Coca-Cola vs. PepsiCo. Coca-Cola and Pepsi are two of the top manufacturers of carbonated soft drinks in the world. Both companies are highly profitable in the soft drink/beverage industry. However, there is a marked distinction between the two companies to start with. While Coca-Cola completely operates in a beverages (for example Coke, Sprite, Minute Maid, Dasani), Pepsi is more diversified in its products they sale.
The brand has been owned by several different companies over the years and was recently purchased by the Cadbury Schweppes Company from Procter and Gamble Corporation. Hawaiian Punch joined the Dr. Pepper-Seven UP Inc. bottling network, which is the third largest carbonated soft drink bottler in the United States. This allowed the brand to be distributed in the soft drink aisle of the supermarket. The brand is unique in that it is sold in two different sections of the supermarket: the juice aisle as well as the carbonated soft drink aisle. II.
In comparison to other companies in the same industry General mill is USA based and largely the revenue is from U.S based sales. It partners with Nestle in its international sales. In contrast to the others which do equal sales in U.S and outside. The consumer industry is structured in a way that each company dominated a particular segment but makes everything else. Example General Mills dominates Cereal while Frito-lay dominates Snacks/chips, Kraft dominates cheese based, ConAgro dominates Corn based products like popcorn, and finally Campbell dominates Soup and vegetable drinks.
roup Case Questions Fall 2012 Case 10 – Pepsi 1. What is PepsiCo’s corporate strategy? Briefly identify the business strategies that PepsiCo is using in each of its consumer business segments in 2008. 2. What is your assessment of the long-term attractiveness of the industries represented in PepsiCo’s business portfolio?
Most of the brands in this segment are carbonated soft drinks brands. Key brands include Dr Pepper, 7UP, Sunkist, A&W, Canada Dry, Crush, Squirt, RC Cola, Welch’s, and Country Time. Packaged Beverages are manufactured in numerous facilities across the United States and are sold or distributed to retailers and their warehouses by their own distribution network or by third party distributors. The raw materials used to produce their products comprise of aluminum cans and ends, glass bottles, PET bottles and caps, paper products, and other ingredients. In Mexico, they manufacture and distribute their products through their bottling operations and third party bottlers and distributors.
The information provided in this paper was taken from both Coco-Cola and PepsiCo Consolidated Financial Statements to present the analyses performed by utilizing three revenue statement analyses tools: The Vertical Analyses, Horizontal Analysis, and Ratios Analyses. I will also provide some recommendations on how Coco-Cola and Pepsi could improve their financial status. Those who are considering investing in both PepsiCo and Coco-Cola will need to look at while giving consideration to a large amount of information before making any decision on which of the companies would be a healthier investment. For example most investors should review for each business their current assets and their current liabilities amounts. Coca-Cola 2004 financial report revealed more than $12,281 million dollars in current assets and according to PepsiCo financial report for the same year it revealed just $8,639 million dollars in their current assets.
In the beginning of the 21st century it led the Mexican market in the production, distribution and sale of beer 57% market share, and Corona is the leader in the USA, and Canada importation beer segment market since 1998, and also is available in more than 150 countries where is recognized as a premium brand. The former Grupo Modelo vice-president of international sales, specifies the ambition further for the international market: "Our target has always been the total globalization of the brand” 2. Introduction Grupo Modelo is structured like a holding company consisting of a 77% majority share in a sub-holding company called Diblo, S.A de C.V. Diblo has a controlling interest in a number of companies that largely concentrates on the production, sale, export, and import of beer. Modelo is also one of the beer producers within this group. Grupo Modelo has been family operated
It also sells a variety of coffee and tea products and licenses its trademarks through their Channel Development segmentation. As of September 30, 2012, it operated 9,405 Company-operated stores and 8,661 licensed stores. It has four segments (% of gross revenue): Americas (75%); Europe, Middle East and Africa EMEA (9%); China/Asia Pacific CAP (5%), and Channel Development (10%). (The New York Times, 2012) (Starbukcs Corporation, 2012) The business strategy of differentiation is exhibited through delivering consistence quality products and exceptional customer experience at a typically higher than average cost to customers. Customer value proposition is leveraged around serving the coffee experience into everyday lives.
The battle of the brands! Since the year of 1903, both Coca-Cola and Pepsi have been fighting to be the top carbonated soft drink in the market (Lim). Although one company has been around longer than the other, after determining the vertical and horizontal analysis, the profitability solvency and the liquidity ratios of each company; the findings shows that they are neck to neck with each other. These findings will also broadcast how the numbers of each category plays the roles of which company stocker holders and investors should invest their money in based off the time period of 2004 and 2005. Coca-Cola started in 1886, with its creator Dr. John S Pemberton creating flavored syrup.
Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.” PepsiCo PepsiCo is one of the largest food and beverage companies in the world. The company manufactures, markets, and sells a range of salty, convenient, sweet and grain-based snacks, and carbonated and non-carbonated beverages. The company holds 38% market share of the total US savory snacks market and a 25% market share of the US liquid refreshment beverage market. The company figures at the 58th position in the Fortune 500 ranking for 2008. Strong market position allows the company to launch new products and also increases its bargaining power in the market.