COCA-COLACOCA-COLA

RESEARCH AND RESEARCH AND STRATEGIESSTRATEGIES

HISTORY OFHISTORY OF COCA-COLACOCA-COLA

• The product that has given the world its The product that has given the world its best-known taste was born in Atlanta, best-known taste was born in Atlanta, Georgia, on May 8, 1886. Dr. John Stith Georgia, on May 8, 1886. Dr. John Stith Pemberton, a local pharmacist, produced Pemberton, a local pharmacist, produced the syrup for Coca-Cola®, and carried a jug the syrup for Coca-Cola®, and carried a jug of the new product down the street to of the new product down the street to Jacobs' Pharmacy, where it was sampled, Jacobs' Pharmacy, where it was sampled, pronounced "excellent" and placed on sale pronounced "excellent" and placed on sale for five cents a glass as a soda fountain for five cents a glass as a soda fountain drink. Carbonated water was teamed with drink. Carbonated water was teamed with the new syrup to produce a drink that was the new syrup to produce a drink that was at once "Delicious and Refreshing," a at once "Delicious and Refreshing," a theme that continues to echo today theme that continues to echo today wherever Coca-Cola is enjoyed. wherever Coca-Cola is enjoyed.

• Thinking that "the two Cs would look well in Thinking that "the two Cs would look well in advertising," Dr. Pemberton's partner and advertising," Dr. Pemberton's partner and bookkeeper, Frank M. Robinson, suggested the bookkeeper, Frank M. Robinson, suggested the name and penned the now famous trademark name and penned the now famous trademark "Coca-Cola" in his unique script. The first "Coca-Cola" in his unique script. The first newspaper ad for Coca-Cola soon appeared in newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to The Atlanta Journal, inviting thirsty citizens to try "the new and popular soda fountain drink." try "the new and popular soda fountain drink." Hand-painted oilcloth signs reading "Coca-Cola" Hand-painted oilcloth signs reading "Coca-Cola" appeared on store awnings, with the suggestion appeared on store awnings, with the suggestion "Drink" added to inform passersby that the new "Drink" added to inform passersby that the new beverage was for soda fountain refreshment. beverage was for soda fountain refreshment. During the first year, sales averaged a modest During the first year, sales averaged a modest nine drinks per day. nine drinks per day.

Dr. Pemberton never realized the potential of Dr. Pemberton never realized the potential of the beverage he created. He gradually sold the beverage he created. He gradually sold portions of his business to various partners portions of his business to various partners and, just prior to his death in 1888, sold his and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. remaining interest in Coca-Cola to Asa G. Candler. An Atlantan with great business Candler. An Atlantan with great business acumen, Mr. Candler proceeded to buy acumen, Mr. Candler proceeded to buy additional rights and acquire complete additional rights and acquire complete

control.control.

JOURNEY OFJOURNEY OF COCA-COCA-COLACOLA• Entering the last quarter of the 20th century, Entering the last quarter of the 20th century,

the deep emotional bond between Coca-Cola the deep emotional bond between Coca-Cola and its consumers grew even more powerful and and its consumers grew even more powerful and more global. In 1971, young people from around more global. In 1971, young people from around the world gathered on a hilltop in Italy to sing the world gathered on a hilltop in Italy to sing "I'd Like to Buy the World a Coke,""I'd Like to Buy the World a Coke," a counterpoint a counterpoint to turbulent times. This was also a glimpse into to turbulent times. This was also a glimpse into the Company's future: an expanding global the Company's future: an expanding global presence and an even closer attachment to the presence and an even closer attachment to the world's most cherished trademark. world's most cherished trademark.

• The power and prestige of Coca-Cola were The power and prestige of Coca-Cola were exemplified in 1988, when three independent exemplified in 1988, when three independent worldwide surveys conducted by Landor & worldwide surveys conducted by Landor & Associates confirmed Coca-Cola as the best-Associates confirmed Coca-Cola as the best-known, most-admired trademark in the world. known, most-admired trademark in the world.

