Recommendations • Since there are older people and Pepsi has been traditionally a young people’s drink, Pepsi will have to stimulate consumption by older members of society • Pepsi uses Plastic bottles and cans which can be harmful for society. So Pepsi should be produced more in recyclable bottle • Need to improve PR activities in urban areas • In our country, with brand name people prefer Pepsi 23% but without brand name it is 51%. So need to improve its brand value. • Should increase promotion strategy to introduce new product line like Pepsi next, Pepsi zero etc.
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.
For instance, to run a success business, a firm must know how to dissolve in different culture. Coca-Cola knows people from different culture, so they use their innovation to mix different cultures. Coca-cola came out with cans of Coca-Cola drinks with design of Chinese New Year during festive seasons to boost up their sales and celebrating festives with their customers. Coca-Cola focus more on market and work smart. Generally, comparing with old generation, Coca-Cola seems more popular in the younger groups.
Then, Elmore begins explaining the significance behind each product that goes into Coke. The ingredients explored in Citizen Coke are water, coca leaf, sweetener, and packaging. As Coke develops, they establish a one-of-a-kind business model that will be copied by many other businesses to come. Coke uses extreme marketing and outsourcing to grow, gaining exponentially from their successes and avoiding consequences from their failures. Coke’s sugar and caffeine supply is fueled, even today, by other companies’ waste.
First, two firms control the vast majority of the market share, which include Coca-Cola and Pepsi. There are smaller firms in the market, but their market share in the industry is miniscule by comparison to these two dominant firms. Small companies generally lack the financial capital to launch brand on a large scale. Next, the barriers to entry in the industry are very high. Producing soft drinks for a wide market would require a significant investment in production equipment, brand material, and advertising.
This is because the product is known as the leaders of an organisation in the marketplace and company take out little fund when investing . Limca and Coca Cola are the cash cows of Coca Cola, which has low growth and high share in the market. These products may not be dominant in the marketplace but is able to grow with the support of loyal customers or those who are a fan of
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.
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. Much proof would indicate that Coca-Cola has definitely chosen a differentiation strategy since its early days.
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. We will be going through the company values, identifying how their values and their mission statement coincide with one another. We want to identify what their their mission is, the culture the company promotes, identify their competition, see where and how they are doing financially, etc.
THE NUMBER AND PRICE OF COMPLEMENTARY GOODS: Coca cola is generally served at KFC and McDonald’s, increase in the price of these complimentary goods causes a decrease in the demand of Coca Cola. Hence we can say that there is an inverse relationship between the complementary goods price and demand for Coke. 4. CONSUMER TASTES AND PREFERENCES The more a product is found desirable the more likely will the person buy it. Effective advertising and positioning attracts customers.