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분야
doc1) Industry structure
2) The two giants
2. Strategies and Critical Success Factors in the Industry
1) There was no specific business-level strategies
2) What happened to Pepsi in 1975 to 1980?
3) The best way to achieve higher market share is good at advertising and marketing campaign.
3. General Environment analysis
4. Strategic Groups within the CSD Industry
5. Industry Opportunities and Threats analysis
6. Description of the Firm
- Company history
- Product lines
- The scope of the firm
- The size of the firm
- The firm's culture and philosophies
7. Strengths, Weaknesses, Opportunities and Threats
8. Current Strategy
1) Corporate-level Strategy
2) Business-level Strategy
9. Recommended Actions
1) There was no specific business-level strategies
When Pepsi declared bankruptcy(in 1932, during the Great Depression), they lowered the price of its 12-oz bottle to 5 cents – the same price that Coke charged for a 6.5-oz bottle. Pepsi sometimes lowered their price temporarily, but we can’t deem it as a ‘Cost Leadership Strategy’. Because two companies imitate each other over and over again. They both maintained similar product lines, various packaging types and similar prices.
2) What happened to Pepsi in 1975 to 1980?
We can see the dramatic growth of Pepsi’s market share during the period of 1975 to 1980. So we can find the factors that can improve the market share of the companies in this industry by analyzing Pepsi’s foot prints of this period.
In 1974, Pepsi launched the campaign named “Pepsi Challenge” in Dallas, Texas. Coke was the dominant brand in that city, and Pepsi was third behind Dr Pepper. Pepsi conducted blind taste tests. And the company tried to demonstrate that consumers actually preferred Pepsi to Coke. After its sales shot up in Dallas, Pepsi rolled out the campaign nationwide.
3) The best way to achieve higher market share is good at advertising and marketing campaign.
“Pepsi Challenge” is one of good sample of successful marketing campaign. Two companies launched a lot of campains, advertising and promotions –For example “skirt bottle”, “lifestyle”, “soldier discount” of Coke and “twice as much”, “Pepsi Challenge”, “smart spot” of Pepsi.
According to Exhibit4 below, actually 43% of the sales of concentrate producers are spending in advertising and marketing. So, The most impotant factors of succeeding in this market are advertising and marketing.
