Pepsi and Coke Competition

Porter’s five forces The degree of rivalry in the carbonated soft industry is highlighted by two major brands: Pepsi and Coke. These two companies account for 72% of market share while the rest of the market is covered by other organizations such as Dr. Pepper, Snapple Group and Cott Corporation.Advertising We will write a custom case study sample on Pepsi and Coke Competition specifically for you for only $16.05 $11/page Learn More Some private label products also contribute a small portion to the sales in this industry. Pepsi has eroded Coke’s market share in the past through low prices and aggressive promotion efforts. In the 60s and 70s, Pepsi marketed itself as being the preferred brand, which caused a substantial reduction in Coke’s market share. Coke on the other hand has altered its product contents and prompted Pepsi to do so as well. In terms of substitution as a Porter’s-five force, Coke and Pepsi have to deal with numerous substitutes for carbonated drinks. Some of them may include bottled water, juice, tap water, powdered drinks, milk, beer, spirits, sports drinks and coffee. In the past, these substitutes were not a threat because consumers stayed loyal to Pepsi and Coke. However, the substitutes are a strong factor in the industry because of health and environmental consumers. Pepsi and Coke have responded to the threat of substitutes by producing those products themselves. The firms have ventured into juice, bottled water and coffee over the past few years.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Pepsi and Coke’s main buyers are bottlers, who purchase concentrate and package it in plastic or canned containers. The bottlers do not have as much power as the concentrate makers because they cannot negotiate concentrate prices. Coke has a contract that establishes maximum prices fo r its concentrate while Pepsi determines prices on the basis of the consumer price index. It often exceeds market rates and thus has the final say. Furthermore, because Coke and Pepsi give bottlers exclusive territorial rights, then bottlers cannot diversify their portfolio by selling products from competing brands. Their buyers are restricted to their either Coke or Pepsi. One of the most significant barriers to entry in the carbonated soft industry is trademark domination. Coke and Pepsi have invested substantial amounts in development of their trademarks through intense advertising, bottler support, and product development. New companies do not have the capital or ability to match such strategies. Negotiations made between the two major carbonated soft drink makers (Pepsi and Coke) and national retailers like Wal-Mart ensure that these firms dominate shelf space. New players may find it difficult to penetrate into such airtight deals. The main suppliers in the carbonated industry are high fructose corn syrup manufacturers, food coloring industrialists, citric acid producers, caffeine makers and flavor manufacturers. The citric acid or the food coloring industry has several small players who make it difficult for them to exert influence on large buyers like Coke and Pepsi. Therefore, supplier power is relatively weak in the soft drink industry.Advertising We will write a custom case study sample on Pepsi and Coke Competition specifically for you for only $16.05 $11/page Learn More Responses How Coke and Pepsi compete The two companies initially competed as friendly rivals (between 1970 and the mid 1990s). Pepsi prompted Coke to avoid complacency and continually improve its business efforts. Likewise, Coke caused Pepsi to become more innovative and thus successful. This level of friendliness was permissible because both companies enjoyed increasing profits. However, that competiveness lost its agreeableness when both firms lost m arket share among the carbonated soft drink consumers. In the 1970s, Coke altered its marketing strategies in response to the efforts made by Pepsi. It changed concentrate pricing and advertising strategies when Pepsi claimed to offer a superior cola to theirs. Pepsi on the other raised the prices of its concentrate shortly after Coke did. Therefore, these companies compete through alteration of products, supply chain and distributional management and changes in marketing. Product differentiations In terms of carbonated drinks, Coke’s main product was its cola brand, but it has several other flavors such as Sprite, Fanta, Diet Coke and Tab. Similarly, Pepsi also started with the cola version then introduced other flavors such as Diet Pepsi, Teem, and Mountain Dew. Both companies also diversified into non-carbonated drinks such as Minute Maid, Belmont Water and Duncan Foods for Coke and Lipton and Gatorade for Pepsi. Both firms have also introduced a number of diet products su ch as Diet Coke and Diet Pepsi. In the past decade, Pepsi and Coke have entered into the bottled water market. Regardless of large investments in various soft drink and non carbonated industries, the most successful products are still the initial ones. Pepsi Cola and Coca Cola are still the most profitable products for both organizations.