They are going to push the agenda to get more consumer consideration.” “We’re seeing the cola wars shift to the zero-sugar platform,” says Duane Stanford, editor of Beverage Digest. It currently owns only 0.8% of the segment. Pepsi’s zero-sugar version grew 22% from a much smaller base. For the first half of the year, Coke Zero Sugar dollar sales grew 13%, making it the seventh best-selling soda in the US. The attack comes after Coke launched a massive campaign for its zero-sugar product this month to celebrate the reformulation of one of its best-selling products. All told, there are going to be more than a dozen new TV spots promoting Pepsi Zero Sugar. Pepsi, the official sponsor of the National Football League, promises that the majority of Pepsi’s NFL media activation this season will be dedicated to its zero-sugar product. Pepsi Zero Sugar is also seeding a coupon for 12 packs of Pepsi Zero Sugar across social. Consumers will be asked to text proof of purchase and post a photo of themselves with their new drink of choice with the hashtag ’#M圜okeBreakUp’. Harvard Business School, 1(1), 1-22.Beginning today, Pepsi will reimburse consumers $2.50 when they buy a 20 oz bottle of Pepsi Zero Sugar. Coca Wars Continue: Coke and Pepsi in 2010. This is the case because every strategy embraced by the two companies will eventually empower more consumers. In conclusion, the ongoing wars will continue to support the changing needs of different global customers (Yoffie & Kim, 2011). The issue of sustainability should also be embraced in order to have a successful business venture. The firms should also use the power of research and development (R&D) to produce new products that can serve the needs of the global consumer. These strategies will ensure the firms’ products are produced and delivered to the targeted buyers in a timely manner. The firms can also acquire new resources and production facilities in an attempt to reduce their expenses. The issue of bottler-consolidation should be taken seriously in order to support the best business processes. The greatest fear is that such a strategy might encourage Pepsi to use a similar approach. This approach is relevant because many people have become aware of the health issues associated with carbonated products (Yoffie & Kim, 2011). Coke can produce new non-carbonated drinks in order to attract the attention of many consumers. That being the case, every company should identify the most appropriate strategy that can create a difference. This case study shows clearly that the Cola Wars will continue in the next years. The strategies continue to satisfy the needs of different customers. However, the agreeable fact is that the wars have led to new opportunities for different players. This trend will revolutionize the nature of this rivalry in the future. Many companies are currently producing non-carbonated drinks. The declining sales recorded today will force the corporations to identify new competitive advantages. Price wars have also continued as the organizations try to dominate the industry. Coke’s decision to operate internationally forced Pepsi to undertake similar strategies. Pepsi responded by producing its Aquafina. In order to improve its performance, Coke decided to introduce Dasani (Yoffie & Kim, 2011). For instance, Diet Coke was aimed at addressing the health issues of many Americans. The move was undertaken in order to make the firm successful.Īs well, the changing health needs of different consumers continue to force these corporations to produce appropriate products. The important goal was to minimize its production costs. Coke went ahead to identify new ways to acquire cheaper concentrates. Such products were also marketed using cheaper prices. As well, Pepsi introduced new products in the market. 7).Ĭoke responded to Pepsi’s strategy using numerous price reductions, rebates, and advertisements (Yoffie & Kim, 2011). Pepsi also “came up with Pepsi Challenge” (Yoffie & Kim, 2011, p. For instance, Coke used its famous American’s Preferred Taste campaign in order to market its products in 1955. The companys’ advertising strategies have also focused on the expectations of many customers. Pepsi launched “new products such Diet Pepsi, Teem, and Mountain Dew in order to remain competitive” (Yoffie & Kim, 2011, p. Pepsi has also been using the same strategy to produce new products. Coca Cola has produced different drinks to cater for the emerging needs of its customers.
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