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hiring additional staff she will be able to produce more pies and bring in more money. Option three: Contract the production of the pies to a national restaurant chain, giving Shelly a percentage of profits with minimal involvement. Depending on the percentage that Shelly will be able to take home; this may be the best option for her. This will eliminate all labor and supply cost for Shelly.
When supply and demand are equal or intersect, we consider this an equilibrium.
It is evident that equilibrium could never be attained, because of the constant fluctuation with goods and services.
Soft Drink Company
Soft drinks are made up of carbonated water, sugar, and caffeine
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the storage space constraint?
|[pic]| |90B + 100M ≥ 18000 |
|[pic]| |90B + 100M ≤ 18000 |
|[pic]| |100B + 90M ≤ 18000 |
|[pic]| |500B + 300M ≤ 18000 |
11. The production manager for the Coory soft drink company is considering the production of 2 kinds of soft drinks: regular (R) and diet (D). Two of her limited resources are production time (8 hours = 480 minutes per day) and syrup (1 of her ingredients) limited to 675 gallons per day. To produce a regular case requires 2 minutes and 5 gallons of syrup, while a diet case needs 4 minutes and 3 gallons of syrup. Profits for regular soft drink are $3.00 per case and profits for diet soft drink are $2.00 per case. What is the objective
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ECO 740 SOFT DRINK DEMAND ESTIMATION
Bajuriah binti Yunus
Salmiwati binti Mohamad Jamili
Suraya Hani binti Su’id
Zerafinas binti Abu Hassan
Prepared for :
Prof. Dr. Saadiah Mohamad
In economics demand can be defined the relationship between the prices of a commodity and the quantity of the commodity which the consumer wants to buy at certain price. It is essentially the attitude and reaction of a consumer towards the commodity they want to purchase. Demand forecasting involves techniques including both informal methods and quantitative methods, such as the use of historical sales data. As an example
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-Industry structure, market share: American National 44%, Ball Corp 5%, Crown Cork and Seal, 5%, Reynolds Metals 5%, Continental Can 13%, Other 28%.
-Industry trend—>In-house manufacture (brewers advantageous due to single-label), emergence of plastics (which was weakened in 84, 85. Still 1980 9% share to 18% share in ’89). Glass, for beer. Soft drink producers biggest customer for packaging producer. Diversification and consolidation among packing producers
-Diversification of related fields rather than unrelated ones. A response to low profit margins, excess, capacity, rising labor and RM costs. American can and insurance, failure.
-Rivalry among existing
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sales volume and gaining trust from their respective consumers on their products
2.0 CASE SUMMARY
The case is about three companies with 90% of the market share control the carbonated soft drink industry in the United States. These companies include in order of market share size, Coca-Cola, Pepsi Co, and Dr. Pepper/7Up. These three companies also represent the top ten selling brands in the United States market. In the United States, people consume more carbonated drinks than tap water. Research has shown that the average American drinks about 53 gallons of soft drinks per year. However, soft drink consumption has declined over the past few years (Kerin & Peterson, 2004). The soft
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. the most famous soda in Brazil, called “Guaraná Antarctica” that will bring a unique and surprising taste to those like us, who appreciate a tasteful and refreshing soda. Our project will give insight and provide details about how we plan to make our product one of the major competitors in the soft drink market.
Our main objective is to provide a soda completely different from anything that can be found in the U.S. market, while we bring a product that is directly related to the Brazilian culture and could add some new perspectives on how we look at the soft drink market. We will look forward to present our idea to some beverage distribution companies in order to make it possible to bring
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throughout the commercial we hear this sooth woman’s voice tell us that the refresher comes
from green coffee extract. She puts emphasis on get a boost of natural energy, after drinking the
refresher your inner energy emerges out. There a upbeat jingle in the back ground that is soft but
yet powering almost like a whistle. It adds a sense of readiness and happiness. The commercial is
set on a spring day display. We can see the display of the sun as well as the soft but cool outfits
that everyone is wearing. Compared to a raining and storming or even a night setting we see a
beautiful day. This adds a tone of happiness as well with a beautiful day out in nature it’s almost
as if everyday day you drink the refresher will be the same.
