1. Strategic management
CASE STUDY
ON
Cola Wars Continue

2. PEPSI VS COLA
Presented By:
Nirmal Jeet
Ritesh Kumar
Gurmeet Singh
Anirudh badyal
Md Noor Alam

3. Example History of Pepsi
Pepsi was formulated in 1893 in North Carolina by Pharmacist Caleb
Bradham.
By 1910 Pepsi had built a network of 270 bottlers.
Pepsi struggled and declared bankruptcy twice
During Great Depression grew in popularity due to price decrease to a
nickel.
In 1938, Coke sued Pepsi-Cola brand for infringement on Coca-Cola’s
trademark.
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4. History of Coca-Cola
Coca-Cola was formulated in 1886 by pharmacist John Pemperton who sold
the product at drug stores as “potion for mental and physical disorders.”
In 1891, As a Candler acquired the formula, established a sales force and
began brand advertising of Coca-Cola.
In 1919, went public under control of Robert Woodruff expanded and
developed in national and international markets.
Successful during WWII with the high CSD consumption from the U.S soldiers.
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5. Affects on Industry’s Profits
Coke was the first concentrate producer to build a
nationwide franchise bottling network, that Pepsi and
Cadbury Schweppes followed suit.
Franchise agreements with both Coke and Pepsi allowed
bottlers to handle the non-cola brands of other
concentrate producers.
Bottlers could not carry directly competing brands.
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6. U.S. Liquid Consumption Trends
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7. Strategies used by Coke:-
1.

8. 2.
Cont…
1. Intensive
strategies
a. Market
penetration
b. Market
development
c. Product
development

9. Analysis- 5 Force Model
1. Bargaining Power of Suppliers-
 Bottlers- Bargaining power was less as order was
placed in advance
 Sugar- Complex law structure in India. Quality was
not consistent
 CO2- Supply was good bargaining power was less
 Water- Local supplier were used

10. 2. Bargaining Power of Buyers
• Institutional buyers- have high bargaining power
3. Entry barrier
 Lack of availability of base facilities
4 .Substitutes
• Onjus juice
• Real from dabur
• Jumpin
• Mineral water
5.Competitor
 Duopoly

11. The Game Plan
• Coke had entered the Indian soft drinks market way back in
the 1970s. The company was the market leader till
1977, when it had to exit the country following policy
changes regarding MNCs operating in India.
• Coke was born 11 years before Pepsi in 1887 and, a century
later it still maintained its lead in the global cola market.
• Pepsi, having always been number two, kept trying harder
and harder to beat Coke at its own game.
Following this, Coke turned into the absolute market leader
overnight. The company also acquired Cadbury Schweppes‘
soft drink brands Crush, Canada Dry and Sport Cola in early
1999.

12. MARKETING STRATEGY
1. Coca-Cola CEO recognizing that a single global strategy or
single global campaign wouldn’t work, locally relevant
executions became an increasingly important element of
supporting Coke’s global brand strategy.
2. In 2001, after almost a decade of lagging rival Pepsi in the
region, Coke India
re-examined its approach in an attempt to gain leadership in the
Indian market and capitalize onsignificant growth
potential, particularly in rural markets.
3. The foundation of the new strategy grounded brand positioning
and marketing communications in consumer
insights, acknowledging that urban versus rural India were two
distinct markets on a variety of important dimensions.

13. 4. In rural markets, where both the soft drink category and
individual brands were undeveloped, the task was to
broaden the brand positioning .
5. while in urban markets, with higher category and brand
development, the task was to narrow the brand
positioning, focusing on differentiation through offering
unique and compelling value.
This lens, informed by consumer insights, gave Coke
direction on the tradeoff between focus and breadth a brand
needed in a given market and made clear that to succeed in
either segment, unique marketing strategies were required in
urban versus rural India

14. Market Share

18. Star Power- The Brand Promoter

19. Social Comparison

20. Which 1’s Better- Gaining Hold
1. Bottling.
2. Pricing.
3. Brand Strategies.
4. To Emerge in International
Markets, they Expanded their Brand
Portfolios to Include Beverages Like
Tea, Juice, Sports Drink & Bottled
Water.

21. “SWOT Analysis”
PEPSI
Strength
Weakness
1.High profile global presence
2.Control over bottling 1. Carbonated soft drink
operations market is declining
3. Good network of well trained 2. Segment- Only target young
sales person people
4.World’s 2nd best selling soft
drink brand.
Opportuniny Threat
1. Increased customer concern 1.Obesity and health concern
regarding drinking water 2.Coca cola increases
2.Growth in healthier beverages spending on marketing and
3. Growth in functional drink innovation
industry 3.Rely only on certain
markets

22. Coca Cola- SWOT
Strength Weakness
1. High profile global presence 1. Carbonated soft drink market is
2. Broad based bottling strategy declining
3. Top 5 leading brand 2. Non cola brand generally weak
4. Innovative product 3. Unable to control external environment
Opportunity
Threat
1. Wise & health concerned positioning
of brand like minute maid. 1. Obesity & health concern
2. Use distribution strength in European 2. Tropicana & Aquafina from Pepsi
countries 3. Negative publicity by Pepsi and protest
in India regarding pesticides

23. STRATEGIC QUALITY
Coca Cola believes that, customers are the life of
their business.
They like to connect with the future customer
providing quality products
1. skilled employee involvement for production
& quality control
2. high quality material for production
3. up to date technology for quality control

24. Coca Cola may face questions.??
1. Acidity and Tooth Decay
2. High Fructose Corn Syrup
3. Environmental Issues
4. Water Use
5. Packaging

25. 1. Bio-solid waste disposal in India—the complaint alleged
that bottling plant sludge containing cadmium and other
contaminants
2. Use of groundwater in India— The water table/aquifer is
being drawn down by Coca Cola, which uses deep bore wells;
water quality has declined;
3. Pesticides in the product in India—studies have found
that pesticides have been detected in Coca-Cola products in
India that are in excess of local and international standards.

26. Recommendations
1. The main objective is to establish the brand name.
2. The best strategy places product of uniform quality in
every corner of india.
3. Coca-Cola must accept the costs and logistical
challenges of distributing to every conceivable market.
Selling costs may be higher in remote regions, but the
quality product must be available, and it must be
reasonably priced.

27. 4. To sustain or increase the global market share.
Coca-Cola is very well-established globally, and is the
global soft-drinks leader. This is very
important to sustain because it is the source of the
majority of their profits.
5. A final recommendation for Coca-Cola is to maintain
and try to increase their brand
loyalty. Diet Coke has the second highest brand loyalty
of all the soft-drink competitors’ brands,
and solid advertising campaigns will help maintain the
brand loyalty.

28. Conclusion
Thus, finally it can say that the Company needs a lot of
improved distribution channel management activities
along with various promotional strategies for the
customers to get the top position in the soft drink
industry.
Pepsi vs Cola:
1. Quality.
2. Pet bottle .
3. Cola- Innovation
4. Pepsi- sales person
5. Bottle franchise