The paper “ Pepsi and Coca Cola - Industry and Companies’ Background, Macro- and Micro Environmental Factors, SWOT Analysis, Market Segmentation, Target Markets" is a worthy example of a case study on marketing. Pepsi and Coca Cola are the largest soft drink companies in the world. Coca Cola has managed to stay ahead of Pepsi in many foreign markets due to its ability to revitalise its products in the market. Pepsi was first produced in the 1890’ s, in North Carolina, USA before it became a trademark in 1903. On the other hand, Coca Cola was first produced in 1886 in Atlanta, Georgia and later started bottling its soft drinks in 1899.
Since its humble beginnings in the late 19th century, the firm has managed to spread its operations to 200 countries in different parts of the globe. Pepsi is also a large soft drinks manufacturer with operations in more than 100 countries spread in different parts of the world. The two companies have always battled in different global markets to increase their market shares and profit revenues (Mesadag 2000). The flagship brand of Coca Cola is the Coke soft drink which comes in different flavors and packaging formats targeting different consumers in a variety of markets.
It is the most consumed soft drink in the world and most of the company’ s soft drink sales are obtained from Coke. There are different variants of coke including the low-calorie Coke Diet, Coke Lemon, and Coke Lite. It also produces other products such as Fanta, Sprite, fruit juices and mineral water targeting different markets. Pepsi has Pepsi soda, Gatorade, Tropicana, Mirinda, 7Up and Aquafina.
Coke has managed to sell more products than Pepsi in different markets across the world because of its superior retail and distribution network (Kolb 2008). The firm has managed to penetrate different global markets which have allowed it to extend its dominance in various countries. The two firms get a large chunk of their revenues from their global operations located in different parts of the world. Industry BackgroundBoth Coca Cola and Pepsi are some of the most recognizable brands in the world. They have been producing carbonated drinks for more than a century in different locations across the globe.
It is estimated that close to 47% of non-alcoholic beverage consumers prefer to take soft drinks. It is also estimated that the total global market forecast for soft drinks was $ 367 billion dollars in 2007 (Vrontis & Sharp 2009). However, economic analysts argue that growth in the industry is likely to reduce because the U. S. soft drinks market has become more saturated and mature. Consumers are also opting for other beverages such as tea and coffee which come in different flavors.
This has also contributed to a decline in sales of soft drinks. Company BackgroundsSince its establishment in 1886, Coca Cola has managed to extend its dominance globally by using an effective marketing and distribution strategy. The firm has managed to adapt to different market conditions which have helped it stay at the top in a very competitive market. Vrontis and Sharp (2009) reveal that more than 70% of the company’ s sales volumes are sold in foreign markets outside the U. S. The firm’ s approach to the market has always been influenced by consumers’ needs and it has developed systems that help it identify conspicuous consumption trends in the market.
Coca Cola has about 50% of the global soft drinks market, which makes it the dominant soft drinks manufacturer in the world.