• Perhaps a more human assessment of Perhaps a more human assessment of consumers' loyalty to Coca-Cola had consumers' loyalty to Coca-Cola had come in 1985. The Company startled come in 1985. The Company startled the American public by announcing a the American public by announcing a new taste for Cokenew taste for Coke, the first change in the , the first change in the secret formula since Coca-Cola was created secret formula since Coca-Cola was created in 1886. The new taste was overwhelmingly in 1886. The new taste was overwhelmingly preferred in taste tests, but all the testing preferred in taste tests, but all the testing and research could not measure the and research could not measure the emotional attachment Americans had for emotional attachment Americans had for the original formula. That original taste the original formula. That original taste had become more than just a soft drink, had become more than just a soft drink, and consumers' deep feelings, memories and consumers' deep feelings, memories and loyalties to it came alive. The Company and loyalties to it came alive. The Company listened to its consumers and quickly listened to its consumers and quickly responded by returning the original responded by returning the original formula to the market as Coca-Cola formula to the market as Coca-Cola classic®. classic®.

• The Company's global strategy during the The Company's global strategy during the 1980s continued to bring consumers on every 1980s continued to bring consumers on every continent refreshing products for every continent refreshing products for every occasion and every lifestyle. In 1982, soft-drink occasion and every lifestyle. In 1982, soft-drink history was made with the introduction of Diet history was made with the introduction of Diet Coke®, the first extension of the trademarks Coke®, the first extension of the trademarks Coca-Cola and Coke, and the most successful Coca-Cola and Coke, and the most successful new soft drink since Coca-Cola itself. Within new soft drink since Coca-Cola itself. Within two years, Diet Coke had become the top low-two years, Diet Coke had become the top low-calorie soft drink in the world.calorie soft drink in the world.

• Advertising during the 1970s and 1980s Advertising during the 1970s and 1980s continued a long tradition that presented continued a long tradition that presented Coca-Cola as one of life's simple pleasures, Coca-Cola as one of life's simple pleasures, distinctive and acceptable anywhere. In 1976, distinctive and acceptable anywhere. In 1976, the "Coke Adds Life" campaign was introduced, the "Coke Adds Life" campaign was introduced, laying the foundation for the 1979 laying the foundation for the 1979 introduction of "Have a Coke and a Smile," a introduction of "Have a Coke and a Smile," a campaign of heart-warming emotion best campaign of heart-warming emotion best captured by the famous television commercial captured by the famous television commercial featuring Pittsburgh Steelers tackle "Mean" featuring Pittsburgh Steelers tackle "Mean" Joe Greene.Joe Greene.

• Coca-Cola" campaign debuted in 1993, Coca-Cola" campaign debuted in 1993, followed by "Coca-Cola … Real" in 2003 and followed by "Coca-Cola … Real" in 2003 and "The Coke Side of In early 1982, the theme "The Coke Side of In early 1982, the theme "Coke Is It!" was launched around the world "Coke Is It!" was launched around the world to reflect the resurgent, positive spirit of the to reflect the resurgent, positive spirit of the 1980s and to reaffirm the leadership of Coca-1980s and to reaffirm the leadership of Coca-Cola. "Can't Beat the Feeling" wrapped up the Cola. "Can't Beat the Feeling" wrapped up the 1980s, while "Can't Beat the Real Thing" led 1980s, while "Can't Beat the Real Thing" led the way into the 1990s, and the innovative the way into the 1990s, and the innovative "Always Life" in 2006. "Always Life" in 2006.

• Established: 1886 Established: 1886

• Ranking: We own 4 of the world's top 5 Ranking: We own 4 of the world's top 5 nonalcoholic sparkling beverage brands nonalcoholic sparkling beverage brands

• Associates: 90,500 worldwide Associates: 90,500 worldwide

• Operational Reach: 200+ countries Operational Reach: 200+ countries

• Consumer Servings (per day): 1.5 billion Consumer Servings (per day): 1.5 billion

• Beverage Variety: more than 2,800 products Beverage Variety: more than 2,800 products

BRANDS OF BRANDS OF COCA-COCA-COLACOLA

•To Refresh the World...To Refresh the World... In body, In body, mind, and spirit. mind, and spirit.

•To Inspire Moments ofTo Inspire Moments of Optimism...Optimism... Through our Through our brands and our actions. brands and our actions.

•To Create Value and Make a To Create Value and Make a Difference... Difference... Everywhere we Everywhere we engage. engage.

MISSIONMISSION

:

Everything done is inspiredEverything done is inspired bbyy

enduring Mission:enduring Mission:

VISIONVISION• To achieve sustainable growth, have To achieve sustainable growth, have

established a Vision with clear goals: established a Vision with clear goals:

People:People: Being a great place to work where Being a great place to work where people are inspired to bepeople are inspired to be

the best they can be.the best they can be.

Planet:Planet: Being a responsible global citizen that Being a responsible global citizen that makes a difference.makes a difference.

