The Profitable Fizz: A Critical View of Competition in the Soft Drink Industry

24 Pages Posted: 7 Mar 2008

See all articles by Matthew Hartogh

Matthew Hartogh

affiliation not provided to SSRN

Date Written: January 1, 2008

Abstract

No other country has as high of a soft drink consumption rate as the U.S., however, many international areas have been targeted as potential areas for expansion. The strategy of overseas expansion involves similar use of the differentiation and consolidation methods that are used in the U.S., but are often geared toward specific foreign populations, e.g. PepsiCo's introduction of a unique Guava-Flavored Slice in India. Selling soft drinks internationally is advantageous to soft beverage companies because they are able to sell their products overseas at a lower price since local bottling companies produce the drinks. The major competitors, therefore, are essentially responsible for selling brand names and the image that goes with them.

Keywords: Beverage, Pepsico, Coca Cola, strategy, competition

JEL Classification: L11, D1, M14

Suggested Citation

Hartogh, Matthew, The Profitable Fizz: A Critical View of Competition in the Soft Drink Industry (January 1, 2008). Available at SSRN: https://ssrn.com/abstract=1103093 or http://dx.doi.org/10.2139/ssrn.1103093

Matthew Hartogh (Contact Author)

affiliation not provided to SSRN ( email )

Berkeley, CA 94704

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