Cola Wars
Upcoming SlideShare
Loading in...5
×
 

Cola Wars

on

  • 15,424 views

its about harvard case studies

its about harvard case studies
plz give me your feed back and sugestions at com2usma@gmail.com

Statistics

Views

Total Views
15,424
Views on SlideShare
15,361
Embed Views
63

Actions

Likes
2
Downloads
660
Comments
0

2 Embeds 63

http://www.slideshare.net 52
http://www.e-presentations.us 11

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Cola Wars Cola Wars Presentation Transcript

  •  
  • Cola Wars continues…. Presented by: Group “5” Vs
  • Group members Usman Ehsan 05108030 Shams-ur-rehman 05108033 Naveed Siddique 05108081 Sumra Anwar 05108116
  • Introduction
    • This case study, gives a brief overview about industry structure and competitive strategy of Coca-Cola and Pepsi over 100 years of rivalry. They have a true competition right from beginning.
    • Both firms faced a large number of challenges but biggest of them were to modify their bottling, pricing, and brand strategies .
  • Competition Starts….
    • First they were trying to capture the market share through CSD only. To be the leader of industry coke and Pepsi concentrated on the four major participants in production and distribution of CSD.
    • Concentrate bottlers,
    • Bottlers,
    • Retail channels
    • Suppliers
    • Competition was also in their retail channels and suppliers.
  • COCA COLA
    • First it was the coke to be franchised under a contract.
    • That franchising contract was repeated a lot of time mostly for re-analyzing pricing strategies.
    • Coca cola was not so successful in the validity or its acceptance because of no experience.
  • Acquisitions
    • Coke started acquisitions of bottlers.
    • Boosted the competition.
    • A lot of improvements in the industry like plastic bottles, cans, shelf placing.
    • Innovative ideas in the marketing strategies.
  • WAR in 21 st century
    • Competition was on two major basis which are as follows:
    • Emerging international markets to fuel growth
    • Broaden their portfolios of alternate beverages like
      • tea, juice, sports drinks, energy drinks, and bottled water.
    • Next challenges were related to:
    • Performance execution
    • Providing alternative beverages
    • Increased health conscious customers
    • Cultivating of international markets.
    • Health conscious products were diet, sprite zero and others.
  • Dramatic competition
    • System profitability
    • In 1990s, a price war was in the super-market.
    • Focus was on low-rice strategies.
    • As this side saying to reduce price.
    • Offering different products increases cost. As different products require different infrastructure and labor.
  • Global Market Share
    • Cola war is not stopped here just in US market.
    • Coke flourished more than that of Pepsi.
    • World market shares were as:
    • Coca cola 51.4%
    • Pepsi 21.8%
    • Cadbury Schweppes 6%.
  • Core Problem
    • Coke was falling a short of precedent and of investor’s expectations.
    • What would be the reason of that down fall?
    • What would be its effect on coke's growth and profitability?
    • International expansion through Brand recognition
    • More target customers
    • New innovative brands
    • Introduce coca cola in growing countries economically.
    • Economic Slowdown:
    • Coke is not so willing to business in non-CSDs.
    • Health-consciousness coke
    • Pricing to CPI consumer buying
    • Expansion into third world countries.
    • Middle East boycotting US brands.
    • Western attitude against capitalism
    • New cheaper brands of cola
    • Series of legal obligations
    • So many discounts may not cut the sales but always cuts profit
    • Coke's crucial relationships with bottlers
    • Good brand elements
    • Larger bottling System
    • Innovative competitive advantage
    • Quick Recovery
    • Global Success
    • Emotional attachment
    • Marketing Strategy
    • Execution Failure
    • Reliance on traditional strategy
    • Weak Succession Planning
    • Operational setbacks
    • Not good relation with suppliers
    • Not good handling of legal issues
    Strengths Threats Opportunities Weaknesses
  • Strengths
    • Emotional attachment
    • Good brand elements
    • Larger bottling System
    • Innovative competitive advantage
    • Quick Recovery
    • Global Success
    • Marketing Strategy
  • Weaknesses
    • Operational setbacks
    • Execution Failure
    • Reliance on traditional strategy
    • Weak Succession Planning
    • Not good relation with suppliers
    • Not good handling of legal issues
  • Opportunities
    • International expansion through Brand recognition
    • More target customers
    • New innovative brands
    • Introduce coca cola in growing countries economically.
  • Threats
    • Bottling Partners: Coke’s crucial relationships with bottling partners are at risk
    • Economic Slowdown:
    • Coke is not so willing to business in non-CSD.
    • Health-consciousness coke
    • Pricing to CPI consumer buying
    • Expansion into third world countries where there is no current presence.
    • Middle East boycotting US brands.
    • Western attitude against capitalism
    • New cheaper brands of cola
    • Series of legal obligations
    • So many discounts may not cut the sales but always cuts profit.
  • BCG MATRIX
    • Stars Question Marks
    • Cash Cows Dogs
  • Problems Operational set back
    • Franchising contracts.
    • Internal conflicts.
    • Many other functional problems.
    • Solution
    • Management of coca-cola should first resolve their internal issues. Because they can compete only if they are strong internally
  • Change in Bottling
    • Coca Cola Company is continuously changing styles, sizes, colors and bottling materials.
    • Such kind of activities cost more than the success.
    • It increase the cost at every step and limits the profit in that field.
    • Solution
    • They should change but not
    • So consistently that its effects
    • Profitability and brand image.
  • Change in pricing
    • Problem
      • Continuous change in price of its products create doubts in the customer’s mind
      • Company is making so much profits
      • Some may take that they are selling the old stock.
      • Price change also affects settings of manufacturing, marketing, and selling.
    • Solution
      • They have to position at stable price with good quality and greater value.
      • They should focus on quality, service quality, lifestyles and other capabilities rather than only focus on price competition.
  • Coca cola process
  • Change in brand strategy
    • As coke offered diversified products among them most of the brands are contra to each other.
    • Examples are coke and coke diet.
    • Solution
    • Diversity products always get benefits.
    • Handling them is very tricky.
    • Coca cola should try maximum efforts to handle so much diversity products.
    • Minimize the confusions and eliminate the bad performing products.
  • Legal issues
  • Intra brand competition
  • Scarifies profitability
  • Franchise contract
  • Bad brand reinforcement
  • Not good executions
  • Not good succession planning