Analysis Historically, the soft drink industry has been profitable due to its high revenue, contributed by large sales quantity and competitive pricing, and low cost structure. Both companies implemented a franchise bottling system where they sold their special formula concentrate to bottlers nationwide who were responsible for creating the end product and delivering it to the various retail accounts.
Their operations required minimal amounts of capital investment in comparison to the bottlers. However, had Coke and Pepsi stayed on top of their market research and followed the health conscious trend sooner instead of wasting millions of dollars rebranding and creating new campaigns to promote their old unhealthy product, they would have been able to ease into the non-CDS industry which could have given their bottlers time to transition their operations to efficiently support the product change.
Coke and Pepsi built a nationwide bottling network where a bottler exclusively owned the manufacturing and sales operation in their specific territory.
Time line can provide the clue for the next step in organization's journey.
When first starting to use the Market Model for market simulation, it is easier to think about this famous competitive battle when there were only two competitive products the 6.
We know the Price for Coke and Pepsi, we know their Market Share, and we have a pretty good idea of the Profit Margin or Marginal Cost of both from their public financial reports. Also, over the years of the Cola wars, consumers have grown accustomed to the discounted prices which narrows the profit margin for producers.
This tactic ensured that for every dollar of revenue Pepsi gave up, Coke would surrender four dollars. First, on the demand side, there is the kind of customer loyalty that network executives, beer brewers and car manufacturers only dream about.
Because the Market Model uses a proprietary statistical algorithm to impute customer distribution data, the data collection problem becomes much easier and cost effective. Caleb Bradham, a New Bern, N. Consider leveraging knowledge of customer base, marketing competency and established distribution channels by diversifying into healthy snack foods after careful analysis of market attractiveness.
Also, over the years of the Cola wars, consumers have grown accustomed to the discounted prices which narrows the profit margin for producers. Price wars between two elephants in an industry with barriers to entry tend to flatten a lot of grass and make customers happy.
Once refreshed go through the case solution again - improve sentence structures and grammar, double check the numbers provided in your analysis and question your recommendations. Geographic Distribution To test whether adjusting their product distribution strategy would be successful, Pepsi could make this adjustment to the Market Map: Once the base model has been constructed and tuned the user can think about how they might change the conditions in the market.
People who drink sodas drink them frequently habit formationand they relish a constancy of experience that keeps them ordering the same brand, no matter the circumstances. For example, after setting up an initial Market Model, the user can run very targeted Conjoint Analysis study to better inform them about what is new to the market like a new feature.
Pepsi also makes and markets ready-to-drink iced teas and coffees via joint ventures with Lipton and Starbucks. Pepsi-Cola and the Soft Drink Industry Case Study Analysis Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template.
In these televised blind-taste challenges, a Coke drinker was asked to determine whether they actually preferred the taste of Pepsi. The Company and its subsidiaries employ nearly 31, people around the world.
He then sold it to to a group of investors in who created the Coca-Cola Company. Developing new products and advertising existing ones are fixed costs, unrelated to the number of cases sold.
Data from the market already gives us a lot of information that we can use to tune the Market Model. A dynamic timeline might look something like this: Works Cited Yoffie, David B.
First we should look at industry structure. Coke and Pepsi in Ways to successfully achieve this shift in strategy of diversifying their portfolio mix through increasing their non-CSD product offerings are: With so much debt to service, Coca-Cola Enterprises had to concentrate on the tangible requirements of cash flow rather than the chimera of gaining great hunks of market share from Pepsi.
This shows how much the competition for market share drove down the profitability of the CSD industry which hits bottlers the hardest. Both companies cannot just sell one product; if they do they will not succeed.Coke and Pepsi, two of the largest carbonated soft drink companies in the world, continue to battle within their $75 billion industry.
Although this has been a rivalry since day one, much of their success can be attributed to their counterpart. Case Study Coke and Pepsi 1. Identify the ongoing issues in this case with respect to issues management, crisis management, global business ethics, and stakeholder management.
Rank order these in terms of their priorities for Coca-Cola and for PepsiCo. Cola Wars Continue: Coke and Pepsi in Case Solution,Cola Wars Continue: Coke and Pepsi in Case Analysis, Cola Wars Continue: Coke and Pepsi in Case Study Solution, Cola Wars Continue: Coke and Pepsi in Case Memorandum The Cola War began with the launch of “Pepsi Generation” by Pepsi inwhich sliced.
Case Study Analysis on Cola Wars Continue: Coke and Pepsi in Presented by: Mohan Kanni Dhanunjay Naidu Thentu Vivek Lalam 2. History Of Coca-Cola • Coca-Cola was formulated in by John Pemberton (pharmacist). Coca Cola vs Pepsi | Logo Design Case Study In our last logo design case study post we looked at The UN Logo and shared some thoughts and ideas about it.
Today’s case study has less political undercurrent but occupies an equally massive market space, the fizzy drinks market. Strategy ‘Cola Wars Continue: Coke and Pepsi in ’ Analysis of the US carbonated soft drinks (CSD) industry (a) Strategic issues The CSD market in the US (approx.
$74 billion) is dominated by two concentrate manufacturers – namely Coke and Pepsi –.Download