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    Cola Wars Continue: Coke A ND Pepsi in The Twenty-First Century

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    Inderpal Mehta
    The document discusses the soft drink industry and competition between Coca-Cola and Pepsi in the 21st century. It notes that between 1975-1990s, Pepsi and Coke averaged 10% growth annually in the $68 billion carbonated soft drink industry. Americans consumed 23 gallons annually of soft drinks in 1970, growing to 52 gallons by 2004, due to increased varieties, accessibility, and price reductions. The document also compares concentrate producers like Coke versus bottlers, noting differences in capital costs, brand ownership, and production/distribution costs between the two business models. It concludes that while brand equity remains high, demand growth has slowed, so companies are investing in other beverages providing health benefits and expanding internationally.

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    Cola Wars Continue: Coke A ND Pepsi in The Twenty-First Century

    Uploaded by

    Inderpal Mehta
    37 views6 pages
    The document discusses the soft drink industry and competition between Coca-Cola and Pepsi in the 21st century. It notes that between 1975-1990s, Pepsi and Coke averaged 10% growth annually in the $68 billion carbonated soft drink industry. Americans consumed 23 gallons annually of soft drinks in 1970, growing to 52 gallons by 2004, due to increased varieties, accessibility, and price reductions. The document also compares concentrate producers like Coke versus bottlers, noting differences in capital costs, brand ownership, and production/distribution costs between the two business models. It concludes that while brand equity remains high, demand growth has slowed, so companies are investing in other beverages providing health benefits and expanding internationally.

    Original Description:

    Cola wars Harvard Case study presentation

    Original Title

    Cola Wars

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    The document discusses the soft drink industry and competition between Coca-Cola and Pepsi in the 21st century. It notes that between 1975-1990s, Pepsi and Coke averaged 10% growth annually in the $68 billion carbonated soft drink industry. Americans consumed 23 gallons annually of soft drinks in 1970, growing to 52 gallons by 2004, due to increased varieties, accessibility, and price reductions. The document also compares concentrate producers like Coke versus bottlers, noting differences in capital costs, brand ownership, and production/distribution costs between the two business models. It concludes that while brand equity remains high, demand growth has slowed, so companies are investing in other beverages providing health benefits and expanding internationally.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    37 views6 pages

    Cola Wars Continue: Coke A ND Pepsi in The Twenty-First Century

    Uploaded by

    Inderpal Mehta
    The document discusses the soft drink industry and competition between Coca-Cola and Pepsi in the 21st century. It notes that between 1975-1990s, Pepsi and Coke averaged 10% growth annually in the $68 billion carbonated soft drink industry. Americans consumed 23 gallons annually of soft drinks in 1970, growing to 52 gallons by 2004, due to increased varieties, accessibility, and price reductions. The document also compares concentrate producers like Coke versus bottlers, noting differences in capital costs, brand ownership, and production/distribution costs between the two business models. It concludes that while brand equity remains high, demand growth has slowed, so companies are investing in other beverages providing health benefits and expanding internationally.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    E : C OK E A N D P E PS I IN T H E

    CO L A W A RS C ON T IN U
    TWEN T Y - FIR S T C E N T U R Y
    INDUSTRY BACKGROUND

    Concentrate Retail
    Bottler Supplier
    Producer channel
    INFORMATION IS POWER
    • GROWTH: BETWEEN 1975 AND THE MID 1990S PEPSI AND COCA-COLA
    HAD AN AVERAGE GROWTH OF 10%

    • INDUSTRY: $68 BILLION CSD (CARBONATED SOFT DRINK) INDUSTRY


    • CUSTOMER: AMERICANS CONSUMED 23 GALLONS OF CSD ANNUALLY
    IN 1970 AND CONSUMPTION GREW BY AN AVERAGE OF 3% PER YEAR
    OVER THE NEXT 30 YEARS
    HAPPINE S S I N A B O T TL E
    LOW AS CO M PA RED TO THE PROFITS OBSERVED.
    IS VERY
    • THE COST OF PRODUCTION .
    GA LL ON S OF CS D IN 19 70 TO 52 GALLONS IN 2004
    SE FROM 23
    • ANNUAL CONSUMPTION RO
    IETY & IN TR ODU CT IO N OF DIET AND FLAVOURED
    OF VAR
    • INCREASED AVAILABILITY
    VARIETIES.
    SU PE RM AR KE TS , FOUN TAIN OUTLETS, VENDING
    E PLACES LI KE
    • EASILY ACCESSIBLE IN TH
    STORES ETC.
    MACHINES, CONVENIENCE
    ES OF THE SO FT DR IN KS PRODUCING COMPANIES.
    GI
    • PRICE REDUCTION STRATE
    RA T E PR ODU C E R V S
    CONCENT
    BOTTLER
    GNIF IC A NT CO S TS O F IN VESTMENTS IN BOTH .
    • DIFFERENT SI
    H ER EA S IN C ON CENTRATE, IT IS
    VED IN BOTT LE R S W
    • HUGE CAPITAL COST INVOL
    CONSIDERABLY LESS
    ITY C RE AT ED IN BU SI NE SS REMAINS WITH
    MOST OF THE BRAND EQ U
    • RS.
    CONCENTRATED PRODUCE
    U TI O N AN D P R OD U C TI ON FOR THE TWO.
    DISTRIB
    • DIFFERENCE IN COST FOR
    T ID EN TIT Y W H ER EA S IT WOULD BE COSTLY
    PENDEN
    • BOTTLER EXIST AS AN INDE CATE THIS.
    TE PR O D UC ER TO R EC IP RO
    FOR CONCENTRA
    LOSING THEIR FIZZ
    • DEMAND FOR SOFT DRINKS HAS NOT SEEN A BIG SPIKE.
    • BRAND EQUITY OF BOTH THESE FIRMS IS VERY HIGH.
    • INVESTMENT IN OTHER PRODUCTS LIKE VITAMIN WATER, JUICES AND
    OTHER DRINKS THAT PROVIDE HEALTH BENEFITS

    • EXPANSION IN THE INTERNATIONAL MARKET.

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