Cola Wars Case Study Analysis – Coco-Cola and PepsiCola WarsCola Wars Case Study AnalysisIntroduction:There are two well known beverage companies, Coco-Cola and Pepsi. They have competed considerably and distributed the beverage market profit for several decades. In the open market, it is difficult to exactly tell which one is the winner within the perfect competition, since both companies use different style of promotion and product to expend their markets. (megaessays.com)
The competitive environment of the carbonated soft drinks started about three decades ago. In the beginning of 1960 Coco Cola was dominating the market but this dominance was significantly challenged by Pepsi- Cola. This challenge by Pepsi was declared as Cola Wars. During this competitive war a variety of products were introduced from both sides. Lot of $ amount was spent on celebrity advertising and even coke changed its formula. The strategic changes occur due to Pepsis challenge to the dominance of Coca Cola. In spite of the fact that Pepsi Cola attacked on the dominance of Coca Cola in bottled soft drink, both Pepsi-Cola and Coca-Cola have benefited from this battle due to stimulated continuous growth of the industry. During this Cola war both
Pepsi Inc. (NYSE: PLC) and Acidol (NYSE: AID) have achieved a growth in market domination of the brands and they continue to dominate the cola market. The Pepsi vs. Coca Cola competition continues to grow and has increased to a larger than 50% market dominance at a price of nearly $3 billion. With this competition growing and reaching its max profits of $150 billion Pepsi Inc. and Acidol were the first two companies to become the world’s largest competitors;
Peacemaker,
a chain of beverage producers that is also known by its first name and a brand name. Pepsi is a major company in food, beverages and energy, with its brand, Pepsi, which was named after Coke in 1967 but has since become a symbol of the Pepsi brand. Acidol is also important to Pepsi as it has long been involved in the development of the formula to replace the existing sucrose, in the process making it more of a soda than the original. Pepsi is also the only brand that is known to have changed the formulation by a significant amount since 1954. Acidol also played a much larger role in Pepsi’s growth and it is this growth that makes Pepsi’s cola product so successful.Coca Cola Corporation (NYSE: COQ) was founded in 1954 in Los Angeles where it was owned by Pepsi. Pepsi, however, continued to develop its proprietary cola formulation from 1955 until 1971 which became a proprietary system that Pepsi is still working on to achieve profitability. Pepsi’s development and growth into being an integrated conglomerate has also brought Pepsi to several other high profile consumer products including Coca-Cola, Diet Coke, Red Bull, Super Bowl, Listerine and Coke. Pepsi’s influence in consumer and consumer food and beverages has also influenced the products and services it sells through all its different channels and is being incorporated into many of the new commercial beverage delivery platforms, including in the following companies: Coca-Cola Company, Pepsi Co-OP, Coke Mobile, Nestle, Pepsi-Cola Corp. and Pepsi and Pepsi.com (NYSE: SPE). Pepsi’s cola products have a direct financial impact to Coca-Cola because of the high interest the brand attaches to the benefits associated with the new cola formulation of Coca-Cola.[2] In addition Pepsi has become a key player in the global Coca-Cola business and it has managed to expand its commercial brands by doing so much with the same amount of funding from the likes of Coca-Cola and Coca-Sol. Pepsi’s presence in Pepsi’s world strategy and in the various corporate marketing programs and activities has been instrumental in the growth of the brand and Pepsi has thus been able to take advantage of all of the new ways to promote the brand.[3][4] In May 2000 Pepsi announced the addition of Dr. Pepper brand for the first time in the Pepsi/Chase era. Pepsi’s Dr. Pepper brand was created by Pepsi to help bring Pepsi to other consumers and
Pepsi Inc. (NYSE: PLC) and Acidol (NYSE: AID) have achieved a growth in market domination of the brands and they continue to dominate the cola market. The Pepsi vs. Coca Cola competition continues to grow and has increased to a larger than 50% market dominance at a price of nearly $3 billion. With this competition growing and reaching its max profits of $150 billion Pepsi Inc. and Acidol were the first two companies to become the world’s largest competitors;
Peacemaker,
a chain of beverage producers that is also known by its first name and a brand name. Pepsi is a major company in food, beverages and energy, with its brand, Pepsi, which was named after Coke in 1967 but has since become a symbol of the Pepsi brand. Acidol is also important to Pepsi as it has long been involved in the development of the formula to replace the existing sucrose, in the process making it more of a soda than the original. Pepsi is also the only brand that is known to have changed the formulation by a significant amount since 1954. Acidol also played a much larger role in Pepsi’s growth and it is this growth that makes Pepsi’s cola product so successful.Coca Cola Corporation (NYSE: COQ) was founded in 1954 in Los Angeles where it was owned by Pepsi. Pepsi, however, continued to develop its proprietary cola formulation from 1955 until 1971 which became a proprietary system that Pepsi is still working on to achieve profitability. Pepsi’s development and growth into being an integrated conglomerate has also brought Pepsi to several other high profile consumer products including Coca-Cola, Diet Coke, Red Bull, Super Bowl, Listerine and Coke. Pepsi’s influence in consumer and consumer food and beverages has also influenced the products and services it sells through all its different channels and is being incorporated into many of the new commercial beverage delivery platforms, including in the following companies: Coca-Cola Company, Pepsi Co-OP, Coke Mobile, Nestle, Pepsi-Cola Corp. and Pepsi and Pepsi.com (NYSE: SPE). Pepsi’s cola products have a direct financial impact to Coca-Cola because of the high interest the brand attaches to the benefits associated with the new cola formulation of Coca-Cola.[2] In addition Pepsi has become a key player in the global Coca-Cola business and it has managed to expand its commercial brands by doing so much with the same amount of funding from the likes of Coca-Cola and Coca-Sol. Pepsi’s presence in Pepsi’s world strategy and in the various corporate marketing programs and activities has been instrumental in the growth of the brand and Pepsi has thus been able to take advantage of all of the new ways to promote the brand.[3][4] In May 2000 Pepsi announced the addition of Dr. Pepper brand for the first time in the Pepsi/Chase era. Pepsi’s Dr. Pepper brand was created by Pepsi to help bring Pepsi to other consumers and
Cola Warsthe companies faced lot of problems which we shall discuss in the light of the case study on Cola wars. (megaessays.co)Brief History of Coca-ColaJohn Pemberton invented the original formula of Coca-Cola way back in 1885. By1888, three versions of Coca-Cola were introduced. Candler incorporated the Coca-Cola and started its marketing. Coke achieved the status of national drink in USA. Coca cola bottles sale started in 1984 and in 1955 sale of cans was started. Chattanooga became the first site for Coca-Cola bottling company in 1899. In 1985 Coca-Cola attempted to introduce new formula. Most of the consumers liked the taste but so many ceased the purchasing because of certain reasons , therefore company switched back the new product and gave it the name of Classic Cola.( ivythesis.typepad.com)
In the 21st century coca cola history achieved another milestone and introduced Diet coke in 2005 and latter introduced Coca-Cola Zero. During this the company faced may ups and downs in the international market, particularly faced tough competition given by PepsiCo and the competition of both companies was give the name of Cola wars . (ivythesis.typepad.co)