Pepsi_Cola_the_New_Choice_of_Drink_

Pepsi Cola the new choice of drink' As 2005 came to an end people at Pepsi Cola’s headquarters were probably drinking champagne rather than cola. By the end of trading on Wall Street that day, the company's market value reached $98.4 billion while the market valued Pepsi Cola’s rival Coca-Cola at $97.9 billion . For the first time in the history of the two companies, PepsiCo was valued more highly than its old arch enemy. It was mainly a symbolic event but it was a powerful symbol - and one that remained over the days that followed. The "real thing" is suddenly second-best (http://www.onestopenglish.com/magazine/news_lessons/PDFs/coca_cola3.pdf). How do you dominate in the cola war' Control of market share is the key. The situation is both Coke and Pepsi are trying to gain market share in this beverage market worth billions of dollars each year. Just how is this done in such a competitive market is the underlying issue' The facts are that each company is coming up with new products and ideas to increase their market share. The creativity and effectiveness of each company’s marketing strategy will ultimately determine the winner with respect to sales, profits, and customer loyalty. Not only are these two companies constructing new ways to sell Coke and Pepsi, but they are also thinking of new ways in which to increase market share in other beverage categories. Although the goal of both company’s are the same, the two companies rely on somewhat different marketing strategies. Pepsi has always taken more risks, acted rapidly, introduced new products and developed more dynamic and outrageous advertising ideas. This paper will help explain how Pepsi capitalized on the sport drink industry to catch and bypass Coke in the overall cola company battle. In addition the writer will suggest a how Pepsi could develop new products while expanding their product mix. Body • Argue for why your answer to the question is correct.  • Discuss one point at a time and explain each point • Use and cite the material you have read, researched, etc… • One point per paragraph • Each paragraph will have: ■ The point ■ Explanation ■ Conclusion Some of the points to consider in your paper might focus on the following Qs and observations What are some of the ways that companies (you can either use Coke or Pepsi, as you example or can choose another company but use the Coke and Pepsi examples to structure your arguments) might be able to develop new products and alter their product mix. In responding to this, focus on one specific product line - don't tackle all product lines that they offer. Turn in a specific analysis of a single product line in your response. Sports Drinks You might suggest new products, or note ways that these companies are extending a particular product line or can enhance their product mix. You might also consider product life cycle issues as part of your analysis. Integrating module 1 and module 2 material, how might a company continue to produce innovative products' Gatorade in the Middle East, Military, Larger volume, Twist Cap, Aluminum Pouch If most new products are variants of existing products, how do companies come up with those 'innovative' products which are patentable because they full needs in unique ways' Conclusion • A good conclusion to a paper is a simple matter • Simply sum up how you proved your thesis to be correct References • http://www.onestopenglish.com/magazine/news_lessons/PDFs/coca_cola3.pdf • Kanellos, Michael. “IBM sells PC group to Lenovo”. [Web-article]. Modified Dec. 2004. http://news.com.com/IBM+sells+PC+group+to+Lenovo/2100-1042 3-5482284.html Hamm, Steve, Roberts, Dexter, & Lee, Louise. “Lenovo and IBM: East Meets West, Big-Time: Lenovo’s deal for IBM’s PC unit led to a merger of talent—and a threat to Dell”. Business Week. 9 May 2005. Forelle, Charles. “Remote Control; How IBM’s Ward Will Lead China’s Largest PC Company From Other Side of the Globe”. Wall Street Journal. (Europe). 21 April 2005. Rifkin, Glenn and Smith, Jenna. “Quickly Erasing the ‘I’ and ‘B’ and ‘M’. The New York Times. 12 April 2006. [pic]