Cola
War is a term used to describe the competition to market two products
most famous soft drink in the world, Coca-Cola and Pepsi-Cola.
Since
the two brands are ordained, respectively in 1886 and 1903 between the
two are in competition, nudged each other and ad war, both print and
video ads.
They can achieve ambitious carbonated soft drinks market dominance.
Understandable if sometimes slightly shadowed ethical issues.
Initially
these ads a "blind test" where the people are invited to sample both
products with your eyes closed, and they are then more like one of the
products.
Then the two companies spend a lot of money to hire celebrities to promote their soft drinks.
Track Record Competition Coca Cola vs. Pepsi
This
war began in the era of the 60's began with the acquisition which is
the manufacturer Minute Maid fruit juices, foods Dunkan which sells
coffee, tea and hot chocolate as well as the Belmont Spring Water.
Pepsi
itself is not to be outdone, they merged with Frito Lay which is a
major player in the snack market and establish Pepsi-Co.
The purpose Pepsi merger is expected to create synergies that will increase sales.
During
this period, Coca-Cola is focusing on overseas markets on the grounds
that the soft drink market in the country (U.S.) has experienced
burnout.
While
Pepsi itself remains to aggressively expand its U.S. market and managed
to gain market share doubled in the period 1950 and 1970.
Furthermore, in the era of 70's Pepsi managed to overtake the sales of Coca-Cola at his restaurant network.
Furthermore, by Coca-Cola is to restructure the halfr anchis ing in determining prices.
After that Coca-Cola announced a significant price increase and Pepsi followed by raising the price by 15%. which
aims to get the flexibility cola war in the 80's marked sold almost all
of its subsidiaries are non-CSD business (Carbonate Soft Drink) unless
Minutes Maid.
Then Coca-Cola announced it would replace the drink recipes that have been aged 99 years.
This resulted in lost most loyal costumer.
It is anticipated shortly with Coca-Cola launched a product called Coca-Cola Classic prescription three months later.
Furthermore,
Coca-Cola launched 11 new products, one of which is the Diet Coke was
introduced in 1982 and quickly became the most popular soft drinks, and
is ranked third in U.S. sales CSD
Pepsi is also not to be outdone by contributing launching 13 new beverage products.
Both
Pepsi-Co and Coca-Cola offers more than 10 major soft drink products
with various flavors and more than 17 models of cans and bottles in
different packaging.
Growth in sales volume in the U.S. alone is only around 1% in the 80s and rose only to 3 to 7 percent in the next period.
While demand in the global market tend to be flat flat.
When
Coca-Cola have tribulation in sales, Pepsi otherwise it quietly grew in
sales by expanding several soft drink companies of other types.
In comparison Pepsi grew 3% in 2004, while sales of Coca-Cola running in place.
In the next period the consumption of carbonated soft drinks began to receive criticism from health advocacy.
Nutrition Council indicated that the consumption of carbonated soft drinks is a major cause of obesity in the United States.
Step Pepsi beverage company that acquires non-soda was appropriate.
In
2004, Pepsi managed to control non CSD market in the U.S. with a market
share of 47.3%, surpassing Coca-Cola which only managed to gain market
share by 27%.
In the next period can be seen in the figure, that in the period 2006 to 2007 the market share held by the Coca Cola CSD.
At that time also launched several new products such as Pepsi Blue and Coca-Cola Zero.
Coca-Cola Zero and Diet Coke Cola promoted as a product that has a low sugar content.
Life styles become more healthy considers excess calories that exist in Coca-cola is a major threat to their weight.
So this product was created by Coca-Cola to target consumers who are dieting and communities concerned will be obese.
Diet coke products emerged in 1982 with the tagline sugarfree and low calories.
This is in line with the regulations initiated in several countries on limiting the number of calories contained in soft drinks.
This product is also safe for consumption diabetics because it contains no sugar at all and also contains very little calories.
Meanwhile, Coca-Cola Zero is Coca-Cola sugar free abundant than Diet Coke.
The
latest is said to have a better sense of the further development, the
issues faced by manufacturers of CSD (Pepsi and Coke) is a health issue.
Which is an artificial sweetener cyclamate and used by Coca-Cola suspected to cause cancer.
Even Coca-Cola Zero product that uses only sweetener cyclamate, perederan withdrawn by the Government of Venezuela.
Distribution system
Coca-Cola distribution system is one of the best distribution system.
Coca-Cola distribution fleet capable of delivering the goods to rural areas.
This
is not out of the number of products owned and distributed
simultaneously, which ultimately impact on minimum distribution costs
and to make Coca-Cola has a cost advantage.
In addition, Coca-Cola bottling network also has a wide and strong.
Relations
between them are strong enough where the company is not allowed to
participate bottler pack brand - brand new from new competitors that
produce goods that are relatively the same as the product line carried
by Coca - Cola.
Then,
the availability of their products are also backed by their competitive
position against the retailer over its competitors.
In this case, Coca-Cola is able to provide a higher margin for retailers to sell their products than its competitors.