Analyze each company’s history, product / services, major customers, major suppliers, and leadership and provide a synopsis of each company. Pepsi-Cola began as a drink developed by a pharmacist named Caleb Bradham in his drugstore in 1893. The soft drink was made to be a tonic to aid in digestion and as a refreshing drink that gives an energy boost. This concoction made of pepsin and kola nuts was originally called “Brad’s Drink” named after its inventor, but was later changed to Pepsi-Cola to be more marketable.
Originally, this beverage was sold in drug stores and at soda fountains, but was later sold in bottled form to facilitate mass distribution. The Great Depression was a major setback for many American companies and there was no exception for Pepsi. However, the company strived to remain strong and offered its product for five cents in the mid thirties while touting that their product offered twice as much for half the price of Coke’s product.
During this time their ad campaigns and marketing tactics worked and their company continued to remain profitable despite a harsh economic climate. Pepsi marketed its products to virtually everyone, young and old, but they often utilized creative marketing tactics to entice new customers to try their products. In the mid 1940’s Pepsi began a marketing campaign to gain more popularity with African American customers whom the company decided where not getting adequate attention with regards to marketing and advertising.
The Term Paper on Pepsi Soft Drink In Thai Monopolistically Competitive Market
Pepsi is sold in numerous countries around the world that can be associated as Americas, Europe, Asia, Middle East and Africa. Quite a lot of those countries, Pepsi are not a leader in the cola soft drink markets; however, Pepsi is a soft drink leader in several countries including Thailand. The Pepsi soft drink or the soft drink in this report means specifically only a carbonated cola soft drink ...
PepsiCo today now has interests in many different brands and product lines. Some of their most notable brands familiar to consumers today are Pepsi-Cola, Frito-Lays, SoBe, Tostitos, Sabra, Near East, Pasta Roni, Sun Chips, Cheetos, Quaker, Doritos, Sierra Mist, and Dole to name a few. There is an even more diverse product portfolio that includes products marketed to international consumers to suit their individual tastes. The major suppliers for Pepsi-Cola Company include packaging manufacturers and suppliers of the commodities that go into their product’s manufacture.
Sugar and high fructose corn syrup are two main ingredients that are necessary for the production of Pepsi products. The packaging industry is a major partner of Pepsi and the constant supply of cans and bottles to meet the company’s needs is a major factor in its success. Today Pepsi’s operation are being overseen by Chairman and CEO Indra K. Nooyi, who is working to constantly improve and add to Pepsi’s value and share in the market by staying profitable and innovative. Coca-Cola is a soft drink manufacturing company that is producing over 500 brands of products in nearly 200 different nations.
Coca-Cola was invented and first concocted by Doctor John Pemberton, who was a pharmacist from Atlanta, Georgia. It was not until the formula was sold to a business savvy pharmacist named Asa Candler and aggressively marketed that the Coca-Cola Company began to become widely popular and profitable. Initially the product was sold in pharmacies, drugstore soda fountains, and diners until the advent of mass bottled soft drinks, an event which Coca-Cola was also known to have initiated. Today Coca-Cola serves approximately 1.
5 billion servings of their products a day and is constantly looking at new markets in which to introduce their products. Some of the products that Coca-Cola Company offers consumers today are Coke, Diet Coke, Sprite, Fanta, Dasani, NOS, Odwalla, Fresca, Minute Maid, Honest Tea, and Simply Orange to name a few. The company traditionally focused on producing the syrup that goes into the production of their beverages and then selling this to the bottlers, who add other ingredients and package the final product.
Today, Coca-Cola is steadily acquiring its bottler’s operations to gain more control over the production process. The Coca-Cola Company operations are led by the Chairman and CEO Muhtar Kent who seeks to lead Coke into a new generation of profitability and performance. Based on the stock price for the timeline listed below, present a graph that illustrates the stock price of each company. Indicate conclusions that can be drawn based on the trend: The graphs below illustrate the stock prices of each company based on the timeline.
