As a result, the book lacks a connection with the present. Aug 15, 2017 coke vs pepsi cola wars case study solution. How pepsi lost cola war against coke business insider. The case raises the issue of whether any or all of these markets are a structurally attractive for soft drink firms, and b if so, how can pepsi best catchup with cocacola in a given market. Cola wars coke vs pepsi harvard business school case study.
Going global excel file, subjects covered business growth globalization marketing strategy by rajiv lal, stefan lippert, nancy hua dai, di deng source. Going global case solution, this case is about competitive strategy, international business, manufacturing, marketing publication date. In contrast, pepsico founded at roughly the same time did not become a serious competitor until after world war ii, when it came up with the idea to sell its product in larger portions for the same price as coke. Smaller brands with same taste and qua lity cannot enter the market due to lack of. Cocacola advertising is often characterized as familyfriendly and often relies on cute characters e. Pepsi in the twentyfirst century cola wars continue. It outlines the global positions of pepsi and cocacola as of 2008 in the. Why is the concentrate manufacturing industry so profitable. The cola wars have been going on for nearly a century now and coca cola has evolved through this time to become an icon in the area of brand development. One of the companys products, future cola, was a few years ago. Going global harvard case study solution and hbr and hbs case analysis clients who bought this case solution also bought. Going global case study analysis, subjects covered competition consumer marketing finished goods industry analysis international business strategic positioning by frank v. Pepsi in the twentyfirst century case study analysis, subjects covered corporate strategy industry analysis industry structure international business by david b.
It would be easy to conclude that the atlantabased soft drink giant is on the ropes in overseas markets, which provide 63% of sales and 75% profits. Emphasis on cold is also a strategic position in the annual summer cola wars which take place between coke. The summary of the book is about how coca cola and pepsi were developed. The carbonated soft drink csd industry comprised of two major categories cola 60% and noncola 40% in 2004.
They are strong rivals of each other in the beverage market of the world. The book covers the history of both companies, business practices, and how they rose to the level they are today. Cola wars everywhere are nasty, he said, but here, its genuine mario puzo. Apr 20, 2011 i thought that the coke and pepsi wars, which began in the 70s click to see a vintage, michael jackson, pepsi tv ad, were long over, comfortably settled into a titfortat, highfructoseopoly. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. The case study significantly states that the cola war is predominantly between cocacola and. Major strategic competitive moves and countermoves are described. Coke and pepsi seemed to have allowed the cola wars to come to a hault,halt but there are future wars over the throat share that are yet to be fought.
Coke and pepsi have been going to war for over a century. From 1975 to 1990s, both the company achieved a steady growth at the rate of 10% in terms of revenue. The cola wars picked up speed in the mid1960s and have not abated since. What goes unmentioned in the promotion, is what the president and ceo of coke john alm makes quite explicit elsewhere. The case raises the issue of whether any or all of these markets are a structurally attractive for soft. In the retailers assessment of brand performance survey 1999, c ocacola led pepsi in all six criteria.
Cola still remained the most popular although its sales reduced. Cola wars case solution free download as powerpoint presentation. The story of the global battle between the cocacola company and pepsi co, inc. Both firms used marketing tactics to differentiate themselves recall, for instance, the pepsi challenge blind taste test. The summary of the book is about how cocacola and pepsi were developed. This case is designed for use in conjunction with existing cola wars case studies. Mar 02, 2017 the fact is that no right version of the cola exists because inflation affects individuals differently. Explain using a porters fiveforces analysis, where you describe what makes each force strong or weak explain at least two factors per force. The article presents a case study in ethics and industrial espionage involving cocacola co.
The interesting part is how it explained how each one of the companies developed their market in different countries. The cocacola system is one of the major examples of global value chain. Bahcesehir university theory of marketing cola wars. The recipe for cocacola removed the alcohol present in pembertons previous drink recipe for pembertons french wine coca, as prohibition legislation had been passed in atlanta, georgia. Cocacola has been a success for more than 120 years. The cola wars go to college, business week, september 19.
