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Cola Wars Continue: Coca Cola and Pepsi in 2006

The document summarizes the cola wars between Coca-Cola and Pepsi from 1975 to 2006. It discusses their competitive histories, strategies, and market shares over time. Initially, Coca-Cola dominated the market with 47% share compared to Pepsi's 10% in 1950. However, Pepsi gained ground through targeted advertising and appealing to younger consumers. By 2006, Coca-Cola maintained a narrow lead with 43.1% of the market compared to Pepsi's 31.7%.

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Gr8 zaibi
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1K views15 pages

Cola Wars Continue: Coca Cola and Pepsi in 2006

The document summarizes the cola wars between Coca-Cola and Pepsi from 1975 to 2006. It discusses their competitive histories, strategies, and market shares over time. Initially, Coca-Cola dominated the market with 47% share compared to Pepsi's 10% in 1950. However, Pepsi gained ground through targeted advertising and appealing to younger consumers. By 2006, Coca-Cola maintained a narrow lead with 43.1% of the market compared to Pepsi's 31.7%.

Uploaded by

Gr8 zaibi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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COLA WARS CONTINUE

COCA COLA AND PEPSI IN 2006


COLA WARS CONTINU
• INTRODUCTION

• HISTORY

• COKE COLA

• PEPSI COLA
INTRODUCTION

• Name of the Group members

• Structure of the Case


HISTORY

• HISTORY OF COLA WARS

• HISTORY OF COKE COLA

• HISTORY OF PEPSI COLA


Competitive Analysis
Coca Cola Cadbury Pepsi Industry
Schweppes

Market Cap 96.12B 18.22B 85.66B 338.99B

EBITDA 6.30B 1.66B 5.02B 42.48B

P/E 21.18 20.92 22.37 20.80

EPS 1.876 1.688 2.273 1.13


Competitive Comparisons
• Advertising
• Coke: $34.4 million (1975) to $211.5 million
(1993)
• Pepsi: $25.3 million (1975) to $147.3
million (1993)
• Distribution
• Coke stronger in fountain. But Pepsi
growing in supermarkets.
• Pricing
• No differences
Pepsi Generation
• Pepsi-Cola appeals to
the younger generation

• Be young, have fun,


drink Pepsi”
PROMOTION OF PEPSI

• 1964: A new
brand, Diet
Pepsi, is
introduced
Year 2000

• Pepsi-Cola’s new
look as it enters the
21st Century.
Pepsi Internationally

• Pepsi bags top


awards at all India
promo
• Power 2003.
In the Olden Days
• Coca-Cola sold only • A single share in
25 bottles in the first Coke that was
year bought in 1919
• Nowadays, they sell would be worth
over one billion $92,500 in 1997
bottles per day • 1919 is when the
Coca-Cola went
public
Change to New Coke
• Coke PR line: Product
improvement, necessary
change to follow trends in
consumer preferences.
– “the best just got better.”
• Absolutely no mention that
New Coke beat Pepsi in taste
tests.
Total Cola Shares
Goes up from a 5 point to a 6 point lead
35

30

25

20
Coke
15 Pepsi

10

0
1980 1982 1984
Who has been wining the war
• 1950: Coke have 47% and Pepsi have 10%
• 1970: Coke have 35% and Pepsi have 29%
• 1990: Coke have 41% and Pepsi have 32%
• 2000:Coke have 44%Pepsi have31.4% other
beverage Cadbury Schweppes 14.7%
• 2006:Coke have 43.1% Pepsi have 31.7%
Cadbury Schweppes 14.5%
• Initially through the early 1960s Coke was the
winner. The reason was the extensive bottling
franchise. And the second most important is its
brand name.

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