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Manag Organizations

by: Leland MacGyver

Manag Organizations MGMT 321

Leland MacGyver
GPA 3.92


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Class Notes
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Popular in Business, management

This 2 page Class Notes was uploaded by Leland MacGyver on Tuesday September 8, 2015. The Class Notes belongs to MGMT 321 at University of Oregon taught by Staff in Fall. Since its upload, it has received 50 views. For similar materials see /class/187299/mgmt-321-university-of-oregon in Business, management at University of Oregon.


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Date Created: 09/08/15
Jhomer Recometa 13 12007 Class note 4 Cola Wars Carbonated Soft Drinks Industry With the increase of popularity and introduction of new avors the CSD industry saw an increase of 3 each year from the early 1970s There were four major players that played an important role in the production and distribution of CSDs l Concentrate Producers 2 Bottlers 3 Retail channels 4 Suppliers Concentrate Producers o The experimentation of raw ingredients and materials begins 0 It involves cheap capital investment and a single plant could serve the entire United States Main costs were for advertising promotion market research and bottle relations Worked directly with bottler s suppliers 76 concentrate producers were either Coke or Pepsi Bottlers o Buys the concentrates for the concentrate producers o More expensive than the concentrate producers with capitalintensive and high speed lines 0 Plant cost about a minimum of 25 to 35 million 0 Coke was the first to build a nationwide franchise networks 0 Bottlers were allowed to handle the noncola brands of other concentrate producers by the Pepsi and Coke Company Retail Channels 0 The distribution on the colas throughout the US 0 The supermarket was the number one distribution channel for soft drinks 0 Pepsi focused selling their colas through retail outlets while Coke concentrated on fountain sales 0 Pepsi supplied to Taco Bell KFC and Pizza Hut restaurants Coke had deals with McDonalds and Burger King Suppliers 0 CSDs packaging were made up of 60 in cans 38 in plastic bottles and 2 in glass bottles 0 Cans were easily handled stocked or displayed 0 Plastic bottles were popular in home consumption with l to 2 to 3 liter sizes 0 200z bottles were a hit with the vending machines Coke Company Vs Pepsi Company Coke Pepsi Coke started in 1886 by pharmacist John Pemberton Pepsi invented in 1893 by pharmacist Caleb Bradham 1960s 7 Experiments on noncola avors and a variety of packaging options Coke Fanta Sprite and lowcalorie Tab Pepsi Teem Mountain Dew and Diet Pepsi Coke Bought Minute Maid Duncan Foods and Belmont Springs Water Pepsi Merge with FritoLays 1965 1960s Coke went overseas while Pepsi stayed aggressively in the US markets 1980s 11 new products for Coke and 13 new products for Pepsi 1990s marketing strategy increases for both companies going after famous people and using them in their ads 1899 7 First bottling franchise believing that the future of the drink rested with soda fountains 1920s and 1930s introduced opentop coolers to storekeepers automatic fountain dispensers and vending machines 64 bottling plants were set up during WWII 1985 came out with a new formula leading to a decrease of shares in the market segment 1910 7 First bottling system Early struggles and declaring bankruptcy twice 1923 and 1932 1941 won the suit filled by Coke ending their battles with suits and countersuits Lowered prices and came up with a radio jingle Twice as much for Nickel too 1950 Introduced first 26ounce bottles and did fairly well 1963 Pepsi Generation focusing more on advertising to target the younger audience It leads to narrow Coke s lead over Pepsi to a now 2 to 1 margin


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