Strengths
The best global brand in the world in terms of value.
Interbrand company received the highest brand value of Coca-Cola Award in 2011. The Coca-Cola Company has a huge global influence and unique brand identity, is definitely one of the most expensive brands highest brand equity. According to Interbrand. Coca-Cola is the most valuable ($ 77,839 billion) brands in the world. Coca-Cola is currently in 200 countries around the world. Chances are, you go, you will find Coca-exist in any country on the market. This huge Coca-Cola's global presence also caused a huge brand-building. Coca-Cola's worth around 79.2 billion dollars. This assessment includes many factories, 2000-5000 and brand value spread around the world, and the full operating
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And this is that Pepsi and Coca-Cola in the beverage market, the two rivals. Coca-Cola is the clear winner, and therefore has the largest market share. In all drinks, cola, THUMS up, Sprite, Diet Coke, Fanta, Limca and Maaza and the growth momentum for Coca Cola.
Bargaining power over suppliers.
The Coca-Cola Company is the world's largest beverage maker, and play significant power over its suppliers receive from their lowest price. The main raw material used in the US soft drink industry is the high fructose corn syrup, a form of sugar, which is available from many domestic sources. The main raw materials used in the soft drink industry outside the United States is sucrose. This can be from many sources. Coca-Cola executive’s long-term holders of the "power" over sugar suppliers. In their view, the recent patent expiration aspartame, because only increase their power relative to suppliers.
Strong marketing and advertising.
Coca-Cola's advertising spending in 2012 accounted for more than 30 one billion, increase sales and brand awareness. Unlike Pepsi Cola always trying to win the heart of the people. Where Pepsi's goal is constantly changing, and targeted young people, Coca-Cola for all ages of people. For example - - Positioning Amitabh Bacchan, Sachin Tendulkar, Aishwarya Rai, Amir Khan also by celebrities who like to do
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Coca-Cola's business is based on a complete transport and distribution. There will always be possible improvement in this respect. Thus, Coca-Cola should remain strictly monitor their supply chain, and continuously improve to bring costs down. Diversified health and food business will increase Coca-Cola products to their customers. This will also ensure that they get from existing customers to provide better income through cross-selling products. The burden of the supply chain is dispensed beverages can also distribute these snacks, thereby sharing the cost of the supply chain.
Threats
Decreasing gross profit and net profit margins.
The Coca-Cola Company's gross margin and net profit margin is declining in the past few years, continued to decline due to high water and other raw material costs.
Competition from PepsiCo.
PepsiCo Company is a threat for Coca Cola Company. PepsiCo Company is the largest competitor of Coca-Cola Company in the market share in BRIC countries, especially India. Coca-Cola has been the market leader but for Pepsi. There are a large competition between these two brands and PepsiCo Company will not give up
Matthew Ferguson BUSI 400 June 15, 2015 After reading 20 of the latest press releases from PepsiCo, that Pepsi is actually pursuing is product development, market development, and finally forward integration. Pepsi focuses on performing near and long term investments, having future plans on making global investments. The first strategy that Pepsi is pursing is product development, a strategy used by a company to increase sales by modifying or upgrading a product. This entails a lot of research and development expenditures and a main reason being to be major competitors offering better quality products (David & David, 2015, p 138).
1. What is in it? Where did the ingredients come from? In a U.S. can of Coca Cola some of the ingredients include high fructose corn syrup, caramel coloring, vanilla flavoring, caffeine, and phosphoric acid. The high fructose corn syrup is made from corn starch, which is made from the starch obtained from corn kernels.
And achieve as a result, the growth for its brand, market share, and sales
ECONOMICS PROJECT Name: Saatwic Malhotra Course: BBA.LLB (H) Section: A Enrollment Number: 7058 ACKNOWLEDGEMENT I express my sincere thanks to Mrs. Tanu Sachdeva, my economics teacher who guided me throughout the project and also gave me valuable suggestions and guidance for completing the project. She helped me to understand the issues involved in the project making besides effectively presenting it. My project has been a success because of her. PEPSICO • PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Purchase, New York. PepsiCo has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products.
