Pepsi VS Coca-Cola Keela Murphree Eng 121 Brain Davis 07/18/2011 Pepsi VS Coca-Cola Pepsi and Coca-cola are the most widely recognized beverage brands in the United States formulated by pharmacists. Pepsi and Coca-cola are different in many ways. Pepsi is not as frizzy as Coca-cola. It is sweeter than Coke. After Pepsi sits out a while the taste is stronger.
Strategy and management Cola wars continue: Coke and Pepsi in the Twenty-first century 1. Why is the soft drink industry so profitable? We could explain this profitability through making a short application of the five forces (Porter) and highlighting arguments that help understanding. Internal rivalry This industry is led by two main firms: Coke and Pepsi, which account for respectively 53% and 21% of the total market share worldwide (exhibit 9) and hold more than 10 other competitive brands each (exhibit 3).They almost act as a duopoly, as long as they have relationship-specific with their smaller competitors that allow them to exert a strong influence. Their main market of action is obviously the US one but they currently drive their strategy worldwide as it represents a huge reserve of profits.
According to Bloomberg Business Week, Coca-Cola remains the best globally recognized brand across all industries for years, while Pepsi’s brand ranked number 25 in the year 2008. Thus, Coca-Cola is able to charge premiums for its syrup concentrates due to its larger market shares and better brand name recognition. In order to compete against Coca-Cola and increase revenue, Pepsi has diversified its businesses as I stated above into other markets such as snacks, chips, and breakfast foods, with its core business focusing on soft drinks. Undoubtedly, the company’s strongest and most identifiable brand is indeed Pepsi but it has a certain advantage over Coca-Cola since it is more diversified. On April 9, 2009, Coca-Cola Company reported cash and cash equivalent to be $6,816,000,000 and on December 26, 2009, Pepsi reported cash and cash equivalent to be $3,943,000,000.
Of the 3 distinct target markets each had a focus on body image and how low carbohydrate intake is a strong seller point to match this attribute of the three target markets. However the disadvantage of redefining itself as as a low-carbohydrate beers instead of premium, is it may tarnish the brands image as a quality, strong tasting beer. This is due to the common perception by consumers that low-carb beers sacrifice taste. Also from the three distinct markets the value of a good tasting beer is held in higher regard than carbohydrate intake. Pure Blonde wants the best of of both worlds, a premium and low carb beer, but it must take in special consideration to not tarnish its reputation as a strong beer (a stronger selling point), than a low carb beer(a lesser important selling point).
Foremost, the newer PowerMaster brand had higher alcohol content than the previous malt brand by the name Colt 45. Their campaign slogan was “Bold Not Harsh”, and according to them, its superior taste was the basis of their marketing plan and not its alcohol content. However, the PowerMaster brand would cost the same as Colt 45 brand, which had lower alcoholic content than PowerMaster. This meant that consumers would get drunk more times they used to but at the same price. This, in my view, does not reflect any ethical considerations.
For example, Customer Development agreements help build and sustain long-term relationships with retailers. New entrants without these relationships could find it difficult to distribute their products or have to distribute them at a discount. Besides this, soft drink market has become a lot more concentrated. Comparing to the once fragmented business that featured hundreds of local manufactures, the industry right now has more national concentrate producers like Coke and Pepsi. These two companies occupied more than 74% market share in 2004.
HBS Case 9-702-442 MSB30 June 2008 COLA WARS CONTINUE: COKE & PEPSI IN THE TWENTY-FIRST CENTURY. Houssem Ghorbel Page 1 of 4 HBS Case 9-702-442 MSB30 June 2008 1- Why is the soft drink industry so profitable? Both concentrate producers (CP) and bottlers are profitable. These two parts of the industry are extremely interdependent, sharing costs in procurement, production, marketing and distribution. Many of their functions overlap; for instance, CPs do some bottling, and bottlers conduct many promotional activities.
Coke versus Pepsi (Cola Wars) The “Cola Wars” between Coca- Cola and Pepsi is not the new case, this rivalry is the buzzword not only in the industry but also for the whole globe because both companies are reaping the lions share because of their unique products but by keep facing the intense rivalry from their own industry peer but Coke has some key advantages that are the outcome of implementing the Porter’s five forces model and that implementation give the edge to coke over Pepsi. To analyze that rivalry, Michael Porter five forces model that describe the strategies for businesses to further expand their business and clientele by keep keenly observing their rivalry’s pros and cons. According to the porter this keen observation is highly inevitable to develop and devise the strategy that has the features not only to solve the current puzzle but also to further strengthen the business. Porter five force model is multifaceted that does not only evaluate the industry status in perspective of open market but also has the characteristics to analyze the rivalry, threats as well as to explore the opportunities to reap the benefit of competitive advantage. To be precise, Porte’s five force model will be discusses in the perspective of business rivalry, bargaining power and close substitute respectively.
So of course people are going to think Gatorade is better than water. There are facts that stat Gatorade is better than water when it comes to replenishing the body during workouts or even after workouts. Some not all American have sought the media to think that sports drinks are for everyone. Sports drink are really for athletes. Not saying that non-athletes can’t drink a sports, but sports drinks work better on athletes.
The audience is mainly for everyone but is especially designed for people who want to be lightweight like bodybuilders, singers, and athletics people but still want to have Coke. They might not like the sugar of real coke. The motive of this advert is for people to have Coke get up and not slump and bounce around without as much sugar as the normal coke. The main image is a woman bouncing/flying around the page with bubble everywhere coming from a main Coke Light bottle. This has been chosen to show that when you have coke you can go back on your feet and feel light and healthy still.