Coca Cola Vs. Pepsico

Coca Cola Vs. Pepsico
Coca–Cola vs. PepsiCo
Coca–Cola is a leading beverage industry in the United States and many other countries in the world. PepsiCo is also a leading worldwide beverage
company, but they are also the parent company of the Frito–Lay and Quaker Oats Companies. This makes PepsiCo a leader in the beverage, snack and
cereal industries. As consumers, we have indulged in their products for many years. My personal preference has always been Pepsi over Coke,
which is why I was very interested in conducting this analysis. Regardless of the results, I will always seek out a Diet Pepsi over a Diet Coke and
so will many of my physician friends at Children's Hospital who start their mornings with a Diet Pepsi. These personal preferences are what
contributes to a company's profits through net sales. However, the key performance measurement tools used are not based on sales alone. Calculating
liquidity, solvency, and profitability ratios on a regular basis give us a better insight on the performance and overall health of a company. Coca
–Cola vs.
PepsiCo Liquidity
Liquidity ratios measure the short term ability of a company to pay its obligations and meet their needs for maintaining cash. According to Cagle,
Campbell & Jones (2013), "A good assessment of a company's liquidity is important because a decline in liquidity leads to a greater risk of
bankruptcy" (p. 44). Creditors, investors and analysts alike are all interested in a company's liquidity. After computing liquidity
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Cola Wars: Coke Vs Pepsi
Coca–Cola (herein referred to as "Coke") and Pepsi have both been in business since the late 1800s selling their respective brands of carbonated
beverages (Zmuda, 2011). In 1975, Pepsi began the "Pepsi Challenge" that pitted Pepsi against Coke in taste tests across North America. This
"challenge" continued into the 1980s and has been coined the "Cola Wars" (Zmuda, 2011). Zmuda (2011) states that in 2011 Pepsi lost the "Cola
Wars" when Diet Coke took the number two spot from Pepsi. While it is still debatable how long this will last, there are some key differences in
management and how innovation is viewed by these two companies that may provide some insight into why this happened.
Upon reviewing the two companies' websites, glaring...show more content...
Unfortunately, the changes made have not improved the brand acceptance, as evidenced by the fall in position. Pepsi claims to have a new strategy
that will require them to lay off approximately 8700 people, or roughly 3% of their workforce, in order to divert the funds to yet another new
advertising campaign ("PepsiCo Strategy," 2013). The impression gained from Pepsi is that it is most interested in the bottom line and that the way
they get money is less important that those helping to make it. Pepsi innovations seem to come as knee–jerk reactions to lost profits verses well
thought–out, long term plans ("PepsiCo Strategy," 2013). Pepsi now appears to be using a "Play Not to Lose" approach as they are trying to regain
footing in the industry (Davila, Epstein, & Shelton, 2013). It is unclear if the continued profit–focused path will be sufficient. Pepsi has not adopted the
"red ball of profit" attitude and is therefore negating the importance of their employees, customers, communities and partners (O'Toole, 2009). On the
contrary, Coke has maintained its iconic branding and continues to hold the top position (now two) in the carbonated beverage industry as a result
(Zmuda, 2011). Coke introduced the polar bear "mascots" in 1993 and has continued using them in their advertising campaigns since (Zmuda, 2011).
Unlike Pepsi, who continues to find new marketing ploys frequently, Coke has kept the polar bears as their main