The Essay on Coca-Cola versus Pepsi-Cola: Competitive Strategies
... decision to not focus mainly on cola products. Coke clearly commands the cola war between the two companies, but Pepsi has won the revenue battle, bringing ... visions and continue to move the company forward in its market. Coke has been a leader in the cola market for many years and as ...
By consulting the above graphs and charts it can be concluded that Pepsi has been a strong competitor to Coke and that throughout history they have been performing at comparable rates. Each has a similar background and customer base, but there are some differences between the two companies and their individual performance overall. It is clear that Pepsi holds a major stake in the market and is somewhat ahead of Coca-Cola in market share and productivity. Although both companies appear to be competing neck-to-neck Pepsi appears to be performing at a slightly higher rate than Coke, despite the popularity of both.
Coke is wildly popular and is considered an American institution, but many seek different tastes and this is where Pepsi has been taking some of the market share as some consumers opt for Pepsi as their choice of beverage. Both companies represented in the graphs shown previously are subject to the volatile market changes and increasing prices in commodities and other raw ingredients that each company relies on for their production of their products. As seen in the chart Pepsi is subject to the same market changes as Coke, but performance appears to steady and less erratic in its market fluctuations.
Since Pepsi is considered to be less volatile in its stock price it may be considered a better investment compared to Coke. Research and summarize at least two (2) news events (this may include mergers, acquisitions, or political issues) that occurred from 2010 to the present day and the potential impact on the stock price of each company. Indicate how this influences your investment decision related to the company. Coke has always been a company that strives to be innovative and stay ahead of its competitors, mainly Pepsi in this case.
A much publicized event occurred where company executives at one time decided to change the formula to the soft drink after many years of proven success. The thought was that they needed to provide their customers with something new that could better compete with Pepsi’s cola beverage. This formula change was not well received and after a time the company switched its formula back to the original configuration to appease its customers. The company had gambled and found out the hard way that Coke drinkers were set on the classic recipe’s taste and did not want change.
The Business plan on Coke & Pepsi learn to compete in India
... foreign company PepsiCo (1986) Benefits: early entry while the market is developing achievement of a good market position enforcement of product standards ... Distribution arrangements: Red Lounge Focus on Southern India Pepsi Product policies: bolstering non-cola portfolio and other categories: ... where the youth can spent time and consume Coke products. Pricing policies: Low prices and later on even ...
The Coca-Cola Company found out the hard way that there were many Coke loyalists that did not want a different tasting beverage and furiously clung to their favorite version, which was the original Coke formula. The company defended their position however, after switching back to the original formula, by saying that the risk was worth it for revitalizing the brand and reestablishing loyalties to the brand. Coke is no stranger to acquisitions as it is aggressive at acquiring small competitors and other business entities that it believes will add value to its enterprise.
One such purchase involved the acquisition of the Coca-Cola bottler Coca-Cola Enterprises, a deal which would lead to it holding nearly 90% of Coke’s North American bottling operations. Previously the Coca-Cola Company kept its bottling operations distinctly separate from the rest of the business, but now it is making these changes to further strengthen the business. Part of this deal involves trading some of Coke’s European bottling operations for those established here in North America.
With this move Coke is poised to hold the majority of control over North American Coke bottling operations while letting Coca-Cola Enterprises focus on bottling operations in Norway, Sweden, and eventually Germany. Pepsi, like its competitor Coca-Cola, has been busy acquiring its largest bottlers in an effort to remain global leaders and keep a strategic and competitive edge. The two bottlers that Pepsi has acquired are The Pepsi Bottling Group, Inc. and PepsiAmericas, Inc. PepsiCo, as the company is now called, is considered to be the largest beverage and food production enterprise in North America.
The Essay on New Coke Product Idea
The Coca-Cola Company was originated in 1886; the Company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, used to produce more than 300 beverage brands. Their corporate headquarters are in Atlanta, Georgia with local operations in over 200 countries around the world. We are introducing a new coke product called Pure Coke. It's a ...
