Pepsi Cola the New Choice of Drink?
- Submitted by: cameronzdad
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- Category: Arts
- Date Submitted: 04/08/2012 07:03 AM
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Pepsi Cola the new choice of drink?
As 2005 came to an end people at Pepsi Cola’s headquarters were probably drinking
champagne rather than cola. By the end of trading on Wall Street that day, the company's market value reached $98.4 billion while the market valued Pepsi Cola’s rival Coca-Cola at $97.9 billion . For the first time in the history of the two companies, PepsiCo was valued more highly than its old arch enemy. It was mainly a symbolic event but it was a powerful symbol - and one that remained over the days that followed. The "real thing" is suddenly second-best (http://www.onestopenglish.com/magazine/news_lessons/PDFs/coca_cola3.pdf).
How do you dominate in the cola war? Control of market share is the key. The situation is both Coke and Pepsi are trying to gain market share in this beverage market worth billions of dollars each year. Just how is this done in such a competitive market is the underlying issue? The facts are that each company is coming up with new products and ideas to increase their market share. The creativity and effectiveness of each company’s marketing strategy will ultimately determine the winner with respect to sales, profits, and customer loyalty. Not only are these two companies constructing new ways to sell Coke and Pepsi, but they are also thinking of new ways in which to increase market share in other beverage categories. Although the goal of both company’s are the same, the two companies rely on somewhat different marketing strategies. Pepsi has always taken more risks, acted rapidly, introduced new products and developed more dynamic and outrageous advertising ideas.
This paper will help explain how Pepsi capitalized on the sport drink industry to catch and bypass Coke in the overall cola company battle. In addition the writer will suggest a how Pepsi could develop new products while expanding their product mix.
Body
• Argue for why your answer to the question is correct.
• Discuss...
As 2005 came to an end people at Pepsi Cola’s headquarters were probably drinking
champagne rather than cola. By the end of trading on Wall Street that day, the company's market value reached $98.4 billion while the market valued Pepsi Cola’s rival Coca-Cola at $97.9 billion . For the first time in the history of the two companies, PepsiCo was valued more highly than its old arch enemy. It was mainly a symbolic event but it was a powerful symbol - and one that remained over the days that followed. The "real thing" is suddenly second-best (http://www.onestopenglish.com/magazine/news_lessons/PDFs/coca_cola3.pdf).
How do you dominate in the cola war? Control of market share is the key. The situation is both Coke and Pepsi are trying to gain market share in this beverage market worth billions of dollars each year. Just how is this done in such a competitive market is the underlying issue? The facts are that each company is coming up with new products and ideas to increase their market share. The creativity and effectiveness of each company’s marketing strategy will ultimately determine the winner with respect to sales, profits, and customer loyalty. Not only are these two companies constructing new ways to sell Coke and Pepsi, but they are also thinking of new ways in which to increase market share in other beverage categories. Although the goal of both company’s are the same, the two companies rely on somewhat different marketing strategies. Pepsi has always taken more risks, acted rapidly, introduced new products and developed more dynamic and outrageous advertising ideas.
This paper will help explain how Pepsi capitalized on the sport drink industry to catch and bypass Coke in the overall cola company battle. In addition the writer will suggest a how Pepsi could develop new products while expanding their product mix.
Body
• Argue for why your answer to the question is correct.
• Discuss...