Coca Cola Market Structure Analysis

23. “If the sun never set on the British Empire, then it was always teatime somewhere.” 24. Tea can reduce thirst, lessens the desire for sleep and hearten and help the heart. 25.

ECONOMICS PROJECT Name: Saatwic Malhotra Course: BBA.LLB (H) Section: A Enrollment Number: 7058 ACKNOWLEDGEMENT I express my sincere thanks to Mrs. Tanu Sachdeva, my economics teacher who guided me throughout the project and also gave me valuable suggestions and guidance for completing the project. She helped me to understand the issues involved in the project making besides effectively presenting it. My project has been a success because of her. PEPSICO • PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Purchase, New York. PepsiCo has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products.

Coca-Cola needs no introduction so does Apple or Toyota or even McDonalds. These are popular brands that we know and love. But how did they get to be so popular even after generations have changed? The simple answer is advertising; something that all these companies have been doing since their inception. Coca-Cola is always reminding us of how refreshing their products are with catchy tunes that you sing to all year round before they drop another catchy tune that will also last another year.

This is because the barriers to entry into the industry are relatively high for new firms and that the Average Total Cost (ATC) and Average Variable Cost (AVC) for new firms are relatively high compared to the two large soft drink manufacturers because of economies of scale. Additionally, not many firms in their industry produced the same or identical product to make the industry competitive and the information is not freely available because the recipe in Coke’s case is not public record. Therefore, the assumption that Coca-Cola and Pepsi are most likely not to be produced in a perfectly competitive industry is

 Geographic segmentation calls for dividing the market into different geographical units such as regions, cities, or neighborhood. Coca-Cola has a countrywide network of product distribution but the company segments more in urban and suburban areas as compared to rural areas. 1.2. Demographic segmentation  In demographic segmentation, the market is divided into groups on the basis of variables such as age, family life cycle, gender, income, occupation, education, religion, race, generation, nationality, and social class. Demographic variables are the most popular base of Coca-Cola Company for distinguishing their customer groups.

Because of these new technologies, Coca-Cola 's production volume has increased sharply compared to that of a few years ago. 2.2.3 Key Strategic Objectives and Challenges • Acquisition targets in developed markets: Coca-Cola already has strong penetration in major soft drinks markets, which typically offers limited acquisition opportunities due to market consolidation. Much of the future volume growth is likely to come from secondary markets such as Vietnam and Indonesia. Coca-cola may be better advised to set its sights on larger acquisition targets in untapped regions such as the Middle East and Africa and some secondary markets. • Diet Products

Much proof would indicate that Coca-Cola has definitely chosen a differentiation strategy since its early days. To prove this, a look will be taken into how it has being done. According to softdrinkcolar blogspot (2012:1), the company spends about 20% of their total advertisement budget for maintaining and communicating on its differentiation strategy. Coca-Cola has created differentiation using a soft sell approach and has positioned itself on the following standards: # Corporate reputation for quality and innovation: one of the best place to work-

In the carbonated soft drinks industry, Coke Cola and Pepsi Co are the biggest players in the market for aerated beverages. Both the companies have been competing strongly against each other for decades. The market is dominated by these two industry leaders with a total market share of 72%; Coke’s market share is 42% and Pepsi’s 30%. This is known as an oligopoly market; where there are few large firms competing with each other in the industry. Since both the company’s market share so large, the market is very close to a duopoly (other players having a very small impact on the market).

EXECUTIVE SUMMARY Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers.

For the Coca-Cola, recognized its brand to be the best global brand around the world. Nevertheless, PepsiCo still working hard and catching up right behind the Coca-Cola, become the biggest rival for Coca-Cola in non-alcoholic drink industry. So what are the competitive advantages these both companies do have, let us discuss. 4.1 Distribution Method Coca-Cola conquer the market by having a very extensive distribution through partnership with bottling partner. Hindustan Coca-Cola Beverages Pvt. Ltd, is the largest bottling partner of the Coca-Cola Company in India, by owning 24 bottling plants at strategic location in various states widely covered across India, has an extensive distribution system spanning more than a million outlets.

Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories and serves 1.6 billion servings each day. . The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company is headquarter Coca-Cola has sold more than one billion servings every day.

HISTORY & BACKGROUND OF COCA COLA 
 The Coca Cola company is known as one of the world’s largest carbonated soft drinks company that began before World War II. It is an American-based company found in 1886 by an Atlanta pharmacist. Dr. John S. Pemberton created the formula of French Wine Coca, which is known as Coca Cola now and introduced the carbonated soft drink as a patent medicine at first. The beverage became more noticeable when Frank M. Robison, Dr. Pemberton’s partner changed the product name and created the famous script logo, which he believed that will attract customer in advertising.

ECONOMICS ASSIGNMENT CLASSIFICATION OF MARKETS AND ITS PRACTICAL IMPORTANCE SUBMITTED BY, REVIN FRANCIS NO-b1488 MBA-A  MARKET STRUCTURE Market structure is defined by economists as the characteristics of the market. It can be organizational characteristics or competitive characteristics or any other features that can best describe a goods and services market. The major characteristics that economist have focused on in describing the market structures are the nature of competition and the mode of pricing in that market. Market structures can also be described as the number of firms in the market that produce identical goods and services. The market structure has great influence on the behaviour of individuals firms in the market.

ABOUT THE SOFT DRINK INDUSTRY: The term "soft drink" refers to all types of nonalcoholic, carbonated, sweetened, flavored beverages. Nonalcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks are available in glass bottles, aluminum cans; PET bottles are disposal containers can be divided into carbonated and non-carbonated drinks. Soft drinks are being manufactured since so long. There are various flavors in soft drinks that are lemon, orange, mango and cola.

1.0 INTRODUCTION In an economy, there exists different market structures to accommodate different industries and firms. This study will be made to understand in further depth the market power of different market structures, and in particular an example of using case studies of agricultural sector of the French markets to explain how an ideal perfectly competitive market works. This will then be further strengthened with several references linked to the case study. 1.1 Monopoly market