Consumers’ Preferences for Coca Cola and Pepsi Essay

Recommendation departd by Yayra Consulting firm for the coca plant poop Corporation and Pepsi Corporation is as follows base on the survey I set up that a majority preferred coca plant sens over Pepsi. The consumers that preferred Coca grass were influenced by the harvest-tides taste. Both Coca gage consumers as well as Pepsi consumers were faithful to their product of preference. In some(prenominal) cases I raise consumers who concur consumed Coca dummy and Pepsi for over 20 years. I recommend that Coca sess continue to invest in advertisements collectable to the incident that from those who preferred Coca green goddess were influenced by their advertisements and their theatrical role of celebrities. Consumers did say that if they did not crap a resource and Pepsi was their only choice they would sometimes drink Pepsi. This leads me to recommend Coca dope to increase their charge in line of businesss where they currently argon not. This will give the consume r an option and loyal consumers will stay with their preference. I would recommend that Coca dope ensures that their product is available at the convenience of their consumers.My recommendation for Pepsi would be to target the younger community by incorporating cartoon characters on their products. This recommendation is due to the fact that from those surveyed I found that the younger generation liked the Pepsi sweeter taste more than than than what those surveyed described as crisp flavor for Coca the skinny.PepsiTwo aside of the 5 people surveyed preferred Pepsi over Coca Cola. step to the fore of the 2 surveyed for Pepsi both preferred Pepsis taste. Price did not influence choice. Out of the both Pepsi preferred consumers stated that they drank 1 cup 4 cups per day. Of the two surveyed both stated that they would sometimes chose Coca Cola if they had no other choice. Of the two surveyed the years consuming the product ranged from 9 20 + years. alone one of the two surveyed exclusively consumed Pepsi in their family. Both Pepsi consumers surveyed were attracted to Pepsis advertisements. accompaniment BProduct Profitability digest between Coca Cola and PepsiThe product I have chosen is Coca Cola versus Pepsi for analysis. From research I found that Coca Cola give the axe sales/ receiptss were $24,088,000. Cost of goods sold were $8,154,000 the remainder between both sales/revenues and cost of goods sold resulted in a gross profit of $15,924,000 in 2006. The net income in 2006 was $5,080,000.For Pepsi I found that net revenue for 2006 were $35,137,000. Cost of goods sold was $15,762,000. The difference between the revenue and cost of goods sold in 2006 for Pepsi showed a net profit of $6,439,000. The net income in2006 was $6,439,000.The importance of the financial data is to show argonas in which the raft is excelling and may want to continue to invest in. The financial data analysis in detail besides reveals areas in which the participat ion is losing money and from the findings the corporation gage decide to change its approach in the particular area in order to prevent further financial losses. Also, the data helps commission to identify these areas where there is loss and take action that leads to increased profits.Based on the net income of 2006 for Pepsi I would say one of the factors that contribute to the border they have over Coca Cola is that Pepsi is more diversified in the products that they produce. Pepsi not only distributes the nonalcoholic beverages they also distribute a florilegium of sweet and piquant snack products. addition CSWOT ANALYSIS Strengths, Weaknesses, Opportunities and ThreatsStrengthsCoca ColaCoca Cola is a well open international nonalcoholic beverage corporation. They are well established in the food market and are one of the largest nonalcoholic beverage companies in the world. Coca cola has over 400 brands from water to sports drinks. Coca Cola continues to invest in adver tisements for their products, which contributes to their quick front end in the beverage market. They are addressing in advance(p) ways to provide healthy drinks for consumers.PepsiPepsi is also a well established international nonalcoholic beverage corporation. In addition to beverages Pepsi sells snacks such as the Frito Lay chips. They act globally and have penetrated the market through advertisements, which influences increased sales. Pepsi using a distribution network to sell their products. They sell to distributors based on customer inevitably. Their established presence in the market contributes to their keep success and sets the layer for new successes with new products distributed by Pepsi.WeaknessesCoca ColaCoca Cola in 2006 some external factors caused areduction in income due to foreign exchange negatively impacted operation income in a diminish of 1% in European Union, Bottling investments, Brazil, and Latin America. Higher vex rates also affected Coca Colas profits. In 2006 they had a decrease of $42M compared to the prior year. Their main competitor which is Pepsi has a strong presence in not only the nonalcoholic beverages but also in salty snacks such as the Frito Lay chips corporation. Coca Cola products are strictly beverage drinks and I deliberate that this is a weakness for them.PepsiSimilar to Coca Cola Pepsi operates on customer demand. If they were to market a new product that consumers dont like Pepsi is at risk of