University of Perpetual Help System DALTA

Alabang-Zapote Avenue, Pamplona 3, Las Pias City

Entrepreneurship and Bookkeeping

Group Assignment:
SWOT ANALYSIS OF COCA COLA AND PEPSI

Submitted By:
Panganiban, John Philip A.
Itliong, Jan Thomas S.
Alvarez, Mico
Abad, Shaira Javier
Submitted To:
Engr. Jerric D. Almanzor
Instructor

COCA-COLA

COMPANY
INTRODUCTION

Coca-Cola history began in 1886 when the curiosity of an Atlanta pharmacist, Dr.
John S. Pemberton, led him to create a distinctive tasting soft drink that could be sold at
soda fountains. He created a flavored syrup, took it to his neighborhood pharmacy,
where it was mixed with carbonated water and deemed excellent by those who
sampled it. Dr. Pembertons partner and bookkeeper, Frank M. Robinson, is credited
with naming the beverage Coca-Cola as well as designing the trademarked, distinct
script, still used today.
The 1980s featured such memorable slogans as Coke is It!, Catch the Wave
and Cant Beat the Feeling. In 1993, Coca-Cola experimented with computer
animation, and the popular Always Coca-Cola campaign was launched in a series of
ads featuring animated polar bears. Each animated ad in the Always Coca-Cola series
took 12 weeks to produce from beginning to end. The bears were, and still are, a huge
hit with consumers because of their embodiment of characteristics like innocence,
mischief and fun. A favorite feature at the World of Coca-Cola is the ability to have your
photo taken with the beloved 7 tall Coca-Cola Polar Bear.
In 2009, the Open Happiness campaign was unveiled globally. The central
message of Open Happiness is an invitation to billions around the world to pause,
refresh with a Coca-Cola, and continue to enjoy one of lifes simple pleasures. The
Open Happiness message was seen in stores, on billboards, in TV spots and printed
advertising along with digital and music components including a single featuring
Janelle Monae covering the 1980 song, Are You Getting Enough Happiness? The
happiness theme continued with Open the Games. Open Happiness featured during
the 2010 Winter Olympic Games in Vancouver, followed by a 2010 social media
extension, Expedition 206 an initiative whereby three happiness ambassadors
travel to 206 countries in 365 days with one mission: determining what makes people
happy. The inspirational year-long journey is being recorded and communicated via blog
posts, tweets, videos and pictures.

SWOT ANALYSIS

STRENGTHS

WEAKNESSES

1.

Brand Equity

1.

Competition with Pepsi

2.

Company valuation

2.

Product Diversification is low

3.

Vast global presence

3.

Absence in health beverages

4.

Largest market share

4.

Water management

5.

Fantastic marketing strategies

6.

Customer Loyalty

7.

Distribution network
OPPURTUNITIES

THREATS

1.

Diversification

1.

Raw material sourcing

2.

Developing nations

2.

Indirect competitors

3.

Packaged drinking water

4.

Supply chain improvement

5.

Market the lesser selling products

PEPSI COLA
INTRODUCTION
Caleb Davis Bradham was born in Chinquapin, North Carolina, on May 27, 1867.
After graduating from the University of North Carolina, Bradham attended the University
Of Maryland School Of Medicine in hopes of becoming a doctor. While attending school
he worked part-time as a pharmacy apprentice at a local drug store.
Unfortunately a family crisis forced Bradham to drop his pursuit in medicine and
return home to North Carolina. Upon returning, he taught school for a short period of
time before opening a drug store on the corner of Middle and Pollock Streets in
downtown New Bern. Bradham's Drug Store would later become the very place PepsiCola was invented. In 1893, Brads Drink, made from a mix of sugar, water, caramel,
lemon oil, nutmeg, and other natural additives, became an overnight sensation. Despite
its name and hearsay, pepsin was never an ingredient of Pepsi-Cola.
On August 28, 1898, Bradham renamed his drink Pepsi-Cola." He believed the
drink was more than a refreshment but a healthy cola, aiding in digestion, getting its
roots from the word dyspepsia, meaning indigestion.
In late 1902, the Pepsi-Cola Company was formed due to the rising popularity
and demand for the Pepsi-Cola Syrup with none other than Caleb Bradham as the first
president. The business began to grow, and on June 16, 1903, "Pepsi-Cola" became an
official trademark. By 1904, the Pepsi-Cola Syrup sales reached almost 20,000 gallons.
As demand for the drink continued to rise, Bradham decided it was time to offer PepsiCola in bottles. By 1910 there were 240 franchises in 24 states and that year the PepsiCola Company held their first Bottler Convention in New Bern.
Hard times fell on Bradham and the Pepsi-Cola franchise during WWI. This was
due to the high price and severe rationing of sugar. This rationing prevented Pepsi-Cola
from producing enough syrup to meet the demands of consumers. Though Bradham
attempted multiple substitutes for sugar, like molasses, the outcome was always an
inferior taste to the original. After the war ended sugar prices soared from 3 cents to 28
cents per pound. Bradham purchased a large quantity of the high priced sugar, which
would be a factor to the company's downfall. Pepsi Cola officially was bankrupt as of
May 31,1923, and its assets were sold to Craven Holding Corporation for $30,000.

After years of ups and downs, PepsiCo is now back on top. In 2013, Pepsi was
ranked #1 on CoreBrand's list of Most Respected Companies. The company was also
ranked #41 on the Fortune 500 list, in 2012.
SWOT ANALYSIS
STRENGTH

WEAKNESSES

1. Large yet focused brand portfolio in

food, snack and beverage industry.
2. Strong leadership from CEO Indra
Nooyi
3. High level of customer loyalty for
most of the brands within product
portfolio
4. Extensive experiences in mergers
and acquisitions
5. Integrated supply-chain and
distribution practices across
PepsiCo brands
OPPURTUNITY

1. Overdependence on domestic
market in the USA
2. High level of dependence on large
supermarkets such as Wal-Mart
3. Aquafina tap water scandal and
product recall cases
4. PepsiCo brand perceived as
unhealthy
5. No presence outside of food, snack
and beverage industry

THREATS

1. Improving health implications of

products

1. Intensification of competition

2. Business diversification into other

industries
3. Increasing presence in emerging
economies

2. Rapid decline in the sales of

carbonated drinks
3. New product recalls due to quality
scandals

4. Increasing the effectiveness of CSR

strategy

4. High amounts of sugar or salt in

products being criticized by
government and non-government
health organizations

5. Focusing on research and

development