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Coke vs. Pepsi: An Economic Analysis Essay

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❶Through the globe, these major players have been battling it out for a bigger chunk of the ever —growing soft drink market. Drink only coca cola.

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We use cookies to give you the best experience possible. We will look at the history of these to competitive giants and discuss how they have evolved over the years to become rivals in the 21st Century. Coke and Pepsi are not only in the beverage business they have branched out into other arenas to continue being the leaders in their market. Both companies do business all over the world; we will also look at how they size up internationally as well as nationally.

We will look at production and cost in the short run and long run by analyzing each company economically. We will write a custom essay sample on Coke vs.

Each company has forecasted where they will be financially in the 21st Century and in this analysis we will calculate if they have forecasted close to where they are today.

Management is a big part of the success of large firms such as Coke and Pepsi so we will look at the management styles of each one.

By looking at management will analyze the strategic decision making of each firm and note any issues they have had in the past or present with upper management. Finally strategic decisions in oligopoly markets with regards to profit maximization is vital to the firm and the shareholders alike, we will analyze those strategies as well.

With Coke the product has always been an advertisement junkie from its beginnings when the founder put the Coca-Cola name on everything to now having global ad campaigns. Pepsi has also been a media giant and has soared in the market because of its huge ad campaigns. Pepsi has been known to use mega stars like Michael Jackson and Brittney Spears to be spokesmen for the brand which has been a big success over the years.

Both Coke and Pepsi have evolved and changes in look at take over the years. Pepsi has also tweaked its formula only to revert back to the original. Both of these companies have many many brands and brand extensions. The competitive nature is apparent in each of these companies and will continue on. Coca-Cola seems to have a slight lead in the market and has always been a leader but not by a landslide Pepsi is always running close behind.

There is both loyal Coke and Pepsi customers and some who enjoy both products and go back and forth. Pepsi also has many of the same or similar brands like Tropicana, Sobe Life Water, and more to coincide with Coke. Brand extensions are very important in the success of these companies. Though apart Frito was started in and Pepsi in This merger began a lifelong relationship and successful partnership. Doritos emerged in adding to the success and Pepsi enters Japan and Eastern Europe as well.

In the 70s Pepsi acquires things like Pizza Hut and Taco Bell, which adds to the brands solidity and its market value. Looking at these companies financially is where you can see how they stack up against each other. Coke has a good positive outlook on the future. Pepsi also has a good outlook on future endeavors in the US and abroad. Behind the hype, in an effort invisible to consumer Pepsi pumps in Rs crores to add muscle to its infrastructure in bottling and distribution.

Apart from numbers, Pepsi has made qualitative gains. The foremost is its image. This image turnaround is no small achievements, considering that since it was established in , taking the hardship route prior to liberalization and weighed down by export commitments. Now, at present as there are three major players coke, Pepsi and Cadbury and there is stiff competition between first two, both Pepsi and coke have started, sponsoring local events and staging frequent consumer promotion campaigns.

As the mega event of this century has started, and the marketers using this event — world cup football, cricket events and many more other events. Like Pepsi, coke is picking up equity in its bottles to guarantee their financial support; one side coke is trying to increase its popularity through. Eat Food, enjoy Food. Drink only coca cola. Eat cricket, sleep cricket. Eat movies, sleep movies. So there is a real crush in the soft drink market. With launch of the carbon at reorganize drink Crush, few year ago in Gorakhpur.

Cadbury Schweppes is hoping that crush is going well and well not suffer the same fate as the Rs. CSBI is now with orange crush and Schweppes soda in the market.

As orange drinks are the smallest of non-cola categories that is Rs. The success of soft drink industry depends upon 4 major factors viz. Availability Visibility Cooling Range 2. If a product is now available at any outlet and the competitor brand is available, the consumer will go for the at because generally the consumption of any soft drink is an impulse decision and not predetermined one.

The soft drink must be shown off properly and attractively so as to catch the attention of the consumer immediately Pepsi achieves visibility by providing glow signboards, hoarding, calendars etc.

It also includes various stands to display Pepsi and other flavors of the company. The brand, which is available chilled, gets more sales then the one which is not, even if it is more preferred one 2.