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consumer group where a favorable opportunity exists, and develop a brand differentiation strategy that effectively appeals to that market.
1. The company may choose to remain inactive in the energy drink market. The company has a significant market share in the carbonated soft drink (CSD) segment and participates in other major beverage markets as well. The company achieves strong operating margins and stable cash flows from other businesses. Choosing not to enter the energy drink market is unlikely to impact the company’s performance in these other successful businesses.
2. The company may choose to introduce a new energy drink brand to the market. This alternative
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* Alcoholic drink mixer
* Extreme Sports
* Sky diving
* Formula 1 sponsor
* Spends 30 to 40% of revenues on hard core marketing
* Buzz marketing
* Guerilla marketing
* Mixed marketing
* Bans from EU countries
* No regulation on labeling of such drinks
* Age limits should be set on purchasing
* Health risks associated with Red Bull
* Rising disposable incomes encourage premium purchases
* Major soft drink manufacturers have been attracted to the sports and energy drink market partly by the premium prices that currently exist for these market products.
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Table of Contents
1 Overview 2 General environmental analysis 3 Industry Analysis
3.1 Industry Structure - U.S. soft drink market share of concentrate producers - Suppliers within the carbonated soft drink industry 3.2 Market Structure - U.S. Liquid Consumption Trend (gallons/capita) - U.S. non-alcoholic refreshment beverage volume 2009 - U.S. soft drink market share – soft drink brands 3.3 Marketing Channels 3.4 Porter’s five forces 4 5 4
2 2 2
4 Competitive / corporate strategies of Coke and Pepsi 5 SWOT Analysis 6 Questions
6.1 How has the competition between Coke and Pepsi affected the industry’s profit? 6.2 If it has been such a profitable industry, why have so few firms
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2. Has Coca Cola made the mistake of ‘putting all their eggs in one basket’?
Through the 1987 market crash and the 1991-1992 recession, Cola-Cola recognized that diversification did not reduce its financial risks, but instead took time away from its core soft-drink business which produced far better ROI than the sub-10% return by diversified investments between 1987 and 1997. The average 25.8% ROTC would have been better without diversification during this period (see Exhibit 3). Therefore, the company created CCE to offload $3.1B of debt from its balance sheet and sold Columbia picture to focus on its core soft drink business and to implement its international bottling strategy for
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income consumption curve for a normal and inferior goods.
B) Suppose the supply curve for allu tikki passes through the point P= Rs.25 and Qs=500. Give two interpretations of this point on the supply curve.
7 In 2003, the Men`s Hair company increased the price of its shampoo and subsequently sold more shampoo than 2002. Is the demand curve for this company positively sloped? When the demand curve slopes positively? Give an example of a product in whose case demand curve slopes positively and also explain the exceptions of law of demand.
8 Shweta spends her whole weekly food allowance of $42 on Pizza and soft drinks. The price of single pizza is $2 and of soft drinks is $1.Shweta buys 12
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harmful their thirst quencher really is. This can only start if people, every single one of you, make the personal commitment to not buy or drink bottled water. This does mean making the conscience choice to grab a refillable bottle and actually fill it, but I’m sure that’s manageable. If you are still convinced that drinking bottled water either, tastes better, or is healthier, buy a home filter or a reusable filtered bottle because in reality, it is exactly what the bottle companies are doing. In doing this simple everyday tasks you’re joining a nationwide campaign that is rebelling against the soft drink companies like, Nestlé, Pepsi and Coca Cola, just to name a few, whether you’re aware of it or not. Many say “think before you drink” and it couldn’t be any truer when analyzing the multitude of negative aspects of bottled water.
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Strategic Management Project/Presentation
The Dr. Pepper Snapple Group
From the invention of the first soft drink more than 200 years ago to some of the industry's most beloved beverage brands, Dr Pepper Snapple Group (DPS) has a proud legacy of innovation, bold and distinct flavors, and entrepreneurial spirit.
On May 7, 2008, DPS became a stand-alone, publicly-traded company on the New York Stock Exchange as the result of a spin-off by Cadbury, plc which held the Cadbury Schweppes Americas Beverages business group of entities.
