Cola Wars Continue: Coke and Pepsi in 2010 A case discussion note January 17‚ 2012 1. Historically‚ why has the soft drink industry been so profitable? Historically‚ the soft carbonated soft drink (CSD) industry has been valued at $74 billion in the United States. In order to understand the reasons why the industry has been hugely profitable despite the ‘Cola Wars’‚ an examination of the CSD industry with Porter’s five forces analysis will be conducted. As market leaders‚ the analysis will
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was created by a pharmacist- Celeb Bradham from New Bern‚ North Carolina in 1898 Cola -Cola Origins Formula The original ingredients of Coca-Cola were intended to have health benefits and be refreshing. Coca-Cola contained coca leaves and kola nuts‚ known to promote energy. Coca leaves‚ from which cocaine derives‚ was primary ingredient but was fully removed from the formula by 1929. Pepsi-Cola Formula Pepsi-Cola was originally coined “Brad’s Drink” in honor of its creator. The premise of the
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Case Memo 1 Cola Wars Continue: Coke and Pepsi in 2006 Coca-Cola and Pepsi-Cola have a long history of intense competition since 1950. Besides the CSD (carbonated soft drink) consumption rise‚ it brought both Coke and Pepsi enjoyed significant revenue growth. In 2004‚ CSD has 52.3% of total US Liquid Consumption. Coke and Pepsi had 22.1% and 14.4% in Net profit/sales respectively. There are four major participants involved in the production and distribution of CSDs: 1. Concentrate Producers
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Cola wars continue: Coke and Pepsi in 2006 Written by Alyona Kuzmina. Soft drink industry Shares of beverage companies have always been ranked high among other industries. Although‚ when consumer incomes decrease‚ sales of beer and soda don’t drop that much. Additionally‚ it is cheap to produce those and drinks are so popular so companies can sell them for a large price. Actually‚ it is a very unique case‚ that such a product‚ which is in the group of basic commodities‚ is profitable
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Strategy ‘Cola Wars Continue: Coke and Pepsi in 2010’ Analysis of the US carbonated soft drinks (CSD) industry (a) Strategic issues The CSD market in the US (approx. $74 billion) is dominated by two concentrate manufacturers – namely Coke and Pepsi –. Both companies have been competing intensely since the 1970s‚ yet have thrived from this competition and have grown the business very profitably‚ as both have benefitted from the CSD market growth rates of around 10% p.a. until the early 2000s
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Establishment of the two brands: 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‚ Asa 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. Coca-cola was remarkably successful during WWII with the high CSD consumption from the U.S soldiers
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Cola Wars Continue : Coke and Pepsi in 2006 1. Why historically has the soft drink industry been so profitable? * High rate of consumption increasing at an average of 3% per year * Increasing availability of CSDs * Introduction of diet and flavoured varieties Year | 1970 | 1975 | 1981 | 1985 | 1990 | 1994 | 1996 | 1998 | 2004 | Consumption in Cases (million) | 3090 | 3780 | 5180 | 6500 | 7780 | 8710 | 9290 | 9880 | 10240 | 2. Compare the economics of concentrated
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Cola Wars Continue: Coke and Pepsi in 2006 1. Why is the soft drink industry so profitable? In an industry dominated by two heavyweight contenders‚ Coke and Pepsi‚ in fact‚ between 1996 and 2004 per capita consumption of carbonated soft drinks (CSD) remained between 52 to 54 gallons per year. Consumption grew by an average of 3% per year over the next three decades. Fueling this growth were the increasing availability of CSD‚ the introduction of diet and flavored varieties‚ and brand extensions
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Coming to Conclusions The conclusion of an essay is a key factor of the overall effectiveness of an essay. Often seen as a brief summary of the paper‚ the conclusion frequently revisits the thesis of the paper‚ sometimes repeating lines or words from the introduction verbatim. This almost textbook-like format can be effective but is by no means the only option there is when a writer concludes an essay. In fact‚ the title of “the conclusion” can be quite misleading. Many types of conclusions do not
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The Art of the Conclusion The conclusion of an essay should establish a sense of closure or completeness that leaves the reader with lingering thoughts about the topic. Each writer has their own approach in composing a conclusion that they feel solidifies their argument; every approach makes different demands of a reader because of the moves the writer chooses to make. The essays “How to Tame a Wild Tongue” by Gloria Anzaldua‚ “Translating Translation” by Alberto Alvaro Rios‚ and “Joyas Voladoras”
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