2.2 The number and price of substitute items: Coca-Cola has more than a few substitutes available in the marketplace; Pepsi is close to a superb alternative. So, if the price of Coca-Cola increases, this will likely make Pepsi more attractive to the customers. The Law of Demand lets us know that fewer individuals will buy Coca-Cola; some customers may change to Pepsi. Henceforth, it can be reasoned a positive relationship between the price of one good, Coca-Cola in this case, and the demand for the substitute, Pepsi. 2.3 The number and cost of Prices of Related Goods and Services complementary goods: Coca-Cola is often complementary to various fast foods such as
PepsiCo 's product portfolio includes a wide range of enjoyable foods and beverages, including 22 brands that generate more than $1 billion each in estimated annual retail sales. PepsiCo shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded. There are more than 53 million shareholders of Pepsico Company.
Early market entrance in China ensures a steady group of consumers. Distribution of factories in different areas of China and the merging strategy enable Coca-cola to increase the efficiency of operation. Coca-cola was able to perform far better than others in Chinese
Coca-Cola Coca-cola is the largest and most popular soft drink company in the world, and one of the most recognizable brands around the world. Coca-Cola was created in Atlanta, Georgia by a pharmacist named John S. Pemberton during the year 1886 (The Coca-cola company, 2018). During the initial creation of the beverage, it was offered as a fountain drink at the pharmacy. In 1887, the drink was patented and in 1893 it was registered as a trademark and sold nationwide in the US by 1895 (The Coca-Cola Company, 2018). Coca-Cola main line of business is the production of carbonated beverages and bottling.
After the lunch on the Dasani bottled water by Coca-cola, the product was not as strong in the market as the Aquafina bottled water product by Pepsi has been. Aquafina bottled water has been a success and enjoyed through-out the U.S. by many consumer’s. This paper will discuss a re-branding strategy for the Dasani bottle water that has been struggling in the market. The re-branding strategy will attempt to address the loss of the brand of the Dasani bottled water by addressing a “new name, changes in packaging, price point, product position, advertising strategy, a distribution method, and improvements in qualities”.
Coca cola’s profitability is estimated to increase in 2014 due to greater cost efficiency whereas pepsico’s profitability has decreased in 2013 and is expected to remain thereafter. Dr. Pepper Stapple’s profitability is estimated to decline in 2014 from one time tax benefit as well as increased cost due to advertising. The Enterprise Profit Margin (EPM) of Pepsico rose from 8.88% in 2012 to 9.31% in 2013.This as mainly due to the cost saving program of the company which saved its 1 billion dollar in 2013.The enterprise asset turnover decreased from 1.44 in 2012 to 1.43 in 2013. Taking the average of EATO from 2010 to 2013 it should rise to 0.13 in 2014.The weighted average capital ratio of pepsi is 5.5% Fig-4.1 Similarly, the EPM of Coca-Cola company is at an increase of around 19.12% for 2014,a 3.71 % incease since 2013. this is due to cost cutting measures that aim to reduce management and data expense.the EATO rises fairly during 2010 to 2013. Fig-4.2 In Dr.Pepper Stapples group sales growth is the main concern.
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
When they bring refreshment it givesjoy and fun to their stakeholders. Then they successfully protect and nurture their product, particularly Coca-Cola. That is the key to fulfilling their ultimate obligation to provide consistently attractive returns to the owners of their business. TARGET MARKET Coke's commercial basically based on young generations. So, by this the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also consider about the old people as they represent the larger market.
This demonstrate how Americans spend less on diet sodas since they are taking less soda overall as compared to the 1980s. For instance, global revenue for coca cola was $46 billion, which was $2 billion less as compared to 2012. Coca-Cola therefore has been missing the annual growth target by 3% to 4% for 2014 and 2015. Weaknesses of the existing Advertisement Strategies The analysis found out that Coca-Cola’s recent advertisement has neglected the consumers and concentrated on the operational advantages. However, the move by Coca-Cola to advertise the entire range of its products across Europe, rather than advertising each brand separately, has given Coca-Cola some clear advantages.
Competition of the market share by the two companies demands new strategies and mechanisms to ensure Pepsi retains its market control, and Coca-Cola increase sales in Asia. The improvement strategies revolve around marketing strategies and administration system to ensure the company earns customer loyalty and efficiency in the market. The paper focuses on examining whether Pepsi Company should improve on the marketing strategies due to competition of Coca-Cola Company. Marketing strategies of Pepsi need to be improved for effectiveness in the market to be achieved. Moreover, the improvement of the marketing strategies enables the company to retain the market share and continue to increase dominance in the country.