losing sales and revenue. some other factors that can have a negative impact to Pepsis continued success are external factors like inflation, interest rates, and political vents. This corporation is heavily dependant on technology to run the day-to-day business. If anything were to go wrong with the technology they can be negatively impacted. other issue that is of concern to the Pepsi organization is the fact that in recent years consumers have become more aware of health concerns. People are opening to hol d those responsible for distributing foods that are disease causing such as illnesses associated with obesity. To continue on the topic of health, Pepsi continues to distribute diet drinks containing aspartame which has been linked to cancer.APPENDIX C (Continued)OpportunitiesCoca ColaCoca Cola continues to invest on innovative products. This leads to having the ability to stay ahead of their competitors such as Pepsi. With Coca Cola creation an international business the ability to be innovative provides further success in an ever changing world. In regards to beingness innovative, through innovation Coca Cola has the opportunity to put come bug off of the closet healthy products into the market and address how their product affects the health of their consumers. Coca Cola to date has increased their diet products by through their partnership with Splenda, a diet substitute, by providing a variety of diet Coca Cola drinks. I also deal that Coca Cola should branch out like Pep si into the snack industry. By doing so,they can have more of a competitive edge over Pepsi by providing snacks that are healthy in combination with innovative health drinks.PepsiPepsi already participates in the distribution of snacks as well as their Pepsi drinks however, the snacks distributed are considered to be unhealthy. They should put more focalisation on providing healthier products for the consumer. This would provide more profitable opportunities for Pepsi. They would be gain consumers who in like a shots changing world are more health conscience than ever before.APPENDIX C (Continued)ThreatsCoca ColaThe threats for Coca Cola are the continual increase new competitors go in the market. They have to constantly be aware of who their competitors are and what they are whirl the market so that they can stay ahead of their competitors. Coca Cola dependence on technology is also a threat because in todays advanced technological world there is ever so some kind of externa l threat including hackers, viruses that can corrupt particular financial information as well as product information. Another factor that can be a threat to Coca Cola is the interest rates increase. This can directly affect Coca Colas profits which can result in a loss.PepsiThe threats for Pepsi are their contribution to the unhealthy snacks that they distribute to the consumer. I think that corporations have a social responsibility to provide healthy food products and not products that can cause ill health. Pepsi not only distributes nonalcoholic beverages but it also distributes snacks such as Lays chips, Doritos, Fritos to name a few. These snacks are considered unhealthy and I think that they should invest in innovative ways to come up with healthy snacks to the health conscience consumer. In recent years consumers have sued corporations for distributing food products that have lead to poor health. Therefore, with the threat of potential lawsuits Pepsi needs to address this iss ue and provide a product that consumers would consider to be healthy.CONCLUSIONThe fact remains that Coca Cola and Pepsi are from each one others main competitors. My recommendations for Coca Cola to invest in increasing their presence where they currently are not and continued investments in advertisements I believe will put them ahead of Pepsi. Also, Coca Colashould branch out into distributing snacks but not just any snack but a healthy alternative snack for the increased awareness consumers have in todays market. Pepsi consumers favored their sweet taste that was especially likeable to young consumers. My recommendation that they advertise with cartoon characters by targeting the youth I believe would lead to increased sales and increased profits for Pepsi. I also believe that Pepsi should invest in providing healthier drinks and snacks for their consumers. They already are in the market for the snacks if they began selling healthy versions of the existing snacks I believe tha t would also give them an edge over Coca Cola being that Coca Cola has yet to invest in the distribution of snacks.In conclusion, Coca Cola and Pepsi are successful companies that are well established in the market. This gives them an edge in the market that new competitors joining the market dont have. That being said they still face the constant threat of new competitors and existing ones and must continue to invest in innovative ways that will keep them ahead of the competition. Also, companies have a social responsibility to provide healthy products for consumers especially in todays world with consumers being more health conscience and demanding fictional character products from the food industry.CitationNew York Stock ExchangePEPSI http//www.nyse.com/ near/listed/pep.htmlhttp//www.pepsico.com/PEP_Investors/AnnualReports/06/PepsiCo2006Annual.pdfCOKE http//www.nyse.com/about/listed/ko.htmlhttp//www.thecoca-colacompany.com/investors/pdfs/form_10K_2006.pdf