One of North America's leading refreshment beverage companies, DPS markets more than 50 brands of carbonated soft drinks, juices, teas
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paid millions of dollars to put their new image onto the market, and paid even more money to take their old image off the market. May experts believe their new youthful logo is a step in the right direction towards a new culture of the soft drink and is transcending the entire image of the company worldwide to a younger generation. Pepsi is the most famous drink in the entire world and now they have a logo in place to fit their power. The only question now is, how long will it take for them to change it again? What if this logo doesn’t last like all their other ones, is it back to square one? Pepsi is notorious for this and they have an awful track record when it comes to keeping an
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Traditionally, Barr’s strength is in Scotland where Irn-Bru is the leading grocery brand name. The company has a long-standing aim to increase sales south of the border. Sales there have been rising but they remain small compared to sales in Scotland. Nonetheless, Irn-Bru is now one of the top 100 grocery brands in the UK. It is the third biggest soft drink in the UK and the top non-cola brand. In most developed countries Coca-Cola is comfortably the market leader but, in Scotland, this is not the case. In 2003, sales of Irn-Bru in Scotland exceeded those of Coke.
Although brand names such as Coke, Pepsi and Sprite are known all over the world, the actual
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1905. A young graduate pharmacist, Claud A. Hatcher, began creating his own soft drinks in the basement of his family's wholesale grocery business. From these humble beginnings, Royal Crown Cola Co. grew to be the third largest soft drink company in America.
|[pic] |At first, the Hatcher Grocery Co. purchased bottled drinks from a local bottler and resold them |
| |to its grocery customers. As this part of the business grew, Mr. Hatcher insisted that the |
|[pic] |bottler pay the company a commission or compensate him in some way for handling the drinks. A |
| |dispute arose and Mr. Hatcher concluded
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considered obese worldwide (Olsen & Heitmann, 2009). There has also been a 300% increase in soda consumption since the 1970s with North American children (Frank-White & Frank, 2010). While Coca-Cola isn’t solely to blame for this, soft drink consumption has increased and studies have shown it to be a contributing factor. These drinks have also been linked to coronary artery disease, hypertension, and diabetes (President and Fellows, 2012). In a study of 91,249 women over an eight year period, it was found that those consuming one or more servings of cola per day were twice as likely to develop diabetes than those that did not (Vartanian, Schwartz, & Brownell, 2007). This is particularly
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inside the coconut, one must first make sure there is water inside, because if not it will not taste too pleasant. In order to drink the water inside the coconut, you must open a small hole to fit a straw or to drain the water into a cup. After one makes sure there is no water on the inside, you should use a powerful cutting instrument, such as a machete to cut it open in half. However, if this procedure is performed with water still inside, you will make a disorder. Last but not least, if an individual wishes, they may eat the white meat inside by peeling it with a knife, and therefore it will come right off.
The texture of the Maypan coconut is hard and solid. It’s so hard that if it were
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are almost in every country. Brand recognition is a main part in how Coca cola has remained so successful in the soft drink business. Coca cola has also furthered their stance in the market with commercials such as the Polar bear commercial and great super bowl adds, renting the perfect spot in Wal-Mart for product placement, discounts on syrup in food locations/restaurants, placing their trademark on professional racecars and on the outfield walls at baseball games. Coca Cola has also broken down their barriers and not only do they handle a large part of the soft drink market but also energy drinks, flavored bottled waters and juice drinks. These are results of research performed through
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Plastics play an important role in almost every aspect of our lives. Plastics are used to manufacture everyday products such as beverage containers, toys, and furniture. The widespread use of plastics demands proper end of life management. Plastics make up almost 13 percent of the municipal solid waste stream, a dramatic increase from 1960, when plastics were less than one percent of the waste stream. The largest amount of plastics is found in containers and packaging (e.g., soft drink bottles, lids, shampoo bottles), but they also are found in durable (e.g., appliances, furniture) and nondurable goods (e.g., diapers, trash bags, cups and utensils, medical devices). The recycling rate for
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Royal Business College
Determine Market Segmentation,
Targeting and Positioning Decisions
Version 4 | Level 6 | Credits 10
National Diploma in Business Level
Table of Contents | Page |
1. Introduction | 3 |
1.1 Introduction to market segmentation | 3 |
1.2 Background of the Case Study | 3 |
1.3 The company Marketing Objectives | 4 |
1.4 The benefits that company receive by segmenting the market | 4 |
1.5 Brand Name of the soft drink | 4 |
2. Part one: Potential Market Segmentation Assessment | 4 |
2.1 Resource implications | 4
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through opportunistic brand licensing without regard to impact upon the brand.
