Note: 100% plagiarism in the above paragraph please remove the plagiarism less than 15 %

.

CHALLENGES / OPPORTUNITIES

One of the major challenges is to change the peoples perspective of PepsiCo as an unhealthy soft drink producer. Due to the link of soft drinks to obesity and diabetes, the new CEO wants to reinvent Pepsi as a healthy food producer rather than a snacks producer. Although this is a good plan for the PepsiCo to consider, people who are used to Pepsi as it is now might not be easily convinced. Any lawsuit against Pepsi is a challenge that needs attention. Recently in October 2009 Pepsi was alleged to have stolen a water packaging model from two men and is ruled to pay 1.26$ billion for missing the courts calling. Pepsi assumed that they didnt receive the courts letter on time, and therefore the verdict must be overruled. This is a big challenge for Pepsi to overcome since this lawsuit can effect Pepsis reputation and it can cause decline in its sales, reduce trust with its suppliers and loose customers. Another challenge for Pepsi is to maintain a good dirtubtion channel. Pepsi is aware about choosing the ditribution channels based on the requirments and prefrences of the global customer. Due to its golbalexperince, Pepsi have adopted many dirutbution channels, however they need to properly adjust each in order to reduce costs and be more effective. COMPETITORS Pepsis competitors like Coca-Cola presents competitive pricing and this is a factor, which the firm should keep in mind all the time. The political scenario is very important because there can be certain civil disturbance in some markets. Another reason could be fall in sales due to inflation. The most important element of all is that cross-border situations are extremely different. As a result, Pepsi has to stay in line with all changes and policies in order to adapt to them accordingly. The Coca-Cola Company is PepsiCos primary competitors. But others include Nestl, Groupe Danone and Kraft Foods. Intense competition may influence pricing, advertising, sales promotion initiatives undertaken by PepsiCo. Resently Coca-Cola passed PepsiCo in Juice sales.

PROMOTIONAL STRATEGY

A promotional strategy can include:

• Sales Shootouts
• New product reception
• Brand Equity Emergence
• Positioning
• Competitive retaliations
• Creation of a corporate image

Pepsi and Coke have a special status regarding their promotional activities.The rivalry was initiated when Pepsi started its blind taste challenges. It took the method of a taste test at public places like shopping malls, community centric hubs etc. By letting people taste both the colas, they asked the people to select the preferred one so that people would buy Pepsi.

COMPETITITOR COMPANY COCA COLA

Coca Cola is the leading manufacturer and retailer of non-alcoholic beverage in the world. The company is best known for its flagship product, Coca-Cola, a non-alcoholic carbonated drink, loved throughout the world by kids and adults alike. Coca-cola or Coke as it is known by people around the world can be found in more than 200 countries with 1.8 billion drinks being served each day.

SWOT Analysis

Strength

• It is the best global brand in the world in terms of revenue, profits, stock market performance and brand image.
• The company holds the largest market share (almost 40 percent) of the cola industry.
• It has the most extensive marketing and distribution network in the world with presence in more than 200 countries with 1.8 billion drinks being sold every day.

Weakness

• The principle focus of the company is aerated beverages like Coke, Sprite and Fanta. However, this limited focus might prove detrimental for the company if the world is moving towards healthier drinks.
• The product portfolio of Coke unlike that of Pepsi is highly undiversified. While Pepsi has diversified in both food and beverages, Coke has concentrated only on drinks. This singular focus on carbonated drinks may cost the company if markets for such drinks shrink in future.
• The company has 8 billion dollars of debt in the market which is another negative point.

Opportunities

• Consumption of packaged drinking water and aerated beverages is expected to grow every year in Third World countries.
• With the new trend of fitness and health gaining grounds, the company will benefit a lot from the promotion of low calorie and low sugar drinks like Diet Coke and Coke Zero.
• Another significant way the company can expand its market is to acquire companies already existing in the Third World and BRICS nations.

Threats

• One of the serious threats comes from the popular perception that sugar based drinks lead to various health problems. The company will not prosper if this perception battle is not won.
• More than 60 percent of the revenue comes from foreign markets. Weak currency performance of other countries will hamper the sales of the company.
• Water resources continue to be a problem.

PESTLE Analysis

• Political

The boycott of Coke, the most potent symbol of American capitalism, by the Arab League in wake of the Iraq war declined the companys sales in Middle Eastern countries.

