COLA WARS CASE STUDY
Submitted by
• Farhan Haidar 121-19-0017
INTRODUCTION
Most intense battles of the cola wars were fought over
the $60 billion industry in the United States
Average American consumed 53 gallons of
carbonated soft drinks (CSD) per year.
In late 1990’s, US CSD consumption dropped for two
more consecutive years.
Worldwide shipments slowed for both Coke and
Pepsi.
Due to this, the relationship was threatened and both
firms began to modify their bottling, pricing and brand
strategies.
COCA COLA
• The drink Coca-Cola was originated in 1886 by an Atlanta
pharmacist
• The Coca-Cola Company's is market share is 42%
• With a portfolio of more than 200 beverages in over 200
countries,
• Regular sparkling beverages juices and fruit drinks, waters,
energy drinks
• Coca cola also offer coffee and tea.
COCA COLA
PRODUCTS
PEPSI COLA
• Pepsi was first introduced by Caleb Bradham in 1893
• It operates more than 200 countries
• PepsiCo's U.S. market share is 30.8 %
• Its products include Pepsi, 7UP, Nimbooz, Mirinda, Slice and
Mountain Dew, Twister fruit juices, aliva, cheetos, kurkure, lays.
PEPSI COLA
PRODUCTS
The war
Steller marketing
Jingle
The battle without blood begin After world war II
coke president visited white house and convinced them for tax
exemption
Pepsi at that time struggling for financing
1965 Pepsi merged with Frito lay inc. and become Pepsi inc.
Then Pepsi focused on TV ads. Showed family values
The war
Coke gathered young people.
1975 the Pepsi challenge, first time brand used.
1982 diet coke.
1985 new coke
Godfather voice.
Coke revert it’s old formula
The war
The battle without blood begin After world war II
SWOT OF PEPSI
STRENGTHS
Pepsi has a broader product line and outstanding
reputation.
Merger of Quaker Oats produced synergy across the
board.
PepsiCo sells three products through the same
distribution channel.
For example, combining the production capabilities of
Pepsi, Gatorade and Tropicana is a big opportunity to
reduce costs, improve efficiency and smooth out the
impact of seasonal fluctuations in demand for particular
product.
WEAKNESS
Pepsi hard to inspire vision and direction
for large global company.
Not all PepsiCo products bear the
company name
PepsiCo is far away from leader Coca-cola
in the international market - demand is
highly elastic.
OPPORTUNITY
Food division should expand
internationally
Noncarbonated drinks are the fastest-
growing part of the industry
There are increasing trend toward healthy
foods
Focus on most important customer trend -
"Convenience".
THREATS
F&B industry is mature
Pepsi is blamed for pesticide residues in their products
in one of their most promising emerging market e.g in
India
Over 50 percent of the company's sales come from
Frito-Lay; this is a threat if the market takes a downturn
PepsiCo now competes with Cadbury Schweppes,
Coca-Cola, and Kraft foods (because of broader product
line) which are well-run and financially sound
competitors.
SWOT OF COKE
STRENGTH
Extensive advertising, acceptable
promotions or business programs.
Coca-Cola's bottling arrangement is one
of their greatest strengths. It allows them
to conduct business on a all-around
calibration
WEAKNESS
Coca-Cola has afresh appear some
"declines in assemblage case volumes in
Indonesia and Thailand due to bargain
customer purchasing power."
Being absorbed to Coca-Cola is a bloom
problem, because bubbler of Coca-Cola
circadian has an aftereffect on your
physique afterward few years.
OPPORTUNITY
Cast acceptance is the cogent agency
affecting Coke's aggressive position.
The primary affair over the accomplished
few years has been to get this name cast
to be even bigger known
THREATS
Currently, the blackmail of new applicable
competitors in the carbonated bendable
alcohol industry is not actual substantial.
Possible substitutes that continuously put
burden on both Pepsi and Coke cover
tea, coffee, juices, milk, and hot
chocolate.