3. Extending into lower (and, sometimes higher) quality segments.
4. Not fully understanding brand benefit ownership, transfer or importance.
5. Over-extension of brands.
* Examples of unsuccessful brand extensions:-
1. In case of new Coke, Coca Cola has forgotten what the core brand was meant to stand for. It thought that taste was the only factor that consumer cared about. It was wrong. The time and money spent on research on new Coca Cola could not evaluate the deep emotional attachment to the original Coca- Cola.
2. Rasna Ltd. - Is among the famous soft drink companies in India. But when it
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An inexorably changing climate toward a more health conscious consumer has created a strategic quandary for the carbonated soft drink (CSD) giants, Coke and Pepsi: how to regain lost market share of their premier products and return to high annual growth rates seen previously?
Although consumer craving for CSDs is not to be underestimated, the growing market demand for alternatives must not be ignored. The strategy going forward should be multifold.
1. Both Coke and Pepsi must actively try to capture market share in the non-carb drinks market. In order to remain nimble and respond expeditiously and with agility to changing market demands, both firms must continue to reconsolidate their
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The public issue facing The Coca-Cola Company was its impact on availability and accessibility on water sources. A Public issue is mostly the one that affects a person’s day to day life. The traditional use of land by communities and farmers on a diverse scale of production becomes much more difficult when water sources are at risk. (Hwang & Steward, 2008). Water conservation had become a huge issue in India and all over the world. A decade ago Coca-Cola faced a major crisis in south India. The government and several non-governmental organizations objected so strongly to its water consumption that it was banned from soft-drink production in the region (Lovegrove).
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* Collaboration: “Leverage collective genius”
* Innovation: “Seek, imagine, create, delight”
* Quality: “What we do, we do well”
THE MARKETING PROCESS
Need, Want and Demand:-
The coca-cola company at the beginning sells medicine, when they analyze the need of the customer toward soft drink, in that Era when they identify that soft drink is also the want and demand of people, then they decided to come into soft
drink business, the medicine that they are selling change there name i.e. “Pemberton's French Wine of Cola (later known as Coca-Cola)”
The demand is unprecedented, and we see it every day in our sales numbers. But it's not especially
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affection. The gratitude they felt for small things that I would normally take for granted. A soft mattress to sleep on at night, a cold drink, a small toy. Small, simple things.
The children performed a few songs for us and then we passed out snacks and some toys. We also distributed rosaries donated by Dave's parent's church. The kids were so excited to have something of their own.
These children. They are living in conditions that are literally worse than anything we would allow animals to live in here in the US. Yet, they are so sweet and kind. They look out for one another. The older kids take care of the younger ones. They laugh and smile. A flicker of hope still shines.
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Dietary Supplements Summary
December 21, 2014
Dietary Supplements Summary
Dietary supplements are substances you eat or drink. They can be vitamins, minerals, herbs or other plants, amino acids (the individual building blocks of protein), or parts of these substances. They can be in pill, capsule, tablet, or liquid form. They supplement (add to) the diet and should not be considered a substitute for food. People have used herbal medicines to prevent illness, cure infection, relieve fever, and heal wounds. Herbal medicines can also treat constipation, ease pain, or act as relaxants or stimulants. Research on some herbs and plant products has shown
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the significance of marketing strategy for soft drink manufacturers: say Coca-Cola and Pepsi Cola and Pepsi cola in India. Discuss their strategies in depth?
5. Explain developing and testing a brand with the help of an example of your choice from the Indian Marketing environment?