Portfolio:Portfolio: Bringing to the world a portfolio of Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples' beverage brands that anticipate and satisfy peoples'

desires and needs.desires and needs.

•Partners:Partners: Nurturing a winning network of Nurturing a winning network of

partners and building mutual loyalty.partners and building mutual loyalty.

• Profit:Profit: Maximizing return to shareowners Maximizing return to shareowners while being mindful of our overall while being mindful of our overall responsibilities. responsibilities.

Bringing Vision to LifeBringing Vision to Life

• Our vision to become truly sustainable Our vision to become truly sustainable and achieve long-term growth is and achieve long-term growth is changing the way we think and changing the way we think and operate. operate.

• You’ll see evidence of our progress You’ll see evidence of our progress every day as we work closely with our every day as we work closely with our bottling partnersbottling partners in achieving our goals: in achieving our goals:

• We will be in the top three for total We will be in the top three for total return to shareowners among a set of return to shareowners among a set of comparable global companies, while comparable global companies, while ensuring the long-term health of our ensuring the long-term health of our system. system.

• We will be the employer of choice, We will be the employer of choice, where people create extraordinary where people create extraordinary results every day, in every country results every day, in every country where we operate.where we operate.

We will double the value of our most We will double the value of our most recognized brand, Coca-Cola®, and grow recognized brand, Coca-Cola®, and grow the rest of our portfolio so it is the rest of our portfolio so it is comparable in size. comparable in size. We will be the world's most respected, We will be the world's most respected, preferred and trusted global partner, as preferred and trusted global partner, as measured by superior satisfaction scores measured by superior satisfaction scores and innovations that ignite the categories and innovations that ignite the categories in which we choose to compete. in which we choose to compete. We will be the recognized global leader in We will be the recognized global leader in corporate social responsibility. corporate social responsibility. It’s in our very nature to innovate, create It’s in our very nature to innovate, create and excel. The more we grow, the greater and excel. The more we grow, the greater the opportunity for you to grow with us.the opportunity for you to grow with us.

VALUES VALUES • Guided by shared Values that we will live Guided by shared Values that we will live

by as a company and as individuals: by as a company and as individuals:

Leadership:Leadership: “The courage to shape a “The courage to shape a better future” better future”

Passion:Passion: “Committed in heart and mind” “Committed in heart and mind”

Integrity:Integrity: “Be real” “Be real” Accountability:Accountability: “If it is to be, it's “If it is to be, it's

up to me”up to me”Collaboration:Collaboration: “Leverage collective “Leverage collective genius” genius” Innovation:Innovation: “Seek, imagine, create, “Seek, imagine, create, delight” delight” Quality:Quality: “What we do, we do “What we do, we do well” well”

THE GOALS ARE SIMPLE::THE GOALS ARE SIMPLE::

•We Will We Will Reinvigorate Growth Reinvigorate Growth , Of Our Company , , Of Our Company , And We Will Inspire And We Will Inspire Our People…. Our People….

STATEGIESSTATEGIES• What will drive our success in the future? What will drive our success in the future?

Not just growth, but sustainable growth -- Not just growth, but sustainable growth -- meeting our short-term commitments meeting our short-term commitments while investing to meet our long-term while investing to meet our long-term goals. And we have a goals. And we have a visionvision and clear goals and clear goals to guide our journey to achieve long-term to guide our journey to achieve long-term growth -- the kind of long-term growth that growth -- the kind of long-term growth that allows careers to flourish.allows careers to flourish.

We are building on our fundamental strengths We are building on our fundamental strengths in marketing and innovation, driving increased in marketing and innovation, driving increased efficiency and effectiveness in interactions with efficiency and effectiveness in interactions with our system and generating new energy through our system and generating new energy through core brands that focus on health and wellness.core brands that focus on health and wellness.

We are poised to capture the opportunity in so many ways. We are poised to capture the opportunity in so many ways. Here are just a few: Here are just a few: With the world's most recognized family of brands, we deliver With the world's most recognized family of brands, we deliver more than 2,800 products to 200 countries around the world more than 2,800 products to 200 countries around the world -- not just soft drinks, but juice and juice drinks, sports -- not just soft drinks, but juice and juice drinks, sports drinks, water, even coffee and milk. And every day we explore drinks, water, even coffee and milk. And every day we explore new ways to create and share beverages to new ways to create and share beverages to energize, relax, nourish, hydrate and enjoy. As the world's largest distributor of non-alcoholic beverages, As the world's largest distributor of non-alcoholic beverages, we maintain a trusted local presence in every community we we maintain a trusted local presence in every community we serve. We are constantly looking ahead to anticipate what our serve. We are constantly looking ahead to anticipate what our communities may need and gathering resources to support communities may need and gathering resources to support them. them. We've increased our annual marketing budget substantially, We've increased our annual marketing budget substantially, launched many new products, and developed a model to help launched many new products, and developed a model to help our retail customers maximize their sales while we continue our retail customers maximize their sales while we continue to plan for the next one, five and ten years in business. to plan for the next one, five and ten years in business.

