Coca-cola vs Pepsi
Coca-Cola vs. Pepsi Co.: An International Battle The soft drink industry has been engulfed by an ongoing cola war stemming from a long-time battle between Coca-Cola and Pepsi Co. Recently both companies have introduced their products to the foreign market, but in order for either company to turn a profit, there is a large amount of red tape they must cut before production can begin. This paper will examine the new markets and the roadblocks that have stopped these companies for so long. Established in 1886 and 1889, Coca-Cola and Pepsi Co., respectively, were among the first soft drinks invented and their popularity grew rapidly. By the 1930's, Coca-Cola appeared on over 20,000 walls, 160,000 billboards, 5 million soda fountain glasses and 400 million newspaper and magazine advertisements (Secret Formula p. 206). When the war (Second World) ended, the Coca-Cola Company had sixty-three overseas bottling plants in operation in venues as far-flung as Egypt, Iceland, Iran, West Africa and New Guinea (Secret Formula, p.265). Since then, international marketing has become more complex and the following will study the new territories and the advancements that the companies have made.
While both companies have been in Eastern Europe for many years, the main task now is to develop the market. Both Coca-Cola and Pepsi are trying to have their colas available in as many locations in Eastern Europe as possible, and are recognizing the concepts which are becoming more important in marketing to these countries: color, product attractiveness, visibility, and display quality. Many issues need to be overcome before a company can begin to produce goods in a foreign market, those including, political, social and economic concerns. In addition, availability, acceptability and affordability are other key factors for Eastern Europe. Pepsi had a commanding 4 to 1 lead in 1992 in the former Soviet Union. "Selling in Russia: The march on Moscow. Coca-Cola, which plans to pour over $100 million into the Saudi market, is focusing on marketing to get there. Also, some Romanians drink Pepsi because, in the past, only top officials were allowed to drink it. In 1993, almost 7% of Pepsi-Cola International's sales came from Saudi Arabia alone. The battle for Saudi Arabia actually began 6 years ago, when the Arab boycott collapsed and Coca-Cola began to make inroads into the Gulf, Egypt, Lebanon, and Jordan.
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