? The Motley Fool. Retrieved from the World Wide

you are an investor

2961 words - 12 pages on December 14, 2013, from: Company. (2013). Retrieved on December 13, 2013, from: http://www.coca-colacompany.comD'Altorio, Tony. (1999-2013). Coke vs. Pepsi. Are the Cola Wars Over. Investment U. RetrievedDecember 14, 2013 from: Bottling Company. (2013). Our Product Portfolio. Coca-Cola. Retrieved on

5 forces

854 words - 3 pages of new entrantsIndustry profitability (the more profitable the industry the more attractive it will be to new competitors)Threat of substitute products or services[edit]The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives. For example, tap water might be considered a substitute for Coke, whereas Pepsi is a competitor's similar product. Increased marketing

5 competitive forces

854 words - 3 pages of new entrantsIndustry profitability (the more profitable the industry the more attractive it will be to new competitors)Threat of substitute products or services[edit]The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives. For example, tap water might be considered a substitute for Coke, whereas Pepsi is a competitor's similar product. Increased marketing

Analysis of Coca Cola Company

2719 words - 11 pages 1. Introduction For over 126 years, Coca Cola has been operated as world’s largest beverage company together with its subsidiary brands. The United States, as Coca Cola’s international headquarters, has one of the largest populations where Coke is the main beverage for most of the consumers. The purpose of this essay is to determine whether the environmental changes in the United States are beneficial for Coca Cola Company to operate more

Similar Essays

Coke Vs. Pepsi Essay

951 words - 4 pages drinks, we believe PEP could, over the long term, threaten Coca-Cola?s lead in the domestic beverage category in all channels except fountain." made Carolyn wonder how this announcement would affect the two companies prospects for value creation as measured by EVA. Historically, Coca-Cola had trounced PepsiCo in terms of value created.With Pepsi?s acquisition of the Quaker Oats Company, PepsiCo would now have control of another non-carbonated

Pepsi Vs. Coke Essay

618 words - 2 pages Compare and Contrast I have decided to compare and contrast the Coke a Cola and Pepsi Cola websites. I found that these two companies have been fighting to bring customers to their side since the birth of the two companies. If you ask anyone who drinks soda, they have a favorite, wether it being Coke or Pepsi. A major factor in getting a customer to buy your product is marketing. If a company appears to the public as an inviting company, people

Competitive Study Between Leading Brands: Pepsi Vs Coke

4800 words - 19 pages Pepsi) and Paula Abdul (for Diet Coke). One example of a heated exchange that occurred during the Cola Wars was Coca-Cola making a strategic retreat on July 11, 1985, by announcing its plans to bring back Coke Classic. Royal Crown Cola was also a major competitor with Coke and Pepsi during the "Cola Wars."The Cola Wars are referenced in the Billy Joel song "We Didn't Start the Fire"; in the South Park episode "It's Christmas in Canada"; and recently

Cola Wars Continue: Coke Vs. Pepsi In The 1990s (Cola Wars)

1934 words - 8 pages Pepsi and Coke, no sense of competition can be felt in bottling industry. Reasons are that, first, Pepsi and Coke control the majority of bottlers in 1990s; second, intrabrand competition is restricted by the franchise agreement, which is protected by 'Soft Drink Interbrand Competition Act'.From the view of capital requirement, it is easier for others to enter the CP industry than to enter the bottling industry, since comparing to $30-$50 million