• Changes in laws and regulations

• Changes in non-alcoholic business era

• Political conditions, specifically in international markets
• Ability to penetrate emerging and developing markets
• Changes in laws and regulations
• Level of economic growth in the country and in the industry
• Tax rates, interest rates and labour costs
• Fluctuations in currency exchange rates
• Distributes the majority of its products in cultured countries
• In America, people focus on their health
• In Japan, they created 30 alternative flavours

• The efficiency of a company's advertising, marketing, and promotional programs

• Packaging design, new equipment and new factories

• Water accessibility
• Climate changes affect the beverage industry greatly
• Advantage of humid climates who would enjoy Coca Cola drinks as a means to cool down

• Coca Cola retains all rights related to their business

• Patented process
 Competitive Rivalry Threat of new entrants

-high
-very low
-two major players-Coca
-global market of carbonated
Cola & Pepsi
drinks is highly saturated
-nearly of the same size and
-new entrants cannot benefits
have similar products
from the economies of scale
-level of differentiation is
low
- intense price competition
Porter’
Threat of substitutes
s5 Bargaining power of buyers

-high Forces -high

-beverages made by Pepsi, -fuelled by the availability of great
fruit juices, and other hot and choice of cola beverages
cold beverages
-no switching costs for customers
-switching costs are low for
-the price elasticity of products
the customers Bargaining power of
-segment of ‘Coke addicts’ is not
-quality of the substitute suppliers
-varies according to the significant
products is also generally
good type of supplier
-Supplier Diversity Program
promotes diversity among
suppliers for noble reasons
MAJOR PLAYERS AND MARKET STRUCTURE
• Market is dominated by two firms : The Coca-Cola Company and PepsiCo .
 In 2008, Coca Cola offered 25 brands and 133 varieties while PepsiCo offered 17
brands and 161 varieties
• Similar marketing mix across brands:
 Wide, but homogenous product lines. Eg: Coca Cola has Thums Up and Fanta, Pepsi
has Mountain Dew and Mirinda
 Low pricing strategy due to availability of substitutes
 Distribution channels include retailing through supermarkets, vending machines,
local stores
 Sales-oriented promotion with aggressive advertising
 No differentiating segmentation and positioning strategies due to high availability of
substitutes
World’s leading and most selling soft drink brand

Strong Brand Portfolio : Mostly Carbonated drinks - Sprite, Fanta, Diet Coke

Cost Control :

Outsources bottling operation to FEMSA

Segmentation :

According to product type

Demographic : Thumbs Up caters mainly to youth as it symbolizes adventure, while

Fanta caters mainly to children with its tangy taste

Psychographic : Diet Coke caters to health conscious people

2nd largest soft drink brand in the world

Brand Portfolio : Diversified – Pepsi, Tropicana, Gatorade, 7UP, Mirinda

Segmentation is similar to Coca Cola

Some degree of positioning:

Projected itself as consumer products company rather than pure beverage company with ‘Dew
and Doritos’

Breakfast option : Tropicana juices