Coca Сola’s Response to Changing Market Conditions

Coca Сola’s Response to Changing Market Conditions Essay example
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Coca cola’s response to changing market conditions were very different from the way Pepsi looked at the issue. First, Coca cola chose to focus on the carbonated drinks as their main products.


While Coca Cola was focusing too much on carbonated drinks, PepsiCo was responding to market changes in two important ways. To begin with, Pepsi chose diversification as its strategy to increase its customer base. By this time, they had already realised that they would be better access a bigger part of the market by offering complimenting products such as energy bars and other snack foods. Meeting emerging consumer concerns PepsiCo also realised one important thing about consumer needs. As people started to be more concerned about the health issues caused by cola drinks, PepsiCo was quick to launch healthy products such as diet code and other non-sugary products. This was a very good way to access the segment of the market which was tied in people who could not use the normal carbonated beverages. At the same time, the number of people with health issues such as diabetes was becoming very high and this made it possible to have a big market share for non-sugary beverages. Pepsis was quick to respond to this rising marketing needs. Yet, at such a time when non carbonated drinks were becoming favourite for so many people who were either concerned about the health impacts of carbonated drinks or whose health issues could not allow them to use the same, Coca cola, under the leadership of Goizueta, continued to focus on its cola drinks. ...
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