Business of three companies……………………………………………….. 5 Coca-Cola, Pepsi
Business And Business Environment Name Table of contents Introduction…………………………………………………………………………………4The SWOT analysis of three companies………………………………………………..5Coca-Cola, Pepsicomparison…………………………………………………………… 9Segmentation of products…………………………………………………………………9Target marketing…………………………………………………………………………..11Mission and vision…………………………………………………………………………12Marketing mix…………………………………………………………………………….
..13CSR and stakeholders ……………………………………………………………………14Organizational structure………………………………………………………………….16Legal structure…………………………………………………………………………….18Conclusion…………………………………………………………………………………18 IntroductionThis assignment has done topresent as a report to the CEO as I employed as a Business Analyst by a largemultinational organisation. Here I’ve chosen the main competitor Coca-Cola andother two competitive companies are Sweepers and Pepsi. Through the globe,these major players have been battling it out for a bigger chunk of the evergrowing soft drink market.
In here I’ve covered backgrounds, mission, vision,size, scope, legal structures, stakeholders etc. Maslow’s Hierarchy theoryinvolves in this. Maslow developed several levels through which individual’smove in the course of life. He believed that humans are motivated to move fromone stage to other starting at the bottom and reaching the top, in aprogression of satisfying their needs.
First, individuals try to fulfil theirbasic needs: such as food, water which are essential for survival. Once anindividual fulfil the needs of the first stage, he moves to fulfilpsychological needs: belongingness and love needs and self-esteem needs. In self-esteem,this the prestige and feeling of accomplishment. These drinks like Coca-cola, Pepsi,Schweppes are nowadays a prestige drink.
Without one of these, a party isincomplete. Coca-ColaCoca cola is a carbonatedsoft drink sold all over the world. This is the world’s most popular and numberone biggest selling soft drink and it has been a catalyst for socialinteraction and inspired innovation. It was created in 1886 in Atlanta,Georgia, by Dr. John S.
Pemberton. Pemberton’s clerk, Frank Robinson is the persons named the Coca-Cola. Candler was the 1stpresident, and forerunner who brought true vision to the business and the brand.Packaging operations soon started in Hawaii the next year, then spread to othercountries. PepsiPepsi is a carbonated softdrink that is produced and manufactured by PepsiCo. Created and developedin1898 and introduced as “Brad’s drink”, then renamed as Pepsi Cola in 1903 andnamed as Pepsi in 1961.It is one of the most famousbrands worldwide today, offered over 160 countries. India is a main market forPepsiCo and at the same me the company has added value to Indian agricultureindustry.
SchweppesSchweppes began in 1783 as soft drink.Its founder is Jacob Schweppes, drawn to the new art of carbonating beverages,so he refined and patented his own process of creating mineral water. Schweppesis the official drink of the 1851 great exhibition in London made such an influencethat fountain is still featured on the logo today. The company introduced fizzylemonade in 1831, the success of which led to a overflow of other flavouredfizzy drinks. Mission and visionMissionof Coke• To refresh the world in mind, body and spirit• To do everything differs• Our product in each hand• Being a global leader in beverage. Missionof PepsiPepsiCo mission is to be theworld’s premier consumer products company focused on convenient foods andbeverages. They seek to produce financial rewards to investors as we provideopportunities for growth and enrichment to or employees, their business partnersand communities in which they operate. Visionof coke• Profit – maximize the return of shareholder.
• People – establish a great to work where people areinspired to the best they cando.• Portfolio- Bring to the world a portfolio of beveragebrands that anticipate and safely people’s desire and need.• Partners – nurturing a winning network of partners andbuilding a mutual loyalty. Coca-cola’sorganizational structureThe Coca-Cola Company has a distinctInternational Division Structure because its international staffs operate aloneand in isolation from head office. It has various divisions in all continentsaround the world with presidents that control each continental division.Coca-Cola has 5 continental divisions.• Eurasia & Africa Group• Europe Group• Latin America Group• North America Group• Pacific GroupEach Continental divisionhas vice presidents that control sub-divisions based on regions or countries.This structure is efficient for Coca-Cola since it is a very large company.
Coca-Cola is as anethnocentric MNC because its domestic operations are very similar to itsinternational operations. Regardless of the country or region, Coca-Colaoperates the same way and sells the same brand and type of soft drink. Thecompany has tight control over its operations from head office.{ http://cokemnc.
blogspot.com/p/organizational-structure.html} Legalstructure The company divides itsoperations into two segments: • Beverages: The beverage business operates the franchisefor manufacturing and distributing Coca-Cola trademarked products in Australia,New Zealand, Fiji, Indonesia and Papua New Guinea and Alcoholic Beverages • Food & Services: The Food & Services divisionmanufactures and distributes packaged fruit and vegetables, jams and saucesthroughout Australia and globally. Visionof PepsiPepsi co vision is put intoaction through programs and a focus on environment stewardship activities tobenefit society and a commitment to build shareholder value by making PepsiCo atruly sustainable company. MarketingmixMarketing mix is the set ofmarketing tools that the firm uses to pursue its marketing objectives.Marketing mix has a classification for the marketing tools.
