An analysis of the fight for the foreign markets between coca cola and pepsi

In that vein, a stronger U. Further, recent volumes indicate the top line will probably remain largely muted, especially in developed markets, as health-conscious consumers continue to shy away from beverages containing elevated levels of sugar or artificial sweeteners.

An analysis of the fight for the foreign markets between coca cola and pepsi

While once the United States, Australia, Japan, and Western Europe were the dominant soft-drink markets, the growth has slowed down dramatically, but they are still important markets for Coca-Cola and Pepsi.

As we have seen, international marketing can be very complex. Many issues have to be resolved before a company can even consider entering uncharted foreign waters. This becomes very evident as one begins to study the international cola wars.

The domestic cola war between Coca-Cola and Pepsi is still raging. However, the two soft-drink giants also recognize that opportunities for growth in many of the mature markets have slowed. Both Coca-Cola, which sold 10 billion cases of soft-drinks inand Pepsi now find themselves asking, "Where will sales of the next 10 billion cases come from?

Often, the company that gets into a foreign market first usually dominates that country's market. Coke patriarch Robert Woodruff realized this 50 years ago and unleashed a brilliant ploy to make Coke the early bird in many of the major foreign markets.

By the time Pepsi tried to make its first international pitch in the 50s, Coke had already established its brand name and a powerful distribution network. In the intervening 40 years, many new markets have emerged. In order to profit from these markets, both Coke and Pepsi need to find ways to cut through all of the red tape that initially prevents them from conducting business in these markets.

This paper seeks to examine these markets and the opportunities and roadblocks that lie within each. Coke and Pepsi in Russia: InPepsi signed an agreement with the Soviet Union which made it the first Western product to be sold to consumers in Russia. This was a landmark agreement and gave Pepsi the first-mover advantage.

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Presently, Pepsi has 23 plants in the former Soviet Union and is the leader in the soft-drink industry in Russia. Pepsi outsells Coca-Cola by 6 to 1 and is seen as a local brand. Also, Pepsi must counter trade its concentrate with Russia's Stolichnaya vodka since rubles are not tradable on the world market.

However, Pepsi has also had some problems. There has not been an increase in brand loyalty for Pepsi since its advertising blitz in Russia, even though it has produced commercials tailored to the Russian market and has sponsored television concerts.

On the positive side, Pepsi may be leading Coca-Cola due to the big difference in price between the two colas. For the economy size, Pepsi sells 2 liters for Rb1, but Coca-Cola sells 1. Coca-Cola, on the other hand, only moved into Russia 2 years ago and is manufactured locally in Moscow and St.

Petersburg under a license. Moreover, they see it as a "foreign" brand in Russia. Lastly, while Coca-Cola's bottle and label give it a high-class image, it is unable to capture market share.

Coke and Pepsi in Romania: Romania is the second largest central European market after Poland, and this makes it a hot battleground for Coca-Cola and Pepsi. When Pepsi established a bottling plant in Romania init became the first U. Pepsi began producing locally during the communist period and has recently decided to reorganize and retrain its local staff.The soft-drink battleground has now turned toward new overseas markets.

While once the United States, Australia, Japan, and Western Europe were the dominant soft-drink markets, the growth has slowed down dramatically, but they are still important markets for Coca-Cola and Pepsi.

• Cola Wars domestically and abroad (See Exhibit 3) C. Cola industry leaders, Coca-Cola and Pepsi, should practice game theory to better understand their competitive market • Cola Wars with the well established brands of Coca-Cola and Pepsi. - Environment analysis and market research: A case study of Coca Cola.

An analysis of the fight for the foreign markets between coca cola and pepsi

The Coca Cola Company has been among the world’s top companies that have been able to perform well in all the areas of the world.

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Essay title: Coke Vs Pepsi Fighting for Foreign Markets

This is an area where Pepsi got the upper hand in the early rounds of the slugfest between its chief rival Coca-Cola. According to Michman and Mazze, “From to Pepsi-cola increased its market share from approximately 17 percent to 31 percent” (p.

). And this all due to improved packaging. The Coca-Cola Company, founded in Georgia in and incorporated in , is the world's largest beverage company. It owns/licenses and markets more than nonalcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and.

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