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Submitted by wimandro on March 29, 2007
Category: Business
Words: 2030 | Pages: 9
Views: 533
Popularity Rank: 15,049
Average Member Grade: N/A (Add a Comment / Grade this Paper)
Executive Summary
We are going to show the Cola wars in the twenty-first century, this war started when Pepsi enter in the market (1983) when the incumbent Coca-Cola (Coke) was already there (1886).
The soft drinks market it’s been here for a long time and will continue to exist, and will continue to be profitable and a relevant market all over the world. Both Coca-Cola and Pepsi are Carbonated Soft Drinks (CSD), and it’s relevant to talk in this specific market the four major participants involved in the production and distribution of CSDs, because without the perfect exchange between them, this specific market and the soft drinks in general couldn’t be so profitable and well managed. So, because Coca-Cola and Pepsi are the major companies operating in the CSD (cola segment of the CSD have a market share between 60% and 70%) market and also in the soft drinks market in general, each big and crucial decision (in terms of prices, promotions, advertisements, etc.) influence a lot all these industries.
Recently, both companies are faced with the emerge demand and popularity of non-carbonated drinks, so we are going to show as well how these companies are thinking to respond at this trend.
Introduction
For over a century, the cola wars result into a constantly changes in their industry, and it seems to continue for a long time. This war started in the United States industry, but when both faced some problems in terms of CSD demand (specially in the late 1990s) and with their war as well, they start to globalize all over the world, so competition sometimes is good for the companies rethink their strategies and be more successful in their markets and even in new potential markets, globalize in a competitive market can not only sustain the company profit but also increase. Their new strategies were: modify their bottling, pricing, brand strategies, and also to produce new products, non-carbonated beverages...
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