Indias 850 million citizens drink an average of only. It outlines the global position of pepsi and cocacola as of 2008 in t. Cocacolas and pepsi colas marketing strategies has been as impossible to tell apart as the products themselves, both companies rely on vibrant colors, catch phrases, attractive people, and famous entertainers to grab consumers attention and to entice them into purchasing their products. Emphasis on cold is also a strategic position in the annual. Cocacola was first introduced on may 8, 1886 by a pharmacist named dr. The situation became becoming intense when the csd consumption started diminishing in the start of the 2000 century and reached to 46 gallons of csd consumption per year in u. In april 1985, the coca cola company introduced its new formula for coca cola, which became popularly known as new coke.
The cola wars case can be analyzed by porters five forces framework, which attempts to analyze the industry in regards to the intensity of competition and attractiveness. In 2006, pepsi sought to undermine cocacolas official presence at the 2006 world cup in germany with its pepsi max world challenge campaign. In the last decade, cokes market share has risen from 17. What can the cola wars teach us about brand loyalty.
Feb 20, 2018 but when it comes to regular old cola, coke is still king. Then, in 2010, the nonsponsor set out to hijack publicity surrounding the tournament from coke, which was an official sponsor. Going global cola wars continue cola wars in china. This war has been fought with prices, with taste challenges, and with advertising. This book was written before the coke essentially lost the cola wars in the 1980s. Cola wars is a term which emerged in the us in the early 1980s. Going global case study solution, this case is designed for use in conjunction with existing cola wars case studies. This case is meant to be used in conjunction with the extant cola wars case studies. Lucio received a letter sent in a coca cola business envelope offering the latters fouryear marketing plan. Going global excel file, subjects covered competition consumer marketing finished goods industry analysis international business strategic positioning by frank v. Cola wars coke and pepsi deanna chang jamie prescott jonathan wong shaistah bahrainwala yau lo 3. Now, suddenly, beverage industry magazines are reporting that the cola wars have erupted again. Lucio received a letter sent in a cocacola business envelope offering the latters fouryear marketing plan. Going global refers specifically to the process of entering new geographies through global expansion and global sourcing, necessitating that an organization add employees and meet local hr management requirements.
Please order custom thesis paper, dissertation, term paper, research paper, essay, book report, case study from the order now page. These mature brands have solidified their consumer base especially the most diehard lovers of a particular soda to the point that the real competition exists at the periphery, the authors suggest. This was because new diet flavors were introduced, lots of variety. The fact is that no right version of the cola exists because inflation affects individuals differently. Cola wars coke vs pepsi harvard business school case study 1. Pepsi in the twentyfirst century case study solution, cola wars continue. Rather than highlighting aspirational distance it focuses on proximity to the familiar with the intention of appealing to rural sensibilities. Cola in local tradition rather than inserting a foreign one. Apr 28, 2017 cola wars is a term which emerged in the us in the early 1980s. The story of the global battle between the coca cola company and pepsi co, inc. From the 1970s consumption of carbonated drinks grew by about 3% every year. The case study significantl y states that the cola war is predominantly between coca cola and pepsi. To provide an answer to these questions, the authors of a new study analyzed the cola wars a cheeky term coined during the cold war to describe the longrunning struggle between cocacola and pepsi for dominance of the soda market. The article presents a case study in ethics and industrial espionage involving coca cola co.
Pepsi launched a global marketing campaign featuring a charity song. The future is here case solution, the hangzhou wahaha group co. Package the mixture in plastic containers blend raw materials proprietary item containers are shipped to bottler machinery, overhead and labour had little. Being global is the state of business and hr integration that occurs across. We are going to show the cola wars in the twentyfirst century, this war started when pepsi enter in the market 1983 when the incumbent cocacola coke was already there 1886.