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The move into unconventional drinks was driven by changes in market trends as well as pressure from the US government. Channels used by Pepsi and Coke Both companies have a distribution channel that consists of bottlers and retail channels. However, the organization of these channels differs substantially in both companies. Pepsi has a preference for retail outlets while Coke has sold its products through fountain sales (dominates 69% of this market). Nonetheless, both firms have competed for fountain sales by acquiring restaurant franchises. Coke worked hand in hand with McDonalds and Burger King while Pepsi purchased KFC, Pizza Hut and Taco Bell. Both organizations purchased fountain equipment for these restaurants, as well. Pepsi and Coke also utilize the vending channel for distribution and have both done relatively well here. Bottlers are also a crucial part of the distribution channel for both companies. At Pepsi, deals with bottlers are more flexible, especially in terms of p ricing. Coke tends to exert greater control over prices by charging flat prices for concentrate. These organizations have retained control over their bottling networks through consolidation. Coke started by created a bottling subsidiary in 1986 that would purchase ailing bottling franchises and revive them. Currently about three quarter of Coke’s bottling is handling by this subsidiary. Similarly, Pepsi also started bottling consolidation by purchasing most of its bottlers like MEI Bottling and General Cinema. Now, 56% of Pepsi’s bottling is done internally. Why the soft drink industry has been so profitable and whether it is changing Profitability stemmed from a number of factors. First, the distributional arrangements were made in a way that favored concentrate makers. They had control over concentrate pricing, location of bottlers as well as advertising and promotion. Pepsi and Coke were also successful because at the time, carbonated drinks were a favorite for most North Americans. Few of them had objections with the product content and there were minimal alternatives in the market. Profitability has reduced dramatically in the soft drink industry. This stems from health concerns. Numerous consumers feel that high fructose corn syrup is detrimental to their health. Government programs are designed to punish soft drink makers through excessive taxation. These charges stem from initiatives aimed at fighting obesity. Furthermore, traditional institutions, such as high schools, that sold most of Coke and Pepsi’s vending machines have banned them. Now the organizations have minimum distributional avenues for their products. Both firms have also ventured into non carbonated drinks such as bottled water and juices. These new ventures do not elicit as much brand loyalty as carbonated drinks. Therefore, the companies dedicated a substantial share of their resources to these new products, yet they did not enjoy anticipated returns. Non profitabi lity of products other than soft drinks affects the success of soft drinks because little capital is left to invest in them. Non profitability has also emerged from the poor management of international business. Some countries impose excessive foreign exchange controls, unfavorable trade regulations and advertizing restrictions. How Coke and Pepsi can stay profitable The major cause of concern among both organizations is the health campaign against soft drinks. Pepsi and Coke ought to identify the sources of high sugar content in its products and then work on developing alternatives. However, the companies should still maintain the taste that made those products so likeable initially. Pepsi is already doing this through its Pepsi Throwback brand and Mountain Dew Throwback brand. Now the company ought to go back to the public and inform them about the changes it has made to these products. Coke has also initiated its own changes through the use of a stevia-based additive. Aggressive marketing campaigns should be done to win back traditional clients such as school institutions. Both organizations have already realized that non-carbs have a lot of growth potential. This can be seen by their acquisition of energy drink companies as well as vitamin water firms. The two organizations now need to build their brands around these sectors by following the same strategies that they employed to make their carbonated drinks so popular. Consumers need to recognize the zero-carbs products in the same way that they recognized the other ones in the past. Although diversifying into other products is a plausible idea, these organizations should not focus on bottled water. There is minimal room for differentiation in the bottled-water industry as the product is quite basic. In fact, low differentiation explains why consumer loyalty for Coke and Pepsi’s water declined sharply over the past few years. Consumers tend to buy the least expensive brand if a product is not highly differentiated. Pepsi and Coke should also deal with some of the environmental concerns that customers have about their products. They need to place their products in biodegradable packages. Product development experts should also anticipate consumer complaints through market research and respond to demand before the external environment forces them to do so. The two companies need to refine their international expansion strategies. These organizations need to rethink their bottling strategies in global markets. Most North American bottling is directly handled by the company’s bottling subsidiary, and this has given the company reasonable control over its product. The same model should be replicated in different international markets. This would mean that the company will not lose any of its profits to third parties who keep demanding for new things. The company should start with developed nations and then transfer consolidation to developing ones. This case study on Pepsi and Coke Competition was written and submitted by user Lesly Q. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Meet Libiro the best indie-only ebook store

