Beruflich Dokumente
Kultur Dokumente
Submitted By:
Group 8
(FMG24 C)
Sahil Guglani 241122
Saket Agrawal 241124
Shashwat Narayan 241133
Sheetal Jaimalani 241134
Tanvi Jaipuriar 241156
1. Profitability
Cost of Sales
Pretax Profit
60%
30%
17%
9%
Bottlers
Concentrate Producer
15% 4%
81%
Selling and
delivery
Advertising
and
marketing
General and
administratio
n
13%
6%
81%
Selling and
delivery
Advertising
and
marketing
General and
administratio
n
2. Barriers to Entry
Concentrate Producers
(High)
Bottlers
(High)
Existence of exclusive
geographic territory and
franchisee agreements of the
existing players
Fall-out
Formation of CCE and PBG
Cokes debt increased to
approximately $1 bn
Bottler consolidation made small
concentrate producers dependent
on Pepsi and Coke bottling
networks
4. Competitive Rivalry
Coca-Cola Company (Market Share)
35.9
33.4 34.7 35.3
6% 5%
15%
30.3
32%
43%
Coca-Cola
Company
PepsiCo, Inc.
Cadbury
Schweppesb
Cott Corporation
Other companies
5. Marketing Mix
Product Portfolio
PepsiCo, Inc.
10%
42%
3%
5%
15% 23%
Coke Classic
Diet Coke
Sprite and Diet Sprite
Caffeine Free Coke, Diet Coke, Tab
Fantaa
Barq's and Diet Barq's
Minute Maid brands
Others
Pepsi-Cola
Mountain Dew
Diet Pepsi
Sierra Mist
Others
5%
2% 1% 1%
4%
2%
4%
36%
4%
19%
20%
Price
Both Coke and Pepsi discounted their retail prices to be
in competition.
Mass merchandisers were given special discounts.
Initially Coke followed a fixed price model but later they
established a maximum price and adjusted price
quarterly according to changes in sweetener pricing.
In 2003 they switched to Incidence Pricing which varied
concentrated prices based on different channels &
packages.
Pepsi followed Concentrate pricing based on consumer
price index.
Place
Distribution of CSDs
10%
8%
33%
12%
15%
23%
Supermarkets
Fountain Outlets
Vending Machines
Mass Merhcandizer
Convenience Stores
Others
Promotion
Cok
e
Sales Promotion
by giving
discounts to
retailers
Pep
si
Sales promotion
by giving
discounts
Focused on
branding and
used attractive
taglines like
Americas
preferred taste
Promotional
campaigns
launched like
Pepsi Challenge
and Pepsi
generation
Major
advertising
campaign
called The
Coke Side of
Life
Market strategy
based on the
theme of Twice
as much for a
nickel, too
6. Suggested Strategies
More focus on the health drinks owing to
the changing consumer preferences
Disinvest from the non performing
products or the products forming an
insignificant part of their portfolio
Focus on the products preferred in the
local Non-US markets like Japan and
Mexico.