These companies are Coke-Cola and Pepsi-Cola which are considered industry giants in the cola business; in fact, their competition is considered on a global scale.
The competition between these two companies is similar to a war in which the stake is control of a bigger market share. Currently, Coca-Cola Company’s market share in the United State is 43.1%; on the other hand, Pepsi- Cola’s market share is 31.7%. Smaller competitors like Cadbury Schweppes have a market share of 14.5%, while the rest share 10.7% remaining share. Since the beginning of the CSD industrial, the market share of it comparing with beverages industrial like beer and milk is increasing every year. In other hand, the market share of this industrial dropped from 71% in 1990 to 60% in 2004 for many reason such as health and economy. Ever since that decline, Coca Cola and Pepsi cola introduced different brands rather than just Cola. (i.e., Coca-Cola introduced more than 10 brands while Pepsi-Cola grew their market share). The advertisement, promotion, emphasis on retailers, and product development are the factors that led Pepsi to capture the CSD market and overcome its bankruptcy twice. Pepsi challenge campaign, which was a huge hit and saw an increase in 9% market share during 1970’s to 1980’s, is the other reason include its decision to modernize bottler’s plant.
Coca Cola and Pepsi cola entered the international market by franchise agreements, so more than 9 million outlets in more than 200 countries sell Coke products. In the case of Coca-cola , 70% sales and 80% profit came from outside the United States, while Pepsi-Cola’s thirty-percent sales came from Middle East and Asia. Nevertheless, Coca-Cola has around half of the global market while Pepsi-cola has captured a quarter of global market. On the other hand, Cadbury Schweppes garnered ten-percent of the global market.
The first reason why the soft drink industry has been so profitable is the