Coke vs Pepsi
The soft-drink battleground has now turned toward new overseas markets. While once the United States, Australia, Japan, and Western Europe were the dominant soft-drink markets, the growth has slowed down dramatically, but they are still important markets for Coca-Cola and Pepsi. However, Eastern Europe, Mexico, China, Saudi Arabia, and India have become the new "hot spots." Both Coca-Cola and Pepsi are forming joint bottling ventures in these nations and in other areas where they see growth potential. As we have seen, international marketing can be very complex. Many issues have to be resolved before a company can even consider entering uncharted foreign waters. This becomes very evident as one begins to study the international cola wars. The domestic cola war between Coca-Cola and Pepsi is still raging. However, the two soft-drink giants also recognize that opportunities for growth in many of the mature markets have slowed. Both Coca-Cola, which sold 10 billion cases o!f soft drinks in 1992, and Pepsi now find themselves asking, "Where will sales of the next 10 billion cases come from?" The answer lies in the developing world, where income levels and appetites for Western products are at an all time high.
Both companies are ploughing profits straight back into expansion. The start of the Gulf War, however, temporarily stunted Coca-Cola's growth in the region. These factories are double the size of the factory Pepsi has in Bucharest. Many issues need to be overcome before a company can begin to produce its goods in a foreign country. Coca-Cola only began producing locally in November 1991, but it is outselling all of its competitors. 5% a year, and the Saudis' oil-based wealth "make it the most valuable market in the Middle East" (The Economist, 86). America's Reynolds Company is among the investors looking to cash in on Coca-Cola's return to Saudi Arabia. At the height of World War II, Woodruff proclaimed that wherever American boys were fighting, they'd be able to get a Coke. Coca-Cola is closing in on Pepsi's lead in this country with 1992 sales of 19. Ci-Co has planned an aggressive publicity campaign and has sponsored local sporting and cultural events. Part of this is due to the absence of its archrival, Coca-Cola. Pepsi entered into a joint venture with a local firm, Flora and Quadrant, for its Bucharest plant, and has 5 other factories in Romania. While Pepsi sells for Rb250 (25 cents), Coca-Cola sells for Rb450 (45 cents). Coke and Pepsi in India:Coca-Cola controlled the Indian market until 1977, when the Janata Party beat the Congress Party of then Prime Minister Indira Gandhi.
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Acceptance Essays
