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Competitors and Points of Difference

Pepsi

 

Pepsi is similar to Coke in that the company owns other beverage companies.  The table below shows the relationship of the Pepsi products to Coca Cola products.

 

Pepsi

Coca Cola

-Sierra Mist

Sprite

-Aquafina

Dasani

-Lipton

Nestea

-Mountain Dew

Sprite

-Amp (Energy Drink)

Full Throttle

-Mug

Barq’s

-Mirinda Orange

Minute Maid

-Tropicana

Five Alive

-Frappuccino

Georgia

-Sobe

Nestea

-Starbucks DoubleShot

Georgia

-Quaker Milk Chillers

Swerve

 

The different versions of Pepsi and Coca Cola that relate to each other are:

 

Pepsi

Coca Cola

Pepsi (original)

Coca Cola (original)

Diet Pepsi

Diet Coke

Pepsi Lime

Coca Cola with Lime

Diet Pepsi Lime

Diet Coca Cola with Lime

Pepsi Twist

Coca Cola Citra

Diet Pepsi Twist

Coca Cola Light with Citra

Pepsi Vanilla

Vanilla Coke

Diet Pepsi Vanilla

Diet Vanilla Coke

Wild Cherry Pepsi

Cherry Coke

Diet Wild Cherry Pepsi

Diet Cherry Coke

Pepsi One

Coke Zero

 their products to the United States, Canada, Mexico, and Europe.  This is where Coca Cola is not similar to Pepsi.  The large point of difference is s, making them the leader in distribution.

The United States generates 61% of the volume, 72% of the revenues and 82% of the operating income.  These sales distributions are fairly close to Coca Cola.  The United States is the most massive source of sales for both companies.  Since this is true, Pepsi and Coca Cola focus their marketing on the United States. 

 

 

December 25, 2004

December 27, 2003

December 28, 2002

As Reported

$457

$416

$428

Projected

$457

$422

$428

52 Weeks Ended

Net income (millions)

 

 

 

 

 

 

Another significant difference is the amount of income that the two companies make.  Coca Cola is currently a much more profitable company than Pepsi is.  At the end of 2004, Pepsi had an annual income of $457 million compared to over $4 billion made by Coca Cola.  Since this is true, Coca Cola has a lot more resources that they can use for promotion.

 

Pepsi is universally known to be Coca-Cola’s number one competitor.  Their overall image is modern and appealing.  This is another point of difference between the two companies.  Coca Cola emphasizes the originality of their product to maintain the very important repeat buyers.  Their main product is called “Coca Cola Classic.”  Coca Cola has many loyal customers that will support the company their entire lives.  Pepsi is not in a situation like this.  They are using high-tech promotion tactics to obtain customers but it does not have as near as many devoted buyers.   Pepsi attempts to make Coca-Cola look like an old and stale company while promoting themselves as the Cola of today.  The goal of using high quality advertising and promotion techniques is to impress people enough to cause them to try their product.  Their website has a very flashy interface with animations and images and their commercials always contain impressive technology.  There are currently many promotions in motion, each one targeting different markets of people.  For example, there is a contest to win a “maxed out Mazda RX-8” which will appeal to males ages 16-30.  There is also a promotion in which you win “super bowl tickets for life” meaning you are provided with a ticket to the super bowl every year of your life.  All of the many promotions are strategically placed to attract different markets of people.  The basis for Pepsi selling many different products and carrying out many different promotions is essentially to have every person possible in their market.

 

The final point of difference for Pepsi is that they put decent promotion efforts into all of their products whereas Coca Cola focuses on a few popular brands.  Since Pepsi only has about 22 different drinks they have the ability to do effective advertising for everything.  Since Coca Cola has over 400 products, they have decided to only emphasize a few of them.

 

 

  

Molson Coors

 

            Almost every known soft drink is either owned by Pepsi or Coca Cola, so the next largest competitor is Molson Coors.  Molson and Coors were two separate beer companies with their own sub-companies until recently when they merged into one company, Molson Coors.  They now sell over 70 alcoholic beverages.

 

 


Molson Coors sells the following drinks:

 

Aspen
                           Edge
Bennett Dominion Ale
Black Horse
Black
                           Ice
Blue Moon Belgian White
Blue Moon Pumpkin
Blue
                           Moon Raspberry Cream Ale
Bohemian
Brador
Calgary Export Beer
Capilano Pale
Carling
                           Beer
Carling Black Label
Carling Black Label Light
Carling
                           Black Label Supreme
Carling Draft
Carling Extra Dry
Carling
                           Extreme
Carling Ice
Club Ale
Cold Shots
Coors
                           Extra Gold
Coors Light
Coors Non-Alcoholic
Coors
                           Original
Coors Winterfest
Dave's Cream Ale
Dave's
                           Doppelgold
Dave's Ice
Dave's India Pale Ale
Dave's Lager
Dave's
                           Light
Dave's Scotch Ale
Diamond
Hi
                           Dry
India
                           Beer
Keystone Ice
Keystone Light
Keystone
                           Premium
Killian's Irish Red
Laurentide
Molson
                           Canadian Ice
Molson Canadian Lager
Molson Canadian Light
Molson
                           Cream Ale
Molson Dopplebock
Molson Dry
Molson
                           Ex Light
Molson Exel (non-alcoholic)
Molson Export
Molson
                           Golden
Molson Ice
Molson O.V.
Molson Signature
                           Spring Bock
Molson Smooth Dry
Molson Special Dry
Molson
                           Stock Ale
Molson Ultra
Molson XXX
O'Keefe Strong
O'Keefe
                           Ale
O'Keefe Extra Old Stock
Old Style Pilsner
Red
                           Jack
Rickard's Gold
Rickard's Honey Brown
Rickard's
                           India Pale Ale
Rickard's
                           Pale Ale
Rickard's Red
Spring Bock
Zima

