COMMERCE 4PA3 Chapter Notes - Chapter Case 2: Cola Wars, Caffeine
10 Dec 2017
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Conduct a porter"s 5 forces analysis on the industry. Barriers to entry: bottling network: both coke and pepsico have franchisee agreements with their existing bottlers who have rights in a certain geographic area in perpetuity. The other approach to try and build their bottling plants would be very expensive: advertising spend: the advertising and marketing spend in the industry is in. 2000 was around . 6 billion by coke, pepsi and their bottler"s: brand image / loyalty: coke and pepsi have a long history of marketing which has earned them brand loyalty with customers worldwide, retail distribution. Suppliers: commodity ingredients: most of the raw materials needed to produce concentrate are basic commodities like color, flavor, caffeine or additives, sugar, packaging. The producers of these products have no power over the pricing hence the suppliers in this industry are weak. Buyers: food stores, convenience stores, fountain, vending.
