Can Coke And Pepsi Sustain Their Profits In The Wake Of Flattening Demand And The Growing Popularity Of Non Carbonated Drinks?

633 words - 3 pages

Despite flattening demand for carbonated beverages such as Coke and Pepsi, the increased popularity of noncarbonated beverages, greater demand from emerging markets, and Coke and Pepsi's absolute and comparative advantages over competition, each continues to produce profits that meet and exceed industry expectations. In 2012, Coke and Pepsi posted profits margins of 18.78% and 9.42% (Cho, 2013), respectively, clearly utilizing their advantages over other players in the sector .

Coca-Cola and Pepsi have developed a wide range of products that can be used to penetrate emerging markets. They each sell the classic brands as well as geographically specific beverages. Populations from around ...view middle of the document...

The concentrate manufacturing process involves "little capital investment in machinery, overhead or labor" (Yoffie, 2004). Furthermore, bottlers must also invest in trucks and distribution networks, Both companies frequently reorganize their supply chain as a measure to improve distribution and customer relations; their established source and distribution channels are extremely fine-tuned. In addition, the two companies benefit from economies of scale in negotiating best rates for the majority of their needs.

Coca-Cola and Pepsi can sustain their profits in spite of a flattening demand for carbonated drinks by continuing to take advantage of their economies of scale, emerging market plans and development of substitutes and complements.

Cho, A. (2013, April 3). Retrieved from
Coca-Cola Company. (2013, June 5)....

Other Papers Like Can Coke and Pepsi Sustain Their Profits in the Wake of Flattening Demand and the Growing Popularity of Non-Carbonated Drinks?

Coke and Pepsi Learn to Compete in India

5720 words - 23 pages supplying farmers with toxic waste used for fertilizing their crops. According to one report, a plant that launched their own brands in a new category, bottled water. This market was valued at 1,000 Crores.1 Pepsi and Coke are responding to the declining popularity of soft drinks or carbonated drinks and the increased focus on all beverages that are non-carbonated. The ultimate goal is leadership in the packaged water market, which is growing

The Changing of the Hong Kong Idols Popularity in 80’s to 90’s and Now

611 words - 3 pages The changing of the Hong Kong idols popularity in 80’s to 90’s and now From the 80’s to 90’s, it was the great moment of Hong Kong entertainment industry. Hong Kong’s idols were very popular, because of their competent, for example, Leslie Cheung Kowk Wing. He was not only popular in Hong Kong, but also in Asia and the world. Leslie Cheung was the first foreign artist to hold 16 concerts and got the best artist in Japan. Also, he was the

The Popularity Of Tragedies

583 words - 3 pages emotions can help enable the individual to perceive things in another way. For example, using one's intellect at a funeral type of environment is not suitable, however being emotional and showing sympathy is needed. Another example would be for business people, although intellect is very important toward their decision-making many business people admit that a number of their decisions are from their instincts, hunches, and feelings. Therefore

The Growing Gap of Wealth in China and United States

4084 words - 17 pages fundamental structural changes, China is in danger of becoming caught in a "middle income trap" – exacerbating the world's growth problems. In face of such threats and challenges, no country can manage alone or stand aloof. American is no exception. When we were intoxicated with our success in economic gain, the economy is not the only thing growing: so too is the wealth gap. In recent years, China's Gini coefficient is estimated to have been

Week 2 Homework Assignment: What Cultural Factors Must U.S. Sports Franchises Overcome to Increase Popularity Abroad? Why? How Can Franchises Ensure Their Products Are Appropriate for International...

724 words - 3 pages Jenell Obie Nov. 9, 2014 Professor Daryl Fields Homework Assignment #2  Sports are very important part of the culture of the United States. When planning to expend a U.S franchise overseas, you need to think of all the factors of local cultures and have a plan to be able to overcome those factors to increase popularity abroad. To be able to attract new athletes, you must understand the cultural differences of their countries. So when taking

Read Descartes, Meditations 1 And 2. What Is The Significance Of The Wake/Sleep Contrast In These Two Meditations?

