Consumers’ Preferences for Coca Cola and Pepsi Essay

Recommendation provided by Yayra Consulting house for the Coca Cola Corporation and Pepsi Corporation is as follows: Based on the study I found that a bulk preferred Coca Cola over Pepsi. The consumers that preferred Coca Cola were influenced by the merchandises gustatory sensation. Both Coca Cola consumers every bit good as Pepsi consumers were loyal to their merchandise of penchant. In both instances I found consumers who have consumed Coca Cola and Pepsi for over 20 old ages. I recommend that Coca Cola continue to put in advertizements due to the fact that from those who preferred Coca Cola were influenced by their advertizements and their usage of famous persons. Consumers did state that if they did non hold a pick and Pepsi was their lone pick they would sometimes imbibe Pepsi. This leads me to urge Coca Cola to increase their presence in countries where they presently are non. This will give the consumer an option and loyal consumers will remain with their penchant. I would urge that Coca Cola ensures that their merchandise is available at the convenience of their consumers.

My recommendation for Pepsi would be to aim the younger community by integrating sketch characters on their merchandises. This recommendation is due to the fact that from those surveyed I found that the younger coevals liked the Pepsi sweeter gustatory sensation more than what those surveyed described as chip spirit for Coca Cola.

Pepsi: Two out of the 5 people surveyed preferable Pepsi over Coca Cola. Out of the two surveyed for Pepsi both preferable Pepsi’s gustatory sensation. Monetary value did non act upon pick. Out of the two Pepsi preferred consumers stated that they drank & lt ; 1 cup – 4 cups per twenty-four hours. Of the two surveyed both stated that they would sometimes take Coca Cola if they had no other pick. Of the two surveyed the old ages devouring the merchandise ranged from 9 – 20 + old ages. Merely one of the two surveyed entirely consumed Pepsi in their household. Both Pepsi consumers surveyed were attracted to Pepsi’s advertizements.

APPENDIX BProduct Profitability analysis between Coca Cola and Pepsi: The merchandise I have chosen is Coca Cola versus Pepsi for analysis. From research I found that Coca Cola net sales/revenues were $ 24. 088. 000. Cost of goods sold were $ 8. 154. 000 the difference between both sales/revenues and cost of goods sold resulted in a gross net income of $ 15. 924. 000 in 2006. The net income in 2006 was $ 5. 080. 000.

For Pepsi I found that net gross for 2006 were $ 35. 137. 000. Cost of goods sold was $ 15. 762. 000. The difference between the gross and cost of goods sold in 2006 for Pepsi showed a net net income of $ 6. 439. 000. The net income in 2006 was $ 6. 439. 000.

The importance of the fiscal information is to demo countries in which the corporation is stand outing and may desire to go on to put in. The fiscal information analysis in item besides reveals countries in which the corporation is losing money and from the findings the corporation can make up one’s mind to alter its attack in the peculiar country in order to forestall farther fiscal losingss. Besides. the information helps direction to place these countries where there is loss and take action that leads to increased net incomes.

Based on the net income of 2006 for Pepsi I would state one of the factors that contribute to the border they have over Coca Cola is that Pepsi is more diversified in the merchandises that they produce. Pepsi non merely distributes the nonalcoholic drinks they besides distribute a assortment of sweet and piquant bite merchandises.

APPENDIX CSWOT ANALYSIS – Strengths. Weaknesses. Opportunities and Menaces: Strengths: Coca Cola: Coca Cola is a good established international nonalcoholic drink corporation. They are good established in the market and are one of the largest nonalcoholic drink companies in the universe. Coca Cola has over 400 trade names from H2O to athleticss drinks. Coca Cola continues to put in advertizements for their merchandises. which contributes to their strong presence in the drink market. They are turn toing advanced ways to supply healthy drinks for consumers.

Pepsi: Pepsi is besides a good established international nonalcoholic drink corporation. In add-on to drinks Pepsi sells bites such as the Frito Lay french friess. They operate globally and have penetrated the market through advertizements. which influences increased gross revenues. Pepsi utilizing a distribution web to sell their merchandises. They sell to distributers based on client demands. Their established presence in the market contributes to their continued success and sets the phase for new successes with new merchandises distributed by Pepsi.

Failings: Coca Cola: Coca Cola in 2006 some external factors caused a decrease in income due to foreign exchange negatively wedged operation income in a lessening of 1 % in European Union. Bottling investings. Brazil. and Latin America. Higher involvement rates besides affected Coca Colas net incomes. In 2006 they had a lessening of $ 42M compared to the anterior twelvemonth. Their chief rival which is Pepsi has a strong presence in non merely the nonalcoholic drinks but besides in salty bites such as the Frito Lay french friess corporation. Coca Cola merchandises are purely beverage drinks and I believe that this is a failing for them.