These marketing areclassified and called as the 4 p’s. (product, price, place and promotion) SWOTAnalysis Strengths (S) Weaknesses (W) Opportunities (O) Threats (T) Coca cola Coke brands enjoy and high profile global presence Broad-based bottling strategy 47% of global volume sales in carbonates Carbonates market is in decline Over-complexity of relationship with bottlers in North America The existing supply system is not so efficient for non-carbonates. Soft drink volumes is the Asia Pacific region forecast to increase by over 45% Brands like Minute Maid light and Minute Maid premium heart wise are concerened “Health Concerned” market. Growing “health-conscience” society PepsiCo’s Gatorade, Tropicana and Aquafina are stronger brands. Boycott in the Middle East Protest against Coke in India Negative publicity in Western Europe.
Pepsi PepsiCo brands enjoy and high profile global presence. Pepsi owns the world’s 2nd best selling soft drinks brand. Constant product innovation Aggressive marketing strategies using famous celebrities. A broad portfolio of products.
Carbonates market is in decline Pepsi is strongest in North America They only target young people. Increased consumer concerns with regard to drinking water Growth in healthier beverages Growth in RTD tea and Asian beverages Growth in the functional drinks industry. Aggressive competition is a major threat against the company. Influence of the Coca-Cola Company especially important against PepsiCo. lifestyles trend is a threat against PepsiCo’s because unhealthful because of their sugar, salt, or fat content. Environmentalism- threatens the company in how consumers negatively respond to product waste and lifecycle issues. Sweepers With a strong growth in volume, it is the company’s second biggest volume driven brand Increase in net sales and net profit Strong advertising and marketing makes it a top of the mind brand Not easily available in many major markets like India, China, Africa etc.
Only available in limited flavours and has high competition means limited market share Emerging economies like India, China etc. Diversify product portfolio More advertising and marketing to increase brand awareness Intense competition Foreign exchange risk, interest rate risk, commodity risks etc. Fluctuating economic conditions Coca-ColaproductCoca-Cola company is amultinational and it is not limited to one product. Through the years they haveinvented and introduced many products than their main cola drinks.• Coke• Diet coke• Thumbs up• Sprite• Fanta PepsiThe Pepsi drink containsbasic ingredients found in most other similar drinks including carbonatedwater, high fructose corn syrup, sugar, colourings, phosphoric acid, caffeine,citric acid and natural flavours. The caffeine free Pepsi comprises the same ingredientsbut no caffeine.• Pepsi• Diet Pepsi• 7up• Miranda• Mountain Dew Cokeand Pepsi comparison Coke Pespi The main dark cola drink of the company which started the rivalry between these companies. Pepsi’s dark cola which is the main competitor to Coke.
Full Throttle is an energy drink brand produced by the Coca-Cola company. It debuted in late 2004 in North America. AMP is an energy drink produced and distributed by PepsiCo under the Mountain Dew soft drink brand. vault is a carbonated beverage that was released by the Coca-Cola company in June 2005 Mountain Dew is an energy drink manufactured and distributed by PepsiCo PowerAde is a sport drink by and now number one sports drink worldwide. Gatorad is a non-carbonated sports drink marketed by Qaker Oats company, a division of PepsiCo.
Originally made for athelets, but now consumed as a snack beverage. Sprite is a clear lemon-lime flavoured, non-caffeinated soft drink. 7UP is a brand of a lemon-lime flavoured soft drink. Segmentationof Coca-ColaCoca-Cola segments itsmarket in a number of ways. Coca Cola’s customer segmentations is mainly bytheir market demographically based on age, income and family size.
Coca-Cola’sbehavioural segmentation is important to the company’s success. Age is animportant part of segmentation of Coca Cola, introduces Coca cola diet for thepeople who wanted to avoid sugar and for aged people. Coca cola’s targetpopulation customer age is 10-35.
Segmentation of SchweppesGeographic segmentation· Introduced nationally in US.Demographic segmentation· Sweepers had a diffused preference or naturalmarket· Positioned the product in the centre of thebasic market.· Preference hoping to appeal to all group ofpeople. Positioning· Sweepers Public Limited company was one ofthe largest British owned confectionary and soft drink.· It has positioned itself in the consumer mindeither as a mixer or as a soft drink for special occasions.
· Adult soft drink in the mind of consumer· Used as mixer to the alcohol at adultgathering. Target· Introduced nationally in US· Targeted all class and age of people. Marketing mix· Product Rasperry Ginger Ale· Price 1.79 US $ for 1 litre bottle· Promotion United States Market with $ 1 million spenton advertising.· Place Us was the Target where the majorplayers play Segmentationof PepsiPepsi segments its market inseveral ways. Pepsi mainly segment their market demographically assuming age,income and family size. Pepsi’s behavioural segmentation has been a key to thecompany’s success.
Age is one of the most significant parts of the segmentationof Pepsi. Pepsi introduces Pepsi diet for the people who are suffering fromdiabetic and for those who want to avoid sugar and for aged people. Pepsi mainlyproduces the Pepsi cola.
