Pepsi-Co & Coca-Cola Wars Minerva C. Perez Strayer University Accounting 100 Pepsi-Co & Coca-Cola Wars | (In millions) 2007 | Pepsi-Co | Coca-Cola | 1. | Total current assets | 10,151 | 12,105 | 2. | Net property, plant & equipment | 11,228 | 8,493 | 3. | Total current liabilities | 7,753 | 13,225 | 4. | Total stockholders’ (shareholders’) equity | 17325 | 21,744 | Not many corporations can boast of a 100 Year rivalry.
Promoted as a high-powered pick me up and to increase endurance and performance during physical activity. Millions of people are buying these drinks without giving much thought to how good or bad these drinks really are for your body. One of the concerns of energy drinks is the herbal extracts, mainly guarana, which is an additional source of caffeine. Guarana is a plant grown and harvested in the Amazon rain forest. The manufactures of energy drinks are not required by law to reveal how these imported herbs are grown.
Also showed a constant growth of minimum 6.6% in the uk soft drink market with coca cola leaving Britvic and red bull in second and third place. Based on the findings of the BSDA's 2009 UK Soft Drinks Report, Jill Ardagh, Director General of the British Soft Drinks Association said:" Consumers are loyal to the drinks they know and trust but remain open to innovative products and brand extensions which meet their ever-evolving needs". Mountain Dew’s strengths are as follows: being a Part of the most internationally recognized company Pepsi Co. Increases the reputation of the
Sales reps then targeted shops near universities and gyms. Dealing with individual accounts rather than big retailers had the added advantage of being fast. In 2003, an estimated 64% of volume was generated by consumption in bars, clubs and petrol stations—accounting for 79% of the value due to the price premium—while retail outlets made up the remaining 36% of volume. Red Bull was facing strong competition in the retail space, not only from beverage heavyweights such as Coca-Cola and Pepsi, but also from private labels. For example, the retailer Asda (part of Wal-Mart) launched its own energy drink branded Blue Charge in the UK.
What are Energy Drinks Energy drinks are canned or bottled beverages sold in convenience stores, grocery stores, and bars and nightclubs. Most energy drinks are carbonated drinks that contain large amounts of caffeine and sugar with additional ingredients, such as B vitamins, amino acids, and herbal stimulants such as guarana. Energy drinks are marketed primarily to people between the ages of 18 and 30 as a stimulant, which is why energy drinks have names that convey strength, power, and speed. History of Energy Drinks Although sales of energy drinks in the United States were $3.5 billion in 2005, according to Beverage Digest, the category was only recently created with the launch of the Red Bull Energy Drink. Red Bull was created by Dietrich Mateschitz, an Austrian who modified the energy drink from a Thai beverage called Krating Daeng, a popular drink with rickshaw drivers in Thailand.
• According to Brazilian Market Research Association classification of five social classes, class C accounts for 28% of the total national consumption of soft drinks and these class C people favor price affordability at comparable quality. • Per Capita Consumption of Soft Drink in Brazil is increasing by average rate of 17.37% per year. In year 2003 it was 95.3 liters & projected 104.9 liters in 2008 indicating growth. • As of 2003, the Coca Cola brand (regular and diet) was the leader in the Brazilian soft drink market with 35.6% market share. Second closest was Guarana Antartica with 7.9% market share followed by Fanta with 7.1% market share.
Also the oral care industry is growing (47% increase 2004-2009) due to increase in disposable income and influence of the western culture. Cottle has enjoyed the first mover advantage in the toothbrush market as it has competitive advantage in the manufacturing of the advanced technology toothbrushes without relying on the imported process. It enjoys a market share of 46% with only two competitors. Also Indians considered Cottle an authority in oral care and held their products in high regard because Cottle partnered frequently with IDA. Cottle, while focusing on the toothbrush market, introduced low and mid range products, being first to secure the market initially by creating brand awareness.
The main competitors in this segment for Xcellerate will be Red Bull, Monster Energy and Livita, however Red Bull’s dominance is easily identifiable with 5.6 million litres sold in 2011 (Marmet Sizes - Historic off trade volume - mn litres Malaysia, 2011). This equates to a current market share of 30% in the energy drink market but in a growing segment there is space for Xcellerate to thrive with its new concept of healthier energy drinks. Xcellerate will be marketed in the Klang Valley where there is a consumer base of roughly 7.5 million people. Having a fully integrated road and rail network means that successful distribution of the product will be much easier to accomplish within this area, as well as any advertising and brand awareness campaigns. 2.0 SWOT Analysis: 2.1 Strengths: * Health Conscious: Xcellerate is not as reliant on sugar and caffeine for its energy boost and can be marketed as a healthier alternative that still provides the same buzz.
Due to a strong economic recovery during this time the poorest 10% of the Brazilian population has increased its purchasing to 27%. Detergent powder has a $106 million market in the Northeast and is growing at an annual rate of 17% and the laundry soap market in the Northeast has a $102 million market with a growth rate of 6%. Currently, Unilever has an 81% market share of detergents in the entire nation of Brazil, but there is opportunity to gain some market share in the detergent powder and potential more in laundry soap market because consumers in the Northeast region typically prefer using soap instead of powder. The current problem is that most of the current Unilever brands are not affordable for the lower income consumers. Unilever has one detergent powder that is very good quality in the Omo, but it are priced higher than lower income individuals would pay.
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