Thursday, December 08, 2005

Coke vs. Pepsi

"Coke introduced more than 1,000 products in 2005 and is seeing strong sales of new drinks such as Coca-Cola Zero, up 18% from September to November, said marketing chief Mary Minnick...Coca-Cola is developing a bottled coffee called Far Coast and black and green tea drinks called Gold Peak for 2006 and beyond, she said...Coke's U.S. soft drink sales have fallen this year through September as consumers buy more non-carbonated drinks. Isdell is spending $400 million more on marketing as part of a two-year turnaround plan. He also introduced a lower-calorie Powerade sports drink and flavored Dasani water to catch up with PepsiCo, the non-carbonated leader...Next year, it will introduce coffee-flavored Coca-Cola Blak, to be marketed as an energy beverage and soft drink...Coca-Cola is developing juice drinks, including a fortified juice called U Be and a sparkling juice, Haven, which will arrive in 2006....Coca-Cola gets 82% of sales from soft drinks vs. less than 20% for PepsiCo."

What does this have to do with your business? Coke still depends on soft drinks (soda) for 82% of revenue, while Pepsi only generates 20% from soda - and it is finally catching up to Coke. Resembles ISPs, Cablecos and Tele-Barons.

Coke is trying to re-invent itself around market trends. Good idea. How are you Re-Imagining your business?

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