Coke vs. Pepsi Essay
Coke vs. Pepsi
The company known as Coca–Cola today was started in September of 1919, but the first Coke brand was served as early as 1886. Since that time it
has grown to be one of the most globally recognized brand names with a stock value of $167 billion. Coke's plan has always been developed with the
future in mind. Right away the company realized that it was more profitable to manufacture the concentrate used to make carbonated drinks than to
bottle it. From that point on they saw the entire world, not simply the originating country, as their desired market. It seems only practical that the
company should pursue this agenda until conquered then focus the effort on expanding into different product lines. This logical...show more content...
When Roger Enrico, Chief Executive Officer for PepsiCo, took over he began to examine the corporation. Going on the belief that if you can't make
diversification work, give it up. For nearly three years PepsiCo has been undergoing a major strategic transformation. PepsiCo's chairman, Roger A.
Enrico, stated in his letter, "...And while 1998 certainly offered its share of challenges, I'm very pleased to report that our strategy is beginning to
payoff."
Consumers around the world bought more snacks and beverages than ever before. They have gained market share in both snacks and beverages in the
United States, their biggest market. Internationally snack and beverage units both posted healthy volume growth, even amid economic turbulence.
In 1996 Coca–Cola began the jump on its competition by sponsoring the Summer Olympic Games. This event was a marketing gift. Not only because
it was globally televised, but it also projected the idea of countries coming together to compete, but also promoting sportsmanship, wholesomeness, and
goodwill. Additionally, in November the Minute Maid Company, a division of Coke, put forth a campaign aimed to compete in the fruit juice division
against Tropicana. These factors coupled with the continued expansion of worldwide operations, helped the soft drink company sell 6 percent more
throughout the world, and obtain 43% of the United States

Coke vs. Pepsi
COKE vs. PEPSI Finance Case Write–up In this writing, we will discuss about WACC, EVA, their uses in evaluate a firm 's performanceВ… and
apply into a particular case of comparing performance of Coca Cola and Pepsi based on the past and forecasted data. 1.Definitions of EVA and its
strengths and limitations Economic value added (EVA) has been getting plenty of attention in recent years as a new form of performance measurement.
An increasing number of companies are relying heavily upon EVA to evaluate and reward managers from all functional departments. So what is EVA?
EVA is a value–based financial performance measure based on Net Operating Profit after Taxes (NOPAT), the Invested Capital required to generate that
income, and...show more content...
EVA helps overcome the goal conflict that exists between the manager and the firm in this situation. Using EVA instead of ROI to reward the division
manager would motivate him to accept any investment alternatives that generate a return greater than the company 's 10% cost of capital. With the
data given in the above example, we can calculate the EVA as follows: Current Activities: EVA Current Activities = 2,250,000 В
– (15,000,000 x 0.10)
= $750,000 Alternative A: EVA Alternative A = 342,000 В
– (2,500,000 x 0.10) = $192,000 Alternative B: EVA Alternative B = 750,000 В
– (4,000,000
x 0.10) = $350,000 Since EVA is positive for both proposals, the division 's current EVA would improve by $542,000 and therefore both proposals
would be accepted. The decision is also in the best interest of the company. So with EVA, division managers ' goals and corporate goals align. Any
investment opportunity with an EVA greater than zero (or a return greater than the cost of capital) will be viewed favorably by division managers and
the company. Investment options with an EVA less than zero (or a return less than the cost of capital) will be viewed unfavorably by division
managers and the company. Thus, the primary strength of EVA is that it provides a measure of wealth creation that aligns the goals of divisional or
plant managers with the goals of the entire company. Limitations

Coca-Cola vs Pepsi Essay
EXECUTIVE SUMMARY
Introduction
Coca–Cola and Pepsi are the two greatest competitors in the soft drink industry. A brief introduction and history of the two companies will provide a
basis for understanding how the companies have come to be where they are today and how they run their companies. The company structure of each
will also be briefly explained to provide an understanding of how management style is impacted.
Marketing and Advertising
The marketing skills that these companies possess are the reason both Coca–Cola and Pepsi are so successful. Our research will provide an in–depth
look at the marketing tactics that these companies use and how they compare to each other. The use of new technologies, forecasting, advertising,
...show more content...
They wanted Coke to be the American dream in a bottle and "the Real Thing". Coca–Cola is considered an All–American drink. However, during the
Vietnam War, the country was in turmoil and the American dream had died. Coca
–Cola introduced the "I'd Like to Buy the World a Coke . . ."
campaign to transfuse the consumer into a world of peace and harmony.
On the other hand, Pepsi–Cola did not get off the ground until the times of the Great Depression. Their key concept was the 12–ounce bottle that would
sell for the same nickel that would buy 6ВЅ–ounces of Coke. This more for less strategy hit the mark of those who went for quantity rather than
quality. Coca–Cola felt that their bottle was their greatest strength. Pepsi's promotion turned that strength into a weakness because Coke's unique bottle
could not be scaled up to 12 ounces. Coke had high bottle inventories and could not cut their prices. This edge made Pepsi number two by World War II.
Pepsi's new strategy was to reposition the competition as "out of date". The first expression of this concept was, "Now it's Pepsi for those who think
young," and this idea was brought to life with the classic, "Come alive, you're in the Pepsi generation." With Pepsi's new corporate spirit, based on
quick–action philosophy known as "ready–fire–aim", Coke woke up.
Another Pepsi strategy was the invention of the "Pepsi Challenge. The result: tasters

