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Case Background

Two rival companies selling a product that


looks the same, tastes the same
Battles fought on various fronts to outdo
each other through
Product modifications
Pricing,
Promotion
Distribution Tactics
Cola War
Bottling
Advertisements
Poaching
Product Launches
Other Fronts
Issues
Competitive Market
Two major players
Coke (56.7%)
Pepsi (34.1%)

Strength-Advertisements & Promotions


Weakness- Product with no inherent merit
Industry Growth
Levelled off after an Initial Boom
Declining Consumer Interest
Strategies
Pepsi Coke
Bottler Model COBO Model Franchisee Based Model
Promotional Campaigns Celebrity-Driven Culture-Driven
Brand Image Youth Centric Culture Centic
Better Service & Retail Mobile Vans
Penetration Tactics
strength
Human Resource Mgmt. Lower pay; better Higher pay; strenuous
relations with relation with bottlers
distribution partners
Expansion Brand & Line Extension Brand & Line Extension
Pricing Competition-driven Cost-driven
Rivalry Bottom Lines & Road Ahead
Financial Aspect
Stiffly on financial basis, Coke is leading with higher market share

Ethical Aspect
Ethically dubious due to unethical practices
Neither is a Good Company

Consumer Aspect
The Real Winners

Road Ahead
Focus needs to shift towards health beverages & food segment
Further expansion
Stress for a more ethically sound business practices