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Essay / Coca-Cola vs. Pepsi Cola - 1030
Cola Wars: For Coca-Cola's PerspectiveOverviewThere is no doubt that the sharpest and most intense competition in the world of beverages is between Coca-Cola and Pepsi Co., the two main players in the sector. the market for the production of carbonated non-alcoholic drinks (CSD). The competition between the two giants has benefited not only consumers but also businesses. By verifying and challenging each other in the market, competition has led to product improvement and diversification and forced every business to be creative and innovative. Over time, both companies have employed a number of diverse strategies to differentiate their products and gain market share. Every successful tactic of a company would be copied by the adversary in almost the same way or countered in a different way. As the soft drink market has become more consolidated and saturated and consumer demand and tastes have changed, both companies have turned their attention to emerging and other large international markets as well as other areas in which they could develop their activities (for example non-cola drinks). and snacks). The soft drink industry involves concentrate producers who sell syrup (and sometimes sweeteners) to bottlers, who add soda water and high fructose corn syrup to the concentrate, bottle or can, package it and ship it to food stores, fountains, vending machines. machines, convenience stores and other points of sale. Recently, Coca-Cola and Pepsi Co. implemented a strategic backward integration plan, consolidating their bottlers into one company. In summary about the supply chain and the competitive nature of this industry, profitability mainly arises from the short supply chain, low material costs, low fixed costs, efficient supplier/distributor networks and barriers to high entry for new competitors. Alternatives and evaluation1. Reposition branding – Align with social values and attitudes. Brand recognition and identification have been found to be an important factor affecting the competitive position of Coca-Cola and Pepsi. This has proven to be a powerful and influential tool in attracting consumer awareness and loyalty to the brand. Coke has stuck to a basic slogan for years, without infusing new faces and sounds. Currently, they are associated with cola among the older generation. With this reputation, they are missing out on the younger generation who choose Coca-Cola. To remain strong in the long term, Coca-Cola must find a way to appeal more to the younger generation. Coke has managed to come up with new drink variants and sizes that have evolved with customer demands, but has not built a strong brand image where its products are identified with the changing social values and attitudes of young people. generation..