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Coke vs. Pepsi: An Economic Analysis Essay

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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. These leaps and bounds made by Coke are nothing abnormal it is a huge marketer.

The negative effects of these externalities will take a toll on the profits of all bottling companies since they will have to begin to develop ways to be productive without corrupting its external environment.

In India drought has made water a scarcity and some of the blame is being put on Coca-Cola Bottling Plants in the area. Protestors say why they would do that and nothing about depleting water, Coke responds that those accusations have no merit. Ehl, PepsiCo has had the same bad reputation for depleting water resources around the globe.

Coalitions like Council of Canadians and Food and Water Watch work to ensure the food, water, and fish we consume is assessable and sustainable. They also make sure the government does its job at protecting those resources as well. Seeing the value in both of the companies is easy they have both been models for the beverage market and for the world market alike. By looking at the history of the companies it is clear to see they run neck and neck with on another.

I think going forward with the companies that there has to be greater concern for the world economics and water depletion is part of that economical problem. Learning new ways to safely produce the products in areas that have an abundant supply of resources is the key to success here. These are two extremely successful companies that have been around for over years they are not going anywhere anytime soon.

Works Cited Ehl, D. United States Securities and Exchange Commision. Accessed September 15, An Economic Analysis specifically for you. Leave your email and we will send you an example after 24 hours If you contact us after hours, we'll get back to you in 24 hours or less. An Economic Analysis Essay. How to cite this page Choose cite format: 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.

Coca Cola Indiahas positioned Thums up as a beverage associated with adventure because of its strong taste and also making it compete with Pepsi as even Pepsi isassociated with adventure, youth. The fixed cost structure in Carbonated Soft Drinks Industry, and theintense competition make it very difficult to change or alter the prices. These being the costs of concentrates, standard bottling operations,distributor and bottlers commissions, distribution expenses and the promotional and advertising expenditure As far as Coke is concerned, it had to incur a little more than Pepsi as Pepsi paved its way to India in while Coke made a come back in Currently a ml.

Coke bottle is available for Rs. The prices of ml. Coke penetrated the market with price of Rs. Pepsi also tried this but was trapped by a seriesof competitive price increase and changes in bottle sizes by Parle. Hence, it had ready access to over 2,00, retailer outlets and 60 bottlers. Coke was had a better distribution network, owingto the wide network of Parle drinks all over India.

Coke has further expanded its distribution network. Coke has a greater advantage in terms of geographical coverage. But Coke has had problems with its bottlers as the required profits for the bottlers have not been forthcoming. This is more so because Coke hashiked the price of its concentrate by Rs. Now, it plans to convert then into COBOs. This isstraining the relationship between the Coke and its bottlers. The company had decided to create a fund to reimburse performing bottlersfor the extra costs incurred on account of the hike in prices of soft drink concentrates.

Short also realized that India is a price sensitive market and the company would have to absorb in the increase in excise duty andsaid that in the long run Coke will have to slash prices for the benefit of theconsumers and said that they were considering a cut in the prices of their fountain soft drinks.

Coke and Pepsi have devised strategies to get rid of middlemenin the distribution network. As of now, around agents are present inGorakhpur. Bottlers of the 2 multinationals have strongly felt the need toremove these middlemen from the distribution system, but very little successhas been achieved in doing so.

The 2 arch rivals have spent a lot on advertisingand on promotional activities. To promote a brand and even to spend a lot on advertising, thecompany must be aware of the perceived quality of the brand, its brand power if at allthere is since consumers make purchase decision based ontheir perceptions of value i.

According to Paul Stobart, Advertising encourages customers torecognize the quality the company offers. Price promotions often produceshort-term sales increases. Coca Cola has entered new markets and also developing market economics like India with much-needed jobs Coke attributes its success to bottlers, the Coca Cola system itself, i.

Retailers were displaying their Coke bottles in distinctive racks,also with specially-designed iceboxes to keep Coke bottles cold. This wasone big jolt to 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. Market Maps can start out to be very simple. If consumers cannot tell the difference in taste between the two in a blind taste test, then the only differentiating qualities are the product brands.

Data from the market already gives us a lot of information that we can use to tune the Market Model. 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.

With these 6 data points we can start to tune our model. If we also have data for another point, say at a time that Pepsi was offering a substantial discount on their product or from another geography, then we would have more than enough data to completely tune a model as simple as the one we are starting with. Because the Market Model uses a proprietary statistical algorithm to impute customer distribution data, the data collection problem becomes much easier and cost effective.


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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