pepsi

1. Why, historically, has the soft drink industry been so profitable? (John)

1. Prepare an industry analysis of the concentrate business? - Austin

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1. What are some general environment factors that have influenced Coke/Pepsi’s strategy?(yenan )

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1. What is(are) Coke’s/ Pepsi’s mission, vision, values?- Claire

Coke’s Mission: “To refresh the world, to inspire moments of optimism and happiness, and to create value and make a difference.”

Coke’s Vision:

“People: Be a great place to work where people are inspired to be the best they can be.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.
Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.
Productivity: Be a highly effective, lean and fast-moving organization.”

Coke’s Values:

Live Our Values

Coke views its values as guidelines as a way to carry out how they do business. Below are the core values of the Coke Corporation:

Leadership: The courage to shape a better future
Collaboration: Leverage collective genius
Integrity: Be real
Accountability: If it is to be, it's up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well

Focus on the Market
Focus on needs of our consumers, customers and franchise partners
Get out into the market and listen, observe and learn
Possess a worldview
Focus on execution in the marketplace every day
Be insatiably curious

Work Smart
Act with urgency
Remain responsive to change
Have the courage to change course when needed
Remain constructively discontent
Work efficiently

Act Like Owners
Be accountable for our actions and inactions
Steward system assets and focus on building value
Reward our people for taking risks and finding better ways to solve problems
Learn from our outcomes -- what worked and what didn’t

Be the Brand
Inspire creativity, passion, optimism and fun

http://www.coca-colacompany.com/our-company/mission-vision-values

Pepsi’ Mission, Vision, and Principles

PepsiCo’s Mission:

“As one of the largest food and beverage companies in the world, our mission is to provide consumers around the world with delicious, affordable, convenient and complementary foods and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to evening treats. We are committed to investing in our people, our company and the communities where we operate to help position the company for long-term, sustainable growth.”

PepsiCo’s Values:

“At PepsiCo, we aim to deliver top-tier financial performance over the long term by integrating sustainability into our business strategy, leaving a positive imprint on society and the environment. We call this Performance with Purpose.

This vision means creating products that our consumers are eager to buy and our employees are proud to sell.”

PepsiCo’s Principles:

“Care for our customers, our consumers and the world we live in.

Sell only products we can be proud of.

Speak with truth and candor.

Win with diversity and inclusion.

Balance short-term and long-term.

Respect others and succeed together.”

http://www.pepsico.com/Purpose/Our-Mission-and-Values

1. (HOW) How has this shaped the way they compete? kaihua

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1. (WHERE) Which markets do they compete in? -Claire

A major market where both companies compete in is the U.S. Distribution of carbonated soft drinks in the U.S. were dispersed across many markets including supermarkets (29.1%), fountain outlets (23.1%), vending machines (12.5%), mass merchandisers (16.7%), convenience and gas stations (10.8%), and other (7.8%). For Coke, their beginning strategy was to go after fountain outlets, whereas Pepsi focused on retail markets. Later on, both companies realized they needed to expand their product markets and began competing in diet drinks, sports and energy beverages, and bottled water. In the late 1990’s  consumers were becoming more health conscious, therefore Coke and Pepsi turned to diet drinks, and were looking for ways to create non-carb products. Pepsi was more aggressive initially with going after the non-carb product market and hold 43% of the market, and Coke follows with 32%. Both companies also compete in the bottled water industry, with Dasani (Coke) and Aquafina (Pepsi). However, there had been a market share dip for both companies due to environmental thinking and price sensitive consumers.

Along with competing in the U.S., Coke and Pepsi compete in international markets. The U.S. is the largest market, followed by Mexico, Puerto Rico, and then Argentina. Coke relies on its international markets more than Pepsi, where 80% of Coke’s sales are from international markets, and Pepsi contributes about half of their sales to the U.S. Coke is very strong in the international countries that they are currently in, and it has been hard for Pepsi to compete. Therefore, Pepsi has been turning its attention to emerging markets such as Asia, the Middle East, and Africa, where the leader for carbonated soft drinks is still up for grabs.

1. How can Coke/Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-CSDs? - Austin

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