756 words - 4 pages Descartes' wake/sleep contrast is central to his famous Dream Argument, whereby he is can find no conceivable way to differentiate between whether he is either dreaming or awake in their perceptions of the environment. As Descartes states in his Meditation 1:"…and to experiencing in my dreams the very same things, or now and then even less plausible ones, as these insane people do when they are awake. How often does my evening slumber

Coke Vs. Pepsi In 2006

2051 words - 9 pages disparate performance numbers realized between CPs and Bottlers. Integration therefore plays well into the hands of reducing risk of future profitability impact, (hit them while they are weak). 4. Will Coke and Pepsi sustain their profits? What would you recommend to Coke to ensure success in the future? To Pepsi? Answer: Yes so long as the competitive forces remain as they are and both Coke and Pepsi continue to reshape forces in area of substitution and supplier power.

The Coke Side Of Life

3564 words - 15 pages effectively in marketing. Thus, I will go through the ad and discuss what I believe Coca-Cola’s intentions where for the ad and how they used colors to convey their message. I will then interview three people who are all in the target market for the ad using a questionnaire, that can be seen in appendix one, to discover if the colors used in the ad have a standardized effect on their perception of coke. Coca-Cola’s 2006 advertising campaign, “The

Forming Effective Board of Directors-Non Profits

997 words - 4 pages documents that can help an organization with the assessment for the strengths and weaknesses of their current board members. A strong board committee is a valuable tool for developing leadership within the organization. Board Involvement in Fundraising The board is the biggest resource for an organization in regard to their fundraising aspect. We can see in the previous sections that board members have an external expertise, connections and

The Confederate War Effort 'Why Were The Confederate States Able To Sustain Their War Effort Until The End Of 1862?'

824 words - 4 pages were defending their own homes. An example of this is how E. Lee was so determined to defend Richmond, and 'never let it fall'. Southern morale didn't only affect the soldiers in battle, however, as civilians in the South were very much involved in the war effort, whereas in the North they merely continued on with their own lives.Another advantage for the South was that their military leaders were much more experienced, especially since the

I. the Importance of Price Elasticity of Demand and Cross Elasticity of Demand

801 words - 4 pages I. The importance of Price elasticity of demand and Cross elasticity of demand 1. Price elasticity of demand (Ed) used to generate the revenue. It shows the percentage change in quantity demanded in response to a one percent change in price. The biggẻ the number, the more people’s respond to the price. Interpreting values of price elasticity coefficients Perfectly inelastic demand[10

Related Essays

This Is A Paper I Did For Debating. It Argues About About Coke And Other Soft Drinks, Their Affects And The Need For Kids To Consume

1404 words - 6 pages Some kids claim that they need a Coke to start off the day. Many students include a soft drink as part of their lunch at school. Or at the end of a long school day, at the soft drink machine, students line up to buy cans of cola. It is also very common to grab a can out of the fridge to drink with your dinner. Does this sound like your lifestyle? See how quickly it can add up?Soft drinks are more popular than coffee, tea and juice combined. In

Delivering The Promise Of Non Profits Essay

256 words - 2 pages mentions’ how diversity is the goal. In Createch they focus on bringing different races together and making the environment more diverse. They also care about reducing school dropout rates, by inviting students to come to this after school activity center, which has many electronics to keep the teens entertained. This information can be helpful to me throughout my research by keeping in mind what the non-profit organizations have to go through, what their values are, and how they achieve results. This article also talks about building leadership; it will help me build a stronger group with my team and work together, throughout the research process.

Coke And Pepsi Essay

876 words - 4 pages These days Coke and Pepsi are using the 4Ps of marketing mix (Price, Product, Place and Promotion) in such a way so that a good quality can be provided to the consumers at a reasonable price to attract the consumers towards their brands. Both the companies know that there is so much potential in the Indian soft drink industry and the can increase their sales by making good marketing strategies. So, they are spending a huge amount of money on

Demand Of Pepsi Essay

1218 words - 5 pages market to others who can enjoy and contribute to the brand and the new popularity of Pepsi. In 1975, Pepsi was voted most favorite beating out its rival Coca-Cola ( There are many determinants of demand. These determinants can include price, price of other goods, income of the consumer, future expectations, tastes and preferences, and the number of buyers (Farnham, 2010, p. 19,20,21,22). “Demand is the relationship