Pepsi & Coke

Introduction

Coco-Cola and Pepsi are the top two beverage companies in the world. In today’s market, it is hard to determine which one is the winner, because both companies use a different technique in the way they attract customers as well as investors. I personally believe that although Coco-Cola has great marketing and advertisement, Pepsi desire to expand have diversified the beverage market.

Background

In 1965, Pepsi and Frito Lay merged and became PepsiCo. PepsiCo acquired Tropicana in 1998 and from there went on to merge with the Quaker Oats Company, including Gatorade, in 2001. As a global food and beverage leader, PepsiCo net revenues are worth more than $65 billion. PepsiCo now operates about 100,000 distribution routes directly or through its bottlers worldwide and serves approximately 10 million outlets on a regular basis. Worldwide, PepsiCo operates over 700 manufacturing facilities. PepsiCo has had three CEO’s since 1997 Roger Enrico, Thompson, Strickland and Gamble. Indra is now the CEO and has been since 06.

Product

Pepsi products can be found in over 200 countries around the globe. PepsiCo marketing and strategic moves created a very diverse product line, and are one of the main reasons for their success; they have placed themselves in most American households. Below are PepsiCo top selling products: Lay’s Potato Chips, Mountain Dew, Tropicana, Doritos, Gatorade, Pepsi/Diet Pepsi, Lipton Teas, Quaker Foods and Snacks, Cheetos, Miranda, Ruffles, Aquafina Bottled Water, Tostitos, Sierra Mist, 7-Up, Fritos Corn Chips and Walkers Potato Chips. (PepsiCo, 2010) are the top selling.

Major Customers and Suppliers

PepsiCo main customers consist of retailers, direct customers and distributors. PepsiCo will grant exclusive contracts to its bottlers in order to sell and manufacture specific products bearing trademarks in certain regions. Granting contracts to bottles will provide PepsiCo with the right to charge bottlers...