Existing soft drinks market
Editors note: Taken from Chris Worfolk's GCSE marketing coursework.

There are 2 global brands of cola currently on the market:

· Coca Cola
· Pepsi Cola

Coca Cola sells over a billion products each day. Their advertising budget is over $1,800,000,000 (£1,000,000,000) and are the world’s largest and most recognised brand with Coke be arguably the most recognised word on the planet.

Coca Cola
The Coca Cola Corporation is one of the biggest businesses in the world. Selling over a billion products each day they have hundreds of facilities world wide and hundreds of thousands of people employed directly.

In 2002, Cola Cola’s net revenue was nearly $17 billion, and their net profit was $500 million, with a total market value of $10 billion. This compares to Microsoft who’s net revenue is around $35 billion and net income of around $16 billion.

In 1985, Coca Cola, announced New Coke, with although turned out to be one of the major corporate failures of all time, proved that Coca Cola is a huge marketing machine, as within two weeks of its launch, more people in the U.S. knew about New Coke than who the president was.

Coca Cola stats:

· Coca Cola is the most recognised brand on the planet, ahead of Ford
· Coke is arguably the most recognised word on the planet
· Their yearly advertising budget is over $1,800,000,000 (£1,000,000,000)

Pepsi Cola
Pepsi Co. has an annual revenue $27 billion and has over 143,000 employees. The company was only formed in 1965 when Pepsi-Cola and Frito-Lay. They have over 500 products and the US consumes 2 billion gallons. They are ranked 43 in the Forbes 500 list of biggest companies in the world.

Existing Sectors
The existing market can be broken down into two main sectors. The first consists of Coca-Cola and Pepsi. These are more brands than drinks and use price skimming, sacrificing high sales for bigger profit margins. However this is paradoxical as Coca-Cola have managed to maintain incredible sales even with their high price.

The other main sector is store brands such as Tesco and Asda cola.

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This article was posted by mworld.

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