Coke and Pepsi Assignment Example | Topics and Well Written Essays - 500 words

Coke and Pepsi - Assignment Example In terms of competition for market share, Sodastream hasn’t really threatened the domination of Coke and Pepsi. In the last 2 years, what Sodastream has simply done is to demystify the aura around soda and carbonated soft drinks. By selling syrup directly to its consumers, Sodastream has show the market that there really is nothing â€Å"fancy† about CSDs and that the capability to make your own soda at home should be more attractive, and cheaper, than having to buy readymade soda. Sodastream has always branded and marketed itself as the best environmentally friendly option to Coke and Pepsi’s CSDs. The effect of this has been that the two giants have had to increase their advertising expenditure in order to maintain their positions, keep the status quo as it should be. Sodastream’s recent Super Bowl ad managed to ruffle feathers at Coke and Pepsi because of its insinuation that Coke and Pepsi’s level of environmental consciousness was poor and unfa vorable. The ad managed to get more than enough attention, but did not run on CBS, which is a big advertising platform for both Coke and Pepsi. In summary, Coke and Pepsi have had to be more aggressive in their advertising lest Sodastream continue eating into their market share. If Sodastream is able to continue growing CSDs would still dominate, but competition would be much stiffer. All factors considered, CSDs are not going anywhere anytime soon, regardless of the new entrants. The focus on emerging markets and new products should intensify, to improve both revenues and profits from new products such as non-carbonated drinks tailored to specific markets. Exhibit 9 reveals that non-CSD drinks have as much potential as CSDs, it is only that CSDs have been the mainstay of the two companies for a long time. It is interesting to note that in places like Europe CSDs are not as popular as they are in America and Asia. Such markets can be used