Coca Cola believed that health issue can create a bad impression in their business. Most of the people in United States started believing that Coca Cole wash arming their health because it contained fructose which was not good for the health. They government laid restrictions on the supply of soft drinks for children. The American government issued guidelines for those products which contained sugar in it. The shift in the market occurred in 1990s affected the growth in United States and changed the company direction.The growth of the company started to decline due to some health issues in the country. Due to high competition each company focused on giving more benefits to customers and giving more discounted prices to their major customers. After few years, Pepsi increased their product line by launching 13 different soft drink products. Coca Cola started thinking about minimizing the cost and increasing marketing strategy they changed the ingredients to fructose, it was basically a syrup in the replacement for sugar because fructose was cheaper than sugar, they increased their promotional activities, invested double in marketing and promotions,and introduced diet Coke which was the biggest hit of the Coca Cola company and became one the top diet soft drinks in a shorter time period.Ĭoca Cola market share was declining in United States Market which led them to change their formula recipe, after a few months they introduced a new brand named“Classic” and further introduced more products without caffeine and a different flavored soft drink and called it Cherry Coke. Pepsi was giving high competition to Coca Cola in the soft drink market. Pepsi responded to this change in Coca Cola strategy byentering the food industry, Pepsi joined hands with the food company name Frito-Lay they adopted diversified strategies and changed their name from Pepsi to PepsiCo. In United States, Pepsi was giving high competition to Coca Cola company,in challenge to this situation Coca Cola brought changes in their strategy and introduced different soft drink brands like Minute Mint which was a fruit juice another brand Duncan which was for the Coffee and chocolate brand. To capture the market Coca-Cola introduced new flavor and change in packaging through which they could attract more customers.

The war between the Coca Cola and Pepsi started in 1950 when Pepsi came up with new strategy to target the families through convenient stores, after this strategy they observed super growth in their market share, and then they started targeting young generation of United States through their promotional activity which increased their share in the cola market. Pepsi cola was introduced in 1893, initially they started selling their drink in bottles, due to competition they were facing difficulties to capture the market but they came up with low pricing strategy then Coca-Cola which helped Pepsi Cola to enter in the market till 1950 the market share of the Coca Cola was increased to 46% which was higher than any other brand in United States. Coca- Cola Company is one the biggest company in United States, and it has greater market share in Cola industry than other brands. There are two Cola companies who are in this battlement. This case is about the war between the Cola brands in United States.

On the whole, the case attempts to provide a comprehensive perspective regarding the dimensions of the cola wars and the direction in which they are heading.Cola Wars Continue: Pepsi and Coke Case Study Solution

The case also outlines battles fought on other fronts - conflicts with bottles, product modifications, attempts to steal the rival's employees and other mini wars. This case study details the various battles fought in India by the two rivals with its focus on the publicity campaigns where the two sought to steal each other's fizz. When the cola giants, Pepsi and Coke, entered the Indian market, they brought with them the cola wars that had become part of global folklore. 300 + Shipping & Handling Charges extra Themes Advertising and Promotion 300 įor delivery through courier (within India): Rs. Nor is it a primary information source.įor delivery in electronic format: Rs. It is not intended to illustrate either effective or ineffective handling of a management situation. This case study was compiled from published sources, and is intended to be used as a basis for class discussion.

Coke vs pepsi ad wars