We need highly skilled, ambitious, innovative people who We need highly skilled, ambitious, innovative people who think entrepreneurially and thrive on teamwork.think entrepreneurially and thrive on teamwork.

MARKETING STRTEGIESMARKETING STRTEGIES• The Coca-Cola Company is the world’s leading The Coca-Cola Company is the world’s leading

manufacturer, marketer, and distributor of manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups. nonalcoholic beverage concentrates and syrups. Its world headquarters is based in Atlanta, Its world headquarters is based in Atlanta, Georgia. The company and its subsidiaries employ Georgia. The company and its subsidiaries employ nearly 31,000 people around the world. The Coca-nearly 31,000 people around the world. The Coca-Cola Company manufactures syrups, concentrates Cola Company manufactures syrups, concentrates and beverage bases for Coca-Cola, the company’s and beverage bases for Coca-Cola, the company’s flagship brand, and also produces over 230 other flagship brand, and also produces over 230 other soft-drink brands sold by and its subsidiaries in soft-drink brands sold by and its subsidiaries in nearly 200 countries around the world.Some of nearly 200 countries around the world.Some of Coca-Cola’s latest domestic marketing strategies Coca-Cola’s latest domestic marketing strategies include Coke dominating fountain sales. include Coke dominating fountain sales. Thousands of consumers visit fast-food Thousands of consumers visit fast-food restaurants every day and Coke feels that it is restaurants every day and Coke feels that it is very important to have the consumer see and very important to have the consumer see and drink their product at such chains as McDonalds, drink their product at such chains as McDonalds, Burger King, and Domino’s Pizza. Burger King, and Domino’s Pizza.

• Coca-Cola is also testing a new plastic cup in the Coca-Cola is also testing a new plastic cup in the famous Coca-Cola contou….famous Coca-Cola contou….

They are also coming out with a new curved They are also coming out with a new curved can. can. Coca-Cola and One 2 One are teaming up for a Coca-Cola and One 2 One are teaming up for a promotion called, “Collect and Connect. promotion called, “Collect and Connect. According to consumer specialist, Robert According to consumer specialist, Robert Bertini, “the cans stand out on the shelves and Bertini, “the cans stand out on the shelves and are fun to hold. Cokes’ logo has become a are fun to hold. Cokes’ logo has become a widely known at music and sports events. They widely known at music and sports events. They will reintroduce its’ winning commemorative will reintroduce its’ winning commemorative Coca-Cola classic bottles featuring the Coca-Cola classic bottles featuring the members of the Coca-Cola Racing Team. The members of the Coca-Cola Racing Team. The phone and service can be altered but Coke will phone and service can be altered but Coke will use the text messaging service to inform use the text messaging service to inform customers of new promotions. customers of new promotions. Coca-Cola has also signed a three year deal with Coca-Cola has also signed a three year deal with AOL valued at 100 million dollars linking AOL valued at 100 million dollars linking packaging and promotional activities from the packaging and promotional activities from the retail shelves to cyberspace. retail shelves to cyberspace.

COMMITMENT IN COMMITMENT IN ACTIONACTION

Improving the quality of life in the communities Improving the quality of life in the communities where we operate has always been an integral part where we operate has always been an integral part of our business: promoting active lifestyles and of our business: promoting active lifestyles and well-being, minimizing our environmental impact, well-being, minimizing our environmental impact, driving economic growth and more. From our early driving economic growth and more. From our early years, we have promoted active living, sponsoring years, we have promoted active living, sponsoring sports programs on a local basis and a global scale. sports programs on a local basis and a global scale. Our environmental commitment began long ago Our environmental commitment began long ago with water quality and waste reduction, and we with water quality and waste reduction, and we continue to work to lessen our environmental continue to work to lessen our environmental footprint. In the communities we serve, our footprint. In the communities we serve, our presence means increased opportunities in terms of presence means increased opportunities in terms of jobs, tax income and economic growth, as well as jobs, tax income and economic growth, as well as support for community programs. These are just a support for community programs. These are just a few of the ways we strive to make life better for our few of the ways we strive to make life better for our customers, consumers and communities around the customers, consumers and communities around the world. Learn more about our initiatives around the world. Learn more about our initiatives around the world by visiting the links to the left. world by visiting the links to the left.

