Bottled Water Repeat of CSD New less attractive Industry Structure Economies of scale in advertising Hard to create brand loyalty Barriers to entry in distribution Highly fragmented, competitive structure Similar economics of concentrate firm High price sensitivity Little differentiation e.
Value chain analysis In making the value chain analysis, there are two different elements, which are concentrated producers and bottlers. Who has been winning the war? Bottlers Bottlers have had very little power in the last 25 years, even when they were independent.
Pepsi still depended on the US for roughly half its total sales, but by the early s was focusing on emerging markets in Asia, the Middle East and Africa.
Historically, Coke had bottlers. The terms are clear and well defined; both have carefully avoided downward spiral seen in other competitive contexts.
Prices on concentrate have not been affected since the early s Exhibit 5.
Half the consumption of Coke is reportedly consumed by people that drink an average of 8 cans per day! Although companies have started to make diet products however,this is not a solution. Who wins since Pepsi Challenge? What really goes into regular concentrate for Coca-Cola? Pepsi was named after the digestive enzyme pepsin used in the original recipe, which also included kola nuts, sugar and vanilla.
This is because it requires high capital to start up the business, and in order to finance the factory and production resources, it is quite difficult to make huge investment in this complex competitive industry.
This was a major organizing issue because Coca-Cola and Pepsi did not account for the financial strain it would cause the bottlers when they entered the non-CSD industry. Wholesalers and retailers also have less power of bargaining. No good answers yet to these questions: Starting in the earlyU.
Coca- cola was formulated by pharmacist John Pemberton in which was purchased by Asa Chandler. Customers number in the billions! Rising tide has lifted both boats!
Much more costly than moving into open channels.
Both companies made the strategic blunder of fighting the declining sales with costly, new advertisements instead of responding to shift in legal-political and sociocultural trends towards health but later.
Bargaining power of suppliers Beverage industries use raw material for their products such as metal for metal cans and other ingredients for glass, especially Coca-Cola, which manufactures its bottles at its own plants.
Peoplehave started taking this matter very seriously as well as they have started to avoid CSDs.
Due to the negative effects of price wars, the competition between Coca-Cola and Pepsi has decreased the profitability of the CSD industry.Cola Wars Continue: Coke and Pepsi in the Twenty-First Century C.
Cola industry leaders, Coca-Cola and Pepsi, should practice game theory to better Harvard Business School, July 30, Exhibit Two – Macroenvironment Analysis (p 92) Technological Environment: Innovations in computerized technology could affect the bottling process.
This case is meant to be used in conjunction with the existing “Cola War” case studies. It summarize the international standings of Pepsi and Coca Cola as of in the soft drink market, and provides a summary of their competitive scenarios in three markets: China, Mexico, and India. A brief presentation on case study Cola Wars where we try to analyse the past history and predict the future of their business and growth opportunities from a Marketing Management Perspective.
Examines the industry structure and competitive strategy of Coca-Cola and Pepsi over years of rivalry. The most intense battles of the cola wars were fought over the $74 billion CSD industry in the United States, where the average American consumes 46 gallons of CSD per year.
In a "carefully. The most intense battles of the cola wars were fought over the $60 billion industry in the United States, where the average American consumes 53 gallons of carbonated soft drinks (CSD) per year.
Cola wars continue - Coke and Pepsi 1.
VS Cola Wars Continue: Coke andPepsi in Marketing Strategy – Jim Prost Pamela Belluomini, Hristina Bencheva, Julia Kocs, Brianna Randall and Angela Teodoro.Download