Coca cola low cost strategy

The five forces measure the competitiveness of the market deriving its attractiveness. Threat of Substitute Products or Services: A substitute is a product that performs the same or similar function as another product.

Coca cola low cost strategy

Public Domain PepsiCo is the second biggest player in the global food and beverage industry. The company offers a diverse array of products. Intensive growth strategies outline how firms support their growth.

Coca-cola vs. Pepsi: The Economics behind Coke’s Dominance

Cost leadership Broad differentiation PepsiCo uses cost leadership as its primary generic competitive strategy. For example, to compete against Coca-Cola products, PepsiCo offers low prices based on low operating costs. The company also sometimes has special promotional offers with discounted prices.

On the other hand, PepsiCo uses broad differentiation as its secondary generic competitive strategy. PepsiCo implements market penetration as its primary intensive growth strategy.

Coca cola low cost strategy

This intensive strategy supports business growth through increased sales, such as from a bigger market share. For example, PepsiCo uses aggressive marketing to attract more consumers.

A strategic objective linked to this intensive growth strategy is to minimize costs and prices to attract more consumers despite market saturation. This intensive strategy requires offering new products to capture more consumers.

For example, PepsiCo continues to develop products or variants of existing ones, such as low-calorie, reduced-salt, or low-saturated-fat variants of its food and beverage products. PepsiCo applies market development as its supporting intensive growth strategy.

This intensive strategy supports business growth by capturing new markets or market segments. For example, PepsiCo continues to expand its distribution network to reach the last remaining markets or segments, especially in developing regions.

However, market development is only a supporting intensive growth strategy because PepsiCo already has significant presence in all regional markets worldwide. The cost leadership generic competitive strategy enables PepsiCo to effectively use this intensive growth strategy through cost minimization despite additional investments used for expansion to new markets or market segments.

Configurations of governance structure, generic strategy, and firm size. Copyright by Panmore Institute - All rights reserved.

Coca-Cola India: Winning Hearts, Minds and Taste Buds in the Hinterland - [email protected]

Educators, Researchers, and Students:LONDON--(BUSINESS WIRE)--Coca-Cola European Partners plc (CCEP) (ticker symbol: CCE) today announces its interim results for the six months ended 29 June and .

Coca-Cola (ko) reported a better-than-expected quarterly profit, helped by aggressive cost-cutting and lower commodity costs. The soda maker, which is targeting $3 billion in annual cost savings. With this campaign and our broader “one brand” strategy, we’re letting consumers know they can enjoy Coca‑Cola with calories, fewer calories or no calories and with or without caffeine.

The choice belongs to each individual, every time he or she reaches for a delicious and refreshing Coca‑Cola.

Nov 19,  · Soda manufacturers are accused of knowingly deceiving customers about the health risks of sugar-sweetened beverages — at great cost to the African American community.

Marketing plan Coca Cola - Assignment Point

The main generic strategy used by Coca Cola is that of cost leadership. This is a strategy employed by several big brands of the world that are leading in the market.

Coca cola low cost strategy

Cost leadership is a very effective strategy that helps brands quickly increase market share and gain popularity. 2. Sell happiness: Coca-Cola. Ice-cold Sunshine.

The Pause That Refreshes. Life Tastes Good. Since its inception, the promise of the world's largest beverage-maker has been to delight consumers.

Cola War: Coca Cola pricing strategy