A comparison of the marketing and business strategies of PepsiCo and Coca-cola.
Written in 2008; 2,454 words; 6 sources; APA; $ 74.95
Paper Summary:
This paper discusses the carbonated beverage industry. It specifically evaluates the industry through the perspectives of the Coca-Cola Company and PepsiCo. The paper views PepsiCo's strategies, product diversification and expansion into other industries. It then looks at Coca-Cola's over-reliance on a single product to generate revenues as well as its dependence on its distribution contracts.
Table of Contents:
Abstract
Strategy and Value Creation
Economies of Scale in Advertising
Profitability of Concentrate Producers v. Bottlers
Concentrate Producers v. Bottlers
Carbonated Beverage Industry Consolidation
Challenges & Opportunities in the Industry
Future Sustainability & Recommendations
Conference Activity
From the Paper:
"Coca-Cola and PepsiCo certainly face difficulties in an increasingly global and competitive market. Maintaining profitability will be more difficult for Coca-Cola because, while it has diversified its product line, it is still substantially dependent on sales of Coke Classic through the traditional distribution channels. Conversely, PepsiCo will find it easier to maintain and even increase profitability because it established a growth strategy based on diversification of brands and products across several industries and thus it is not solely dependent upon the carbonated beverage industry to drive profits. The recommended strategy for Coca-Cola is for the company to reduce the product image of its primary brand, Coke Classic, as somewhat unhealthy and to begin to market itself as a purveyor of health-conscious beverages with a newly re-branded line of fruit drinks. PepsiCo's forward strategy should be to continue to diversify its product line and to develop healthy snacks to complement its line of juice drinks and water products."
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