Pepsi: Similar to Coca Cola Pepsi operates on client demand. If they were to market a new merchandise that consumers don’t like Pepsi is at hazard of losing gross revenues and gross. Other factors that can hold a negative impact to Pepsi’s continued success are external factors like rising prices. involvement rates. and political issues. This corporation is to a great extent dependent on engineering to run the daily concern. If anything were to travel incorrect with the engineering they can be negatively impacted. Another issue that is of concern to the Pepsi organisation is the fact that in recent old ages consumers have become more cognizant of wellness concerns. Peoples are get downing to keep those responsible for administering nutrients that are disease doing such as unwellnesss associated with fleshiness. To go on on the subject of wellness. Pepsi continues to administer diet drinks incorporating aspartame which has been linked to malignant neoplastic disease.

APPENDIX C ( Continued ) Opportunities: Coca Cola: Coca Cola continues to put on advanced merchandises. This leads to holding the ability to remain in front of their rivals such as Pepsi. With Coca Cola being an international concern the ability to be advanced provides farther success in an of all time changing universe. In respects to being advanced. through invention Coca Cola has the chance to set out healthy merchandises into the market and turn to how their merchandise affects the wellness of their consumers. Coca Cola to day of the month has increased their diet merchandises by through their partnership with Splenda. a diet replacement. by supplying a assortment of diet Coca Cola drinks. I besides believe that Coca Cola should ramify out like Pepsi into the bite industry. By making so. they can hold more of a competitory border over Pepsi by supplying bites that are healthy in combination with advanced wellness drinks.

Pepsi: Pepsi already participates in the distribution of bites every bit good as their Pepsi drinks nevertheless. the bites distributed are considered to be unhealthy. They should set more focal point on supplying healthier merchandises for the consumer. This would supply more profitable chances for Pepsi. They would be making consumers who in today’s changing universe are more wellness scruples than of all time before.

APPENDIX C ( Continued ) Threats: Coca Cola: The menaces for Coca Cola are the changeless addition new rivals come ining the market. They have to invariably be cognizant of who their rivals are and what they are offering the market so that they can remain in front of their rivals. Coca Cola dependance on engineering is besides a menace because in today’s advanced technological universe there is ever some sort of external menace including hackers. viruses that can pervert critical fiscal information every bit good as merchandise information. Another factor that can be a menace to Coca Cola is the involvement rates increase. This can straight impact Coca Cola’s net incomes which can ensue in a loss.

Pepsi: The menaces for Pepsi are their part to the unhealthy bites that they distribute to the consumer. I think that corporations have a societal duty to supply healthy nutrient merchandises and non merchandises that can do sick wellness. Pepsi non merely distributes nonalcoholic drinks but it besides distributes bites such as Lays french friess. Doritos. Fritos to call a few. These bites are considered unhealthy and I think that they should put in advanced ways to come up with healthy bites to the wellness scruples consumer. In recent old ages consumers have sued corporations for administering nutrient merchandises that have lead to hapless wellness. Therefore. with the menace of possible cases Pepsi needs to turn to this issue and supply a merchandise that consumers would see to be healthy.

Decision

The fact remains that Coca Cola and Pepsi are each others chief rivals. My recommendations for Coca Cola to put in increasing their presence where they presently are non and continued investings in advertizements I believe will set them in front of Pepsi. Besides. Coca Cola should ramify out into administering bites but non merely any bite but a healthy alternate bite for the increased consciousness consumers have in today’s market. Pepsi consumers favored their sweet gustatory sensation that was particularly appealing to immature consumers. My recommendation that they advertise with sketch characters by aiming the young person I believe would take to increased gross revenues and increased net incomes for Pepsi. I besides believe that Pepsi should put in supplying fitter drinks and bites for their consumers. They already are in the market for the bites if they began selling healthy versions of the bing bites I believe that would besides give them an border over Coca Cola being that Coca Cola has yet to put in the distribution of bites.

In decision. Coca Cola and Pepsi are successful companies that are good established in the market. This gives them an border in the market that new rivals fall ining the market don’t have. That being said they still face the changeless menace of new rivals and bing 1s and must go on to put in advanced ways that will maintain them in front of the competition. Besides. companies have a societal duty to supply healthy merchandises for consumers particularly in today’s universe with consumers being more wellness scruples and demanding quality merchandises from the nutrient industry.

Citation

New York Stock Exchange: PEPSI hypertext transfer protocol: //www. New York Stock Exchange. com/about/listed/pep. htmlhttp: //www. pepsico. com/PEP_Investors/AnnualReports/06/PepsiCo2006Annual. pdfCOKE hypertext transfer protocol: //www. New York Stock Exchange. com/about/listed/ko. htmlhttp: //www. thecoca-colacompany. com/investors/pdfs/form_10K_2006. pdf