Advanced Competitive Strategy Assignment - Cola Wars

Advanced Competitive Strategy Assignment

On

Cola Wars Continued

Pepsi Aquafina Vs Coke Dasani

Submitted by

Soham Chowdhury

Roll No. 59

To

Professor Veeresh Sharma

Introduction

Mineral Water industry is a vital industry in today's world of scientific awareness. Bottled water industry was among the world's most attractive beverage categories. Industry revenues were forecast to grow between 2005 to 2010. Bottled water's convenience, purity, and profitability are important for this concern. A heightened emphasis on healthy lifestyles and improved consumer awareness of the need for proper hydration led many consumers to shift traditional beverage preferences toward bottled water.

Water is the primary component of life. On one aspect it is a must for living a healthy life. On the other side it carries bottle full of risks. Water is a vital element which brings a series of diseases in human body. From Jaundice to skin diseases, Diarrhoea to Bacterial infection a lot many diseases are caused by water. This leads to the Water Refinement Industry which includes Water Filters, Water Purifiers,Mineral Water etc. Non Mobility of Water Purifiers has gave rise to this Packaged Water Industry which serves the demand of purified water around the globe. Coming to Pepsi and Coke they were the market leaders of the Carbonated Soft Drink (CSD) Industry since more than a century. When their credibility in this booming bottled water industry is talked about, a number factors creep in. So lets see the role of these factors for their success.

Bottle Water Industry: At a Glance

Volume:

Market Share:

The Refreshing Drinks industry includes Carbonated Soft Drinks, Soft Drinks from Fruits extracts, the Caffeine Drinks, Beer and Mineral Water. In this drinks industry, Bottled water comprises of 38% of the market.

Major Players:

To be specific there are loads of Mineral water Company over the world. But most of them are national level or regional level companies. Very few of them have international presence. Of them the significant ones are:

i) Pepsi

ii) Coke

iii) Nestle

iv) Aqua Gold International

v) Danone

vi) Boreal Water Collection

vii) China Water and Drinks

Market Share of top 4 Mineral Water Producers

Company Brand Volume (Bl. Litres) Market Share (%)

Nestle Nestle Pure Life 21.3 11.9

Danone Danone 17.6 9.8

Coca Cola Dasani 13.1 7.3

Pepsi Co. Aquafina 8.5 4.7

From the above table we can see that Pepsi and Coke are present in the top 4 brands but they are significantly lagging behind the other two producers in market share.

Market Share of top Carbonated Soft Drinks Producers

Brands Market Share (%)

Coca Cola 42.0

Pepsi Co. 29.3

Dr Pepper Snapple 16.7

Cott Corp. 4.8

From this table we can check that Pepsi and Coke are significant leaders of this industry with a huge gap with the others.

From this we can conclude that Pepsi and Coke has the potential to be the market Leader in the Bottled Water Industry. Let's have a look on this industry and the Advantage of Pepsi and Coke to creep up