Meet Libiro the best indie-only ebook store Startups in Publishing: Meet the best indie-only ebook store For the second installment of our series featuring literary-minded start-ups, this week we spoke to Ben Galley, co-founder of Libiro. Libiro is an amazing ebook store that is exclusive to indie authors and small presses.   To get in touch with Cherry, the woman with the tablet – and Libiro’s #1 fan – drop Teague an email at  teague.fullick@libiro.com

Business and Professional munication Skills

The updated textbook written by Beebe & Mottet addresses the skills of the business and professional munication as the core concept. It emphasise on the global leadership in today’s global workplace. This is an important source as it does not bind the munication methods in limits. It explains the five fundamental principles of munication that provides a great framework of teachings. The authors has explained these principles by applying them on various professional and business contexts like interview, teams and groups, workplace relationship and presentations. The drawback of the book is that it focuses mainly on the global level example, where as some small scale organisation’s examples would have very useful to understand different scenarios. This reference is a great choice as a resource because it answers a number of questions that need to be answered in my report. It explains the importance of bringing in the new technology in an organisation. The best part is it takes in focus the national as well as global level petitiveness that an organisation has to face and how a new technology can help in gaining in the petition is explained thoroughly. It also explains the implementation and training support that is required for introducing the technology. The drawback of this article is that it is a general article on the introduction of the technology in the organisation and thus does not focus on the technology selected for the organisation. This newspaper article is important because it explains that in today’s scenario of business how important CRM is. It explains five most important C’s for a successful start-up business and that includes the CRM. It says that it doesn’t matter what is the size of the pany CRM is an important factor that should always be present in the pany. This article helps in giving weight to justification of using this technology in the organisation. Though, this article is related to other C’s also. So, basically very less information is being given on our topic but, whatever is given is useful for the report. The report that needs to be written is to convince the management to introduce the new technology that is CRM in the organisation, and this article hammer the last nail to it. This article explains how CRM software can change leads into great opportunities. It emphasise on the use of CRM and how beneficial it will be for an organisation. This article explains the process to use CRM for the pany’s benefits. The article is very well-written but, lacks practicality. Some options are not very practical for all the organisations to use. This journal article is the one that explains about the new technology that needs to be introduced in the organisation. This article covers all the points required to write a report about the new technology and the questions related to it. This article focuses on explaining about the CRM software, how it will be beneficial for the pany, what are the limitation of the software, the budgeting required for it, and the other information required is also there in the article. The article has a good approach towards the subject, but it was written in 2010, some its content may have get old and therefore, not very useful. This article revolves around the procedure to find the best CRM software for an organisation. It is helpful to know what type of software will be helpful and beneficial for the pany. There are various CRM software in the market and every software has its own speciality. It b es difficult for a pany management to decide which CRM software is best suited with the pany’s requirements here this article helps and provide steps to find the best CRM software. Article is very helpful, but it is too long and bit difficult to understand the steps given to select the CRM. Many statements clashes with each other that confuse the person reading it. Problem- the pany wants to increase its clientele by working on to increase more online orders. Background of the problem - the pany has website that take online orders but it is not satisfied with the number of orders it is getting so the management has decided to add a new technology to reach the potential customers. Gathering of information - the information will be gathered with the help internet. Using correct keywords like ‘CRM Software’, ‘Options of CRM software’, ‘New technologies available for organisations’, ‘How to gain more online customers.’ From all the sources available the best and most informative sources will be used to shortlist the information required to write the report. Ahmad, S. (2014). Technology in Organizations.  International Journal Of Research In Business Management,  2(7). Beebe, S., & Mottet, T. (2013).  Business & Professional munication: Principles and Skills for Leadership  (2nd ed.). San Marcos: Pearson. Kubi, B., & Doku, A. (2010). Towards a successful customer relationship management: A conceptual framework.  African Journal Of Marketing Management,  2(3), 037-043. Retrieved from www.academicjournals.org Leary, B. (2015).  Determining the best CRM software for your organization.  SearchCRM. Retrieved 23 March 2017, from searchcrm.techtarget Mahalingam, T. (2016).  Startups expect five Cs from firms: coaching, customer relationship, capital, connects and cofounders, says Ravi Gururaj.  The Economic Times. Retrieved 23 March 2017, from economictimes.indiatimes Nadeau, A. (2015).  Lead Management: 5 Ways CRM Software Converts Leads Into Opportunities.Thevarguy . Retrieved 23 March 2017, from thevarguy

