COLA WARS

2010

VS
 Group 5

Parth Tapadiya MBA22051

Rishabh Roychaudhury MBA22060
Sachin Sharma MBA22064
Saurabh Rajaram Sawant MBA22070
Shikha Singhal MBA22073
Srijan Singh MBA22084
Aditi Tripathi MBA22267

Coca cola and Pepsi both
are market leader. Both
invest good money on
R&D.
5C Analysis
The product differentiation is low
and setting the differentiation
basis has become increasingly
challenging
Consumer behavior changes
according to the economic
situation, so it is a critical decision
the brand has to take

Company Customer Competition Collaborators Context

Both the company have global Bottlers, Distributors,

customers.Brand awareness Suppliers
about cola & Pepsi is high, so
these brands can extend the
product line
BCG Matrix : Coca-Cola
BCG Matrix : Pepsi
 Decision Problem
Decision Problem
The issue is what Carbonated Soft
Drinks (CSD) companies like Coca-Cola
and Pepsi should do to sustain their
sales as the consumption of their drinks
is dropping and the industry is seeing an
increase in substitute products of their
competitors drinks.
Objective
To sustain their sales record and have a
good product differentiation
Alternatives
● Increase the availability of healthy items.
● The company should try to restore their
brand image through diverse advertising
and promotion that depict healthy
products and lifestyles.
● Reduce operational costs.
● Maintain greater control over marketing,
company diversification, packaging, and
distribution in order to expand its market
in the United States and abroad.
● Acquisition of non-cdr products that are
already in the US or the worldwide market
but have a low market presence but
excellent taste and quality.
 Plan To Handle Negatives Of Recommended Alternatives

❖ Move to the non- CSD category, primarily bottled water.

Impact: Due to the economic slump, consumers were more price-sensitive and opted for more affordable
alternatives like tap water or water with a private label. Plastic bottles also came under attack for having a
low recycling rate.

Course of Action: Utilizing high-quality plastic with a relatively high rate of recycling, reducing operating
costs to match the price of water bottles with competitors, and highlighting the standards and brand value of
branded bottled water over private label bottled water or tap water.

❖ Substituting natural sugars for artificial sweeteners.

Impact: Increase the price of CSDs to reflect the higher cost of natural sugars compared to artificial
sweeteners.

Course of Action: Utilizing inexpensive natural alternatives to artificial sweeteners would prevent
price-conscious clients from switching to other beverages with the lowest cost equivalents.
 Recommended Actions

● Both the companies could diversify into multiple product lines and increase the product portfolio
length

● Marketing in such a way that the sustainability aspect of the product can be shown

● There could be cross-functional linkage with other brands so that brand can be shown to be
descriptive of the lifestyle

● Key Opportunity Areas should be identified ( markets in developing countries) and efforts should be
focused to penetrate such markets

● The focus should be put on enhancing the customer experience