This type of market has many implications for both consumers and competing firms. Coca-Cola Company is one of the premier global consumer brands. The company has been around for a century and has been growing constantly. Today Coca-Cola manufactures more than 500 sparkling and still brands that are sold in more than 200 countries around the world. Coca-Cola’s main competitor is Pepsi.
Coca cola on the other hand is present only in the beverages section. The advantage of Pepsi’s snacks segment is that brands like Lays, Kurkure and Cheetos are in great demand. Quaker oats which is a recent addition is also increasing in demand. Thus the turnover resulting from the Food products is helping the bottom line of the company. Price in the marketing mix of Pepsi Pepsi is in an industry which is dominated by the two biggies – Coca cola and Pepsi.
Currently, the main competitor for the Coca – Cola Company is the PepsiCo, Inc., which also has a wide range of beverages under its brand. Both of the companies are the leaders of the carbonated soft drinks industry and they compete in order to surpass. Both companies committed heavily to sponsoring outdoor events and activities in order to advertise their products or brands. Also, there are other soda brands in the market which became popular as they have unique flavors. For example, Dr. Pepper could succeed to emerge in the market with its unique taste.
Does business growth and success always acquaint to community growth and success? Bartow J. Elmore explores this question in his book, Citizen Coke: The Making of Coka-Cola Capitalism. Elmore looks at the price that the environment and the public has paid to allow Coke to rise into the power it is in today. With operations in “over two hundred countries and selling more than 1.8 billion beverage servings per day”(7), you simply cannot deny the influence and power that Coke has. Coke is a widely successful business, but their growth has come at a cost.
Coca-Cola has many competitors such as PepsiCo, Nestlé, DPSG, Groupe Danone, International, Inc., The Kraft Heinz Company and Unilever. Many of them do not only produce soft beverages but also offer foods, personal care products and cleaning agents to their customers. As PepsiCo is the main Coca-Cola’s competitor, these two enterprises will be compared (The Coca-Cola company, 2017). Coca-Cola’s crucial competitive strengths include a strong brand and the largest distribution network. Even though PepsiCo also has a large distribution network, it is smaller than Coca-Cola’s (prezi.com, 2017).
Therefore we would expect that the demand for both Coke and Pepsi is similar. However, Coca-Cola has the lead in this industry, Coca-Cola outsells Pepsi Cola by around five to six times in the whole cola market. The two firms have had an interesting past and during the great depression from 1922 to 133 in three different occasions Coke has been offered the opportunity to buy Pepsi, but they have declined every time. However, since then there has existed a lot of competition between both kola producers. They compete by spending billions of dollars on advertising, celebrity endorsements, and slogan campaigns.
Consumers have begun to seek out healthier alternatives. Both brands (PepsiCo and Coca-Cola)have seen recent decline amid increased competition, and analysts foresee a continued downward trend for the two main brands, although these two companies are expected to continue to dominate the overall beverage market. PepsiCo is focusing on the innovation of new products across its food and beverage businesses. In 2014, PepsiCo spent $718 million on research and development costs, up 8% compared to the previous fiscal year. PepsiCo’s innovation is more focused on health and fitness products in both its snack food and beverage businesses as health-conscious consumers are looking to reduce their salt and sugar intake.
Coca-Cola did market research for a period of two years and spent a large amount of funds measure of $4 million to look into the taste of New Coke versus Pepsi and old Coke. After 200,000 blind taste tests, Coca-Cola concluded that individuals favored the taste of New Coke to any other drinks in the market. Therefore, New Coke was introduced with a blast with a whole new packaging and suspending the old Coke. During the press conference of the launch, New Coke was presented however they did not declare about the purpose behind the new launch. Coca-Cola never mention the purposes behind change, Pepsi Challenge and alternate tests done by their innovate work office that demonstrated that the taste of the Coke was the main reason why Coca-Cola was losing to Pepsi in the market share.
It has struggled to win over many health conscious customers as thus the brand’s sales volumen had a significant decline last quarter, but with the revamping of the brand and its marketing strategy it is hoped to increase this sales volume. In analyzing diet coke’s current market strategy it is very clear that they target people who are more health conscious for example customers with diabetes. In marketing the product as a no sugar alternative CoCa Cola has sought to break the barriers and stereotypes associated with drinking soft drinks. The extensive promotional activities that Coca-Cola has taken on to ensure the diet coke remains a top shelf alternative has increased it visibility and awareness across the markets they have
The Coca-Cola company is very accord with their pricing strategy of business many years. Because they have a strong competitor in the market and they must keep their price competition of the company's ultimate goal is to maximize shareholder value. When entering new markets will usually reduce the price of their products. They in order to improve the visibility and facing competing brands. Once identified, they put the price positioning for the high-end