6. Explain the role of strategic marketing in handling implicit collusion with the help of an example Of your choice?
7. Comment on the new corporate governing e-laws and their significance for Indian corporate Houses?
8. Elucidate new business practices followed by Indian firms after the advent of customer-Friendly technologies?
9. Illustrate the successful growth and diversification strategies
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the coffee industry is still the cup of coffee, so the primary substitute products that may pose a threat are caffeinated soft drinks like Coca Cola or Pepsi and the relatively new entrance of "energy drinks". However these industries are having problems and success of their own. The U.S. carbonated soft-drink market slipped 2.1 percent to a total of approximately 9.4 billion cases in 2009. This is the industry’s fifth consecutive year of decline, according to a new report by Beverage Digest (O'Leary, 2010). Meanwhile the Report Buyer has a new report showing that energy drinks, including market pop star Red Bull, are expected to ride the non-carbonated wave rushing the drink scene, growing at
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prevent babies! It’s the Oral Contraceptives, or in other words birth controle, made in 1954. Clamming the spot right before Oral Contraceptive is the Bar Code, I have a fealing that’s going to be something big in the future. Now in 5th place and made in 1958 is the Hula Hoop , keeping children occupied so you can have some alone time with the wife. Now in 4th place is this thing called McDonalds Corp. invented in 1955, and you can just tell it is going to be big. Next is something to keep you skinny it’s the Diet Soft Drink made in 1952. Then in 2ed is the Hover Craft invented in 1956 now who doesn’t want a flying car? Last but not least in 1st place is MR. POTATO HEAD from 1952.
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disease, peripheral vascular disease, retinopathy and neuropathy.
How Health Promotion is Defined
In the primary prevention article health promotion can be achieved by self-activities. The aim of self-care concept is to maintain and improve health. Self-care activities can minimize the risk of diabetes by eating healthy diet, exercise and maintaining modest weight, avoiding alcohol use and smoking and consumption of soft drink. The secondary prevention article refers to nutritional facts that are responsible for chronic health condition in youth such as diabetes. Health promotion in Tertiary phase can be achieved by giving information, education, and interventions designed for lifestyle
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Questions | Marks Allocated | Obtained Marks |
Introduction | 5 | |
1.1 Since its return to business in India, Cola has taken many CSR initiatives in India. Identify the initiatives according to the main six social initiatives identified by Philip Kotler. | 20 | |
2.1 Discuss the negative drawback of Soft Drink Industry like Coca Cola and Pepsi Companies in the developing world like India in terms of their effects on the environment, people and economy. | 30 | |
3.1 Discuss the roles of community people and local NGOs in controlling developing ecological sensitive projects. Mention the some actions taken from the case study. | 20 | |
4.1 In your opinion, do you think there is
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government and health advocates have recently been pushing for certain sugary soft drinks to be removed from school soft drink machines. This has also resulted in some of Coca Cola’s products sizes to be reduced from 20-ounce to 16-ounce portions. This was because of advocacy groups like “Texans Care for Children”, headed by Kris Kaiser-Olsen believes that sugary drinks are “more addictive that cigarettes and that higher taxes should be placed on their sales” (Kaiser-Olsen, 2011). Another issue is the social-cultural differences when placing Coca Cola products in foreign countries. Some Asian countries preferred fermented milk drinks and teas over the carbonated beverage, which requires
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one mission of the Coca-Cola Company - happinesss. (See the Coca-Cola mission and values below.)
Coca-Cola Founders Facts and Trivia:
The beverage known as Coca-Cola was invented by a pharmacist, John Pemberton in Atlanta, Georgia in 1886. Pemberton invented the syrup and then went to nearby Jacobs Pharmacy to add the carbonated water. Customers who tasted the first batch of the new beverage responded favorably, so Jacobs Pharmacy started selling it for five cents per glass. Pemberton’s bookkeeper, Frank Robinson is credited for naming the drink Coca-Cola, and for creating the distinctive Coca-Cola script, which is used as the logo for the both the soft drink and the company more than
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Obesity is an epidemic occurring predominantly in the western world.
Obesity is an epidemic occurring predominantly in the western world. The phenomenon is closely associated with changing lifestyles and the consumption of fast food and soft drinks. However, the fast-food companies and the Coca Cola company are major contributors to obesity research.
