COLA WARS

Mridul Bhansali

15P033
COLA
WARS

Manas Ranjan Nayak

15P030

Arka Mukherjee

15P010

Bhavik Vakil

15P014

Vivek Sisodia

15P050

The Cola Industry : An Overview

The Carbonated soft drink (CSD) industry comprised of two major

categories Cola (60%) and Non-Cola (40%) in 2004.

SUPPLY CHAIN
Suppliers to producers and
bottlers
Concentrated producer caramel
coloring, caffeine, etc.
Bottlers packaging and
sweeteners
Packaging metal cans (56%),
plastic bottles (42%) and glass
bottles(2%)
Can producers Ball, Rexam

Concentrate
Producers
Mixture of raw
materials
Promotional and
bottler support costs

Retail Channels

Bottlers
Carbonated the
mixture
Capital intensive
Packaging and labor
costs
Cokes agreement
maximum price less
adjustment for
sweetener
Pepsis agreement
granted perpetual
rights + RM price
determined by Pepsi
Final say in retail
pricing

Supermarkets,
fountain outlets,
vending machines,
etc.
Pepsi retail outlets
Coke fountain sales
Pepsi Pizza hut,
Taco Bell, etc.
Coke Wendy and
Burger king
Market Share -Coke
68%, Pepsi 22%

Porters 5 Forces on Cola Industry

LOW

Supplier Bargaining Power

LOW

Buyer Bargaining Power

HIGH

The Threat of Substitutes

LOW

The Threat of New Entry

HIGH

The Threat of Rivals

Sustainable Competitive
Advantage
SCA

Coke

Pepsi

Brand

High - Happiness

High - Youth

Focus

High Leader in
Beverages

Medium Diversified
to F&B

Cost

Medium

High

Quick Response

Medium

High

Growth in sales,
profits and
Is the war still
revenues falls
about Cola ?
short of
expectations
Problems
Need for new
products to keep
Is there a new
up with the
form of rivalry ?
current health
craze

Present Challenges
Evolving healthy lifestyle indicates shift in consumer
preference to non-CSD beverages
Rapid Growth of alternative beverages
Government Warning of Health Effects
Barriers to Entry:it will be more challenging as they
would have to deal with regulatory challenges, cultural
and any existing competition

Strategic Alternatives
Inventing a healthy sugar substitute to address
growing health concerns linked with CSD
products
Continue to expand the product portfolio into
new and/or acquired CSD brands and other
beverage categories.
Continue international expansion of the
beverage industry
Re-directing their focus back to the more
profitable brand management and syrup
manufacturing

Recommendations
A healthy sweetener possibly jaggery
Penetration in new demographic places
Innovation and focus on their core competencies
Continue allocating substantial funds to their marketing and
advertising campaigns
Increase acquisition of other beverage companies and use
research and development to create new CSD and non-CSD
beverages

THANK YOU