section 3, part 2 a and b

Integrated Strategic Marketing Plan: Section Three

Part 2- Competitive Situation

A.    Direct Competitors

Coca-Cola is definitely a giant of the beverage industry, and as a major company, they are used to having many competitors to contend with for the consumer market. Their biggest direct competitors are PepsiCo and Dr. Pepper Snapple Group. All three of these companies sell brands for soft drinks (including diet versions), juices, sports drinks, bottled water, flavored waters, energy drinks, bottled (or canned) coffee, and teas. Below is a table explaining each company’s directly competing products.

	Coca-Cola Company Brands	Dr. Pepper Snapple Group Brands	PepsiCo Brands
Soft Drink	Coca-Cola	Dr. Pepper	Pepsi
Diet Soft Drink	Diet Coca-Cola	Diet Dr. Pepper	Diet Pepsi
Fruit Juice	Minute Maid	Hawaiian Punch	Tropicana
Sports Drink	POWERADE	BODYARMOR	Gatorade
Bottled Water	Dasani	Deja Blue	Aquafina
Flavored Water	Vitamin Water	Bai	Sobe Lifewater
Energy Drinks	Monster	Venom	AMP Energy
Ready to Drink Coffee	Gold Peak Coffee	High Brew	Starbucks Ready to Drink Beverages
Ready to Drink Tea	Gold Peak Tea	Snapple	Brisk

(Buehler, 2016) (Dr. Pepper Snapple Group, 2012) (Dr. Pepper Snapple Group A, 2017) (Dr. Pepper Snapple Group B, 2017) (PepsiCo, 2012) (PepsiCo, n.d.) (The Coca-Cola Company A, 2017) (The Coca-Cola Company B, 2017).

B.     Indirect Competitors

 Besides direct competitors, Coca-Cola must also deal with indirect competitors, those with products who can fulfill the same consumer’s needs. Within the beverage industry, the consumer’s needs are to drink. Because Coca-Cola has so many different kinds of beverages, most smaller companies would actually be considered direct competitors, so the most threatening indirect competitors are alcoholic beverage companies. The main companies in the alcoholic beverage sector are Anheuser-Busch, Heineken Holding, and MolsonCoors Company (World’s Top Exports, 2017). They each sell different brands in beer, light, beer, hard ciders, and premium beer. While these companies are considered competitors to Coca-Cola, there are restrictions to their products that allow Coca-Cola to reach more consumers. For example, the legal restrictions on alcohol do not allow for individuals under the age of 21 to drink, and you cannot drive while intoxicated or have an open container in the car within reaching distance. Also, there are social and physical restrictions for drinking alcohol. Some people may get sick very easily after ingesting alcohol and it is largely considered indecent to drink early in the day.

References

Buehler, N. (2016). Top 5 Companies Owned by Coca-Cola (KO). Retrieved from http://www.investopedia.com/articles/markets/011216/top-5-companies-owned-coca-cola-ko.asp

Dr. Pepper Snapple Group. (2012). Dr. Pepper Snapple Group Increases Investment in BODYARMOR. Retrieved from http://investor.drpeppersnapplegroup.com/2016-04-04-Dr-Pepper-Snapple-Group-Increases-Investment-In-BODYARMOR

Dr. Pepper Snapple Group A. (2017). High Brew. Retrieved from https://www.drpeppersnapplegroup.com/brands/high-brew

Dr. Pepper Snapple Group B. (2017). Our Brands. Retrieved from https://www.drpeppersnapplegroup.com/

PepsiCo. (2012). U.S. Brands Shopping List. Retrieved from https://www.pepsico.com/docs/album/media-resources/usbrands_shopping_list.pdf?sfvrsn=2

PepsiCo. (n.d.). Top Global Brands. Retrieved from http://www.pepsico.com/Brands/BrandExplorer

The Coca-Cola Company A. (2017). Gold Peak Tea & Coffee. Retrieved from http://www.goldpeakbeverages.com/?&gclid=CKrKuM-jrtMCFQmOaQodCfsP9g

The Coca-Cola Company B. (2017). Product Description. Retrieved from http://www.coca-colacompany.com/brands/product-description

World’s Top Exports. (2017). Major Export Companies: Alcoholic Beverages. Retrieved from http://www.worldstopexports.com/major-export-companies-alcoholic-beverages/