Random Walk Theory of Share Price Movements Essay

Random Walk Theory of Share Price Movements - Essay Example A lot many efforts were made towards identifying a predictable trading pattern which could be used for chasing profitable deals. From the mid-1950s to the early 1980s, a random walk theory (RWT) of share prices was developed based on the past empirical evidence of randomness in share price movements. RWT basically stated that speculative price changes were independent and identically distributed, so that the past price data had no predictive power for future share price movements. RWT also stated that the distribution of price changes from transaction to transaction had finite variance. In addition, if transactions were fairly uniformly spread across time and were large in numbers, then the Central Limit Theorem suggested that the price changes would be normally distributed. Kendall (1953) calculated the first differences of twenty-two different speculative price series at weekly intervals from 486 to 2,387 terms. He concluded that the random changes from one term to the next were la rge and obfuscated any systematic effect which may be present. In fact, he stated that 'the data behaved almost like a wandering series' (random walk). Specifically, an analysis of share price movement revealed little serial correlation, with the conclusion that there was very little predictability of movements in share prices for a week ahead without extraneous information. In 1959, Roberts generated a pattern of market levels and changes akin to actual levels and changes in the Dow Jones Industrial Index. He estimated the probability of different share price movements over time by using a frequency distribution of historical changes in the weekly market index, and assumed weekly changes were independently drawn from a normal distribution with a mean of + 0.5 and a standard deviation of 5.0. He concluded that changes in security prices behaved as if they had been generated by a simple chance model .The fundamental concept behind random walk theory is that competition in perfect mar kets would remove excess economic profits, except from those parties who exercised some degree of market monopoly. This meant that a trader with specialized information about future events could profit from the monopolistic access to information, but that fundamental and technical analysts who rely on past information should not expect to have speculative gains.From the theory of random walks arose the theory of efficient markets. The Efficient Markets Hypothesis (EMH) states that current prices always 'fully reflect' available information, so that the only reason prices change between time t and time t+1 is the arrival of new information. The EMH requires that only two necessary conditions be met. First, the market must be aware of all available information .The type of information available is determined by the strength of the EMH being tested. In a Weak Form EMH, current prices entirely reflect all that can be known from the study of historical prices and trading volumes. If the Weak Form is valid, technical

Comparative analysis Assignment Example | Topics and Well Written Essays - 2500 words

Comparative analysis - Assignment Example Transcript analysis is a method that has the ability to overcome this problem. The method of analysis is important in that it also assists in identification of anticancer drugs. Cancer is a disease that has developed and spread among the human population over time. The problem has grown because with the advent of technology there has come various new activities and products that have a high cancer causing effect. The issue has spread so wide that the pharmaceutical world has also had problems. In the manufacture of various drugs that enable people to resist cancer-causing effects, some of them end up obtaining cancer. Transcript analysis is a method that is used to identify effective pills with well laid out formulas that ensure effective protection from these cancer-causing cells (Maslin, 2007). Rather than assisting in the identification and analysis of some of these chemicals, the ATP binding cassette is imperative in that it helps in the process of transportation. The major difference between ATP and transcript analysis is that point and despite the varying in responsibilities, the two are very important in the microbiology field. ATP is imperative in that it assists in the transport of some of the necessary products in a living thing from one section of its molecular structure to another where it is required to ensure optimum performance of the organism. It is imperative to understand that despite the varying responsibilities carried out by these two agents, there are points at which they become common. One of these points is with regard to metabolic engineering. Metabolic engineering is the aspect through which scientists use transcript analysis of the various plants to identify their genetic structure for the greater understanding of biology and for imperative research. It is critical to know that this method is also used in ATP. Initially, it was difficult for scientists to come

