4p Analysis Of Coke

The competition between Coke and Pepsi reached its peak to become a real war battle by the year 1980. This war had affected the industry profit for both concentrate producers and bottlers, while the effect of bottlers was much higher. After the successful “Pepsi Challenge” (blind taste tests: sales shot up) in 1974, Coke countered with rebates, retail price cuts and significant concentrate price increases. Pepsi followed of a 15% price increase of its own. During the early 1990’s bottlers of Coke and Pepsi employed low price strategies in the supermarket channel in order to compete with store brands. The concentrate producers were always able to increase their profits by increasing the concentrate price, while the bottlers, especially the

A great question arose in the 80’s as a constant innovation and aggressive behavior arose towards brand building. Pepsi, a brand that suffered two bankruptcies, pushed forwards towards their growth as the company by expanding their portfolio as a Food and Beverage Company. As it became a food and beverage company, Pepsi was able to become the Coca-Cola’s main competitor. Each company constantly competed and tried to outdo each other with their campaigns. While both brands competed with each other, Pepsi began to target Coca-Cola’s commercials causing Coca-Cola to respond with the same aggressive behavior creating the beginning of the Cola Wars. The Cola-Wars brought forth a great question that made one wonder if either Coke was better than Pepsi or if Pepsi was better than Coke? Based off the Cola Wars, the best soft drink producer is the Coca-Cola Company.

Pricing throughout the years has stayed consistent. Coca-Cola had maintained their price around 5 cents for around 70 years. Where Pepsi’s price has fluctuated throughout the years do to rationing around World War I, and other economic struggles. The main reason Pepsi had struggled so much was transportation fees to get the ingredients to make the product. Throughout all the struggles Pepsi has face it is still a strong

The pricing of Pepsi is competitive as the soft drinks market is shared by Coca cola and Pepsi. Pepsi gives promotional discounts and also comes up with discounts on bulk orders.

Promotional Pricing strategies:-Coke also uses the promotional pricing strategy. In store that cell Coca-Cola, prices are often temporarily priced below the list price to increase short-run sales. It gives the product a sense of urgency and customers purchase the product because of the lower price

For the first 12 years after Coke’s creation, it reigned supreme, having no competition until Pepsi’s creation in 1898. As Pepsi was taking its first steps as a company, Coca-Cola was already selling a million gallons of Coke a year (Bhasin 2013). Despite the late start into the soft drink market and filing for bankruptcy in the 1920’s and 1930’s; Pepsi has managed to keep up with Coca-Cola. 90 years after the creation of Coca-Cola and Pepsi, the 1980’s came around and was the period that started the cola wars. The cola wars were a period in which both companies targeted television advertisements to drive their profits up at the expense of attacking the other.

Another major success area is the area of pricing. Pepsi Cola products are more affordable and they offer better quality than its greatest competitor Coca-Cola. Softdrinkcola.war.blogspot.com stated that Pepsi’s pricing strategy revolves around consumer satisfaction and acceptance (softdrinkcolawar. BlogSpot). By partnering with Walmart who are the biggest company in the United States that offer the cheapest prices on major household items and groceries, Pepsi has been able to reach out to a wider margin of customers by providing quality at cheaper prices. In contrast, Coca-Cola’s products are more expensive at stores and malls. They offer similar or lower quality at high cost.

This essay presents the carbonated soft drinks in the worldwide soft drink market, and Coca-Cola and Pepsi Co, the two companies that have been competing and fighting to control profits and market share in this segment. First, this essay explains the reasons that the carbonated soft drink industry is so profitable and lucrative. Second, this essay compares the economics of the concentrate business to the bottling business, and explains the reasons that the profitability metrics are different. Third, this essay explains how the competition between Coke and Pepsi have affected the world beverage markets profits with carbonated soft drinks. Fourth, this essay forecasts the feasibility of Coke and Pepsi being able to sustain their profits as a result of demand decreasing and

Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines throughout the world. It is produced by The Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman As a Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.

Coca Cola and Pepsi vied for "throat share" of the world's beverage market for over a century. The biggest battles of the cola wars were fought over the $60 billion industry in the U.S, where the average American consumed 53 gallons of carbonated soft drinks per years. In a carefully waged competitive struggle, from 1975 to 2000 both Coke and Pepsi achieved annual growth of around 10% as both U.S and worldwide carbonated soft drink consumption consistently rose. This cozy relationship was threatened in the late 1990's , however , when U.S carbonated soft drink consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi. In response both firms began to modify their bottling, pricing and brand strategies. They also looked to emerging international markets to fuel growth and broadened their brand portfolios to include non-carbonated beverages like tea, juice , sports drinks and bottled water.

Marketing mix is originating from the single P (price) of microeconomic theory (Chong, 2003). Marketing mix is not a scientific theory, but merely a conceptual framework that identifies thee principal decision making managers make in configuring their offerings to suit consumers’ needs. The tools can be used to develop both long-term strategies and short-term tactical programs (Palmer 2004).

Over 100 years, intense rivalry between the two- Coke and Pepsi has totally shaped the soft drink industry of the world (combined they are 73% of the market share). The most battles of the cola wars were fought over the industry in the USA, where the consumption by an average American is 53 gallons of carbonated soft drinks per year. In a competitive struggle, from 1975 to 1995 both had achieved average annual growth of around 10% because of increase in soft drink consumption consistently in US and worldwide. Then this cozy situation was threatened in the late 1990s, when the consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi.

In this coursework I will explain how marketing mix can contributed to the success of my new product and why is it useful for tool of analysis. Marketing Mix talks about targets or sets of actions that a company uses to promote its brand or product in the market. In addition marketing mix is very important to businesses such as me and other well-known companies. This is because using marketing activities you will have to study in the correct places for any market research activities before making a product. After the data had been collected businesses can use the statistics in order to construct the right product, features and appearance for their customers.

The marketing mix is a set of strategies to achieve an organisations objectives and satisfy customers’ needs The marketing mix is included of the 4 P 's which are Product, Place, Price and promotion which work in together to achieve their maximum potential. It is important that all the P 's in a marketing mix are consistent with one another otherwise it can affect the whole marketing mix. For example a marketing mix which has an effective Product, Place and Promotion but an incorrect price can affect the sales and overall success of a product.

product or service, the target market, and the competition. Pricing your product is an important step that must begin with an understanding of the total cost of the product or service. Markup percentage, gross margin percentage, production costs, non-production costs, and profit must all be considered when deciding price. Promotions and