STRENGTHSTRENGTHOne of our greatest strengths is our ability to One of our greatest strengths is our ability to conduct business on a worldwide scale while conduct business on a worldwide scale while maintaining a local approach. At the heart of this maintaining a local approach. At the heart of this approach is the Coca-Cola bottling system. The approach is the Coca-Cola bottling system. The Coca-Cola system comprises our Company and Coca-Cola system comprises our Company and our bottling partners -- more than 300 our bottling partners -- more than 300 worldwide. Many consumers do not realize this, worldwide. Many consumers do not realize this, but there is a distinction between our Company but there is a distinction between our Company and our bottling partners. Our Company and our bottling partners. Our Company manufactures and sells concentrates, beverage manufactures and sells concentrates, beverage bases and syrups to bottling operations, which bases and syrups to bottling operations, which then produce a wide array of Coca-Cola then produce a wide array of Coca-Cola beverages. Our Company owns the brands and is beverages. Our Company owns the brands and is responsible for consumer brand marketing responsible for consumer brand marketing initiatives. Our bottling partners, in addition to initiatives. Our bottling partners, in addition to manufacturing the final branded beverages, also manufacturing the final branded beverages, also handle merchandising and distribution. handle merchandising and distribution.

Bottlers work closely with customers -- grocery Bottlers work closely with customers -- grocery stores, restaurants, street vendors, convenience stores, restaurants, street vendors, convenience stores, movie theaters and amusement parks, stores, movie theaters and amusement parks, among many others -- to execute localized among many others -- to execute localized strategies developed in partnership with the strategies developed in partnership with the Company. Customers then sell our products to Company. Customers then sell our products to consumers at a rate of 1.5 billion servings a day. consumers at a rate of 1.5 billion servings a day. The Coca-Cola system is not a single entity from The Coca-Cola system is not a single entity from a legal or managerial perspective, and the a legal or managerial perspective, and the Company does not own or control most of our Company does not own or control most of our bottlers. In 2006, bottling partners in which our bottlers. In 2006, bottling partners in which our Company had no ownership interest or a Company had no ownership interest or a noncontrolling equity interest produced and noncontrolling equity interest produced and distributed approximately 83 percent of our distributed approximately 83 percent of our worldwide unit case volume. In January 2006, worldwide unit case volume. In January 2006, our Company owned bottling operations were our Company owned bottling operations were brought together to form the Bottling brought together to form the Bottling Investments operating group, now the second-Investments operating group, now the second-largest bottler in the Coca-Cola system in terms largest bottler in the Coca-Cola system in terms of unit case volume.of unit case volume.

WEEKNESSESWEEKNESSES• Weaknesses are the current problem of the Weaknesses are the current problem of the

company. To determine the weaknesses of company. To determine the weaknesses of the company the things that should be the company the things that should be known includes the products that are least known includes the products that are least profitable, the areas of the company that is profitable, the areas of the company that is not able to recover cost, the weak brands, not able to recover cost, the weak brands, the ability of the company to raise money the ability of the company to raise money when it needs to, the ability of the when it needs to, the ability of the company to stand price pressure against company to stand price pressure against competitors, the ability of the company to competitors, the ability of the company to create new ideas, the faith of the create new ideas, the faith of the employees on the management and the employees on the management and the ability to compete with other companies on ability to compete with other companies on the technology front…the technology front…

The main weakness of the company The main weakness of the company is the health issue when their is the health issue when their product is partaken. The product product is partaken. The product they have can cause health they have can cause health problems when taken many times. problems when taken many times. Young children who might acquire Young children who might acquire health problems from taking their health problems from taking their product are not restricted. one of product are not restricted. one of the examples can be given by the examples can be given by the report that said the report that said COCA COLACOCA COLA contains contains PESTICIDES. PESTICIDES. The major The major problem of this company is that it is problem of this company is that it is not been able to separate itself not been able to separate itself from PEPSI.. They both have strong from PEPSI.. They both have strong brand name but they don’t have brand name but they don’t have one thing which can give them one thing which can give them distinction. Lastly has no other distinction. Lastly has no other products offering that has nothing products offering that has nothing to do with beveragesto do with beverages....

