Cola Wars, International–COKE V PEPSI 1742 Essay Example

to enter several important international markets during the height of World War II.

According to Woodruff, American boys would always have access to Coca-Cola, no matter where they were fighting during the war.

Pepsi attempted its first international expansion in the 1950s, following Coca-Cola's earlier success.

After successfully building its brand name, the company has also developed a strong distribution network.

Over the course of four decades, a plethora of new markets have surfaced, presenting prospects for monetary gain.

Both Coke and Pepsi must develop strategies to navigate the bureaucracy present in markets.

The objective of this paper is to examine how these barriers affect their business operations in these markets.

When examining markets, it is important to explore both the opportunities and roadblocks that are present.

Pepsi was the first Western company to sign an agreement with the Soviet Union in 1972.

Pepsi has reached a historic deal to promote its product to Russian consumers.

Pepsi is the first organization to establish 23 plants, giving it a leading position in the former Soviet Union.

When it comes to the soft-drink industry in Russia, there is a notable difference between the sales of Pepsi and Coca-Cola. Specifically, Pepsi surpasses Coca-Cola with a ratio of 6 to 1. Additionally, Pepsi is considered a domestic brand.

The brand must also counter trade its concentrate with Russia's Stolichnaya vodka since Pepsi.

Rubles are not tradable on the global market. Nevertheless, Pepsi has encountered some difficulties as well.

Despite the advertising blitz, brand loyalty for Pepsi in Russia has not increased.

Even though it has created advertisements specifically designed for the Russian market and has provided funding for television,

Concerts may be a positive factor in Pepsi's lead over Coca-Cola, attributed to the significant

price difference.

Comparing the prices of the two colas, Pepsi is priced at Rb250 (25 cents), whereas Coca-Cola is priced at Rb450.

Pepsi sells a 2-liter bottle for Rb1,300, whereas Coca-Cola offers a 1.5-liter bottle for Rb1,800.

Recently, Coca-Cola entered the Russian market and is now being produced locally.

Under a license, both Moscow and St. Petersburg are being granted $85 million investments for their bottling.

Furthermore, plants in the Russian market do not view Coca-Cola as a premium brand.

In Russia, Coca-Cola is seen as a "foreign" brand. Additionally, the bottle and label of Coca-Cola contribute to its perception as a premium product.

It is unable to capture market share.

Romania is the second largest central European market after Poland, making it a popular destination.

battleground for Coca-Cola and Pepsi. When Pepsi established a bottling plant in Romania in

In 1965, Pepsi became the pioneer in manufacturing and selling an American-made product in the region.

During the communist period, the company was situated locally. However, it has now made the decision to reorganize and provide new training for its local employees.

Staff. Pepsi formed a partnership with a local company, Flora and Quadrant, for its Bucharest location.

Quadrant operates a factory in Romania for producing plant, as well as 5 other factories in the same country. Additionally, Quadrant leases equipment to Pepsi and takes care of its handling.

Pepsi's distribution is supported by 500 Romanian trucks that were purchased.

Furthermore, Pepsi invests in local production to distribute its bottles in other countries.

in the glass industry, Pepsi and Coca-Cola are priced the same (@15 cents/bottle).

Several consumers choose to drink Pepsi because the company sponsored a concert in Romania featuring Michael Jackson.

One benefit of selecting Pepsi is

its slightly sweeter flavor in comparison to Coca-Cola, which may be more preferable for certain individuals.

Romanians with a fondness for sweets prefer Pepsi as their drink of choice. Furthermore, there are individuals who opt for Pepsi due to its longstanding popularity.

Previously, Coca-Cola was exclusively enjoyed by officials. However, with the recent initiation of local production, it is now accessible to everyone.

In November 1991, Coca-Cola was introduced and is currently outperforming its rivals. Additionally, in 1992, there was a growth in sales for Coca-Cola.

Coca-Cola's sales in Romania saw a significant growth of 99.2%, surpassing Pepsi with a ratio of 6 to 5. Despite this, Pepsi opted to buy its supplies instead.

Coca-Cola chose to import equipment into Romania instead of sourcing it locally.

Cola acquired two bottlers in Romania, one of them being the privately owned Leventis Group.

Cola has made a significant investment of approximately $25 million in constructing two new factories that are twice the size of their previous facilities.

Pepsi operates a factory in Bucharest, while Coca-Cola has formed a partnership with a local company.

Ci-Co operates in both Bucharest and Brasov, and the company has planned a highly ambitious advertising campaign.

Coke sponsors local sporting and cultural events. Furthermore, Romanians consume Coke because of its

Once forbidden, this powerful symbol from the West.

Both Coca-Cola and Pepsi are striving to ensure widespread availability of their colas.

Consumers are willing to pay a price for goods and services offered by Eastern Europe.

Factors that are gaining importance in Eastern Europe include color, product attractiveness visibility, and

Enhancing display quality and meeting local demand by increasing production locally.

Acceptability is crucial as it helps in building brand equity, while afford ability refers to pricing that

is higher than local brands.

The key factors for Eastern Europe are adapting to local conditions. Both companies hope for this.

Their sales will receive a boost thanks to their western images and brand products. Coca-Cola's appeal is universal.

The message and campaign express the belief that Eastern Europe is an integral part of the world and should not be excluded.

At present, it is challenging to determine the winner in the cola wars due to the unavailability of accurate data.

The market research firms that are relatively new focus mainly on major cities. Pepsi held a commanding 4 to

Coca-Cola dominated the former Soviet Union in 1992, capturing a significant 17% market share.

Pepsi has a 12% market share in the soft drink industry and both companies have a presence in Eastern Europe.

The primary focus for several years has been on developing the market.