C O L A W A R S CONTINUE

ByAkshay Garg
Bhavya Bhatia
Kaustubh Kashyap
Pranshu Agrawal
Saurabh Sharma
Shubham Mehta

CSD INDUSTRY
Cola-war between Pepsi and Coke was fought in the $66
billion market.
The average American drank approximately 52 gallons of
carbonated soft drinks (CSDs) per year in 2004.
Production and distribution involved four major componentsconcentrate producers, bottlers, retail channels and suppliers.

Production and Distribution

Concentrate
producer

Bottler

Supplier

Retail
Channel

SWOT Analysis
Pepsi
Strength

Enjoys a high profile

global presence.
Constant product
innovation.
Aggressive marketing
strategies.

Weakness

Threat

Opportunities

Growth in healthier
beverages.
Growth in tea and
Asian beverages.

Carbonate markets
in decline.
Pepsi is strongest in
North America.
They only target
young people.

Obesity and health

concerns.
Intense competition
from Coca-Cola.

SWOT Analysis
Coke
Strength

47% of global sales

in carbonate drinks.
Broad based bottling
strategy.

Weakness

Threat

Opportunity

Use distribution strengths

in Eastern Europe and
Latin America.
Growth in healthier
beverages.

Carbonates market is
in decline.
Over complexity of
relationship with
bottlers.

Growing health
conscious society.
Good competition
from Pepsi.

Key Issues

For both the beverage giants how to

compete each other in market.
How should pepsi and coke respond as
customer now a days is looking for healthier
alternatives.
How to change unhealthy Stigma from the
CSD industry as a whole.
How to boost flagging domestic CSD sales.
How to deal with government restrictions in
U.S. and abroad

Problem Statement

Declining CSD SALES because

of healthy living trend.
In 2005, Federal Nutrition
Guidelines says regular CSDs
as the largest source of obesity
causing sugars in diet which
affects the growth.
Tag of unhealthy Drinks in this
health craze environment .
Priced pressure from bottlers
and retailers

Generating Alternatives

Coca-Colas marketing strategy should be to

associate happiness, positivity and the good life with
their products.

Push towards non-CSD industry would be an example

to brand extension.
Use online channel to make deal with e commerce
sites such as big basket or grofers to push cola sales.
Educate consumers on how they are now using Stevia
which is natural zero calorie sweetener.

Analyzing and evaluating

alternatives

1.

Coca-Colas marketing strategy should be to associate

happiness, positivity and the good life with their products.
thats how they are able to create high Top of mind awareness.
Its a refreshing drink.

2.

This expansion would help the company tap new consumers

and bring out new sources of revenue. Also, introducing new
products under the brand name would require less
advertising efforts and guarantee better chances of success.

3.

Use online channel to make deal with e

commerce sites such as big basket or grofers to
push cola sales.
People are looking to e commerce sites for ease and

convenience of shopping and making deals with them

would push cola sales.
4.

Educate consumers on how they are now using

Stevia which is natural zero calorie sweetener.
The only reason to why people do not prefer cola is

because of its health hazards and if we do educate

consumers that cola doesnt cause them, we can boost
the sales of cola.

Selecting preferred alternative

Coca-Colas marketing strategy

should be to associate happiness,
positivity and the good life with their
products.

Use online channel to make deal

with e commerce sites such as big
basket or grofers to push cola sales.

Implementation plan

Associate companies with celebrities

or activities that reflect happiness,
good life and positivity such as Jim
Carrey, football etc.

E-commerce sites are being used

extensively by consumers and firm
should acknowledge this as well.

THANK YOU