This document discusses Vittel's positioning as a natural drinking water brand focused on health. It outlines Vittel's target audience as active people concerned with their health and the environment. The key positioning points are that Vittel comes from clean water sources and keeps people healthy. The strategic priorities are to promote Vittel as supporting a healthy lifestyle using clean, natural resources.
Coca Cola Financial Analysis Final Project for Financial Accounting, St. Thomas MBA program. Group projected included Leanna Privette, Robin Toal, and April Vassau.
An industry analysis by Porters Five Forces reveals that the soft dr.pdfalokkesh1
An industry analysis by Porters Five Forces reveals that the soft drink industry has historically
been favorable for positive profitability, as exemplified by Pepsi and Cokes financial outcomes.
Soft drink industry is very profitable, more so for the concentrate producers than the bottler\'s.
This is surprising considering the fact that product sold is a commodity which can even be
produced easily. There are several reasons for this, using the five forces analysis we can clearly
demonstrate how each force contributes the profitability of the industry.
Threat of new entrants
Entering bottling, meanwhile, would require substantial capital investment, which would deter
entry.
although the CP industry is not very capital intensive, other barriers would prevent entry.
Through their DSD practices, these companies had intimate relationships with their retail
channels and would be able to defend their positions effectively through discounting or other
tactics.
It would be nearly impossible for either a new CP or a new bottler to enter the industry. New CPs
would need to overcome the tremendous marketing muscle and market presence of Coke, Pepsi,
and a few others, who had established brand names that were as much as a century old.
Companies that have a door to door distribution channel in place like snack companies could
choose to diversify into soda industry
Switching costs are low for consumers who risk very little by trying new brands or
Beverages
Barriers to entry are relatively high, though, with large advertising budgets and competitive
brand loyalty to big players like Coca-Cola and Pepsi
The drinks with high growth and high hype are non-carbonated beverages such as juice drinks,
sports drinks, tea-based drinks, dairy-based drinks, and especially bottled water
Bargaining power of buyers
through five principal channels: food stores, convenience and gas, fountain, vending, and mass
merchandisers (primary part of \"Other\" in \"Cola Wars…\" case)
Bottlers own a manufacturing and sales operation in an exclusive geographic territory, with
rights granted in perpetuity by the franchiser, subject to termination only in the event of default
by the bottler
1980 Soft Drink Interbrand Competition Act preserved the right of CPs to grant exclusive
territories to their bottlers, giving less bargaining power to Bottler\'s buyers because there is no
alternative supplier
Bottlers are locked into contracts that grant CPs the right to set prices and other terms of sale
Bottlers are allowed to handle the non-cola brands of other Cps at their discretion
Bottlers are also given freedom in choosing whether or not to carry new beverages introduced by
the CPs but cannot carry directly competitive brands
Competition for brand shelf space in retail channels gives some bargaining power back to buyers
Threat of substitute products
Through the early 1960s, soft drinks were synonymous with \"colas\" in the mind of consumers.
In the 1980s and 1990s Coffee, tea, water, juices.
Presentation on Cola Wars between Coke and Pepsi
(Presented in Marketing Planning and Implementation-1 Course at MDI Gurgaon)
P.S- Please feel free to share your views in comments.
The carbonated soft drink (CSD's) industry was dominated by Coca Cola and Pepsi vying for market share. The CSD organizations gained market share in the U.S. and in global markets extending their brands’ recognition and capturing sales from new markets. The shift in consumer beverage preference and the expansion into global markets proved to uncover new opportunities for growth and profitability. In addition the changes in the organizational structure of business for these companies have allowed them to sustain growth beyond CSD’s.
Cola Wars have continues till date. This presentation presents an analysis of the case Cola wars continues in 2006.
Find out what we have to say about the classic case of competition.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Coca Cola Financial Analysis Final Project for Financial Accounting, St. Thomas MBA program. Group projected included Leanna Privette, Robin Toal, and April Vassau.
An industry analysis by Porters Five Forces reveals that the soft dr.pdfalokkesh1
An industry analysis by Porters Five Forces reveals that the soft drink industry has historically
been favorable for positive profitability, as exemplified by Pepsi and Cokes financial outcomes.
Soft drink industry is very profitable, more so for the concentrate producers than the bottler\'s.
This is surprising considering the fact that product sold is a commodity which can even be
produced easily. There are several reasons for this, using the five forces analysis we can clearly
demonstrate how each force contributes the profitability of the industry.
Threat of new entrants
Entering bottling, meanwhile, would require substantial capital investment, which would deter
entry.
although the CP industry is not very capital intensive, other barriers would prevent entry.
Through their DSD practices, these companies had intimate relationships with their retail
channels and would be able to defend their positions effectively through discounting or other
tactics.
It would be nearly impossible for either a new CP or a new bottler to enter the industry. New CPs
would need to overcome the tremendous marketing muscle and market presence of Coke, Pepsi,
and a few others, who had established brand names that were as much as a century old.
