Group 1

ABHINAV SHARMA MBA22182

ADARSH C MBA22183
ADITH MOHAN MBA22184
AJAY JADHAV MBA22185
AKSHAY KIRAN WANI MBA22187
ALBERT LEPCHA MBA22188
 5C of Pepsi and Coke
Company Customer Competitors

-Coca-Cola and Pepsi-Cola -The product differentiation is

-The organization's decision to
provide soft drinks. low and setting the
choose broader and multiple
-Both of the company have differentiation basis has
segments have expanded the
a strong customer base in become increasingly
scope of opportunities.
U.S. challenging.

Collaborators
Climate
-An in-depth collaborator analysis
requires to conduct a detailed value
-Overall the
chain analysis and carefully Climate is suitable
consider the bargaining power of for both companies
suppliers to explore the
collaboration opportunities.
Decision Problem

➔ The two brands are facing continuous and significant drop in sales due to
change in their external environment.
➔ Price sensitive customers have cheaper alternatives easily available to
them.
➔ Decline in sales due to health concern including nutrition and obesity.
➔ The market contains various suppliers for the supplied input and the low
switching costs and this result in limited bargaining power for suppliers.
➔ BCG Matrix & Porter’s 5 Forces can be used to analyze the alternatives
Evaluation of Alternatives
1. Pepsi developed non CSD products like gatorade, Tea based drinks like lipton
2. Coke acquired maker of vitamin water drinks & also entered business of
supplying coffee & tea to food service cux
3. Coke & Pepsi both developed their own version of stevia
4. Pepsi replaced high fructose corn syrup with natural sugar
 Existing Markets
Market Penetration-
1) Providing discount on CSD drinks.
2) Improve packaging and make it more environment
friendly.
3) Improve optimization and add cost controlling methods.
4) Build tie ups with retailers to gain more shelf space.
5) Aggressive Marketing to attract more consumers.
Market Development-
1) Penetrate into developing nations with new CSD drinks.
2) Reinforce tie ups with distributors in Asian countries like
India and China.
3) Make corporate social responsibility (CSR) more
transparent.
New Markets
Product development-
1) Create product innovations like diet coke.
2) Diversify products and introduce new Non CSD
drinks.
3) Develop compliments and create products into
snacks category.
4) Innovate more zero calorie products.
5) Ads should be aimed at capturing young users.
Diversification-
1) Introduce non- CSD products in developing
countries.
2) Produce or partnership with regional non-CSD
beverage companies.
3) produce more drinks as per regional
consumers / or their regional variants.
Plan to Handle negatives of Recommended Alternatives
● Innovation should be dealt with appropriate testing because any new product which is new in
the market always has a risk of failure as first mover advantage cannot be assured in
everytime.
● While Diversification of the business products portfolio, company should take care of it’s
flagship products, as it is always the flagship product which handles the profitability of the
firm.
● Operational Costs should be reduced but in case of entering into a new market it may be a
good long term decision to incur loss in the present to capture the market share. But doing
so, company should make sure that it should not sell it in a much lesser price then the
competitors as it may have a negative impact on the customers.