Coca-Cola Analyze.pptVIP

Question 4 Can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-CSD? Sustain the profits?Yes! In the wake of flattening demand and the growing popularity of non-CSD, the both beverage giants would still sustain their profits. Focus on the local market Deepen their traditional products as well as introduce a variety of new products A wide recognition and brand awareness of their products Substantial managerial influence in bottling and the distribution network by anchor bottling model Overseas expansion Global soft drink sales growth slowed in 2000s, but emerging markets such as China, India were still growing rapidly. Large investment overseas to develop new bottling plants, constructing more distribution channels, sales and marketing efforts as well as product research and development. Enlarge the scale and scope 1980s Rise of carbonated drinks 1990s Packaged water 2000s Ready-to- drink tea 2010s Milk and juices? Thank You Q A Page ? * Group 7 王婷、王观、赵鹏、徐燚飞、吴晓萌、杨芳 Cola Wars Continue: Coke and Pepsi in 2006 INDEX Why soft drink industry profitable? Why the profitability different? How Coke and Pepsi compete? Can they sustain their profit? Question 1 Why, historically, has the soft drink industry been so profitable? Market share and profitability Oligopoly Net profit/ Sales First mover Coca-Cola Formula secret Little capital investment and material cost Machinery Overhead Labor Material Caramel coloring Phosphoric or citric acid Natural flavors Caffeine Low supplier power Amid the top most important clients to retailers Largest customers for metal cans manufactures Huge marketing/ marketing input Competitions between suppliers Substitutes beer Milk Coffee Bottled water Juices Tea Powdered drinks Wine Sports drinks … Customer bargaining power Exclusive contract with distributors High consumption need in the market Competitors B A C D E F Question 2 Compare the economics of the concentrate busi