I mean could you image not being able to buy Coca-cola or Pepsi. I personally cannot because, I am addicted to Pepsi. As Pepsi claims to ease stomach problems, when I was pregnant with all three of my children I used what they call “the flat Pepsi trick” to help with my morning sickness. This is first hand not an old wise tale. I can also see why Coca-cola was said
What would you recommend to Coke to insure its success? To Pepsi? 1. Why is the soft drink industry so profitable? Low supplier bargaining power: * Commodities easily available in the market * Choose suppliers based on need and costs * Low switching cost of suppliers * Raw materials required: Caramel coloring, citric acid, natural flavor, caffeine Low/Moderate buyer bargaining power (bottlers and fast food restaurants): Bottlers – Franchise agreements: * Coke’s Master Bottler contract – coke determines concentrate price and other terms of sales * Pepsi’s master bottler contract – Pepsi can force bottlers to purchase raw materials from Pepsi at prices and conditions determined by Pepsi Fast-food restaurant – Acquisitions * Coke retained exclusievely deal with Burger King and McDonald * Pepsi acquired Pizza Hut, Taco Bell and KFC Threat of Substitutes: * Ease of substitute is high * Many alternative to CSDs * Different diet brands (school banned the sale of soft drinks on their premises) * Customer switching costs are low As we can see demands of CSD has increased significantly between 1970 and 2000 but it has decrease and maintain stable until now.
Coca cola announces that they are fighting against the obesity rate. However, changes in the formula to lower calories in their sugary drinks would cause cancer to consumers. In addition, new marketing campaigns are criticized of giving the public mixed message of false intents. Opportunities: Changing consumer lifestyle, by becoming health conscious and preferring substitute products. Coca cola is now offering health conscious products.
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.
Indeed, the CSD consumption have strated to decline, the industry have to face the emergence of non-carbonated drinks and also the awareness of the public about health. The stakes are changing for the market leaders, Pepsi and Coke. In order to understand the reasons why the CSD industry has been massively profitable and also the keys to success and the future of this so-called war, we will analyse it using different tools : the value chain, a SWOT analysis of the two companies and the Porter’s five forces. 1) The value chain - Blending raw materials and package the mixture are made by concentrate producers. - Adding carbonate and bottle and can actions are made by the bottlers.
Someone believe that diet soda is healthy because it is with low or even none calories which makes us not easy to gain weight comparing to drinking regular soda. In addition, diet soda gives benefits for the diabetes, as the artificial sweeteners will not affect their blood sugar. It will not raise blood glucose level due to the lack of carbs in diet soda. Furthermore, due to the fact that diet soda does not have sugar which produces an acid in the month causing plaque production. With consideration of plaque reduction, diet soda is a better choice.
15.28 Can people really identify their favorite brand of cola? Volunteers tasted Coca-Cola Classic, Pepsi, Diet Coke, and Diet Pepsi, with the results shown below. Research question: At α = .05, is the correctness of the prediction different for the two types of cola drinkers? Could you identify your favorite brand in this kind of test? Since it is a 2 × 2 table, try also a two-tailed two-sample z test for π1 = π2 (see Chapter 10) and verify that z2 is the same as your chi-square statistic.
Coca-Cola key focus when releasing a new formula is market research. The market they are targeting is so large; they aren’t able to get opinions of the potential and actual consumers. This means they base their research via sample of the consumer opinion. This would be quantitative research as it is in numerical data form. This is best for large samples as it is easier to depict a
Daniel Estrada April 19, 2012 The Legalization of Marijuana When people visualize drugs they usually picture a harmful drug like heroin or cocaine, which are very harmful drugs, but not all drugs are. Marijuana is actually shown to be beneficial to the economy and on the health of people and it should be legalized. Anthony York’s article "Doctor group wants pot legal; California Medical Assn. questions marijuana's medicinal value but urges it be regulated as alcohol is." from ProQuest, quotes a group of doctors “"There's good evidence that [marijuana] has medicinal value," he said.”Can you say it's 100% bulletproof?
Why drugs should not be legalized George Parker ENC-1102-12 Composition II October 30, 2010 Legalizing drugs would make it so much easier for the law enforcement and they would be getting the tax money from it as well. They would be able to control the price and the amount of each package sold as well as who would be able to buy the product. This may cause a problem with the youth that are into using the drug due to the government putting an age limit on the purchase of the drug. The drug dealer would lose all their business as the drug would be legal and the price of the drug would be in the hands of the local government and not in the dealer’s hand. A lot of people would like this and it would make it easier and better