In the summer, there's nothing more refreshing than a can of "A-house Happy Water."
When the cold carbon dioxide gas fills the mouth, a strong sense of impact is released,
Prompting the brain to release more dopamine is the source of pleasure for the atagoers.
It can be said that in today's rising prices,
However, this year, affected by the supply chain crisis, the price increase of Coca-Cola and Pepsico has also triggered a cry of netizens -
Coke Freedom, which was once the easiest to achieve, now feels like it's starting to be unfree...
Photo/Weibo
<h1 class="pgc-h-arrow-right" data-track="58" > the birth history of Coke</h1>
Coke has been around for more than 100 years.
It was originally founded in 1886 by John Pemberton, an American pharmacist, in Atlanta, Georgia, USA.
The company originally sold a soda drink made from a combination of cocoa, cola nuts and carbonated water.
In 1892, in order to better brand, the company changed its name to "Coca-Cola Company".
This is also the origin of the Coca-Cola Company.
Photo: Sohu News
As the world's largest beverage company,
Coca-Cola owns and licenses to sell more than 500 different brands of non-alcoholic beverages,
These beverages are sold in more than 200 countries.
It also works with a range of bottling partners, distributors, retailers and wholesalers to help bring the company's products to consumers.
But because the beverage industry is highly competitive, big brands like Coca-Cola must invest in multi-channel marketing campaigns.
Because if you don't advertise consistently,
Market share will soon be eliminated by PepsiCo (PEP), the biggest competitor of its lifetime.
<h1 class="pgc-h-arrow-right" data-track="23" > ad spend on Palatable and PepsiCo</h1>
Coca-Cola invests heavily in advertising every year.
Between 2015 and 2019, it spent an average of $4 billion a year on promotional ads around the world.
According to a report, in 2019, Coca-Cola invested about $4.24 billion in global advertising.
A large part of this is mainly used to promote their own Coke products.
Such a large budget allows Coca-Cola to gain a competitive edge in several key areas.
Its spending and strategy help it successfully bring new products to market,
Increase consumer brand awareness and brand equity, and increase overall sales.
<h1 class="pgc-h-arrow-right" data-track="27" > the battle between the two brands</h1>
In 2020, Coca-Cola's brand valuation exceeded $80 billion.
In terms of market share, it accounts for almost 44% of the beverage market in the United States.
However, its main competitor, PepsiCo, spends roughly the same amount of money on advertising as Coca-Cola .
Approximately $4 billion per year.
However, due to the more diversified advertising of PepsiCo, there are many different food brands,
These include Doritos, Fritos, Sabra and Ruffles.
Coca-Cola has 500 brands, 21 of which generate about $1 billion in revenue each year.
And according to Sure Dividend data,
PepsiCo also has a variety of leading branded food and beverage products,
22 of these brands have generated more than $1 billion in annual revenue.
<h1 class="pgc-h-arrow-right" data-track="75" > why hasn't the price of Coke risen in the past 10 years? </h1>
Some people may ask,
With the rise in prices, the previous bowl of 3 pieces of noodles has now risen to 10 yuan.
A bottle of Coke 10 years ago was 3 yuan, and 10 years later it is still 3 yuan.
In fact, there are two main reasons for this, generally speaking, the reason for the price increase can be explained as the result of economic growth and increased customer income.
However, because cola is an industrial product, it can rely on large-scale production to reduce costs.
For example, Coca-Cola's automated production line can fill hundreds of thousands of bottles of Coke in a minute.
In the corresponding cost structure, the proportion of labor is very small.
Therefore, the significant increase in labor costs in the past few years has had little impact on them.
In addition, Coke has long been monopolized by the two giants of Coca-Cola and Pepsi, and they choose not to raise prices for the sake of market competition.
Therefore, the barriers to entry or competition in this industry are very high, and the profit margin is not high,
But the two giants can also make money by scale.
There is also a term for this in economics called "Gounod equilibrium."
That is, there are only two sellers in the product market, and there is basically no difference in what is sold.
Therefore, although the two sellers are competitors, they can also roughly know how much the other will produce and how to price them.
So that both parties determine the optimal yield to maximize profits.
Figure/www.cbc.ca
In fact, as far as I'm concerned, whether it's Coca-Cola or Pepsi, it actually tastes the same.
However, the world's "war of the century" about Pepsi and The Coca-Cavit,
But it never stopped...