Cola Wars Case Study Analysis - Coco-Cola and Pepsi

Cola Wars

Cola Wars Case Study Analysis

Introduction:

There are two well known beverage companies, Coco-Cola and Pepsi. They have competed considerably and distributed the beverage market profit for several decades. In the open market, it is difficult to exactly tell which one is the winner within the perfect competition, since both companies use different style of promotion and product to expend their markets. (megaessays.com)

The competitive environment of the carbonated soft drinks started about three decades ago. In the beginning of 1960 Coco Cola was dominating the market but this dominance was significantly challenged by Pepsi- Cola. This challenge by Pepsi was declared as Cola Wars. During this competitive war a variety of products were introduced from both sides. Lot of $ amount was spent on celebrity advertising and even coke changed its formula. The strategic changes occur due to Pepsi's challenge to the dominance of Coca Cola. In spite of the fact that Pepsi Cola attacked on the dominance of Coca Cola in bottled soft drink, both Pepsi-Cola and Coca-Cola have benefited from this battle due to stimulated continuous growth of the industry. During this Cola war both

Cola Wars

the companies faced lot of problems which we shall discuss in the light of the case study on Cola wars. (megaessays.co)

Brief History of Coca-Cola

John Pemberton invented the original formula of Coca-Cola way back in 1885. By

1888, three versions of Coca-Cola were introduced. Candler incorporated the Coca-Cola and started its marketing. Coke achieved the status of national drink in USA. Coca cola bottles sale started in 1984 and in 1955 sale of cans was started. Chattanooga became the first site for Coca-Cola bottling company in 1899. In 1985 Coca-Cola attempted to introduce new formula. Most of the consumers liked the taste but so many ceased the purchasing because of certain reasons , therefore company switched back the new product and gave it the name of Classic Cola.( ivythesis.typepad.com)

In the 21st century coca cola history achieved another milestone and introduced Diet coke in 2005 and latter introduced Coca-Cola Zero. During this the company faced may ups and downs in the international market, particularly faced tough competition given by PepsiCo and the competition of both companies was give the name of Cola wars . (ivythesis.typepad.co)