Marketing Segmentation Essay Example for Free

Marketing Segmentation Essay 1. Geographical segmentation: The market is divided according to geographic criteria like nation, state, religion, countries etc. Geographic data create accurate profile of specific. For eg: in rainy season sells rainy clothes (like raincoat, umbrella etc) 2. Demographic segmentation: it divide to the market into groups according to variable in age, family, gender, size of family, income of the consumers etc 3. Psychographic segmentation: It is a science which use in better understands all consumers according to their life style, personality, value and social-class. I am doing job in Bajaj Company, after this company has monopolised in almost all field either in the field of manufacturing bikes or bulb, tube light etc. Earlier, the customers were not fond of verities because there were not too many verities in the market and less competitions, but, in present time a huge competition has been taken place that for survive in the market every companies should be update with their products, otherwise rival companies will lead them. If we talk about the bike fashion we see that our youngsters like those bikes which must not be strong in pickup (60 km/h with few minutes) as well as good looking means it looks different from others, besides this, old agers want those bikes which run comfortably that they ride normally, to keep this in their mind all companies like hero Honda release many bikes like Hero stunner, CBZ, Karizma for young generations. While, for old agers they released Slender, Passion, CD dawn etc, in same pattern Yamaha release Yamaha R15 which cost is almost Rs. 15,000 in present time, but give a good look which attract the customers. So, after much research on these companies, Bajaj Company wants to release such bike series which is not only for young as well as senior can use it, so this company manufactured lots of bikes Pulsar and discover series for youngsters which not only good looking but also having that price which every customers can afford and easily buy the products and it also give good mileage than others companies bike, and from the point of view senior, whose ages is 40 years and above, they release Platina with self start facilities which is easy in riding. By all these information I want to describe that Bajaj Company segmented it products in various categories according to customers’ demand that’s why this company is going extremely good and successful in satisfied to consumers. If we talking about bulb, tube lights, this company manufactured the bulbs, CFLs, tube lights which not give perfect light but also take few electricity and go long times. Especially CFLs which cost are high but it work beyond one years and it takes less electricity and give light so much as a 40 watt tube light gives. There are many designs of CFLs has been released in the market which selling is more than bulbs and tube lights. So according to customer’s choice and willing Bajaj Company put down stylish CFLs in the market which attract consumers with its designs but also reduce the electric bill of customers and supplies good light over all houses. So like this the company segmented it electric accessories in various styles, according to customers willing and choice. Marketing Plan Marketing plan is a marketing strategy which involves marketing plans for a firm’s marketing activities. Marketing planning process is process of business planning; in marketing plan all the firm’s keep an eye on all marketing activities as well as competitors and they also come to know the view of the customers about their products like they are satisfied with their products or not, if not, know the reason of disliking and what they want improve in the products etc, because satisfaction of consumers is very important, after all whole marketing processes and successes are depend only upon customers. They are the important part of business. For e. g. if we talking about auto mobile all companies like Hero Honda, Yamaha, Bajaj etc, manufactured ordinary bikes( like Hero Honda released CD 100 later Splendour , Yamaha CX 100 and Bajaj released scooters and later Bajaj Boxer) but, there were some problems and deficiency took place in the bikes like the capacity of the engine was not good that was giving low mileage, pick up was ordinary and ordinary looks etc, after looking and analysing all problems of customers all companies manufactured those bikes which are giving good mileage, capacity of engine is very good and all are stylish as customers wanted. For e. g. :- Bajaj released discover series, pulsar series, Hero Honda released Passion, Passion plus, CBZ, Karizma etc, Yamaha released Yamaha R15 (but it is too costly), TVS manufactured Apache etc. Beside these, all companies also release scooty for college going girls. Because they knew that all ladies can’t ride the bikes that’s why to keep in mind the facilities of girls they produced scooty which is very light with self start facilities, without gears. These products became very popular among the girls, not girls even boy also taking ride of the scooty many times. Like this all companies conduct a SWOT (strengths, weakness, opportunities, threats) means they research on the behaviour, likes, dislikes, what are the deficiencies in the product, what else and what new their customers want in their products and what other companies provided to customers and do better than them.

