Coke And Pepsi Case Study Analysis

Coke And Pepsi Case Study Analysis-40
If we also have data for another point, say at a time that was offering a substantial discount on their product or from another geography, then we would have more than enough data to completely tune a model as simple as the one we are starting with.

If we also have data for another point, say at a time that was offering a substantial discount on their product or from another geography, then we would have more than enough data to completely tune a model as simple as the one we are starting with.Because the Market Model uses a proprietary statistical algorithm to impute customer distribution data, the data collection problem becomes much easier and cost effective.We know the Price for , we know their Market Share, and we have a pretty good idea of the Profit Margin (or Marginal Cost) of both from their public financial reports.

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Market Models can evolve to be increasingly complex.

And they can be used to simulate very specific market phenomenon.

Unlike with other statistical techniques, the user does not have to commission an expensive market research report just to tell them what they already know about the existing market.

The Market Model allows the user to integrate their own knowledge, and then focus on understanding just those new changes relative to the existing state of the market.

Compare the economics of the concentrate business to the bottling business: Why is the profitability so different?

How has the competition between Coke and Pepsi affected the industry’s profits?For Pepsi, the Market Model could evolve to look something like this: Pepsi could then evaluate whether creating a very broad product portfolio, and launching each of these products into the market over time, would be a successful strategy.A dynamic timeline might look something like this:“According to the case study of coke and pepsi both of the companies have great brand in market but this survey tells us that pepsi has a great market demand and high market shares because of its taste and market developing plans but if they follow these steps they can become more effective in markets “.In these televised blind-taste challenges, a Coke drinker was asked to determine whether they actually preferred the taste of Pepsi.It turns out that a statistically significant majority of Coke drinkers did, in fact, prefer the taste of (it is also a Cola Drink with the Pepsi Brand) but it has the additional benefit of being low in calories. And today Diet Pepsi is considered to be Pepsi’s flagship product, with regular Pepsi being considered to be the product line extension.Can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-carbonated drinks? Industry consumption Statistics, Exhibit 1, it is clear that, after deducting beer and wine, soft drinks account for about 90 % of the total liquid consumption, while Coke and Pepsi account for about 75 % of the soft drink industry.The soft drink industry is a highly profitable industry and its success is due to the large consumption of non-alcoholic beverages through which both concentrate producers and bottlers are profitable. The high consumption of CSDs is related to the soft drink industry selling to consumers through five principal channels: food stores, convenience stores, vending, fountain and other. ...e and Pepsi’s already established image as producers of premium product is key to discouraging other companies from entering the soft drink industry. S has leveled off, they should continue to invest globally in marketing and advertising for further profit growth, which will in turn positively influence their well established brands to further increase soft drink sales and profits.They accompanied the new product feature with the advertising jingle “, which also sold for a nickel (5 cents), had difficulty matching Pepsi’s new product.Not only would it require changing the size of the Coke bottle, but it would also require changing the size of all of the Coke refrigerators which were built to only accommodate the smaller 6.5 oz bottle.The “Pepsi Generation” was one of the first and best known instances of what came to be known as “lifestyle marketing”.To test whether adjusting their product distribution strategy would be successful, , which had traditionally been sold through drug stores, was the first to start branching out to alternative distribution channels.

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