Discuss the different ethical positions that various stakeholders are taking in the use of corporate funds for research into obesity
This report will first discuss the major stakeholder fast food and Soft Drink Corporation ethical positions in making decision in funding researcher into obesity,
Business main motive is to earn
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strong brand name. So it makes sense to keep the existing product available for the market and do not diversify. From the case study we know that before the product’s price was relatively high to soft drinks but still below the price of liqueur and it was available mostly in gourmet shops. However, Perrier’s management is now suggesting to offer it in supermarket, which is not a good idea because supermarkets do their own promotions, selling their items at a discounted prices or offering them with coupons. It will have a negative impact on the product, as the product will no longer be considered as elitist.
Perrier is facing competition by Khisu Mineral Water, which has apparently cured
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Coca Cola Company was founded in the year 1886, while it enjoys the status of being one of
the biggest non-alcoholic beverage companies in the
world, originally was intended as a
‘patent medicine’ when pharmacist John S. Pemberton as a ‘coca wine’ invented it in the late
19th century, Coca-Cola has dominated the worldwide soft drink market for decades now. It
has been recognized as one of the most valuable brands and retained No.3 position on the list
of Best Global Brands, after Apple and Google. Now the brand is still continuing to evolve
and to stay ahead of trends through constant
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PepsiCo’s corporate mission is to be the leading global consumer products company with primary focus on convenient foods and beverages (PepsiCo Annual Report, 2010). Due to growing demand from our customers, consumer advocacy organizations and heavy political pressure to add “healthier” snack and beverage products to our portfolio. More recently, Michael Bloomberg, Mayor of New York City, is pushing for a municipal ban on the sale of super-sized sugary drinks to help mitigate the growing obesity rate. Other legislators, including the FDA, are looking at imposing a “soft drink tax” to also help curb consumption of our primary product base. If we seek to
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Coca-Cola was founded off of curiosity by an Atlanta pharmacist named Dr. John S. Pemberton in 1886. He created flavored syrup in which he took to his neighborhood pharmacy, where it was mixed with carbonated water and deemed “excellent” by those who sampled it (The Coca-Cola Company 2015). The distinctive tasting soft drink that was originally created was made for soda fountains. Dr. Pemberton’s partner and bookkeeper, Frank M. Robinson, is credited with naming the beverage “CocaCola” as well as designing the trademarked, distinct script, still used today (The Coca-Cola Company 2015).
Coca-Cola’s roadmap starts with their mission, which declares their purpose as a
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taste great. They want this drink to be convenient, meaning they can do it quickly and whenever they want. They are hoping that this beverage can be made exactly how they like it, and that the brand coincides with their eco-friendly beliefs by them using sustainable practices.
The current perceptions regarding the Carbonated Soft Drink & Liquid Refreshment industry is that the beverages are not good for one's health; this perception, combined with the obesity epidemic in the United States has allowed the consumption of these beverage to decrease. Another perception is that the leftover cans and plastic bottles are polluting the environment; about 1 billion cans worldwide
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of the most recognizable brands on the planet and also owns a large portfolio of other soft drink brands including Schweppes, Oasis, 5 alive, Kea Oar, Fanta, Lilt, Dr Pepper, Sprite and Powerade. Despite this, Coca-Cola often struggles to maintain its market share over its main rival PepsiCo in some overseas markets, particularly Asian countries. Arguments for Standardization Converging customer needs and preferences It is proposed by Levitt that the forces of globalization driven by technology and wider travel are leading to more homogenized customer needs and wants worldwide. This paves the way for the building of global brand identities where companies are able to export their domestic
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place to just drink coffee. They will be coming to Heaven Treasures Coffee House because of the product and great customer service they receive. At Heaven Treasures, the customers are welcomed like one of the family. Each cup of coffee or tea will be shared with family and friends. Heaven Treasures is a meeting place for book clubs, corporate luncheons, and teenage hangout to surf the web using the free Wi-Fi that is offered to the customers.
