Strategy analysis Essay Example | Topics and Well Written Essays - 2000 words

Strategy analysis - hear ExampleThe two giant American companies havent stopped although their basic cola grocery stores have leveled off in the world and now in the current year they still stand to battle against each other. Thus, pinhead wars still continue and the market can still expect some rude(a) products from the companies in the drink market.The cola wars began in the 1950s when Alfred Steele the former Coke marketing executive was made the executive at Pepsi. Steele came up with the strategy Beat Coke that focused on take-home gross revenue through supermarkets. Pepsi focused on family consumption so they came up with a 26-oz bottle. Thus after the 2nd world war, Pepsis growth took a straight shot ahead as supermarkets began to increase in the country. CEO of Pepsi Donald Kendall launched a marketing running game Pepsi Generation that targeted the youth of the nation or people young at heart. This helped Pepsi to squeeze Cokes lead to a 2-to-1 margin. Pepsi also worke d with its bottlers to improve plants and store facilities. Thus, Pepsis bottlers were greater than Cokes during 1970. Plus Pepsi sold concentrate to its bottlers at a scathe that was 20% lower than that of Coke. In 1960s the two companies decided to experiment with new cola and non-cola brands and also new packaging ideas. Thus Coke launched Fanta, Sprite and low calorie cola Tab. Pepsi launched Teem, Mountain Dew and Diet Pepsi. The companies introduced non-returnable glass in bottles simultaneously and also 12-oz metal cans that were a huge hit since they are convenient, light and trendier. The companies also plunged into the non-CSD market that included juices, coffee, tea, hot chocolate and water. The flooded the beverage market. Coke bought Minute Maid (fruit juice), Duncan foods (coffee, tea, hot chocolate) and Belmont Springs Water. Whereas, in 1965 Pepsi merged with snack-food giant Frito-Lay in order to form Pepsi Co. Coca Colas advertising strategy focused on showing th at its product is better than the competitors. Coke focused on the overseas market during this period with the supposal that the domestic market has saturated and Pepsi competed with Coke in the domestic market and managed to double its share in the United States between 1950 and 1970. In 1974 Pepsi launched the Pepsi Challenge in Dallas, Texas where Coke was largest selling brand. They began differentiate with Coke with screenland taste tests to ensure that people liked the taste of Pepsi more than any other cola. This strategy worked and sales shot up in Dallas. thus Pepsi launched thin campaign nationwide. Coke retaliated with retail price cuts, rebates, and advertisements that questioned the machination tests validity. But Pepsi challenge managed to win Cokes market share. In 1979, Pepsi sales increased more than Coke sales for the first time through retail outlets with a 1.4 share point lead. Coke then renegotiated its enfranchisement bottling shrivel up in order to achiev e flexibility in pricing the concentrate and syrups. Its bottlers approved the contract on a condition that was fulfilled and Coke came side by side with Pepsi in the market. Then Coke announced a price increase in concentrate and