Coke And Pepsi Case Study

They receive much of their in-store goods from Budweiser, Frito Lay, and Coca-Cola, who in turn provides delivery services directly to stores. Bargaining Power of Buyers Low brand loyalty and minimal switching costs make the bargaining power of buyers high. Buyers make the decision to patronize other businesses when the opportunity to pay lower prices, presents itself. They are more susceptible to spend money where they can be a part of a loyalty program and receive a benefit from their purchases. Major

Thumbs up, Maaza and Kinley are consider as the star product of the Coca Cola Company. This is because the refreshment sold to customers are mainly from India and United Arab Emirates, which contributes the most cash to the company as people consider this as their first choice of carbonated soft drink. The Coca Cola company believes that these three beverages have high growth and a market share. Cash Cows: A product that generates more money than they require are considered as a cash cow. This is because the product is known as the leaders of an organisation in the marketplace and company take out little fund when investing .

Price: From the market we can easily see that the pricing of the drink is a little bit higher than the most competitors, but the consumer will pay more for a premium drink and a quality product so it is clearly reflected on the company since it is the biggest seller for energy drinks. 4. Promotion: Promotion is the most interesting part in Red Bull marketing mix strategy, it has ben so innovative especially with it’s slogan “Red Bull gives you wings”, this slogan gives the consumers the feeling that it will push their boundaries and give them the ability to do more and more than usual, and that is what the energy drink is useful for. Brand repositioning: The brand positioning usually comes out from the product benefit: Red Bull vitalizes body and mind This statement become to be the base of the personality of the red bull products, as red bull give’s the consumer the following benefits: -

For example Coke and Pepsi, they are both really popular companies and have a wide range of consumers. They both have similar products and prices, and are still somewhat different. The third threat is managers and workers, when “intrapersonal and politics can jeopardize the ability to produce goods and services as well” (17). The last is, products can become obsolete or outdated. Relating to the technology aspect, when releasing new products, businesses can potentially become outdated.

In their constant battle with Pepsi over market share, Coca Cola puts a lot of emphasis on brand recognition in and attempt to increase the sales of existing products in existing markets. Finally, the use of the market development model is evident by the fact that Coca Cola is the world’s most recognized brand. Coca Cola, unlike Ruth’s Chris, enters into markets that are undeveloped. They provide a highly commoditized product for a very low price. This allows them to have a larger geographical footprint than Ruth’s Chris.

a. In a highly competitive firm, many buyers and many sellers allow “buyers to expect to find consistently low prices and a wide availability of the good that they want.” Many buyers and many sellers also allows it to where no single firm can influence the market price. Many buyers and many sellers are important because it creates a highly completive market where the price and quantity sold are determined by the conditions of the market rather than by just one firm. b. In a highly competitive firm, similar products allow buyers to find consistently low prices and a wide availability of the good that they want.

Target's main goal is to be the main shopping center for families. It's a classy discount store that focuses on customer loyalty and also has brand names that the customers wouldn't mind paying the higher prices for. Target's slogan, "Expect more, pay less" is recognizable throughout the country. It's also recognized for their coupons, red card rewards, and distinct red logo. Even when the economy takes a hit Target sales continue to grow, proving that it is one of the top retailers in the game at the moment.

In figure 1 you can see that The Coca-Cola Company has 25,9% market share and PepsiCo, Inc., has 11,5%. Other companies have market shares less than 3%. This proves our point that these two companies are leaders in this market. In figure 2 you can see the brand value of Coca-Cola is incredibly high in comparison with the other brands. The Coca-Cola Company has more brands than only Coca-Cola, brands like Fanta, Diet Coke and Sprite are also part of the company.

Without competition, companies would not have the need to adjust their prices, or improve their products to win over customers, resulting in low quality goods & services with high prices. Competition generally has a positive impact on the consumers, as when companies begin to strive to be the best and most successful in their industry, they utilise marketing strategies to win over customers, these include but are not limited to price, product, promotion and place. Two companies which are continually constructing innovative ideas to come out on top are PepsiCo and Coca-Cola. These two companies hold the majority of the market power in the non-alcoholic beverage industry. They are classified as an oligopoly concentration as the two firms control the vast majority of the market share and therefore requires the two companies to compete on prices as well as non-price related aspects.

As their food quality is worth the price paid they can easily satisfy the target market. To get the worth of quality and to get maximum profits they implement this pricing strategy. Dominos introduces new entrants to the market with lowered prices, but not to a greater extent. This happens because Dominos’ quality food products are not home-produced and they are imported from different countries keeping in view the best