INTRODUCTION The Coca-Cola Company (Coca-Cola), the worlds leading soft drink maker, operates in more than 200 countries and sells 400 brands of nonalcoholic beverages. Coca-Cola is also the most valuable brand in the world. Coca-Cola is a globally recognised successful company. The Coca-Cola story began in May of 1886 and continues for more than a century through the times of war and peace, prosperity and depression and economic boom and bust. As late as the 1990's, Coca-Cola was one of the most respected companies in the world, a master of brand —building and known as a very successful management team.
INDUSTRY AND COMPETITIVE ANALYSIS PepsiCo positions itself as a global food and beverage company, it’s main industries are non alcoholic beverages (47% of revenue)(Fig 1.) and snack foods (57% of revenue). Industry The beverage industry is a mature, dynamic and fragmented industry. The biggest challenge facing the beverage industry today is the declining consumption of carbonated soft drinks in developed markets. Carbonated soft drink consumption is known to bear a high correlation with the incidence of obesity, diabetes and other related issues.
Red Bull was advertising the drink with the slogan "Red Bull gives you wings. In the 90s, Red Bull produced animated TV ads for mature markets. During that time, Red Bull was one of the most valuable brands in Austria worth about $11 billion. This made Mateschitz, one of the richest mans in Austria. Success in the 2000s Big beverage companies such as Coca-Cola Co. and Anheuser-Busch were introducing new drinks designed to compete with red bull and share the success of the world famous energy
Due to the health risk, many consumers are looking for a healthier choice of drinks instead of Coca-Cola high syrup concentrated carbonated drinks. Carbonated drinks are a big influencer of these health complications. Coca-Cola, as a major carbonated drink manufacturer, can contribute to the obesity epidemic (Frue, 2016). Coca-Cola has not found a solution to provide its consumers with
By expression, “highly concentrated” it is meant to convey, that majority of the total market share is locked down by a limited number of firms. However, this is not meant to imply that it is possible that many small firms may also operate in the market. Revenues are extremely concentrated in this soft drink industry("Cola War continue: Coke and Pepsi in the Twenty First Century,"
PepsiCo 2010 - till date: With the continuing challenge of the difficult global macroeconomic environment in the decades, PepsiCo has given strong operating performance that has kept them in the top tier in the industry and they have generated significant operating cash flows as well. • Net revenue grew 33 percent on a constant currency basis. • $8 billion was returned to our shareholders through share repurchases and dividends. • They have raised the annual dividend by 7 percent. Became the second-largest food and beverage business in the world, and the largest food and beverage business in North America and are increasingly global.
Coca Cola is the biggest drink organization of the world, and it gives purchasers more than five hundred diverse brands. Coca Cola is the most important organization of the world and it incorporates as items Fanta, Coca Cola Zero, Powerade, and Minute Maid (The Coca-Cola Company, 2010). Right now the organization
Usually low prices are associated with low quality, which is why PepsiCo products are usually perceived as low quality. Questionable practices: PepsiCo deceives people by placing a view of mountains on its water bottle label making it seems as if the its selling mountain spring water where else its normal tap water. Weak brand awareness: Coca Cola Company has a stronger brand recognition compared to PepsiCo and also Coca Cola Company has the biggest share market of beverages in the world. This places SoBe at a competitive disadvantage. To low net profit margin: PepsiCo’s net profit margin is 9.7%, Coca Cola Company 18.55% and Nestle 11%.
Situational Analysis Introduction The Coca-Cola Company is one of the largest and most popular beverage companies around. It is produced in over 200 countries. Millions of people consume their products at least once each day. Coca-Cola was invented in 1886 by John S. Pemberton an Atlanta pharmacist, it was a flavored syrup that people fell in love with. Many might not know that it was originally supposed to be a patent medicine.
It has built a greater brand equity in the market. Company valuation One of the most valuable beverage, Coca Cola is valued in top 10 leading brands of the world. This valuation includes the brand value, the numerous factories and assets spread out across the country and the complete operations cost and profit of Coca Cola. Customer Loyalty With such good quality beverages and services, it is natural that Coca Cola Company has a lot of customer loyalty. Because of the good taste and quality, finding substitutes becomes difficult for the customer.