Tuesday, July 30, 2019
Coke/Pepsi Swot Analysis Essay
Strengths: 1. In 1993 Coke held a 59% share of the fountain marketââ¬âusing it to promote the brand further. 2. Coke earned a high percentage of its profits in the international market. They established themselves with the help of ââ¬Å" ââ¬Ëanchor bottlersââ¬â¢Ã¢â¬âlarge, committed, and experienced bottling outfits like Norwayââ¬â¢s Ringnes and Australiaââ¬â¢s Amatilâ⬠3. During WWII Coke was able to establish itself in the European and Asian markets with the help of the government because it was being sold to the American troops in those regions Weaknesses: 1. Cokeââ¬â¢s imagine could not compete with Pepsiââ¬â¢s ââ¬Å"Pepsi Generationâ⬠campaign because it was perceived as being one of small town and outdated 2. Business relationships with bottlers have not been standardized 3. Carbonated drinks faced completion of ââ¬Å"new ageâ⬠drinks. Opportunities: 1. Quick response to ââ¬Å"new ageâ⬠beverages with the introduction of PowerAde, Nordic Mist, Tab Clear and its partnership with Nestea. 2. The potential growth of the international market of 7% to 10% per year (Eastern Europe, China India) 3. Overhauling image to target the youth market Threats: 1. Indiaââ¬â¢s government requesting that the formula be disclosed to them 2. Pepsiââ¬â¢s marketing campaigns like the ââ¬Å"Pepsi Challengeâ⬠& the ââ¬Å"Pepsi Generationâ⬠3. FTC looking into the franchise territory agreements Pepsi: Strengths: 1. Aggressive and innovative marketing campaigns 2. Acquisition of restaurants 3. Introduction of 13 new products 4. Michael Jackson as a celebrity endorser Weaknesses: 1. Carbonated drinks faced completionââ¬âââ¬Å"new ageâ⬠drinks 2. Youth was main target group 3. Lack of presence in the international market Opportunities: 1. Acquiring Seven-Upââ¬â¢s international operations 2. Acquired bottling operation systems 3. Response to growth in the Tea market ââ¬âpartnership with Lipton Threats: 1. Cokeââ¬â¢s quick responses to all marketing strategies 2. Market focus was strongest in North America/too little international focus 3. Private label phenomenon in supermarkets
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