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  • Cola Wars Spring 2008 Jupiter

    Diunggah oleh

    Raghvi Sreenivasan
    25 tayangan18 halaman
    This document summarizes the cola wars between Coca-Cola and Pepsi from the late 19th century to 2008. It outlines the industry structure from formulation houses to bottlers to distributors to consumers. It then discusses the corporate and business level strategies historically employed by Coke and Pepsi, including differentiation, cost leadership, vertical integration, and international expansion. Key issues facing the cola industry are identified as declining carbonated soft drink sales, new age beverage competition, and industry consolidation. Recommended strategies include diversification through new products and acquisitions. By 2008, both companies pursued portfolio diversification through acquisitions of companies like Glacéau and Naked Juice.

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    This document summarizes the cola wars between Coca-Cola and Pepsi from the late 19th century to 2008. It outlines the industry structure from formulation houses to bottlers to distributors to consumers. It then discusses the corporate and business level strategies historically employed by Coke and Pepsi, including differentiation, cost leadership, vertical integration, and international expansion. Key issues facing the cola industry are identified as declining carbonated soft drink sales, new age beverage competition, and industry consolidation. Recommended strategies include diversification through new products and acquisitions. By 2008, both companies pursued portfolio diversification through acquisitions of companies like Glacéau and Naked Juice.

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    Attribution Non-Commercial (BY-NC)
    Unduh sebagai PPT, PDF, TXT atau baca online dari Scribd
    Tandai sebagai konten tidak pantas
    25 tayangan18 halaman

    Cola Wars Spring 2008 Jupiter

    Diunggah oleh

    Raghvi Sreenivasan
    This document summarizes the cola wars between Coca-Cola and Pepsi from the late 19th century to 2008. It outlines the industry structure from formulation houses to bottlers to distributors to consumers. It then discusses the corporate and business level strategies historically employed by Coke and Pepsi, including differentiation, cost leadership, vertical integration, and international expansion. Key issues facing the cola industry are identified as declining carbonated soft drink sales, new age beverage competition, and industry consolidation. Recommended strategies include diversification through new products and acquisitions. By 2008, both companies pursued portfolio diversification through acquisitions of companies like Glacéau and Naked Juice.

    Hak Cipta:

    Attribution Non-Commercial (BY-NC)
    Unduh sebagai PPT, PDF, TXT atau baca online dari Scribd
    Tandai sebagai konten tidak pantas
    dari 18

    Cola Wars

    Bus 497a Spring 2008 TEAM JUPITER

    Industry Pipeline
    Formulation Houses Concentration Suppliers Bottlers Distributors End Consumer

    ****Vertical Integration****

    Background

    Coke: First formulated in 1886 Pepsi: Invented in 1893 Cola War began when Alfred Steele (of Pepsi) became Coke CEO 1980s Bottler Consolidation began

    Key Terms

    CSD Carbonated Soft Drink CP Concentrate Producers

    Blended raw materials and shipped to Bottlers


    Manufacturing of beverages Distribution Supermarkets, Fountain Outlets, Vending Machines, Mass Merchandisers, CV, Gas Stations

    Bottlers

    Retail Channels

    Corporate Level Strategies of the Past

    Coke and Pepsi

    Single Business Economies of Scope Market Power Multipoint Competition Vertical Integration Profitability ****Expansion and Development****

    CL Strategies Cont.

    Deployment Strategy

    Vertical Integration Internationalization Internal Growth

    Business Level Strategies

    Differentiation, Initially (Uniqueness and Broad Target) Cost Leadership, Later On (Cost and Broad Target)

    What are the key issues?

    Decline in overall sales of cola industry Emergence of New Age Beverages

    Coke vs. Pepsi

    Companies focused on rivalry rather than on the industry itself

    Industry Issues

    Major bottlers have been consolidated which puts smaller bottlers at the mercy of Pepsi and Coca-Cola's distribution systems

    Bottlers' profitability is in danger with slim margins and declining growth


    CSDs made up a substantial share of US Liquid Consumption, but this doesnt make them immune to risk (limited portfolio, non diversified)

    International markets are an important source of revenue and improvements in world economies are forecasted
    Growing health concerns for caffeine and sugar consumption threatens industry performance

    Decline In CSD Consumption

    Consumption declines as consumers find healthier alternatives

    Continued Growth

    Dont be fooled; CSD industry continues to grow

    Recommended Strategies to Follow (Corporate)

    Deployment Strategy

    Acquisition of Smaller Beverage Companies New Relations (contracts) w/ bottlers

    Directional Strategy = DEVELOPMENT Portfolio Strategy = DIVERSIFICATION

    Diversification Marketing Product

    Old Market, New Product

    Recommended Strategies Business Level

    Integrated Cost Leadership Differentiation


    New Unique Products Marketed towards niche and board markets Most cost efficient as possible

    Industry Recommendations

    Industry should be proactive about growing health concerns in US Market Companies need to refocus energies on advertising to rejuvenate industry and to fuel product demand both domestically and abroad Cola industry leaders, Coca-Cola and Pepsi, should take steps to better understand their competitive market environment

    2008 Update (Recent Strategic Movies)

    Pepsi

    Acquisition of Naked Juice Acquisition of Fuze Expansion of existing product lines

    Coke

    $4.1 Billion acquisition of Glacaeu (Vitamin Water) Multiple New Age beverages
    ****PORTFOLIO DIVERSIFICATION****

    2008 Update Cont. Industry

    Strong Performance of New Products

    2008 Update Cont.

    Thank You

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