Pepsi and Coke

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Category: Business and Industry

Date Submitted: 03/19/2011 12:14 AM

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Coca-cola Pakistan admits that currently the market share of coca-cola is 28% which is very low as compared to Pepsi that stands at 70%. Coca-cola is hopeful that the above mentioned problems if resolved would help them come back into the business but it would take sometime. The company has still a substantial growth rate in the country i.e. 25%.

Now, the estimated brand equity of Coca-Cola is $84billion, market share of more than 50 percent in beverage industry globally and about 70 percent of its income comes from countries outside United States.

The distribution segments can be broken down into the following:

• Convenience Stores and Gas Stations: 12% of the market

• Vending Companies: 11% of the market

• Restaurants: 20% of the market

• Warehouse/Club Stores: 6% of the market

• Super Markets and Retail Stores: 51% of the market

Consumer preferences

When asked about consumer preferences, sample analysis showed quite an amazing result i.e. coca-cola beat Pepsi-cola in both male/female samples with a 50% weight age in males and 51% weight age in females.

Reason for likeness/dislike ness

When asked the question that what makes them choose between a Pepsi-cola and a coca-cola product, the basic reason that came out to be very strong was the taste with 52% weight age in males and 67% of females. Followed by availability with 17% in males and 10% in females.

Pepsi is name that people seemed to recognize more in Pakistan. The reason being its extensive advertisement campaigns which are never ending.

We hereby conclude our findings about the market share of Pepsi and coke in the beverage industry. Coke is the market challenger with a market share of 28% and with an annual growth rate of 25% in the industry, while Pepsi is the market leader with a 60% share in the industry.