Cola wars continue coke and pepsi in the twenty first century
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COLA WARS CONTINUE: COKE AND PEPSI IN THE TWENTY-FIRST CENTURY PowerPoint PPT Presentation


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COLA WARS CONTINUE: COKE AND PEPSI IN THE TWENTY-FIRST CENTURY. By, Group 6 G. VAIBHAV KUMAR REDDY (P111012) P. PRAVEEN (P111033) PRAGYA JAISWAL (P111037) RAKESH NAVAL (P111039 ) GREAT LAKES INSTITUTE OF ENERGY MANAGEMENT AND RESEARCH, GURGOAN . www.thecoca-colacompany.com www.pepsico.com.

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COLA WARS CONTINUE: COKE AND PEPSI IN THE TWENTY-FIRST CENTURY

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COLA WARS CONTINUE: COKE AND PEPSI IN THE TWENTY-FIRST CENTURY

By,

Group 6

G. VAIBHAV KUMAR REDDY (P111012)

P. PRAVEEN (P111033)

PRAGYA JAISWAL (P111037)

RAKESH NAVAL (P111039)

GREAT LAKES INSTITUTE OF ENERGY MANAGEMENT AND RESEARCH, GURGOAN


www.thecoca-colacompany.com

www.pepsico.com


CONCENTRATE PRODUCER AND BOTTLERS

Source: Cola Wars Continue Case


Source: Cola Wars Continue Case


RETAIL CHANNELS

Source: Cola Wars Continue Case


STRATEGIC PATH

Source: Cola Wars Continue Case


Source: Cola Wars Continue Case


Source: Cola Wars Continue Case


SWOT ANALYSIS OF COCA-COLA


SWOT ANALYSIS OF PEPSI-COLA


PORTERS FIVE FORCE ANALYSIS – SOFT DRINK INDUSTRY

  • Industry Competitors

    • Coca-Cola, Pepsi-Cola, Cadbury Schweppes and others.

  • Threat of New Entrants

    • High entry costs

    • High risk for entrants due to diversified nature of Coke and Pepsi.

    • Government Policy regulations.

    • Existing Loyal customer base.

    • Acquisition of major bottling units by existing firms, increases the entry barriers.


  • Threat of substitutes

    • Non-CSD drinks like milk, alcoholic beverages, juices, sports drinks, tea-based, dairy-based drinks

    • Threat of saturation of consumption in US market thereby leading to increase in the consumption of on-Cola beverages.

  • Bargaining power of suppliers

    • Low switching costs.

    • Huge number of suppliers.

    • Maintaining the quality and flexibility of supply chain through backward integration i.e. acquiring bottling plants.

  • Bargaining power of buyers.

    • Higher buying power – large grocers, discount stores and restaurants buy large volumes demanding a lower price.

    • Choice of customers is high due to competition and variety in the market.


U.S. Non-Alcoholic Beverage Market Share, % share by volume


CURRENT FINANCIALS

Source: http://ycharts.com/companies/KO

http://ycharts.com/companies/PEP


Coke VS Pepsi Share price

Source: http://ycharts.com/companies/KO, http://ycharts.com/companies/PEP


ISSUES TO PONDER for Pepsi

  • Hard to differentiate products in terms of taste as product variety is very much limited within cola beverages.

  • Coca-Cola has much stronger loyal customer base.

  • Consumer market moving from carbonated drinks towards functional soft drinks.

  • In US, Cadbury Schweppes competing aggressively.


RECOMMENDATIONS

  • For Pepsi to grab the major pie,

    • It needs to follow the “Cost Leadership” and “Product Differentiation” Strategies.

    • i.e. it needs to create a unique customer perception and differentiate one product from another.

    • Rather than being a price follower, it must face the market by a leading strategy of Price Setter, which can be made possible by improving the production efficiencies and reducing the bottlenecks.

    • It also needs to focus on strengthening its core competency.


THANK YOU


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