It is data that has not been previously published and is derived from a new or original research study and collected at the source such as in marketing. Advantages of primary data: Un biased information 3.

Data direct from the population. Disadvantages of primary data:. Large volume of data. Huge volume of population. Direct and personal intervention has to be there. It is classified in terms of its source — either internal or external. Advantages of secondary data: It already exists, so it saves time. It is often cheaper than doing primary research. It may allow you access to data you could not otherwise get. Disadvantages of secondary data: In some cases, it is very expensive scanner data, e.

You may have less control over how the data was collected. Its answers may not exactly fit your research questions. It may be obsolete data. It may be because of the huge publicity done by coke and their effective advertising strategies.

It may be because of the different taste and preference of different people. It may be because of their popularity and brand ambassador. It may be because both the drinks are in almost equal demand. It may because of the change in climate and teenagers are very fond of these drinks.

It is assumed that advertising influences the choice of products for customer. It may be because of availability of TV in every house and advertising through television is more effective. The project is aimed at analyzing the performance appraisal in companies. The various objectives of our research are as follows: To examine why an appraisal system is important. For a number of days, The Hindustan Times and other newspapers of New Gorakhpur carried full page advertisement showing a big boy in uniform with a soft-drink crown as the cap.

There was no indication of the product. After a few days, Coke was introduced. It was an entirely new drink which fascinated people. It soon became the national drink. For the first time, a soft-drink was available from one corner of the country to another. The company realized that to become a mass consumption product, one has to go to the village.

They gave much importance to the distributive network. The company trucks supplied coke to even the remotest village. Few products appears to be more similar than soft drinks, yet the Cola wars that mark the competition between Coke and Pepsi show how even organizations with highly similar product can be differentiated by their business strategies. Then came battles over the issue of bottle size standardization. Coke the arch rival tried to offering more Cola at a lower price.

Pepsi which had some of its early investment tied up in ml bottles, went the fountain way. The General bottle size freed has settled at ml. Fountain mix dispensers, carry home bottles, even 1. Has achieved with its fast and furious marketing. But to win them, Coke is copying Pepsi. Coke was back with a bang after its exit in Coke was planning to launch in next summer the orange drink, Fanta-with the clear lemon drink, sprite, following later in the year.

Coke already owns more brands than it will over need, since it has bought out Ramesh Chauhan. Bottle fountain Pepsi, and bottles of 1 and 2 liter. Analysts feel that thisstrategy may help Coke since it has 2 Cola brands in comparison to Pepsiwhich has just one. Thums up being the local drink,its share in the market is intact, forcing the company to service the brand, asit did last year Mr.

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coke vs pepsi essaysThere are two famous beverage companies, Coco-Cola and Pepsi, have competed dramatically and distributed the beverage market profit for several decades. In the free market, it is hard to exactly tell which one is the winner within the perfect competition, because both companies.

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CHAPTER 6 CASE STUDY Coke vs. Pepsi Cola Wars This Market Model case study follows the more than year “Cola War” between Coke and Pepsi. 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. 5 oz Coke in their.

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Coke vs. Pepsi Essay Coke and Pepsi in Russia: In , Pepsi signed an agreement with the Soviet Union which made it the first Western product to be sold to consumers in Russia. This was a landmark agreement and gave Pepsi the first-mover advantage. Coke vs. Pepsi Coca-Cola and Pepsi are the most recognizable soft drink in the US; the two brands have been rivals for a long time in the soft drink market. Both brands were created in the 18th century; a pharmacist invented Coke in Atlanta in while a pharmacist in North Carolina created Pepsi in

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Coke vs. Pepsi Essay - Coke vs. Pepsi The company known as Coca-Cola today was started in September of , but the first Coke brand was served as early as Since that time it has grown to be one of the most globally recognized brand names with a stock value of $ billion. Coke vs. Pepsi Essay Coke and Pepsi in Russia: In , Pepsi signed an agreement with the Soviet Union which made it the first Western product to be sold to consumers in Russia. This was a landmark agreement and gave Pepsi the first-mover advantage. Presently, Pepsi has