The main customer of Pepsi cola is young people whoseage is 10-35 Targetmarketing of Coca-ColaThey make different valuesto capture this portion of market by marketing targeting. Their market segmentprofiles shown that the majority of carbonated beverage drinkers are youth andmiddle age people. Coca cola targets the Bangladeshi schools, universities,restaurants, hotels and fast food stores. Coca cola customers are mostlyteenagers and young adults between the ages of 16-35 and also made diet coke ismainly for sugar concern people. Targetmarketing of PepsiThe reason why Pepsi-Colatargeted this market is because it is the largest among its users. Marketsegment profiles shown that the majority of carbonated beverage drinkers ofBangladesh are youth and middle age people and targets Bangladeshi schools,universities, restaurants and hotels. Pepsi customers are mostly teenagers andyoung adults between 14-30.
CokepriceCoke was a company rulingthe market before Pepsi entered. Earlier the price of coke was cost based. Butafter the emergence of the companies especially the likes of Pepsi, Coca-Colastarted with a pricing strategy based on the basis of competition. Nowadaysmore expenses spent on advertising softdrink companies rather than on manufacturing. Pepsi-PricePepsi decides it price onthe basis of competition. Pepsi is very flexible and it can come down with theprice very quickly.
The company is renowned to bring the price down even up tohalf if required. Through lowering the pricewill attract the customers but it won’t help them regain cost in productio.This is earlier, but now Pepsi is a full-fledged and growing company andcovered losses and now growing at a rapid rate.
PepsiCo’sCSR Initiatives & Stakeholders’ InterestsPepsiCo’scorporate social responsibility strategies supported based on how stakeholdersimpact the business. The company’s prioritization of stakeholders is stated inits corporate beliefs and purpose of business. The following are PepsiCo’smajor stakeholder groups, arranged according to the company’s prioritization:1. Consumers and Customers- Consumers andcustomers have top priority in PepsiCo’s corporate social responsibilitystrategy. This stakeholder group determines the financial standing of thecompany in terms of revenues.
Based on the importance of these stakeholders,PepsiCo uses continuing innovation processes to improve its products. 2. Communities- Part of PepsiCo’s thrust incorporate social responsibility is to ensure that it always has a positiveimpact on society. The interests of stakeholders include corporate support forcommunity development programs. The PepsiCo Foundation provides financialassistance for such programs. 3. Employees- PepsiCo believes that employeesare significant determinants of the company’s long-term growth. Thisstakeholder group is interested in career development and fair compensation.
4. Investors- As stakeholders, investors areinterested in PepsiCo’s higher financial performance. Investors mainly affectthe company through availability and cost of capital. PepsiCo’s corporatesocial responsibility strategy sufficiently covers the interests of investorsas a main stakeholder group. 5. Government- Governments are important interms of imposing rules and requirements on PepsiCo’s business.
PepsiCo’ globallegal team and public relations team address issues related to governments. Coca-Cola’sCSR activities Ø Water· Conservewater· Watershedprotection, rain water harvesting projects · 110recharge shafts that collect rainwater.· Ø Energy· Reduceenergy consumption and emission of GHGs by such as refrigeration· GHGemission reduced by three fourths· Increasedthe energy efficiency of its equipment by 40-50 Ø Packagingand recycling· Packagingframework that aimed at recycling· APET recycling project· Collectedthe company’s packaging material consisting of glass bottles, cans, etc. afterthey were disposed. Ø Health· Offeredhealth checkups, medicine and education to rural communities on health relatedtopics.
· Alsoconducted camps for Hepatits B vaccination, eye checkups and malariaeradication in Andrapradesh. Ø Economicresponsibilities· Offeremployment and gave the community chances to expand.· Forevery job in Coca cola system, some indirect jobs created.
. SweepesCSR activities CSR activities include,having raised $6 million for United Way, Action Nation Month encouragesemployees to contribute 50 hours for any NGO, and various environmentalinitiatives etc. ConclusionsCoca-Cola, Sweepers andPepsi have their unique features, positives and negatives. They try to maximumtheir strength and minimise their weakness. They try to fulfil the consumerneeds and to gain consumers trust to increases the demand for their product.Theses product produces in different flavours and produce to people who arewith health issues to fulfil consumers’ wants, compete with each other inglobal market to increases the sales of the product. To produce these products,available resources are limited buthuman needs and wants are unlimited. So scarcity takesplace.
These product sales all overthe world and has sub companies in different countries. There are many issuesgenerates in these companies. Environment issues, packing, manufacturing andalso inequalities between higher officers and staffs. There are so many softdrinks worldwide.
These soft drinks liked byfrom children to old age.Theyconsume soft drinks oftenly. In this report discussed about Coca-Cola, Sweepersand Pepsi about their backgrounds, mission, vision, size, scope, legalstructures, and stakeholders. However, these companies reduce the negatives andstrengthen the positives to create the need for their product in the globalmarket. ReferencesZigu. 2018. SchweppesSWOT Analysis | USP & Competitors | BrandGuide | MBASkool-Study.Learn.
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