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

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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  1. 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

  2. www.thecoca-colacompany.com www.pepsico.com

  3. CONCENTRATE PRODUCER AND BOTTLERS Source: Cola Wars Continue Case

  4. Source: Cola Wars Continue Case

  5. RETAIL CHANNELS Source: Cola Wars Continue Case

  6. STRATEGIC PATH Source: Cola Wars Continue Case

  7. Source: Cola Wars Continue Case

  8. Source: Cola Wars Continue Case

  9. SWOT ANALYSIS OF COCA-COLA

  10. SWOT ANALYSIS OF PEPSI-COLA

  11. 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.

  12. 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.

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

  14. CURRENT FINANCIALS Source: http://ycharts.com/companies/KO http://ycharts.com/companies/PEP

  15. Coke VS Pepsi Share price Source: http://ycharts.com/companies/KO, http://ycharts.com/companies/PEP

  16. 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.

  17. 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.

  18. THANK YOU

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