Slim and George in John Steinbecks Of Mice and Men :: Steinbeck Of Mice and Men Essays

In the novel Of Mice and Men, by John Steinbek, there are several characters that make the book as interesting as it is.   For example, Slim and George are two characters who are alike in some ways, yet are different in many others.   They both want to be leaders, but only one of them can.   George and Slim have many characteristics, but there are reasons why Slim is considered a leader by his co-workers and George is not.    George is an ordinary man, unlike Lennie who is mentally retarded.   He promotes moral responsibility unlike Lennie or Curley’s wife. His need for companionship exceeds the generally accepted traditional remedies for loneliness.   He has some major physical characteristics that are noted by many people, which are restless eyes, strong small hands, thin arms, and a bony nose.    Slim is the moral judge of the bunkhouse.   He is a skilled workman.   With being the skilled workman that he is, he can gain acceptance by not claiming anything, but by just being himself.   That causes him to be a figure of integrity for many people.   Furthermore, Slim can be very concerned and helpful.   For example, Slim immediately thinks of getting a doctor for Curley, when Lennie crushes his hand.    There are many reasons why George is not a leader.   For example, he is always thinking about the future.   For example, he constantly asks himself questions such as, where will they work next?   Will he ever get his dream?   How can he protect Lennie from doing bad things?   Another reason for George not being a leader is because he works fairly well, but he does not stand out. That does not provide himself with any pride or satisfaction, therefore he has to look somewhere else for those qualities.      There are many reasons why Slim is a leader.   For example, Slim is the only had who appears to have a self-confident direction.   Another reason is because he has a reputation for craftsmanship.   That provides him with a source of pride and satisfaction.   When Slim receives the pride and satisfaction, he does not throw superiority in his partner’s faces.   That is why Slim is respected and viewed as a leader by his partners. Slim and George in John Steinbeck's Of Mice and Men :: Steinbeck Of Mice and Men Essays In the novel Of Mice and Men, by John Steinbek, there are several characters that make the book as interesting as it is.   For example, Slim and George are two characters who are alike in some ways, yet are different in many others.   They both want to be leaders, but only one of them can.   George and Slim have many characteristics, but there are reasons why Slim is considered a leader by his co-workers and George is not.    George is an ordinary man, unlike Lennie who is mentally retarded.   He promotes moral responsibility unlike Lennie or Curley’s wife. His need for companionship exceeds the generally accepted traditional remedies for loneliness.   He has some major physical characteristics that are noted by many people, which are restless eyes, strong small hands, thin arms, and a bony nose.    Slim is the moral judge of the bunkhouse.   He is a skilled workman.   With being the skilled workman that he is, he can gain acceptance by not claiming anything, but by just being himself.   That causes him to be a figure of integrity for many people.   Furthermore, Slim can be very concerned and helpful.   For example, Slim immediately thinks of getting a doctor for Curley, when Lennie crushes his hand.    There are many reasons why George is not a leader.   For example, he is always thinking about the future.   For example, he constantly asks himself questions such as, where will they work next?   Will he ever get his dream?   How can he protect Lennie from doing bad things?   Another reason for George not being a leader is because he works fairly well, but he does not stand out. That does not provide himself with any pride or satisfaction, therefore he has to look somewhere else for those qualities.      There are many reasons why Slim is a leader.   For example, Slim is the only had who appears to have a self-confident direction.   Another reason is because he has a reputation for craftsmanship.   That provides him with a source of pride and satisfaction.   When Slim receives the pride and satisfaction, he does not throw superiority in his partner’s faces.   That is why Slim is respected and viewed as a leader by his partners.