Coca Cola Vs. Pepsi
Coke Vs. Pepsi
When people think of soft drinks, one of two companies come to mind: Coca–Cola or Pepsi. Both companies dominate the global market in soft drink
sales. With such a global presence between the companies, there will be an obvious conflict between the two titans of soft drinks. This is seen almost
daily, whether it's on television, magazines, or billboards; it's not hard to find an advertisement for either company. In 2013, Pepsi posted a Halloween
advertisement taking a jab at Coca–Cola. It showed a can of Pepsi wearing a cape that looked like a can of Coke. Above that, it said, "We wish you a
scary Halloween!" Coca–Cola fired back, posting the same advertisement but changed the wording, stating, "Everybody wants to be a...show more
content...
Coca–Cola use of the rhetorical appeal, logos, like Pepsi, is not prominent in this advertisement either. The Halloween advertisement was an uncommon
response from Coca–Cola. Pepsi likes to go after Coca–Cola, while Coca–Cola tends to take the high–road. For years it has been Pepsi making the
attacks with no response. From a logical standpoint, humor can be used to make an advertisement more memorable, that's not easily forgotten. But, a
negative consequence of this is it provides publicity to both companies; good or bad it still gets the viewer thinking about both soft drinks.
The next rhetorical appeal, ethos, plays the biggest factor in the Halloween advertisement. The original creator of the advertisement, Pepsi, is one of
three major soft drink creators (Dr. Pepper being the third). Pepsi, while not having as much time as Coca–Cola to establish themselves, is still known
as well all around the world. The viewers can assume that Pepsi is attempting to make fun of Coca–Cola and bring in more Pepsi drinkers with a
Halloween theme. Fans of Pepsi will see it as an attempt to encourage others to drink Pepsi because Coke is "scary." Yet, to fans of Coke not aware of
the war between Coca–Cola/Pepsi, could see it as an attempt to label Coke drinkers as scary in a light–hearted way.
Coca–Cola uses ethos the same as Pepsi. With Coca–Cola being the first and largest creator of soft drinks, it's not hard to find a

coke vs pepsi
wo of the largest and most profitable corporations in the United States are the Atlanta, Georgia based Coca–Cola Company and the New York based
Pepsi Cola Company. While both are called "colas" they both attempt to address the same target tastes but from different approaches. Coke was the
first on market with what is still a "secret" formula and Pepsi followed with a similar (not exact) taste. Since taste is very much a factor of your
personal likes, either or neither may appeal to you or seem sweeter (Inforefuge.com. 2011). This paper will discuss the similarities and differences in
the processes used by Coca–Cola and PepsiCo for place, price, and promotion. Place and Price The marketing exposure of PepsiCo and Coca–Cola is
everywhere...show more content...
Based on the financial statements below, Coca Cola has a current ratio of 1.17 while Pepsi is at 1.10. The current ratio can give a sense of the
efficiency of a company's operating cycle or its ability to turn its product into cash. Comparison of Pepsi and Coca Cola Financials Introduction
Coca–Cola and Pepsi are the two most popular and widely recognized beverage brands in the world. They have been competing in the soft drink
sector for over a century and both companies enjoy a high degree of brand consciousness globally. Both companies try to market as part of a lifestyle.
Coca–Cola uses phrases such as "Coke side of life" in their website, while Pepsi uses phrases such as "Hot stuff" in their web, to promote the idea
that Pepsi is "in sync" with the cool side of life. Ironically, both Pepsi and Coke have similar beginnings: both were created in the 19th century and
both were the results of the experimental work of innovative pharmacists. Coke was created in 1886 by Atlanta pharmacist John Pemberton while
Pepsi was developed in 1898 by North Carolina pharmacist and drugstore owner, Caleb Bradham. The primary purpose of this report is to identify and
analyze the two dominant companies in the soft drink industry and determine the strongest performer as an investment opportunity. Ability to pay
current liabilities The current ratio is mainly used to give an idea of the company's