The major difference between Coca Cola and Molson Coors is the people that that their products appeal to.  Molson can only sell their product to people over the legal drinking age which varies from 18 to 21 depending on where you are.  This allows Coca Cola to not have to compete with Molson Coors for the young beverage market.  This point of difference gives Coca Cola a large advantage for overall business success.  On the adult market the companies are in similar situations because they both have very many customers.  There are more advantages and disadvantages for selling and not selling alcoholic beverages.  The points of difference are discussed below.

 

Alcoholic drinks are generally appealing to adults.  They are very commonly consumed in bars, night clubs, and parties.  For some people, beer is also a regular every-day drink.  The effects of alcohol on a person are much larger than the effect of a Coke on a person.  Adults generally enjoy the effects of alcohol more than they do for any other kind of drink.  Since Molson sells this type of drink, they make a large profit in the adult market that Coca Cola cannot enter without selling an alcoholic beverage. 

 

Most adults are willing to pay more to buy alcohol than they are to buy soft drinks, juice, or coffee.  This allows all alcoholic beverage companies to sell for a high price because adults want to enjoy that special feeling that can only come from alcohol.

 

The promotions ran by Molson Coors are different than the promotions ran by Coca Cola.  Coca Cola has contests that you have to enter online to win prizes.  Molson Coors actually gives away free items with their product in the box which people like to receive.

 

  The final point of difference is that Molson Coors will have a lot more regulatory rules for their operation than Coca Cola will.  There will be restrictions on who it can be sold to, where it can be sold, how it can be advertised, etc.  For example, in Ontario alcohol cannot be advertised with anyone that people under the age of 19 would recognize.  Trouble occurred in the past with Don Cherry when he promoted the Bubba mini kegs.  Coca Cola can just sell to practically everyone in the world.

    

                                                                   

 

 Kraft

 

-Kraft is a large company that also owns many small companies.  They sell the following beverages:

 


Coffee

General Foods International
Gevalia
Maxim
Maxwell House
Sanka
Seattle's Best Coffee*
Starbucks*
Tazo*
Torrefazione Italia*
Yuban

Frozen Treats
Kool-Aid Slushies

Powdered Soft Drinks
Country Time
Crystal Light
Kool-Aid
Tang

Ready-to-Drink
Capri Sun*
Country Time
Crystal Light
Fruit20
Kool-Aid Bursts
Tang
Veryfine

Juices

Del Monte


 

                                              

Kraft does sell all of these beverages but they are also in the food market.  This is a major point of difference between Kraft and Coca Cola that gives Kraft the upper hand. Kraft has products that appeal to many kinds of beverage drinkers and food products that appeal to many markets of people.  Some examples of their food products are Kraft Dinner, Delissio, and Jello.

 

Another point of difference regarding beverages is the target markets.  Kraft targets people ages 2-10 and 20+.  They do not have any products aimed at the teenage market.  Coca Cola aims many of their products at teenage markets because they want to establish loyal customers at a young age.  Although this is true, Kraft sells a lot of products that parents buy for their children such as Kool-Aid and Del Monte juices.  Coca Cola does not focus on the younger children as much.  Maxwell House, owned by Kraft is one of the main sub-companies that directly competes for the same market as Coca Cola.  It is one of the most popular coffee companies.  There are many people who drink caffeinated drinks to get energy.  There are people who drink coffee, people who drink caffeinated pop, and people who drink both.  The overall goal of drinking these is usually energy, but taste is very important.  Coca Cola and Maxwell House both compete for customers who like a great taste and energy boost.

Kraft’s major market that produces the most sales is their coffee.  Kraft sells 10 different kinds of coffee that appeal to almost everyone above the age of 20.  Almost every adult enjoys 1 to 6 cups of coffee per day to keep them awake through the day.  Society as a whole currently does not get enough sleep and as a result, people are tired.  Kraft knew this and made the great decision to focus primarily on coffee.  This is a point of difference from Coca Cola because Coke only sells one kind of coffee and mainly focuses on soft drinks.  Kraft has a dominance in the coffee world because a lot of their brands are very popular. 

 

 

 



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