OPPERTUNITIESOPPERTUNITIES• Meaningful change on a global scale requires Meaningful change on a global scale requires

collaboration and mutual commitment. Together, the collaboration and mutual commitment. Together, the small steps we take will lead to something bigger. small steps we take will lead to something bigger. We are working with our bottling partners, We are working with our bottling partners, suppliers, governments, NGOs and community suppliers, governments, NGOs and community leaders, to develop and implement innovative leaders, to develop and implement innovative solutions to global challenges. Solutions to these solutions to global challenges. Solutions to these complex issues -- clean water access and availability, complex issues -- clean water access and availability, climate change, raw material scarcity and the spread climate change, raw material scarcity and the spread of infectious diseases -- will positively impact of infectious diseases -- will positively impact communities we serve, as well as the sustainable communities we serve, as well as the sustainable growth of our business. growth of our business.

• We have an obligation to conduct our business We have an obligation to conduct our business ethically and responsibly and to contribute to the ethically and responsibly and to contribute to the well-being of the people our business touches. This well-being of the people our business touches. This starts with the men and women of The Coca-Cola starts with the men and women of The Coca-Cola Company. We have a responsibility to provide a safe, Company. We have a responsibility to provide a safe, inclusive work environment where our associates are inclusive work environment where our associates are valued and fulfilled. valued and fulfilled.

Our commitment to the safety and quality of our Our commitment to the safety and quality of our beverages is of the highest importance to us. We beverages is of the highest importance to us. We never forget that we are invited into people's never forget that we are invited into people's lives 1.5 billion times each day through our lives 1.5 billion times each day through our beverages. beverages. We also have an obligation to ensure our We also have an obligation to ensure our consumers can make well-informed beverage consumers can make well-informed beverage choices. We continue to provide more nutrition choices. We continue to provide more nutrition information on our packaging, and we information on our packaging, and we encourage and support well-being and active encourage and support well-being and active lifestyles around the world. lifestyles around the world. Additionally, we work to protect and preserve Additionally, we work to protect and preserve the environment through our water stewardship, the environment through our water stewardship, sustainable packaging, and energy and climate sustainable packaging, and energy and climate protection initiatives. We believe the public and protection initiatives. We believe the public and private sectors can and should contribute to private sectors can and should contribute to improving the shape of our world. Individuals improving the shape of our world. Individuals also play a vital role in improving the economic, also play a vital role in improving the economic, social and environmental condition of our social and environmental condition of our planet. Working together, we can make a planet. Working together, we can make a meaningful difference.meaningful difference.

THREATSTHREATSCurrently, the threat of new viable Currently, the threat of new viable competitors in the carbonated soft competitors in the carbonated soft drink industry is not very drink industry is not very substantial. The threat of substantial. The threat of substitutes, however, is a very real substitutes, however, is a very real threat. The soft drink industry is threat. The soft drink industry is very strong, but consumers are not very strong, but consumers are not necessarily married to it. Possible necessarily married to it. Possible substitutes that continuously put substitutes that continuously put pressure on both Pepsi and Coke pressure on both Pepsi and Coke include tea, coffee, juices, milk, and include tea, coffee, juices, milk, and hot chocolate (“Cola Wars”, 1991). hot chocolate (“Cola Wars”, 1991).

Even though Coca-Cola and Pepsi control nearly Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage market, the changing 40% of the entire beverage market, the changing health-consciousness of the market could have a health-consciousness of the market could have a serious affect. Of course, both Coke and Pepsi serious affect. Of course, both Coke and Pepsi have already diversified into these markets, have already diversified into these markets, allowing them to have further significant market allowing them to have further significant market shares and offset any losses incurred due to shares and offset any losses incurred due to fluctuations in the market (“Cola Wars”, 1991). fluctuations in the market (“Cola Wars”, 1991).

Consumer buying power also represents a key Consumer buying power also represents a key threat in the industry. The rivalry between Pepsi threat in the industry. The rivalry between Pepsi and Coke has produce a very slow moving and Coke has produce a very slow moving industry in which management must industry in which management must continuously respond to the changing attitudes continuously respond to the changing attitudes and demands of their consumers or face losing and demands of their consumers or face losing market share to the competition. Furthermore, market share to the competition. Furthermore, consumers can easily switch to other beverages consumers can easily switch to other beverages with with little cost or consequence (“Cola Wars”, 1991).

THANK YOUTHANK YOU