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.
Morello (n.d.) states that customer based approach denotes distributing consistently distributing gratifying and great experience to the customers taking care of their time as well as budget. On the other hand, customer centricity represents analyzing the lifetime value of the treasured customers and concentrating on marketing efforts for driving profit to an incipient caliber of prosperity. Coca Cola is world’s leading soft drink maker and operates in more than 200 countries around the globe. It sells a variety of sparkling and still beverages. It engenders 60% of its revenue and about 80% of its operating profit from outside the Coalesced States.
Price is part of the marketing mix which people use as central variable while developing a marketing plan. Pricing plays important role marketing mix. Both price and pricing strategy are crucial in marketing process. Mainly Coca-Cola & Pepsi face competition from each other but from other companies in CSD markets as well, they are both dominating the CSD market and existing situation is called oligopoly. This means that they have more pricing power compared to perfect market.
Coke and Pepsi are the two of the most influential brands of beverages in the world. These two industry leaders make up a total market share of over 70% in the carbonated soft drink arena. According to research, Coke’s market measure is over 40% while Pepsi trails at a market share of over 30%("Coke Vs. Pepsi: By The Numbers," 2014). In the beginning, Coca Cola accounted for about 80% market share, while Pepsi had a 20% market share. Both the companies have been exemplified immense longevity for decades.
The Starbucks is famous for its having a large number of high loyal customers and luxury products. Strong financial picture: Earning per share, net revenues, store sales, operating income were all in a comparable high level. Extension: Starbucks is planning to open 1,200 new stores in year 2013, most of them in the U.S. and China. Market advantage: Starbucks is the world 's largest coffee store, with almost 20,000 stores in 60 countries over the world, 12,937 of which are located in the U.S.A. Weaknesses Starbucks is having a difficulty in entering Europe 's "cafe culture" because of different regional taste.
Coca Cola and Pepsi, two iconic brands with a similar product; cola, the beverage that has defined many countries all over the world since the 20th century. Established in 1886 and 1903, Coke and Pepsi have been competing for consumers and shelf space ever since. Today, they have almost equal shares of the beverage market. In the beginning of 2011, Coca Cola gained 35 percent of beverage preference, a slightly larger share than Pepsi 's 32.9 percent. This was largely the result of aggressive marketing campaigns, many of them aimed at young consumers who have yet to establish brand loyalty.
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 .
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.
2- SWOT ANALYSIS a. Strengths • Brand • The most valuable global brand in the world. • Largest market share. Coca Cola has about 42% beverage market share worldwide • Marketing and advertising Strategies. • Worldwide distribution network.