Cola Wars Continue: Coke and Pepsi in 2010 Outline 1. Situation: Coca-Cola and Pepsi go beyond competing in the carbonated soft beverage (CSD) market industry and try to penetrate the non-carbonated beverage industry, such as energy drink, coffee, tea and mineral water. 2. Stakeholders: Coca-Cola: producers, bottlers, retail channels, fountain retail outlets (e. g. restaurant, movie theaters and cafeterias), suppliers. Pepsi: concentrate producers, bottlers, retail channels, fountain retail outlet and suppliers. 3. Target Markets:
Coca-Cola: American Soldiers serving abroad in the World War II; fast food consumers by penetrating into the fast food chain restaurants (e. g. Burger King, Wendy’s). Family-friendly consumers. Pepsi: fast-food industry consumers, family; younger generation and youthfulness aim at “people who are young at heart” through its 1963 Pepsi Generation marketing campaign. 4. Competition: Coca-Cola and Pepsi face non-carbonated beverage industry competition: Beer, Milk, Coffee, Bottled Water, Juice, Tea, Powdered Drinks, Wine, Sports Drinks, Distilled Spirits, Energy Drinks, and Tap Water. . Problems: 1. Growth in sales falls short of investors’ expectations 2. Is there a new form of rivalry 3. Need for new products to keep up with the current health craze 4. How can Coca-Cola and Pepsi increase CSD sales 6. Solutions: 1. Focus on advertising and promotion to change the image to fit the healthy living trend community by addressing consumer growing health concern of obesity for Coca-Cola and Pepsi industries. 2. Change unhealthy stigma by a novel marketing campaign 3. Provide healthier alternatives 4. Develop nutritious CSDs.