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Essay / Research Paper Abstract
This 3 page paper takes a look at the cola wars in 2005 and how things have changed. The financial positions of Coke and Pepsi are explored. Recommendations are made for each of the firms.
Bibliography lists 4 sources.
Page Count:
3 pages (~225 words per page)
File: RT13_SA540CaP.rtf
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Unformatted sample text from the term paper:
of other products. Still, there are often reformulations in the actual cola tastes and the competition continues. While taste is one thing, profitability is another. Which company is more financially
sound? Which has a better future? Edwards (2005) reports on the soft drink companies competing for advertising space and exposure and the fact that Coke has a great deal more
exposure than any other brand discussed in the article. It is noted that Coke has a large product placement contract, and this is seemingly much larger than Pepsis (Edwards,
2005). At the same time, the author points out that Saturday Night Live has been making fun of the product and this is something that is not good (Edwards, 2005).
In some way, the negative exposure distorts the Coke image. Yet, in order for Coke to compete with Pepsi, it seems that the positive exposure will add to the future
financial success of the Coca Cola Company. Coke does seem to be back on top to an extent. Still, people either prefer Coke or Pepsi but many cola drinkers
will take either. Unlike the strong taste preferences for coffee-Starbucks and Dunkin Donuts will never compete-people who prefer Pepsi will drink Coke and vice versa. So, how are the companies
doing? In respect to cola, Coke outsells Pepsi, but in terms of the companies as businesses, that is a different story altogether (Steiner, 2005). Steiner (2005) points out that people
are drinking less soda anyway, so it is not as exciting a competition as it once was. It should however be noted that while both Coke and Pepsi sell less
regular soda than previously, its sales of various diet products is increasing (Hein, 2005). Even with people forgoing sugar, and staying away from soda, dieters gain satisfaction from the artificially
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