Coke vs Pepsi Essay
Coke commercial Vs Pepsi commercial Coke and Pepsi have always been rival beverages for decades. I can remember my teens when most
households would divide into two when it came to choosing their choice of drink, especially when going for grocery shopping. Even the advert aired
by both brands shows a lot of rivalries between them. When one makes a new product, the other would do everything possible to make something
similar or better than the former. Making people, both old and young believe their product is the best. When comparing the two beverages, there's a
major thing we normally notice from their commercials, while Coca–Cola Company uses families and animal in most of their commercial ads relating
to peoples society, Pepsi...show more content...
The sales young man was hit and fell on a cart which took him out of the store and connected him to his family celebrating Christmas with coke. A
TV news presenter was connected to a cook on another TV to enjoy the Christmas pudding. Santa also connects a lonely dog to a happy family as
well as connecting the young lovers backing each other to share a happy moment together. This shows that with coke, society: young, old and
animals all enjoy the happy moment with Santa connecting them and making sure coke is everywhere. Pepsi's advertisement was based on a young
man getting what he wished for Christmas because Santa had a Pepsi max to drink. The joy Santa derived from his new found drink translated to
the young man who woke up to turn tables and a microphone, now he can sing and be like snopp dogg thanks to a Pepsi Max. Overall both
commercials have their similarities and differences. Both are centered on Christmas and what people expect of the season. Everyone wishes to be
happy, joyful, and cheerful and most of all they wish that Santa would make all their wishes come true. This is portrayed in both commercials. Again
both commercials are about soft drinks; Coke and Pepsi and how they contribute to make the season joyous. Another similarity is that both
commercials have a happy ending. When it comes to differences we can say that even though the commercials are both for soft drinks, they are

Compare And Contrast Pepsi Or Coke
We seem to be living in a divided world. Either/Or seems to be the choice before us. Pepsi or Coke. McDonald's or Burger King. How about this one?
Either Clinton or Trump! This either/or thinking has even made its way into the church. We sing either hymns or contemporary songs. We read from
the ESV Bible or NIV Bible. And the list goes on. It appears that humanity is always attempting to draw lines between who is in and who is out. Who
is on my team and who is not? And none can be clearer than in theology and doctrine. Churches and denominations huddle around their doctrines and
sometimes write off whole other bodies of Christians because they must believe the same doctrines or they are not "real Christians." But could there be
a better way?

Coke vs. Pepsi Essay
PepsiCo – CocaCola
Case Write–Up
11/09/15
Danny Blanks
Ben Crook
Will Dauterive
Alberto Fernandez
Zijian "Justus" Jia
Case Questions Coke vs Pepsi
1) What is EVA? What are the advantages and disadvantages of using EVA as a measure of company performance?
EVA stands for economic value added. EVA is a value based financial performance measure based on Net Operating Profit after Taxes, the invested
capital required to generate that income, and the WACC.
The primary advantage of EVA is that it provides a measure of wealth creation that aligns the goals of divisional or plant managers with the goals of
the entire company. A primary disadvantage with EVA is that it
...show more content...
We believe that the key drivers for EVA are the WACC and NOPAT. NOPAT was shown to have dropped at the same time that Coke's EVA declined,
and conversely PepsiCo's NOPAT increased as their
EVA increased.
3) What is the weighted average cost of capital and why is it important to estimate it? Is the cost of capital something that managers set? Who sets it?
WACC is the Weighted Average Cost of Capital, which provides an average return for all of a company's securities, both debt and equity. The
WACC is important to calculate because it is a necessary input for decision making at the corporate level, management can use the WACC to value
projects being evaluated by the firm. Management is in charge of capital structure for a firm, therefor the decisions they make in regards to debt or
equity financing will have an impact on the WACC that is calculated. While managers may not directly set the cost of capital, they play a large role in
determining the capital structure of a firm; therefore their decisions play a large role in the cost of capital calculation.