SPORT OBERMEYER, Ltd. EMBA – SEPT 15 – ENG-BL – S2 TEAM A 1. Using the sample data given in Exhibit 10, make a recommendation for how many units of each style Wally Obermeyer should order during the initial phase of production. Assume that all ten styles in the sample problem are made in Hong Kong, and that Obermeyer 's initial production commitment must be at least 10,000 units. (Ignore price differences among styles in your initial analysis.)
This can be considered a negative impact on both companies as due to the similarity in their products, price wars are often triggered as consumers will tend to purchase the cheap option. With lowering the prices both PepsiCo and Coca-Cola are losing potential sale revenues and thus profits. Once the price wars come to a stand still, the businesses look for alternative marketing strategies to get an upperhand, such as products. To respond to this rivalry, PepsiCo has recently expanded their beverage
But with the changing tastes of consumers, it has expanded its menu which now includes salads, fish, wraps, smoothies, fruits and seasoned fries. The Coca-Cola Company, makers of coke, sprite, fanta, diet coke, coca-cola zero etc. The coca-cola company operates/sells beverages in more than 200 countries around the world. The most popular and selling drink of the company around the world is coke.
The economic factor plays an important role in any business. In 2009, there was a $90 million reduction in the net profit from the previous year that greatly affected PepsiCo. To overcome this situation, PepsiCo had to further adjust the costs as consumers were shifting to less costly drinks and snacks. There were also drop in bottled water, where there was a downward trend in the sales.
Because of these new technologies, Coca-Cola 's production volume has increased sharply compared to that of a few years ago. 2.2.3 Key Strategic Objectives and Challenges • Acquisition targets in developed markets: Coca-Cola already has strong penetration in major soft drinks markets, which typically offers limited acquisition opportunities due to market consolidation. Much of the future volume growth is likely to come from secondary markets such as Vietnam and Indonesia. Coca-cola may be better advised to set its sights on larger acquisition targets in untapped regions such as the Middle East and Africa and some secondary markets. • Diet Products
Coca-Cola strives to utilize every strategy available to become successful whenever it launches its business in overseas markets. Pepsi seemed to have discovered Coca-Cola’s disadvantages and it was using them to check Coke’s dominance. The new market structure brought about cut throat competition between the two cola giants. However, the competition ate into a large chunk of the two companies’
1.2. Product Differentiation This refers to differentiation that aspires to make a product more attractive by contrasting its unique qualities with other competing products (Investopedia, 2015:1), as in the case of Coca-Cola, other soft drink brands. Successfully adopting this strategy would have a company gaining a competitive advantage, as the customer would then view the product as unique or superior. This is what coca cola has managed to do, and has managed to do it on a scale that is globally unique, and globally recognized.
Among them, coca cola’s products are generally made available through intensive distribution. Intensive distribution for the newest product has allowed to maximize contact with customers and become very successful. It usually goes with heavy promotion, lower prices and large target market. Coca cola’s product are mainly distributed in a wide variety of locations including corner stores, convenience stores, restaurants, hotels, shopping mall petrol station and many, many
In the carbonated soft drinks industry, Coke Cola and Pepsi Co are the biggest players in the market for aerated beverages. Both the companies have been competing strongly against each other for decades. The market is dominated by these two industry leaders with a total market share of 72%; Coke’s market share is 42% and Pepsi’s 30%. This is known as an oligopoly market; where there are few large firms competing with each other in the industry. Since both the company’s market share so large, the market is very close to a duopoly (other players having a very small impact on the market).
EXECUTIVE SUMMARY Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers.
Running Head: PEPSI COLA COMPANY 1 PEPSI COLA COMPANY 16 Strategic Plan of Pepsi Cola Company Jacqueline C. Tuncap American Military University BUSN 620: Strategic Management September 25, 2016 Executive summary This paper analyzing the Pepsi Cola Company, its strategic plan and the products the company provides. The company is known as one of the top competitors in the market. We will go through and try to understand the separate areas within the company that collectively work together towards creating a successful company.