Companies that have a door to door distribution channel in place like snack companies could
choose to diversify into soda industry
Switching costs are low for consumers who risk very little by trying new brands or
Beverages
Barriers to entry are relatively high, though, with large advertising budgets and competitive
brand loyalty to big players like Coca-Cola and Pepsi
The drinks with high growth and high hype are non-carbonated beverages such as juice drinks,
sports drinks, tea-based drinks, dairy-based drinks, and especially bottled water
Bargaining power of buyers
through five principal channels: food stores, convenience and gas, fountain, vending, and mass
merchandisers (primary part of \"Other\" in \"Cola Wars…\" case)
Bottlers own a manufacturing and sales operation in an exclusive geographic territory, with
rights granted in perpetuity by the franchiser, subject to termination only in the event of default
by the bottler
1980 Soft Drink Interbrand Competition Act preserved the right of CPs to grant exclusive
territories to their bottlers, giving less bargaining power to Bottler\'s buyers because there is no
alternative supplier
Bottlers are locked into contracts that grant CPs the right to set prices and other terms of sale
Bottlers are allowed to handle the non-cola brands of other Cps at their discretion
Bottlers are also given freedom in choosing whether or not to carry new beverages introduced by
the CPs but cannot carry directly competitive brands
Competition for brand shelf space in retail channels gives some bargaining power back to buyers
Threat of substitute products
Through the early 1960s, soft drinks were synonymous with \"colas\" in the mind of consumers.
In the 1980s and 1990s Coffee, tea, water, juices.
Presentation on Cola Wars between Coke and Pepsi
(Presented in Marketing Planning and Implementation-1 Course at MDI Gurgaon)
P.S- Please feel free to share your views in comments.
The carbonated soft drink (CSD's) industry was dominated by Coca Cola and Pepsi vying for market share. The CSD organizations gained market share in the U.S. and in global markets extending their brands’ recognition and capturing sales from new markets. The shift in consumer beverage preference and the expansion into global markets proved to uncover new opportunities for growth and profitability. In addition the changes in the organizational structure of business for these companies have allowed them to sustain growth beyond CSD’s.
Cola Wars have continues till date. This presentation presents an analysis of the case Cola wars continues in 2006.
Find out what we have to say about the classic case of competition.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
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Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
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3. FOR
Natural Drinking Water in Bottle
TA POD
Active people concerned Clean water from clean earth
by their health and their Shape (Une vie saine sur une terre saine)
BPS
Keep people in good Health
with clean water coming from clean earth
Schneider Electric - Division - Name – Date 3
5. Study case,
Coke
Summarise your company’s position (Coke), in absolute terms and
relative to the other.
For 2006, what would be the top 3 marketing priorities priorities in your
marketing plan and why?
Finally, in 2012, what would be your strategic priorities for your company
and why ?
Key marketing actions to support that strategy ?
Schneider Electric - Division - Name – Date 5
6. Coke
In 2004, the average American drank a little more than 52 Bottlers
gallons of CSDs per year. At the same time, the two Coke was the first concentrate producer to build a
companies experienced their own distinct ups and
downs, as Coke suffered several operational setbacks nationwide franchised bottling network, and Pepsi and
and as Pepsi charted a new, aggressive course in Cadbury Schweppes followed suit. The typical
alternative beverages. Although their paths diverged, franchised bottler owned a manufacturing and sales
however, both companies began to modify their bottling, operation in an exclusive geographic territory, with rights
pricing, and brand strategies. granted in perpetuity by the franchiser. In the case of
Coke, territorial rights did not extend to national fountain
Concentrate producers accounts, which the company handled directly. The
Once a fragmented business that featured hundreds of original Coca-Cola franchise agreement, written in 1899,
local manufacturers, the U.S. soft drink industry had was a fixed-price contract that did not provide for
changed dramatically over time. Among national renegotiation, even if ingredient costs changed. After
concentrate producers, Coca-Cola and Pepsi-Cola (the considerable negotiation, often accompanied by bitter
soft drink unit of PepsiCo) claimed a combined 74.8% of legal disputes, Coca-Cola amended the contract in 1921,
the U.S. CSD market in sales volume in 2004, followed 1978, and 1987. By 2003, more than 88% of Coke’s U.S.
by Cadbury Schweppes and Cott Corporation. volume was covered by its 1987 Master Bottler Contract,
which granted Coke the right to determine concentrate
Bottlers price and other terms of sale.14 Under this contract,
Coke and Pepsi bottlers offered “direct store door” (DSD) Coke had no legal obligation to assist bottlers with
delivery, an arrangement whereby route delivery advertising or marketing. Nonetheless, to ensure quality
salespeople managed the CSD brand in stores by and to match Pepsi, Coke made huge investments to
securing shelf space, stacking CSD products, positioning support its bottling network.15 In 2002, for example,
the brand’s trademarked label, and setting up point-of- Coke contributed $600 million in marketing support
purchase or end-of-aisle displays.
payments to its top bottler alone.
Schneider Electric - Division - Name – Date 6
7. Coke
Retails channels After Pepsi entered the fast-food restaurant business by
In 2004, the distribution of CSDs in the United States took acquiring Pizza Hut (1978), Taco Bell (1986), and
place through supermarkets (32.9%), fountain outlets Kentucky Fried Chicken (1986),
(23.4%), vending machines (14.5%), mass Coca-Cola persuaded competing chains such as Wendyís
merchandisers (11.8%), convenience stores and gas
stations (7.9%), and other outlets (9.5%) and Burger King to switch to Coke.