4) Calculate the WACCs for Coca–Cola and PepsiCo. Assume a tax rate of 35%. Be clear regarding the different assumptions you make for the different
components of WACC.
The WACC's for Coca–Cola that we calculated are as follows: 2001; 9.30%, 2002; 9.50%, 2003;
9.67%. For our calculations, we used a beta of .88, which was the

Essay Coca-Cola vs Pepsi
Coca–Cola vs. Pepsi Co 2
1. Using the current ratio, discuss what conclusions you can make about each company's ability to pay current liabilities (debt).
The current ratio measures the company's ability to pay its short term obligations with its short term assets. Between Coca Cola and PepsiCo, PepsiCo
has a higher current ratio implying that is more capable of paying its obligations. The debt management policies of Coca–Cola in conjunction with
share repurchase program and investment activity resulted in current liabilities exceeding current assets. From the ratio Pepsi Co suddenly had to pay
all its short–term...show more content...
Therefore, Coca–Cola is delivering a higher value to shareholders than Pepsi Co. Pepsi–Co's ensures partnerships and acquisitions add significantly to
the shareholder value. Profitability Ratios| Coca–Cola| Pepsi Co.| Return on Equality| 85.10%| 35.17%| Return on Assets| 4.45| 14.92|
3. Using the cash flow indicator and investment valuation ratios, discuss which company is more likely to have satisfied stockholders.
The dividend payout ratio provides an idea of how well earnings support the dividend payments. More mature companies tend to have a higher payout
ratio. This is well evident with Pepsi Co's dividend payout ratio of 45.95% as compared to Coca–Cola's 20.11%. A low dividend payout is always
better as it leaves more room for the company to increase dividend payouts in the future while a high ratio means there is less room.
Coca–Cola vs. Pepsi Co 4
Therefore, for a long term investor, Coca–Cola would be an attractive stock compared to Pepsi Co.
Price earnings ratio is a valuation ratio of a company's current share price compared to its per–share earnings. Coca–Cola has a lower P/E ratio than
Pepsi Co. The industry average for P/E ratio is 21.1. This means neither of the companies beat the industry average ratio. Between the

Pepsico vs. Coca-Cola Essay
PepsiCo vs. Coca–Cola – A Financial Comparison June 13, 2007 AC550 May 2007 Executive Summary The purpose of this comparative analysis is to
provide a summary of financial and accounting information to a potential investor who is looking to invest in either Coca–Cola or PepsiCo. This
research will cover some facts from the financial statements of both companies for the year of 2004. There are many factors to review when
comparing these two companies. They are two of the top manufacturers of CSDs (carbonated soft drinks) in the world. Coke's portfolio is weighted
more heavily in the soft drink beverage industry, whereas PepsiCo has tried to diversify itself by merging with companies such as Quaker, Tropicana,
and Gatorade....show more content...
The comparability of the inventories could be complicated by the fact that PepsiCo is using a combination of both LIFO and FIFO method. However,
as PepsiCo states in their notes the difference is not material. Therefore the inventories are comparable. PepsiCo's ending inventories are $121 higher
than they are at Coca–Cola, but this difference is not significant. D. Both companies are following a full disclosure principal and provide detailed
explanations to the items presented in the financial statements. It appears that PepsiCo had not reported any major accounting policies changes for the
year of 2004. Coca–Cola refers to the changes adopted in 2002 for SFAS No.142 which "required an initial impairment assessment involving a
comparison of the fair value of goodwill, trademarks and other intangibles assets to current carrying value." (willey.com/college/kieso). This change
makes it difficult to compare historical data from the company's financial statements. However, since PepsiCo had adopted the same requirement back
in 2002, the data related to these assets is comparable between the companies. The main change that occurred in 2004 at Coca–Cola is the change due
to application of FASB "Consolidation of Variable Interest Entities", Interpretation No.46 (FIN 46). This resulted in change of the equity method of
accounting for certain entities, primarily bottlers. The change caused consolidation of $383 in assets and

