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COKE PEPSI RIVALRY
Vs.
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Group members
ANITA PARMAR
SONAL PANCHAL
PARESH KHARADI
KISAN TRIVEDI
POONAM YADAV
MOHAMMED SEPOY
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Introduction
This case study, i!es a brie" o!er!ie# about i$dustrystructure a$d competiti!e stratey o" Coca%Co&a a$d
Pepsi o!er '(( years o" ri!a&ry) They ha!e a truecompetitio$ riht "rom bei$$i$)
*oth "irms "aced a &are $umber o" cha&&e$es butbiest o" them #ere to modi"y their bott&i$, prici$,
a$d bra$d strateies)
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S+OT AALYSES
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Strengths
Emotio$a& attachme$t
Good bra$d e&eme$ts
Larer bott&i$ System
I$$o!ati!e competiti!e ad!a$tae
-uic. Reco!ery
G&oba& Success
/ar.eti$ Stratey
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Weaknesses
Operatio$a& setbac.s
E0ecutio$ 1ai&ure
Re&ia$ce o$ traditio$a& stratey
+ea. Successio$ P&a$$i$
ot ood re&atio$ #ith supp&iers
ot ood ha$d&i$ o" &ea& issues
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Opportunities
I$ter$atio$a& e0pa$sio$ throuh *ra$d reco$itio$
/ore taret customers
e# i$$o!ati!e bra$ds
I$troduce coca co&a i$ ro#i$ cou$tries eco$omica&&y)
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Threats
Bottling Partners: Coke’s crucial relationships withbottling partners are at risk
Economic Slowdown: Coke is not so willing to business in nonCS!" #ealthconsciousness coke Pricing to CPI consumer bu$ing E%pansion into third world countries where there is
no current presence" &iddle East bo$cotting 'S brands" Western attitude against capitalism
(ew cheaper brands o) cola Series o) legal obligations So man$ discounts ma$ not cut the sales but
alwa$s cuts pro)it"
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Stae 2 '33( 4 5('56
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Cha&&e$es 1aced
') 7S sa&es !o&ume re# at a rate &ess tha$ '8 duri$ '339 % 5((:
+or&d#ide dema$d "or CS;s remai$ed "&at
;ec&i$e i$ a$$ua& per capita& co$sumptio$ "rom '5< to ''3ser!i$s
5) Associatio$ o" CS;s to obesity
e# "edera& $utritio$ uide&i$e
*a$ o" CS; i$ Schoo&s
/ora$ Sta$&ey Sur!ey
=) Co$ce$trate pro!iders ai$ at the cost o" *ott&ers pro"itabi&ity
>ue debts "rom co$so&idatio$ a$d i$"rastructure i$!estme$t
Cha$e i$ the product port"o&io resu&ted i$ additio$a& costs "orthe bott&ers
Rapid ro#th o" mass mercha$diser cha$$e& &i.e +a&%/art a$d!arious other c&ub stores posed a $e# threat to the pro"itabi&ity
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Cha&&e$es speci"ic to Co.e
Per"orma$ce a$d E0ecutio$
Key strateic re&atio$ship #ith CCE
Pro!idi$ a&ter$ati!e be!eraes
Lea& Issues
Co$tami$atio$ scare i$ *e&ium
A &a# suit "i&ed by *urer Ki$ #orth ? 5' /i&
Cha$$e& Stu""i$ chares
Curre$cy Crisis i$ Russia a$d Asia
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Cha&&e$es speci"ic to Pepsi
Ve$e@ue&a Crisis 2'336 % Reduced the mar.et share o"Pepsi "rom :
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Strateies Adopted
*" +lat !emand !uring *,,- . /001
Pepsi
.Co$ce$tric ;i!ersi"icatio$
− AcBuired -ua.er Oats2 5(((6− AcBuired South *each *e!erae Co 25(('6
−. Product ;e!e&opme$t
− ABua"i$a 2'3396
./ar.et ;e!e&opme$t
− I$troduced CS; !aria$ts &i.e Sierra /ist 25(((6 a$d /ou$tai$ ;e# Code Red 25(('6
− DGro# the core a$d add some more
Co.e
.A&thouh Pepsi s#ept a#ay the $e# e!o&!i$ mar.ets, Co.e "ared better i$ the bott&ed#ater cateory a"ter i$troduci$ ;asa$i i$ '333)
.Pac.ai$ I$$o!atio$F 1ride Pac. 25(('6, rep&aced 5 &tr #ith ')< &tr #hich #as &ater
imitated by Pepsi
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Strateies Adopted
5) Associatio$ o" CS;s to obesity
Coca Co&a− I$troduced $e# or re$amed products
− ;iet Co.e #ith Sp&e$da 25((
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Problems
Operational set back
1ra$chisi$ co$tracts)
I$ter$a& co$"&icts)
/a$y other "u$ctio$a& prob&ems)
Solution
/a$aeme$t o" coca%co&a shou&d "irst reso&!e their i$ter$a&issues) *ecause they ca$ compete o$&y i" they are stro$i$ter$a&&y
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Change in Bottling
Coca Co&a Compa$y is co$ti$uous&y cha$i$ sty&es,si@es, co&ors a$d bott&i$ materia&s)
Such .i$d o" acti!ities cost more tha$ the success) It i$crease the cost at e!ery step a$d &imits the pro"it i$
that "ie&d)
Solution
They shou&d cha$e but $ot
So co$siste$t&y that its e""ectsPro"itabi&ity a$d bra$d imae
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Change in pricing
Problem Co$ti$uous cha$e i$ price o" its products
create doubts i$ the customers mi$d Compa$y is ma.i$ so much pro"its
Some may ta.e that they are se&&i$ the o&dstoc.)
Price cha$e a&so a""ects setti$s o"
ma$u"acturi$, mar.eti$, a$d se&&i$)
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Solution They ha!e to positio$ at stab&e price #ith ood
Bua&ity a$d reater !a&ue) They shou&d "ocus o$ Bua&ity, ser!ice Bua&ity,
&i"esty&es a$d other capabi&ities rather tha$ o$&y"ocus o$ price competitio$
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Change in brand strateg$
As co.e o""ered di!ersi"ied products amo$ them most o"the bra$ds are co$tra to each other)
E0amp&es are co.e a$d co.e diet)
Solution
;i!ersity products aays et be$e"its)
>a$d&i$ them is !ery tric.y)
Coca co&a shou&d try ma0imum e""orts to ha$d&e so muchdi!ersity products)
/i$imi@e the co$"usio$s a$d e&imi$ate the bad
per"ormi$ products)
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