This acquisition has enabled PepsiCo to increase efficiencies and ensure the future growth and profitability of the company. Provide an overall financial analysis for each company that highlights the key characteristics for investment and how this may impact an investor’s decision. PepsiCo is one of the most profitable and fastest growing companies in North America and continues to grow and expand its operations around the globe. The company has expanded its operations to include snack foods, fruit drinks, sport drinks, waters, and convenience foods.
The company puts much emphasis on taste and customer satisfaction with each product line they endorse and produce. Stock prices for PepsiCo have steadily gone up in recent years as have profits; despite recent economic hardships and recessions. As a result of Pepsi’s diverse product offerings and strong growth the company is deemed the most favorable choice for an investment. Pepsi has one distinct advantage over Coke that many of PepsiCo’s products complement each other as is the case with its soft drinks and snack foods.
Many consumers more apt to be purchasing many of their products together and this leads to greater sales and profits. PepsiCo has a distinct advantage and strength by being the large conglomerate that it is and can offer the investor more stable profit as a result of the greater savings it can achieve in its operations. Coke is a major contender and a clear leader in the soft drink market around the globe. Customers who buy their products are very loyal and Coke uses this brand loyalty to its advantage.
When Coke considers changing any of their products they are careful to consider their customers wishes, this is a lesson that the company learned from the episode of introducing a product that they called “New Coke. ” Customers were not well receptive of this new product as they were loyal to the original brand and taste. As a result of this fact it is clear that the company is part of consumer’s lives and daily routines; change may not be welcomed, but Coke’s products will always be sought after.
This clear display of stability shows that the company is a strong performer in the market, has a large share of the market, has established strong brand loyalty, and is universally known around the globe. Coke’s stock prices fall just below that of Pepsi, but this does not indicate that it is inferior. The one notable fact that must be considered is that Coke is not as diverse in its product offerings compared to PepsiCo; this may result in fewer opportunities in the long term. Based on your review of the financial data for each company, indicate the accuracy and reliability of the data for making investment decision.
The Research paper on Coke And Pepsi Case Study
1. Identify the ongoing issues in this case with respect to issues management, crisis management, global business ethics, and stakeholder management. Rank order these in terms of their priorities for Coca-Cola and for PepsiCo. Number 1 Priority: The major global business ethics I found in this case study was the whole issue with excessive water usage in their companies as well as the pollution of ...
Provide support for your conclusion. The data that is found is very accurate and is a sound basis for making a financial and investment decision. No one can know what the future may hold, but with sound judgment and accurate research the best decisions can be made. This investment decision is clear as Pepsi is a global leader and the strongest performer. They have the most diverse portfolio and have the best profits and stock prices compared to their competitors. With this diverse portfolio of products PepsiCo is poised to weather relatively any financial storm and come out on top.
Based on the prices of PepsiCo’s stock today is can be best deduced that the company will continue to perform favorably in the future, especially if the investor plans to hold the stock for the long term, which tends to offer the best benefits. Recommend which company you consider as the better investment for your client and how you will present your recommendation. Support your recommendation with data from your analysis. The company that I would consider to be the best investment for my client would be PepsiCo.
I would present my findings in person at a meeting where I could best describe the data and show the client first-hand why Pepsi is the best choice. As seen in the graphs shown above Pepsi clearly outperforms Coke and is steadier in the market. When there are market fluctuations Pepsi tends to be more even in price and less volatile compared to Coke. Furthermore, Pepsi is a very diverse conglomerate that has global production of a multitude of products which include waters, snack foods, energy drinks, soft drinks, and a line of healthful foods and beverages.
They continue to grow and expand their business operations, which has been evident in the latest move to acquire their own bottlers. This will add to their efficiency, profitability, and growth while keeping the company close in all aspects of manufacturing that go into their products. In closing PepsiCo is the obvious choice since they are the market leaders and stand to offer the investor the most growth and stability that they desire for their money.
The Term Paper on Small Firm Financing Company Companies Market
Financing a small firm can be achieved in three ways. The most preferable but at the same time the least likely is self financing from retained earnings, otherwise, the firm will have to resort to either one of the two following financial markets. Debt capital and equity capital (which strictly speaking is the same as retained earnings, both having their advantages and disadvantages. Only after ...