Coca Cola Vs. Pepsi Cola Essay
The smooth bold refreshing taste as the cold bubbles fizz on your tongue and head down your throat and into your stomach. Coca–Cola is something
the average American has drank in his or her lifetime. This has been in part due to the remarkably intelligent advertisements that were made in post
1945 America. While having emphasis on its refreshing cool taste and convenience, these ads created a certain attitude with its audience causing the
rise in popularity and sales. During this same time Pepsi was also on the rise competing with Coca– Cola. Both Coke and Pepsi used similar strategies
but Coca– Cola gave itself a slight edge through innovative technique and the use of "lifestyle" advertising. Coca– Cola really did create a refreshing
beverage but created an ad campaign using refreshing, exciting, and humorous ads that made your mouth water. Looking at both advertisements as a
whole one notices how all of the ads for both companies are paintings of people, which makes people compare themselves to something that is not real.
At this time many men and women were greatly affected by these ads. Women particularly would notice the unrealistic waistlines and flawless skin and
tone. This caused them to become self–conscience about their bodies because they believed those images to be something they were to copy. This
technique plays with the psyche of our society, which is clever but very controversial. Established in 1886 and 1889, Coca–Cola and Pepsi Co.,
respectively, were among

The Pros And Cons Of Coke And Pepsi
Would Coke and Pepsi ever poach each other's clients?
By
Anshit Prasad
10120
Applied Game Theory
Professor Vimal Kumar
Indian Institute of Technology, Kanpur
15th April, 2015
Introduction
Coca–Cola and Pepsi are the two most popular and widely recognized beverage brands in the world. Within their line–up of beverages, Pepsi–Cola and
Coca–Cola Classic are the predominant carbonated cola beverages.
Although when compared in double blind taste tests, majority of people can't tell the difference in taste but people would swear they love one or the
other brand.
The war between the two largest soft drink manufacturers has been legendary. This folklore began in 1938 and over a hundred years of war between
Coke and Pepsi, has not only...show more content...
The Coke drinkers could enjoy a Coke and Pepsi drinkers would enjoy a Pepsi. Hence, why not sell both the drinks!
However, this, from our point of view would definitely make more sense. But from the perspective of the restaurant, it would not.
This is because a lot restaurants sign a contract with these either Pepsi or Coke in order to receive and sell their soft drink. When these restaurants
decide to exclusively sell the product of one of the companies, they get additional benefits. In a way, for not selling the competitor's product, both the
companies provide these restaurants a greater share of the profit, more discounts and free stuffs. In most cases, the soft drink companies even pay the
electricity bills required to keep the drinks cool to these restaurants.
Exclusivity is a prime reason a shop sells the brands of only one amongst Pepsi or Coke. The wholesaler normally provides the retailer with margins,

incentives, cooling equipment, and a certain minimum allowance for placing there products in the shelves/fridges. The heavy competition also
between Pepsi and Coke also contributes to this, which doesn't exist in other categories like detergents, soaps

Pepsi vs Coke Essay
Pepsi vs Coca Cola
For more than a century, Coca Cola and PepsiCo have been the major competitors within the soft drink market. By employing various advertising
tactics, strategies such as blind taste tests, and reward initiatives for the consumer, they have grown to become oligopolistic rivals. In the soft–drink
business, "The Coca–Cola Company" and "PepsiCo, Incorporated" hold most of the market shares in virtually every region of the world. They have
brands that the consumers want, whether it be soft–drink brands or in PepsioCo's case, snacks. With only one soft–drink market, the two competitors
have no choice but to increase sales by stealing the other competitor's clients. This led to the term, the "cola wars" which was first used...show more
content...
During the "Pepsi Challenge," the person would prefer one product to the other. In the late 1990s, "Pepsi launched its most successful long–term
strategy of the Cola Wars, Pepsi Stuff." The Consumers were "invited" to "Drink Pepsi, Get Stuff" by using codes on cans and bottle caps to redeem
points for free Pepsi lifestyle merchandise. The battle continues today "as they battle for brand supremacy...through advertisements, slogans, and
celebrity endorsements."
However, no matter what the advertisements claim, the statistics concerning the shares and value of each company cannot lie. The Coca–Cola
Company dominates the soft–drink market by owning four of the global top five soft–drink brands, which include Coca–Cola, Diet Coke, Fanta, and
Sprite. The Coca–Cola Company makes or licenses more than 400 drink products in more than 200 nations. In 2006, Coca Cola's sales reached
24,088 million dollars and had a net income of about 5,080 million dollars, with 71,000 employees working in the company. PepsiCo, Incorporated is
the largest snack maker and second largest soft–drink maker in the world. It sells beverages and snacks in approximately 200 nations as well. In 2006,
its sales reached 35,137 million dollars and had a net income of $5,642 dollars with 168,000 employees working in the company. With these numbers,
one can assume that Pepsi is earning more profit if wages payouts are not considered, but Pepsi has a large number of workers working for

