COLA WARS CASE STUDY

Submitted by

• Farhan Haidar 121-19-0017

 INTRODUCTION
 Most intense battles of the cola wars were fought over
the $60 billion industry in the United States
 Average American consumed 53 gallons of
carbonated soft drinks (CSD) per year.
 In late 1990’s, US CSD consumption dropped for two
more consecutive years.
 Worldwide shipments slowed for both Coke and
Pepsi.
 Due to this, the relationship was threatened and both
firms began to modify their bottling, pricing and brand
strategies.
 COCA COLA

• The drink Coca-Cola was originated in 1886 by an Atlanta

pharmacist
• The Coca-Cola Company's is market share is 42%
• With a portfolio of more than 200 beverages in over 200
countries,
• Regular sparkling beverages juices and fruit drinks, waters,
energy drinks
• Coca cola also offer coffee and tea.
COCA COLA
PRODUCTS
 PEPSI COLA

• Pepsi was first introduced by Caleb Bradham in 1893

• It operates more than 200 countries

• PepsiCo's U.S. market share is 30.8 %

• Its products include Pepsi, 7UP, Nimbooz, Mirinda, Slice and

Mountain Dew, Twister fruit juices, aliva, cheetos, kurkure, lays.
PEPSI COLA
PRODUCTS
 The war
 Steller marketing
 Jingle
 The battle without blood begin After world war II
 coke president visited white house and convinced them for tax
exemption
 Pepsi at that time struggling for financing
 1965 Pepsi merged with Frito lay inc. and become Pepsi inc.
 Then Pepsi focused on TV ads. Showed family values
 The war

 Coke gathered young people.

 1975 the Pepsi challenge, first time brand used.
 1982 diet coke.
 1985 new coke
 Godfather voice.
 Coke revert it’s old formula
 The war

 The battle without blood begin After world war II


SWOT OF PEPSI
 STRENGTHS

 Pepsi has a broader product line and outstanding

reputation.
 Merger of Quaker Oats produced synergy across the
board.
 PepsiCo sells three products through the same
distribution channel.
 For example, combining the production capabilities of
Pepsi, Gatorade and Tropicana is a big opportunity to
reduce costs, improve efficiency and smooth out the
impact of seasonal fluctuations in demand for particular
product.
 WEAKNESS

 Pepsi hard to inspire vision and direction

for large global company.
 Not all PepsiCo products bear the
company name
 PepsiCo is far away from leader Coca-cola
in the international market - demand is
highly elastic.
 OPPORTUNITY

 Food division should expand

internationally
 Noncarbonated drinks are the fastest-
growing part of the industry
 There are increasing trend toward healthy
foods
 Focus on most important customer trend -
"Convenience".
 THREATS

 F&B industry is mature

 Pepsi is blamed for pesticide residues in their products
in one of their most promising emerging market e.g in
India
 Over 50 percent of the company's sales come from
Frito-Lay; this is a threat if the market takes a downturn
 PepsiCo now competes with Cadbury Schweppes,
Coca-Cola, and Kraft foods (because of broader product
line) which are well-run and financially sound
competitors.
SWOT OF COKE
 STRENGTH

 Extensive advertising, acceptable

promotions or business programs.
 Coca-Cola's bottling arrangement is one
of their greatest strengths. It allows them
to conduct business on a all-around
calibration
 WEAKNESS

 Coca-Cola has afresh appear some

"declines in assemblage case volumes in
Indonesia and Thailand due to bargain
customer purchasing power."
 Being absorbed to Coca-Cola is a bloom
problem, because bubbler of Coca-Cola
circadian has an aftereffect on your
physique afterward few years.
 OPPORTUNITY

 Cast acceptance is the cogent agency

affecting Coke's aggressive position.
 The primary affair over the accomplished
few years has been to get this name cast
to be even bigger known
 THREATS

 Currently, the blackmail of new applicable

competitors in the carbonated bendable
alcohol industry is not actual substantial.
 Possible substitutes that continuously put
burden on both Pepsi and Coke cover
tea, coffee, juices, milk, and hot
chocolate.