In 1997, Coke retained exclusivity deals with Burger King
Historically, Pepsi had focused on sales through retail and McDonald (the largest national account in terms of
outlets, while Coke had dominated fountain sales. (The sales).
term fountain, which originally referred to drug store In 2004, Coke won the Subway account away from Pepsi,
soda fountains, covered restaurants, cafeterias, and any while Pepsi grabbed the Quiznos account from Coke.
other outlet that served soft drinks by the glass using (Subway was the largest account as measured by
fountain-type dispensers.) number of outlets.) And Coke continued to dominate the
channel, with a 68% share of national pouring rights,
Local fountain accounts, which bottlers handled in most against 22% for Pepsi and 10% for Cadbury Schweppes.
cases, were considerably more profitable than national In the vending channel, bottlers took charge of buying,
accounts. Overall, according to a prominent industry
observer, operating margins were 10 percentage points installing, and servicing machines, and for negotiating
lower in fountain sales than in bottle and can sales.22 To contracts with property owners, who typically received a
support the fountain channel, Coke and Pepsi invested sales commission in exchange for accommodating those
in the development of service dispensers and other machines. But concentrate makers offered bottlers
equipment, and provided fountain customers with cups, financial incentives to encourage investment in
point-of-sale advertising, and other in-store promotional machines, and also played a large role in the
material development of vending technology. Coke and Pepsi
were by far the largest suppliers of CSDs to this channel.
Schneider Electric - Division - Name – Date 7
8. Concentrate producers required few inputs: the concentrate 2004, Coke had the most consolidated system, with its top
for most regular colas consisted of caramel coloring, 10 bottlers producing 94.7% of domestic volume.
phosphoric or citric acid, natural flavors, and caffeine.
Pepsi and Cadbury Schweppes top 10 bottlers produced
Bottlers purchased two major inputs: packaging (including 87.2% and 72.9% of the domestic volume of their
cans, plastic bottles, and glass bottles), and sweeteners
(including high-fructose corn syrup and sugar, as well as respective franchisors.
artificial sweeteners such as aspartame).
The majority of U.S. CSDs were packaged in metal cans U.S. sales volume grew at a rate of 1% or less in the years
(56%), with plastic bottles (42%) and glass bottles (2%) 1998 to 2004. Total U.S. volume topped 10 billion cases
accounting for the remainder. in 2001, but had risen to only 10.2 billion cases in 2004.
Cans were an attractive packaging material because they
were easily handled and displayed, weighed little, and
were durable and recyclable. Plastic packaging, Toward that end, they focused on addressing challenges
introduced in 1978, allowed for larger and more varied related to performance and execution, on providing
bottle sizes. In 2005, they represented 36.7% of CSD alternative beverages to increasingly health-conscious
volume (and 56.7% of CSD revenues) in convenience consumers, on adjusting key strategic relationships, and
stores.28 on cultivating international markets.
The concentrate producers strategy toward can
manufacturers was typical of their supplier relationships.
Coke and Pepsi negotiated on behalf of their bottling In 2004, Coke/Danone had an overall market share of
networks, and were among the metal can industry ís 21.9%, behind market leader NestlÈ Waters (42.1%) and
largest customers. In 2005, major can producers ahead of Pepsi (13.6%). Coke bought out Danone share
included Ball, Rexam (through its American National Can of the venture in 2005.
subsidiary), and Crown Cork & Seal.29 Metal cans were
essentially a commodity, and often two or three can
manufacturers competed for a single contract.
Schneider Electric - Division - Name – Date 8
9. In 2005, Coke combined authority for all of its
marketing and product development in a new
position that became the companyís ìde facto
No. 2 spot. It also launched a major advertising
campaign, built around a new tag line: The Coke
Side of Life.
While the launching of new products and
packages brought clear benefits, it also
increased costs for bottlers, which had to
produce and manage an ever- rising number of
stock-keeping units (SKUs).
In addition, Coke and Pepsi distributed some non-
carbs (such as Gatorade) through food brokers
and wholesalers, rather than through DSD
delivery,
In 2004, the United States remained by far the
largest market, accounting for about one-third of
worldwide CSD volume. The next largest
markets were, in order, Mexico, Brazil,
Germany, China, and the United Kingdom.
Schneider Electric - Division - Name – Date 9
10. SWOT
Strengths Weaknesses
● Well-recognized, ● Ignores non-traditional advertising
● trusted fit with brand values; ●Does not effectively reach 13-24
● Established company19 ties years olds
● Consistent product ●Declining sales
● Easily accessible product
Threats
Opportunities ●“old” brand”
● Many tangible product benefits ●Positioning based on Health smart
● Non-traditional media avail trend intangibles erodes market share
●Potential for more negative media
coverage
● Popularity of functional drinks
persists Background
●Increasing new competition in the
market
Schneider Electric - Division - Name – Date 10