It was coined to describe the advertising and marketing tactics of the cocacola company and pepsico against each other. Cola wars continue case solution and analysis, hbr case. The company has faced challenges of suppliers, buyers, substitutes, new entrants, barriers to entry, global struggles, and industry rivalry. It outlines the global position of pepsi and cocacola as of 2008 in the soft drinks market, and then provides an overview of their competitive situations in three markets. Cola wars coca cola pepsi co free 30day trial scribd. Pdf this case presents the challenges the cocacola company faces in brazil. During the peak of the cola wars, as coca cola saw its flagship product losing market share to pepsi as well as to diet coke and its competitors products, the company considered a change to the beverages formula and flavor. This market model coke vs pepsi case study solution follows the more than 100year cola war between coke and pepsi when first starting to use the market model for market simulation, it is easier to think about this famous competitive battle when there were only two competitive products the 6.
It outlines the global positions of pepsi and cocacola as of 2008 in the soft drink market, and then provides an overview of their competitive situations in three markets. It does, however, add some insight into a business that was built on the premise of delivery by cart and horse and. The case raises the issue of whether any or all of these markets. Oct, 2016 cola wars coke vs pepsi harvard business school case study 1. Coke and pepsi in the twentyfirst century cola wars continue. Apr 05, 2010 we are going to show the cola wars in the twentyfirst century, this war started when pepsi enter in the market 1983 when the incumbent cocacola coke was already there 1886. It outlines the global positions of pepsi and cocacola since 2008 in the. But when it comes to regular old cola, coke is still king. Pdf soft drink industry after enjoying the privilege of being an item of daily use in. Aug 25, 2016 in other words, the cola wars have settled into something more like a truce, with an implicit agreement that the brands can coexist. Coca cola and pepsi dominated the carbonated soft drink csd industry for over a century but are now experiencing significant and continuing drops in sales due to changes in their external environments.
Some may argue that the cola wars were over long ago. Thus the cola will be right for 1 and wrong for 99 with almost any measure of inflation. X factor heralding a return of the cola wars that marked music and. The soft drinks market its been here for a long time and will continue to exist, and will continue to be profitable and a relevant market all over the world. It outlines the global positions of pepsi and coca cola as of 2008 in the soft drink market, and then provides an overview of their competitive situations in three markets. Cocacola advertising has historically focused on wholesomeness and nostalgia. Going global case solution, this case will be used in conjunction with the received cola war case studies. It was coined to describe the advertising and marketing tactics of the. I would go and visit commerce attaches to understand the market place and. I thought that the coke and pepsi wars, which began in the 70s click to see a vintage, michael jackson, pepsi tv ad, were long over, comfortably settled into a titfortat, highfructoseopoly. For example, the person who owns his home does not feel the effects of changes in price of rent. One of the companys products, future cola, was a few years ago to compete with cocacola and pepsico launched and has made significant progress in the soft drink markets which have been developed by these cola giants. Also profiles industry developments, including the pepsi challenge, the reformulation of cocacola, and the consolidation of the bottler network. Cocacola and pepsi dominated the carbonated soft drink csd industry for over a century but are now experiencing significant and continuing drops in sales due to changes in their external environments.
Also profiles industry developments, including the pepsi challenge, the reformulation of coca cola, and the consolidation of the bottler network. Jul 18, 2011 the cola wars have been going on for nearly a century now and coca cola has evolved through this time to become an icon in the area of brand development. Cocacola company and pepsico are two industry leaders in the carbonated soft drink industry. It details an incident wherein pepsicos executive antonio j. I would make a international cultured company which would help the global. History of cocacola cocacola was formulated in 1886 by john pemberton pharmacist. Package the mixture in plastic containers blend raw materials proprietary item containers are shipped to bottler machinery, overhead and labour had little investment significant costs are. Theres a noholdsbarred mentality because the stakes are high. Mar 06, 2017 the company has faced challenges of suppliers, buyers, substitutes, new entrants, barriers to entry, global struggles, and industry rivalry. Strengthening selling capabilities and gotomarket strategies, including presale. Provides a summary of the history of the soft drink industry prior to world war ii, and over the period 19501990 in greater detail.
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