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Cola Beverage Industry Gradually Into The Off-season The Two Giant Wave Of Expansion Way – Coke,

Cola Beverage Industry Gradually Into The Off-season The Two Giant Wave Of Expansion Way – Coke,

Beverage industry gradually into the off-season, but the two cola giants Coca-Cola and Pepsi has been continuously recent news. Coca-Cola last week launched a high profile in the fruit Milk drinks New products, the two music they have chosen to open plant last weekend, announced their development strategies and new market layout: a sights on non- Carbonated beverages A continuing development effort carbonated beverage market.

However, even more curious is that in overweight non-carbonated beverage Coca-Cola, Pepsi Cola distraction with or without opportunity to seize the carbonated water market; the other hand, the full range of flowering time in the Coca-Cola, who is all drink Coke road block Taoist.

Pepsi soft drinks doomed bet Invest 600 million Coca-Cola Bottling of commercial production (Wuhan) Co., Ltd. officially opened last month soon. Coca-Cola Greater China president, said Dai Jiashun, this is by far the highest amount of Coca-Cola to invest in China, the world’s most advanced production equipment beverage without gas production base.

Two days later, PepsiCo Invested one billion yuan in Chengdu opened a new factory mainly produces Pepsi, seven-up, reaching such its U.S. soft drinks. Greater China president of Pepsi beverages, said Wen-Kai Lu, Chengdu Pepsi mark the completion of the development in the western region into a new era. Researcher at the Chinese food business

Peng Zhu Dan analysis in an interview that focused on traditional gas PepsiCo beverage market, Coca-Cola will probably by more attention to the timing of non-carbonated soft drinks side, to strengthen their beverage gas market share.

And Coke will focus shifted, the possibility to win Coca-Cola Pepsi carbonated beverage market is also a matter of concern.

Carbonated drinks in Europe and the United States market, now began a downward direction, but in recent years, carbonated beverages in Soft drinks Although still in the forefront, and its growth has lagged far behind the fruit juice and other non-carbonated beverage growth. Bureau of Statistics data show that 1-May, fruit and vegetable juice production growth rate reached 24.07%, output reached 4.7144 million tons; in May a single month more than 1 million tons, reaching 1.0214 million tons, an increase of 15.89%. And carbonated drinks increased by only 5.44%, yield 4,438,600 tons; May a single month to 963,300 tons, an increase of 12.12%.

In a number of industry opinion, because although Coca-Cola will shift the focus of future field of non-carbonated, but will not reduce the influence of its brand, Coca-Cola shift in focus, the Pepsi can in a short time to replace Coca-Cola’s carbonated drinks market, its products have maintained good development momentum, such as Zero, Sprite, etc., have maintained good sales growth. Coca-Cola and the transfer of the focus does not mean that a market will give up carbonic acid, the corresponding Advertisement Promotion or will it continue.

Actually Pepsi has been made this year to force non-carbonated drinks market in the market of non-carbonated drinks, “fruit particle” and “Herbal Life” and other products were also launched.

Investment adviser in the food industry, Chen Chen, chief researcher believes that further if you want to catch up with Pepsi Cola, we must make great efforts in product development and other aspects, so as to ensure its leading position in the domestic market. Moreover, non-carbonated beverage industry is already the trend of future development, Pepsi would go a long way to its future development in China is extremely negative.

Only brand cola market advantage In the field of non-carbonated Coca-Cola is clearly onto the road, “Maid” brand holds the top market with low concentration of juice, some recent new products and markets are mainly centered on non-carbon drinks.

Non carbonated soft drinks in recent years, continued double-digit growth in the domestic and Coca-Cola business in China account for three percent. Dai Jiashun also shows that soft drinks in non-carbon ambition: To meet the rapid development of non-carbonated soft drinks market demand, the Coca-Cola and gradually improved the layout of non-carbonated soft drinks production.

Coca Cola to New Coke

Coca Cola to New Coke

In 1985 Coca Cola decided to terminate their flagship brand Coca Cola and launch a formula sweeter than it.To understand why, let’s go back a few years.

In the 60s Pepsi repositioned itself as a youth brand, even though it was loosing out its elderly customers to Coke. This move brought them enormous success, it perfectly complimented the rivals ‘old and classic’ look. With a narrowed focus, it came to be seen as a ‘drink of the youth’.

In the 70s Cokes rival started the Pepsi challenge which was a blind test between its own product and the Coke. To the companies terror most of the participants preferred Pepsi to Coke.

In the 80s Pepsi launched the challenge globally, it promoted the arrival of the ‘Pepsi generation’. It also signed up celebrities like MJ and Britney Spears. Now Coke’s numero uno position seemed to be vulnerable. It lost the market share not only to Pepsi, but to its own brand Diet Coke.In 1983 Cokes market share came down to a new low of 24%.

1n 1984 coke launched a marketing campaign praising itself for being less sweet than Pepsi. They roped in Billy as the brand ambassador. These efforts were fruit less. They could survive only because of their effective distribution chain.

Coke perceived that the problem was with the product. So, they started working on a new sweeter formula. They finally came up with a formula which they taste tested, the results were satisfying. It fared better than Pepsi. But having both the formulae in the market was not logical as it would make the numero uno position vulnerable.

Coke had badly underestimated the power of its brand. After hearing the news, a large part of US decided to boycott the product. On 23, April 1985 New Coke was launched and few days later Coke was stopped. New Cokes sales were low, public was agitated by the fact that Coke was no longer available.

Things were very clear, Coca Cola had to bring back the ‘real thing’.

The first very big mistake they did was under estimating its own brand. They took people for granted. We all know that Coca Cola is the ‘real thing’. They simply thought that they can convince us by telling that, the real thing was a mistake. So, they have come up with a ‘new real thing’. In fact their mistake was first identified by Pepsi, so they came up with a ad criticizing their move. And while analyzing, why their sales were going down, they took only taste into consideration. Its a mistake not just done by Coke. the same little blunder is done by many major companies while analyzing their decline in sales. The main purpose of the launching New Coke was to retain their numero uno position. But history has repeatedly told us that no new product in an old product line can become number one overnight. But this is what they wanted to do. These mistakes sound petty I know, bu these are the kinds of mistake such huge companies do.

Take away:

-Brand value can never be underestimated.
-Research should have a 360 degree approach.
-Never follow the competitor.