Compare And Contrast Coca Cola And Pepsi
Coca–Cola & Pepsi As we all go about our day, we rush to place to place. Around us there are things for sale, people everywhere trying to make
money. As we are rushing around, we all tend to get thirsty as we have a thousand things going on. In America we have dozens of choices when it
comes to soft drinks, although the two most widely known are Coca–Cola and Pepsi. Many are often stuck between choosing Coke or Pepsi; even
though they are slightly different in appearance, taste, and price it makes a world of difference to the customer. Throughout the years Coca–Cola has
kept the same logo. They did this by using the same font just slightly changing the background to make it more favorable for the current generation.
This has left a...show more content...
The argument is which taste better, and is more appealing to the average person. A general study was done where they blind folded people, and put
both drinks in front of them. Majority of the people surveyed, agreed they liked Pepsi more when not knowing which was what. Even though majority
of them originally said they prefer Coca–Cola over Pepsi. Coca–Cola has a very secret ingredient called "7x" this is most likely the key factor in its
goodness. Once before Coca–Cola used to contain more dangerous ingredients such as cocaine. They also use many simple ingredients such sugar,
high fructose corn syrup, caffeine, cane sugar and other basic ingredients that most soft drinks have. Pepsi does not how ever have a secret ingredient,
but they have high fructose corn syrup, sugar, and caffeine. It is practically the same as Coke just without the formula "7x". Coca–Cola has a smoother
taste and goes down easier then Pepsi, making Coca–Cola more favorable. Pepsi is also a little more sweeter and not as carbonated. Pricing throughout
the years has stayed consistent. Coca–Cola had maintained their price around 5 cents for around 70 years. Where Pepsi's price has fluctuated
throughout the years do to rationing around World War I, and other economic struggles. The main reason Pepsi had struggled so much was
transportation fees to get the ingredients to make the product. Throughout all the struggles Pepsi has face it is still a strong

Essay about Case Study on Coke versus Pepsi
The case study "Cola Wars Continue: Coke and Pepsi in the Twenty
–First Century" focuses on describing Coke and Pepsi within the CSD industry by
providing detailed statements about the companies' accounts and strategies to increase their market share. Furthermore, the case also focuses on the
Coke vs. Pepsi goods which target similar groups of costumers, and how these companies have had and still have great reputation and continue to take
risks due to their high capital. This analysis of the Cola Wars Continue case study will focus mainly on the profitability of the industry by carefully
considering and analyzing the below questions:
Why is the soft drink industry so profitable?
Compare the economics of the concentrate business to the...show more content...
Barriers to entry is another factor that accounts for the high profitability of the soft drink industry. As stated in the case, it is nearly impossible for
new concentrate producers or bottlers to enter the industry. The new producers would not require high capital to enter (low cost of capital to
produce concentrate), however the entry would be impossible due to patents and the presence of Coke and Pepsi which have nearly century old
established names. Meanwhile entering bottling is very capital intensive, and the existing bottlers have exclusive territories in which they distribute
their products. Provided the above stated facts it is clear that the soft drink industry is a highly profitable industry. Moreover, in Exhibit 5 it is
easily observed that in 2000 the Concentrate Producers (CP) earned 35% profit on sales whereas the bottlers earned 9% profit, which account for a
total positive industry profit of 14%. The data listed in the case shows how the soft drink industry in itself is very profitable, however the profitability
of the concentrate producers is much higher that that of the bottlers, even though these two businesses should be inseparably linked. Exhibit 5 clearly
reflects the profitability of concentrate producers vs. bottlers; even though the dollars per case profit is much higher for the bottlers, the ultimate
profit as a percent of sales is higher for the concentrate producers. The cost of goods sold for a CP is equivalent

