While PepsiCo have diversified into healthier products and snack food business, Coca Cola have fell in marketing investments (advertising and marketing research) to maintain short term profit. As PepsiCo initiated the acquisition of Tropicana for $3.3Billion in 1998 (New York Times,1998)3, it have set itself up as the largest producer of branded juices for the health conscious in the USA. Subsequent acquisitions of Quaker Oats, Gatorade, Lay’s and Aquafina have also contributed positioned PepsiCo as the world’s 4th largest Food & Beverage (F&B) company with sales of US$22,000Million. The reluctance to diversify was evident when Coca-Cola decided against acquiring South Beach Beverage Company after negotiating for two years while Pepsi made an offer and in weeks acquired the SoBe brand New Age juice company, which gave Pepsi access to a market completely bypassed by soda
| Total stockholders’ (shareholders’) equity | 17325 | 21,744 | Not many corporations can boast of a 100 Year rivalry. The beverages industry witnessed such intense competition between Coca-Cola and Pepsi-Co That one can say that the competition between the corporations was, and still is so intense it could be likened to sibling rivalry, albeit a very serious one since finances are involved. The product offerings of both companies are so similar, that if one were to remove the brand names from their respective products, an individual would not be able to distinguish one from the other. The companies not only compete in soft drinks, but also have branched out to other beverages including coffee, juice drinks and even water. If Pepsi were to offer a new product it wouldn't be surprising to see Coca-Cola follow suit.
Total liabilities, PepsiCo Inc., were $14,464 and $17,476 in 2004 and 2005. The total liabilities in 2005 were 120.82% compared to previous years. Coca-Cola jobs in total liabilities were $15,506 and $13,072 in 2004 and 2005. Coca-Cola Company and number 39;s assets and liabilities decreased in 2005. In 2005, the equity PepsiCo, Inc. was $20,638 and the Coca- Cola Company, $16,355, total assets grew in PepsiCo, Inc. and the Coca-Cola Company.
1. In the video the macro environment of PepsiCo was largely influenced by the demographics and cultural ways of India where by the demonstrated a violent protest, because in that area water is a very valued resource and PepsiCo were destroying their rivers with chemical waste, whiles the people of that country go thirsty for water. Diversity: PepsiCo diversify the world by being the first major company to market to African Americans, they say that as an untapped resource and took full advantage of it which was proven successful. Technological Environment: these are the forces that create new technologies, creating new product and market opportunities. 1.
In 2000, Coca-Cola was the world’s largest beverage company. Coca-Cola and their bottlers used eighty billion gallons of water yearly for production and employee sanitation (Lawrence and Weber, 2011, p. 48). This vast water usage, created public issues related to water quality, availability and worldwide access. The Center for Science and the Environment, activists, local residents and India’s government expected Coca-Cola to conduct operations in ways that protected both the environment and consumers of their products. Instead, the corporation’s practices depleted India’s water supply and contaminated the products sold to their customers.
After sugar prices fell, he was left with a large inventory of overprices sugar, bankrupting the company in 1923. The assets of the company were then sold to Craven Holding Corporation for just$30,000. Frito-Lay Inc. merged with the company in 1961("PepsiCo", 2012). The company also owns many other brands including Sierra Mist, Slice, Tropicana, Ocean Spray, Mountain Dew, Mug Root Beer, No Fear, Seattle’s Best Coffee, Tazo, SoBe, Aquafina, and has a partnership with Starbucks and Lipton. In 1970 PepsiCo had sales exceeding one billion dollars and passed the two billion mark by 1974.
After spending $70.00 to produce, John Pemberton only sold a total amount of $50.00 worth of the soft drink. The ingredients in Coca Cola include cocaine and caffeine- rich kola nut. It was initially know as a tonic instead of a soft drink. Coca Cola was purchased from Asa Candler in 1887 for $2300 and became popular due to his aggressive marketing in the 1980’s. A new formula called
In 1965 PepsiCo Inc was formed when beverage giant Pepsi cola and snack food icon Frito-lay agreed to a merger. In the years after, leading up to 1996 the company pursued a growth strategy through acquisitions of businesses in the snack food, beverage and fast food industry, which they believed had potential benefits in cost sharing and skills transfer. Companies acquired during this period included KFC, Pizza Hut, Taco Bell, Mug root beer, 7UP, sun chips, etc. However, by 1996 it became apparent theses potential benefits were difficult to accomplish and in 1997 the company underwent a major portfolio restructuring which spun off the company’s restaurants as publicly traded companies. This portfolio restructuring initiative was geared to acquire powerful and emerging brands which would bolster PepsiCo’s profits and dominance within the market.
[pic] Kalia Hymes, Amy Isom, Joshua O’Brien Busa 308: Marketing Principles Prof. M. Simpson Table of Contents Company Description………………………………………………………………3 Business Mission……………………………………………………………………3 Marketing Objectives……………………………………………………………...4 Industry Analysis…………………………………………………………………..5 SWOT Analysis……………………………………………………….……………6 Target Market………………………………………………………….…………...9 Marketing Mix………………………………………………………….………….10 Marketing Research…………………………………………………….……...….17 Organizational Structure and Plans………………………………………………19 Financial Projections…………………………………………………………...….21 Summary…………………………………………………………………….….….22 Sources Cited……………………………………………………………………....23 Company Description The Coca-Cola Company, founded in 1886, is ranked number 94 in the Fortune 500 and number one in the beverage industry (Fortune 2007). They own four of the top five soft drink brands and serve over 6 billion consumers. Coca-Cola is headquartered in Atlanta, Georgia but “approximately 74% of its products are sold outside the US” (Coca-Cola Datamonitor, 2007). They recorded revenues of $24,088 million in 2006 and they have an employee count of approximately 71,000 (Coca-Cola Datamonitor 2007). The Coca-Cola Company is one of the leading manufacturers, distributors, and marketers of non alcoholic beverage concentrates and syrups.
Table of Contents Introduction 3 Pepsi’s Marketing Idea 3 Why Use Celebrities? 4 Product Placement in Relation to Target Market 5 The Pepsi Marketing Idea In Relation To the Boston Consulting Group Matrix 6 Media Saturation 7 Conclusion 8 References 9 Introduction In the article “Why fashion keeps bottling celebrity pop,” Seckler (2005) Alan Siegel, chairman and chief executive officer of Siegel & Gale states that “Marketing leverages what's going on in society — and we live in a society that is celebrity obsessed"(p.1). The Pepsi Corporation, a multi-billion dollar soft drink conglomerate, has upon discerning this societal trait, devised a marketing campaign designed to tap in to this celebrity fascination to increase exposure and profit. The purpose of this assignment was to identify a great marketing idea and comprehensively describe its marketing and this report will investigate this particular campaign and its influence on the market, in relation to the assignment topic. Pepsi’s Marketing Idea In 1961 Pepsi had redefined its target audience, recognising the importance of securing the younger post-war generation as consumers, with the slogan “Now It’s Pepsi, for those who think young” defining youth as a state of mind rather than actual age (Pepsi.com, 2006).