Pepsi & Coca Cola

256 Words2 Pages
PepsiCo have outperformed Coca Cola by earning annual revenue of $29.2 billion compared to Coke’s annual revenue of $21.9 billion in 2004. (Coca Cola Company, 2005)2. The contributing factors of the fall to second place in 2004 was Coke’s unwillingness to strike a balance between tradition and changes, loss of its objective of placing it’s consumer as first priority has left the company unable to adapt to consumer’s demands on new drinks, from sports drinks, New Age teas to gourmet coffees, that have eaten into the cola king's market share. Being undifferentiated targeting, it had made the company more susceptible to competitive inroads. 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

More about Pepsi & Coca Cola

Open Document