The document discusses the cola wars between Coca-Cola and Pepsi. It provides background on how Pepsi attacked Coke on its home turf in the US after Coke started focusing overseas. It analyzes the strengths, weaknesses, opportunities, and threats of both companies. It also examines the competitive strategies employed by each over the decades, including new product lines, marketing campaigns, pricing strategies, and acquisitions. Both companies have established a duopoly in the soft drink market through aggressive competition and global expansion.

1. COLAWARS
KRISHANU KR. CHAKRAVARTY
PAWAN SRIVASTAVA
DEVENDRA SACHORA
SHIKHAR SHARMA
SAURAB DAS
PRABHAKAR GUPTA
UTTAM KR. PAT
Vs.

2. INTRODUCTION
• Coke started to focus on the over seas markets (1960)
• Coke assumed American consumption was reaching
saturation point.
• Pepsi doubled its consumers in the US in the same
period (more bottlers and reduced price of
concentrate)
• Thus Pepsi decided to attack Coke on the home turf.

3. IN THE INTERNATIONAL MARKET
• Coke flourished in international market and also
relied upon them far more than Pepsi.
• About 70% of the revenue of Coke came from non US
markets compared to 33% of Pepsi.
• Coke’s share of global beverages market stood at
51.4% followed by Pepsi at 21.8%
• Some of the reasons behind Coca Cola’s success in
the international markets was due to its ability to
understand and defend its positions really well.

4. S.W.O.T. ANALYSIS OF
1) Enjoys a High-Profile Global Presence
2) Fourth amongst the top 5 leading brands
3) Broad-based bottling strategy
4) 47% of global volume sales in carbonates
1) Carbonates Market is in Decline
2) Over-complexity of relationship with
bottlers.
3) Inefficient execution of business
1) Soft drinks volumes in the Asia-Pacific
region forecast to increase by over 45%
2) Brands like Minute Maid was preferred
more in the health-conscious market.
3) Use distribution strengths in Eastern
Europe and Latin America.
1) Growing “health-conscience” society
2) PepsiCo’s Gatorade, Tropicana and
Aquafina are stronger brands
3) Boycott in the Middle East
4) Protest against Coke in India
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS

5. S.W.O.T. ANALYSIS OF
1) Enjoys a High-Profile Global Presence
2) Owns the World’s 2nd Best-Selling Soft
Drinks Brand
3) Constant Product Innovation
4) Aggressive Marketing Strategies
5) A Broad Portfolio of Products
1) Carbonates Market is in Decline
2) Pepsi is Strongest in only North America
3) They Only Target Young People
1) Increased Consumer Concerns in
comparison to bottled water
2) Growth in Healthier Beverages
3) Growth in Tea and Asian Beverages
1) Obesity and Health Concerns
2) Increased Marketing and Innovation
Spending by Coke
3) Restriction to only North America as
target market
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS

6. INTENSITY OF COMPETITIVE RIVALRY
• Combative advertising
• Acquiring bottlers globally
• Change in formula of Aspartame and corn syrup
• Customer campaigns and tests
• Pricing
• Product line extension

7. CORPORATE LEVEL STRATEGIES
COCA COLA
 Product Development and line
extension
---- introduction of 21 new
products
 Divestiture
---- Non Canteen Store
Department (CSD)
businesses were sold off
 Forward Integration
---- Coca Cola Enterprises
(CCE), independent
bottling subsidiary of Coke
PEPSI
 Product Development and
line extension
---- Introduction of 24 new
products
 Forward Integration
---- Pepsi Bottling Group
(PBG) established
 Concentric Diversification
---- Acquired tie-ups with
Pizza Hut, Taco Bell and
KFC

8. SOFT DRINK MARKET SHARE BY
VOLUME (%)

9. PORTER’S FIVE FORCES OF THE
SOFT DRINK INDUSTRY
Threat of new entrants :
• Huge Capital Requirements
• Strong Bottling Networks
• Brand Loyalty
• Strong Distribution Links
• Market Saturation

10. Buyers’ bargaining
power :
 Bottlers
• High switching costs
• Tied by contracts
 Retail channels
• Supermarkets and Fountain outlets
• High bargaining power
• Low for vending machines and Convenience stores

11. Suppliers’ bargaining power :
• Few inputs required for concentrate producers
• Inputs for bottlers-packaging and sweeteners
• Coke and Pepsi are the largest customers of metal
can industry

12. Threat of Substitutes :
• Shift in demand towards non-CSD products in early
2000s on health-related concerns
• Main substitutes included juices, sports drinks,
energy drinks, tea-based drinks and bottled water
• Pepsi more aggressive in shifting to non CSDs
• Low switching costs for consumers

13. STRATEGIES ADOPTED BY COCA
COLA 21ST CENTURY
Product Development and Line Extension– 11 new
products rolled out
• Forward Integration- Coca Cola company invested in
stakes of the bottling partners low–pricing strategy and
increase in advertising expenditure.
• Packaging Innovation– Fridge Pack (2001)
• Introduction of Diet Coke (2005) and Coke Zero (2005)
to tackle obesity issue.

14. STRATEGIES ADOPTED BY PEPSI
IN 21ST CENTURY
Product Development and Line Extension– 13 new
products
• Low–pricing strategy and increase on advertising
expenditure.
• Expansion in bottling by major acquisitions. Product
Development– Aquafina (1998), Pepsi Blue (2006), Pepsi
Gold (2007)
• Market Development– Sierra Mist (2000) and Mountain
Dew Code Red (2001)
• Pepsi declared itself as a total beverage company and
move more aggressively in non CSD’s segment.
• Treating Diet Pepsi as its flagship brand.

15. NEW STRATEGIES TO BE ADOPTED
BY COCA COLA IN 2016
One brand unification strategy- It’s a major
rebranding strategy where Coca-Cola, Diet Coke,
Coke Zero, and Coke Life will share a single
branded aesthetic around the world, unified by a
red disc, and advertised together in a new wave of
shared commercials.
Closing down "Open Happiness“. A new global
campaign called "Taste the Feeling" will put the
product at the centre of every advertisement.

16. PEPSI TO REINTRODUCE ASPARTAME-SWEETENED DIET PEPSI
PEPSI TO REINTRODUCE CRYSTAL PEPSI
RELAUNCHING OF 7UP NIMBOO MASALA SODA AND INTRODUCTION
OF TROPICANA MINI BOTTLED DRINKS.
INTRODUCTION OF 400 ML PET BOTTLE OF THE MOTHER PRODUCTAS
WELLAS OF MOUNTAIN DEW.
PROMOTIONS FEATURING EMOJISAS PER CONSUMER CHOICES.
DEVELOPMENT OF MOUNTAIN DEW WITH NEW ‘GAME FUEL’EDITION.
NEW STRATEGIES ADOPTED BY
PEPSI IN 2016

17. CONCLUSION
• Coca Cola and PepsiCo have created a Duopoly in the market with
their dominant performance in the soft drinks segment.
• Their mission is to “make available a bottle of soft drinks wherever a
person is thirsty” or else they would lose out on sales.
• Their main focus has shifted from their mother brands to more
diversified products and are targeting newer segments.
• Their advertisements have been filled with adrenaline and adventure
even in Indian markets with tag lines like “Aaj kuch toofaani karte hai”
and “Darr ke aage jeet hai”.
• The cola wars will continue to last as one always needs the other to
sustain in developing new strategies and making newer products
available.