Heaven Treasure’s will welcome all cultures to its establishment. It is a diverse company that gives equal opportunity to all. Some of the employees’ ages range from 18 to 50 years old. This is because of the different
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There is little doubt that the most spirited and intense competition in the beverage world is between Coca-Cola and Pepsi Co., the two main players in the carbonated soft drink (CSD) production market. The competition between the two giants has benefited not only the consumers but also the companies. By checking and challenging each other in the market, the competition has lead to improvement and diversification of products and has forced each company to be creative and innovative. Throughout time, both companies have employed a number of diverse strategies to differentiate their products and to gain market share. Each successful tactic by one company would be copied by the
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the Softy soft drink company is considering the production of 2 kinds of soft drinks: regular and diet. Two of her resources are production time (8 hours = 480 minutes per day) and syrup (1 of the ingredients) limited to 675 gallons per day. To produce a regular case requires 2 minutes and 5 gallons of syrup, while a diet case needs 4 minutes and 3 gallons of syrup. Profits for regular soft drink are $3.00 per case and profits for diet soft drink are $2.00 per case. What is the time constraint?
A) 2R + 4D ≤ 480
B) 2D + 4R ≤ 480
C) 2R + 3D ≤ 480
D) 3R + 2D ≤ 480
E) 3R + 4D ≤ 480
Diff: 2 Page Ref: 131-136
Main Heading: A Blend Example
Key words: formulation, constraint
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has and of course hoping that a drink must have benefit and refresh every customer that takes. The company operates a franchised distribution system since the late 19century, where it produces the syrup concentrate only and then sells it to the bottlers who hold an exclusive territory. Its owned bottler [Coca-Cola Refreshment] is in North America.
The Company now has more than 500 brands with loyal customers in cities, towns, villages round the world having themselves refreshed with the Cherry, Fanta, Coke, Iced tea, 5-alive etc.
Coca-Cola has therefore turned out to be world’s best-selling soft drink, even recommended number one global brand in 2010. The company
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is a challenge. Further in Australia, there are established players, specifically targeting smoothies and fruit drink segment. Customers therefore, have a wider available choice already. When the scenario is like this, reasons why people would still buy McDonald’s smoothies are:
• No competitor can provide mix benefits of a great range of meal options and cheerful in-store ambience along with smoothies that McDonald’s can.
• With 808 restaurants in Australia, out of which roughly 30% operates 24/7, McDonald’s offers widest availability and greatest convenience than any of its competitors.
• In 2009, McDonald’s introduced McCafe that offers finely brewed made to order
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fifteen minutes just for us to wait for someone to ask us what we wanted to drink, although the waiter fixed it the special way that I asked. It took another eight minutes to be asked if we were ready to order our food. After we ordered we sat for over twenty minutes waiting to receive our food.
f. I am not sure what is the cause of this as there were only two other families there. The waiters and waitresses were not busy and some were just standing around talking to each other. They seemed to be quite disinterested in their customers.
g. Today, if they were to stop talking to each other and start paying attention to their customers, us to be exact, would be much happier
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production. The main disadvantage is that it does not allow easy changes in volume of output, product or process design. Example: automobiles, computer, mail sorting, appliances, paper, soft drink bottling, etc.
Lean production involves producing more variety of goods than most production at moderate to high volume of output. It requires high skilled workers, quality, employee involvement, teamwork and flatter organizational structure with fewer levels of management. It combines the advantages of both mass production (high volume, low cost) and craft production (variety, flexibility). Example: similar to mass production.
Multiple Choice Questions
Choose the one alternative that best
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needs as those of the industry being analyzed. For example, companies in the coffee industry compete indirectly with those in the tea and soft-drink industries. (All three industries serve consumer needs for drinks.) The prices that companies in the coffee industry can charge are limited by the existence of substitutes such as tea and soft drinks. If the price of coffee rises too much relative to that of tea or soft drinks, then coffee drinkers will switch from coffee to those substitutes.
The existence of close substitutes presents a strong competitive threat, limiting the price a company can charge and thus its profitability. However, if a company’s products have few close substitutes (that is, if substitutes are a weak competitive force), then, other things being equal, the company has the opportunity to raise prices and earn additional profits. Consequently, its strategies should be designed to take advantage of this fact.