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.
Market segments help the company to improve their products and services, knowing needs of their customers and innovate new sectors. Coca-cola distribute their business in few operating segments which are Eurasia and Africa, Europe, Latin America, North America, Asia Pacific, Bottling Investments and Corpora. They markets the products selling into different market, such as Diet coke and Coke Zero. Coca-Cola uses the consumer segmentation criteria and market into different groups of behavioural, psychographic and profile. Coca-Cola creates value to its brands and with good performance to convince people to buy their products.
Coca-Cola and Pepsi are probably the two most common companies this applies to. Arguably the two most identical soft drinks on the market; these two products could not be more different. In order to gain larger shares in the beverage market, both Coke and Pepsi employed various marketing campaigns such as sports sponsorships or mass media. For example, since 1978, Coke Cola has been the official sponsor of the FIFA World Cup. By targeting arguably the most popular sport in the world, Coke has gained access to millions of soccer fans around the world, regardless of race, gender, or age (O’Brien, 2015).
SWOT of Pepsi: Strengths: - PepsiCo and its products have more demands in the market than the competitors. - The reputation and the established name of the company are very strong in the market. - PepsiCo has more brand loyalty of the customers as most of its consumers are from the young generation who have actually more loyalty to the brands. - The price offer by PepsiCo is satisfied its customers. - PepsiCo name is very strong internationally and of course in the internal market.
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.
Coca-Cola is one of the leading companies in beverage industry. It operates around the globe and not only offers soft drinks but sports drinks, juices and other beverages as well. As written in its quality policy, Coca-Cola takes measures to maintain its quality and never fails to satisfy its customers. By maintain its quality and safety standards; Coca-Cola has gained immense popularity and success. There is no one who is not familiar with the brand name Coca-Cola.
However, Coca-Cola has higher sales in the global market than PepsiCo, PepsiCo is the main competitor for Coca-Cola and these two brands have been in a power struggle for years (Murray, 2006c). Coke has been more dominant with a 53% of market share as in 1999 compared to Pepsi with a market share of 21%. According to Beverage Digest 's 2008 report on carbonated soft drinks, PepsiCo 's U.S. market share has increased to 30.8%, while the Coca-Cola Company 's has decreased to 42.7% due to Pepsi marketing schemes still the higher large gap between the market share can be attributed to the fact that Coca-Cola took advantage of Pepsi entering the market late and has set up its bottler 's and distribution network especially in developed
Currently, the main competitor for the Coca – Cola Company is the PepsiCo, Inc., which also has a wide range of beverages under its brand. Both of the companies are the leaders of the carbonated soft drinks industry and they compete in order to surpass. Both companies committed heavily to sponsoring outdoor events and activities in order to advertise their products or brands. Also, there are other soda brands in the market which became popular as they have unique flavors. For example, Dr. Pepper could succeed to emerge in the market with its unique taste.
Pepsi vs Coca-Cola: Two Competing Organizations Onamade Bolaji University Of Texas of the Permian Basin Pepsi vs Coca-Cola: Two Competing Organizations Coca-Cola and PepsiCo are the age-old competitors in the market for almost a hundred years. These companies provide comparable products, so an incredible amount of efforts and marketing techniques was used to increase the number of fans of both drinks. The foundation of these brands started with setting of a goal to invent a medicine. Initially, it was Coca-Cola. Twelve years later, the apothecary from New Bern, Caleb Bradham, has created a tonic that was called Brad’s Drink, which eventually turned into Pepsi (NC DNCR, 2016).