• Economic

Economic recession can have the greatest negative impact on the company. People tend to cut back on non-essential items like carbonated drinks. As such recession of 2008-2010 had a deep impact on the sales of Coco Cola.

• Social

As mentioned before, the perception battle is the hardest which Coke has to fight. More and more people are turning to healthier food and drinks and Coke being a high sugar and high calorie drink is fast losing the support of health conscious people.

• Technological

Technological advancement in television and the internet means that the company can reach more people than before by using these innovative channels of communication. On the other hand, recycling plastic bottles and tin cans can lower the cost of production.

• Legal

Coca Cola was sued for racial discrimination in the late 1990s when it was found out that the black employees were discriminated against in the company. This led to a massive face loss.

COMPARITIVE ANALYSIS BY MARKETING MIX

a) PRODUCT

Coke was launched in India in Agra, October 24, in '93', soon after its traditional all Indian launch of its Cola. At the sparking new bottling plants at Hathra near Agra. Coke was back with a bang after its exit in 1977. Coke was planning to launch in next summer the orange drink, Fanta-with the clear lemon drink, sprite, following later in the year.

Coke's product line includes, Coca-Cola, Thumps Up, Fanta, Maaza, Sprite, Club Soda, 7-up,Limca,Fanta apple, Diet Coke.

PACKAGING

Coca-Cola India Limited (CCIL) has bottled its Cola drink in different sizes and different packaging i.e., 200 ml bottle, 300 ml. Bottle, 330 ml.Cans, 500 ml.And bottles of 1 and 2 litre.

PRODUCT POSITIONING

One important thing must be noticed that Thumps Up is a strong brand in western and southern India, while Coca Cola is strong in Northern and Eastern India. With volumes of Thumps up being low in the capital, there are likely chances of Coca Cola slashing the prices of Thumps Up to Rs. 5 and continue to sell Coca Cola at the same rate. Analysts feel that this strategy may help Coke since it has 2 Cola brands in comparison to Pepsi which has just one.

Thumps Up accounts for 40% of Coca Cola Companys turn over, followed by Coca Cola which has a 23% share and Limca which accounts for 17% of the turn over of the company. We will sell whatever consumers want us to". Coca Cola India has positioned Thumps up as a beverage associated with adventure because of its strong taste and also making it compete with Pepsi as even Pepsi is associated with adventure youth.

b) PRICE

The price being fixed by industry, leaving very little role for the players to play in the setting of the price, in turn making it difficult for competitors to compete on the basis of price.

The fixed cost structure in Carbonated Soft Drinks Industry, and the intense competition make it very difficult to change or alter the prices. The various costs incurred by the individual companies are almost unavoidable. These being the costs of concentrates, standard bottling operations, distributor and bottlers commissions, distribution expenses and the promotional and advertising expenditure (As far as Coke is concerned, it had to incur a little more than Pepsi as Pepsi paved its way to India in 1989 while Coke made a comeback in 1993.)

Currently a 300 ml. Coke bottle is available for Rs10 the 330 can was initially available for Rs. 15 and now Rs.20. The prices of 500ml, 1 litre.And 2ltr being Rs20 Rs.35 and Rs.50 respectively (according to the current survey).

c) PLACE

Coke may have gained an early advantage over Pepsi since it took over Parle in 1994. Hence, it had ready access to over 2, 00,000 retailer outlets and 60 bottlers. Coke was had a better distribution network, owing to the wide network of Parley drinks all over India. Coke has further expanded its distribution network.

Coke and its product were available in over 3, 00,000 outlets (in contrast with Pepsi's 2, 75,000). Coke has a greater advantage in terms of geographical coverage.

Coke and Pepsi have devised strategies to get rid of middlemen in the distribution network. However, 50% of the industry unfortunately depends on these middlemen. As of now, around 100 agents are present in Delhi. Bottlers of the 2 multinationals have strongly felt the need to remove these middlemen from the distribution system, but very little success has been achieved in doing so.

d) PROMOTION

It must be remembered that soft drinks purchases are an "impulse buy low involvement products" which makes promotion and advertising an important marketing tool. The 2 arch rivals have spent a lot on advertising and on promotional activities.

.

Required:

Question: Rewrite the above paragraphs in your own words it has 100% plagiarism remove the plagiarism and rewrite it in your own words?

.

Note: 100% plagiarism in the above paragraph please remove the plagiarism less than 15 %