cola wars marketing ppt

1. Marketing Management-II
Cola wars analysis
G Rajesh Kumar | Souvik Chakraborty | Vivek Yadav | Niketa Gupta | Aditya G | Mayank Aggarwal
Group - 6

2. Problem statement:
1. How to sustain/increase the declining CSD sales over the years ?
2. Lack of efficiency of packaging of the product through bottlers.
3. The changes needed for coming on top of replacement products.
4. Both companies are now involved in businesses other than CSD, including juices, flavoured drinks,
and snacks, so how to compete in these areas?
5. What has to be done to ensure sustainable growth and profitability?
6. Can they boost flagging domestic sales ?

3. History of coca cola and Pepsi
Coca cola
● It was formulated in 1986 by a pharmacist named
John Pemberton
● It was initially served at Jacob's Pharmacy and it
was branded as Coca-Cola by Frank Robinson.
● In 1891, Asa Candler acquired Coca-Cola formula
and protected it in the Atlanta bank Vault
● Candler then sold the company to a group of
investors and four years later Robert Woodruff
became its leader
● In 1942, Coca-Cola was exempted from the sugar
rationing as they sold cola to the soldiers
● Coca cola successfully flourished in International
markets, as a result 80% of its sales are from
International markets.
Pepsi
● It was created in 1893 by Caleb Pradham, a
pharmacist.
● It went bankrupt between 1923 and 1932,
after having built a strong network of 270
bottlers.
● Sales were revolutionised as a result of the
aforesaid campaign, and they strategized
their marketing along the same lines.
● In 1941, Pepsi won a trademark infringement
suit against Coca-Cola.
● In 1965, Pepsi-Cola joined with Frito-Lay,
forming Pepsico.
● Pepsi focused mainly in US market after few
setbacks in International markets.

4. SWOT Analysis
Opportunities
● Increase in consumers income
● Acquisitions
● Increase in technology
● Emerging markets for different beverages
Strength
● Strong financials
● High brand value and loyal customers
● Broad portfolio of products
Weakness
● Need better penetration in developing countries
especially for Pepsi
● Business model easily replicable
● Carbonated goods tend to have low demand
Threats
● Changes in consumer preferences
● Coke and Pepsi developments are a threat to
each other
● Water scarcity

5. Cola war in India
Coca-Cola majorly set up its operations in the Indian Market in 1993 and PepsiCo entered India in 1988 as a joint
venture. Starting from their entry, they engaged in an Indian version of the global cola war taking into account the
cultural sentiments of the vast and untapped Indian Soft Drink Market.
Cola war in India majorly revolved around two major factors:-
1) Expanding product line to outperform each other:- The two brands came up with a variety of new products
either my acquisitions or through brand innovation.
2) Heavy Advertising for each singular product/brand:- Both the firms carried out similar campaigns for each of
their products to capture the attention of the consumers and capitalize on the untapped market.
Positive Side of the Indian Cola war:-
1) Less fragmentation in the market space and distribution network in terms of retailers, drug stores, supermarkets,
fountains and vending system.
2) Less challenge from local brands and easy use of local raw materials.
Major Challenges in India:-
1) Difference in affinity and taste across different states of the country.
2) Heavy advertising spending to capture the market that is driven heavily by emotions and cultural factors.
3) Constant need for innovation to survive in a highly competitive and dynamic market.

6. Recommended Solutions
● Focus on healthy products in marketing and creating a healthy perception.
● To restructure the relationship with bottling franchisees.
● To reduce dependence on mass merchandisers like walmart.
● To stop producing loss making products that do not align with company objective.
● Acquisition of smaller brands.
● Invest in R&D for better products, packaging and distribution.
● Product diversification based on different customer segment.