COLA WARS CASE

ANALYSIS

PROFITABILITY OF CONCENTRATE PRODUCERS

Good growth rates-Increase by 10%
Shift of dietary preferences towards aerated drinks
Constant competition between cola majors enhanced growth
ACQUISITION OF SEVEN UP
Main strategy was to increase shelf space but this did not help much
MAJOR DEVELOPMENTS IN SOFT DRINK INDUSTRY
Shift towards non-aerated drinks like bottled water , sports drinks etc
Series of acquisitions increased the entry barrier for smaller players
because the entire chain was dominated by pepsi and coke
COKES DOMINANCE OVER PEPSI OVER THE YEARS
Coke dominated in 1950s due to the huge market share it had gained
already
In 1960 Pepsi generation was introduced and came up with huge bottling
facilities
Pepsi challenge showed Pepsi tasted better than coke
New CEO of coke Roberto fought back with diet coke and streamlined cost.
PEPSIS FUTURE STEPS
Focus on product differentiation
Focus on being a price leader
PEPSI CHALLENGE A GOOD IDEA OR NOT?
Good idea because it was a position driven brand marketing campaign