Coke vs. Pepsi
Financial Management: Coke vs. Pepsi
BUS 508 – Business Enterprise
June 11, 2011
Financial Management: Coke vs. Pepsi
The purpose of this paper is to analysis companies Coke and Pepsi and determinate (a) which company is better able to pay current liabilities (debt),
(b) explain what profitability ratios can tell about a company's performance and how that information would influence investing decisions, (c) discuss
which financial ratios to utilized while examining the company's most satisfied stockholders, (d) create a list of financial–based guidelines that
individuals should follow when selecting to invest and (e) evaluate the single piece of non–financial data most important when deciding to invest or not
in a company....show more content...
However financial data clearly shows Pepsi performing better than Coke.
Exhibit 1 – Coca–Cola Co., profitability ratios
| | |Dec 31, 2010 |Dec 31, 2009 |Dec 31, 2008 |Dec 31, 2007 |Dec 31, 2006 |
| |Return on Sales (%) |
|[pic] |Gross profit margin |
|[pic] |Return on equity (ROE) |38.09 |27.52 |28.37 |27.51 |30.02 |
| |Return on Sales (%) |
|[pic] |Gross profit margin |
[pic] |Return on equity (ROE) |29.86 |35.38 |42.47 |32.83 |36.71 | |[pic] |Return on assets (ROA) |9.27 |14.92 |14.29 |16.34 |18.85 | |

Financial Ratios and Investments
According to Dividend Growth Investor (2010), both company stocks are "dividend aristocrats as well as major components of the S&P 500 index".
Over time Pepsi has outperformed Coke by delivering an average total return

Case Study Coke vs Pepsi Essays
dy
Managerial Economics
Coke vs. Pepsi: An Economic Analysis
Rebecca Simmons
Managerial Economics
Dr Sol Drescher
December 4, 2012
Executive Summary
In this case study we will do an economic analysis of two major competitors; CokeВ® and PepsiВ®. We will look at the history of these to
competitive giants and discuss how they have evolved over the years to become rivals in the 21st Century. In this case study we will also look at the
supply and demand of each company's products. Coke and Pepsi are not only in the beverage business they have branched out into other arenas to
continue being the leaders in their market. Both companies do business all over...show more content...
Pepsi has been known to use mega stars like Michael Jackson and Brittney Spears to be spokesmen for the brand which has been a big success over the
years. Both Coke and Pepsi have evolved and changes in look at take over the years. Coke in the early 90's tries to change the formula to New Coke
and was soon back to what is known now as Coca–Cola ClassicВ®. Pepsi has also tweaked its formula only to revert back to the original. Both of these
companies have many many brands and brand extensions. The competitive nature is apparent in each of these companies and will continue on.
Coca–Cola seems to have a slight lead in the market and has always been a leader but not by a landslide Pepsi is always running close behind.
There is both loyal Coke and Pepsi customers and some who enjoy both products and go back and forth. Coke has many brands like Minute Maid,
Vitamin Water, Aquafina, Sprite, and many more. Pepsi also has many of the same or similar brands like Tropicana, Sobe Life Water, and more to
coincide with Coke. Brand extensions are very important in the success of these companies. Pepsi Cola and Coca–Cola were both started in the late
1800s by pharmacists in the south Pepsi in N.C. and Coke in GA. Pepsi Co was formulated in a merger with the Frito Company which became Frito
Lay. Brands like Frito Corn Chips and Lays Potato Chips and Pepsi together were formed in 1965. Though apart Frito was started in 1932 and Pepsi in

1895. This 1965

Coca Cola Vs. Pepsico

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