Oligopoly
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Coca-Cola Versus PepsiCo
Question1: Preference
Between Coca-Cola and Pepsi, I prefer Pepsi.
Question 2: Brands and Products
PepsiCo products range from soft drinks including sodas, water to fast foods. The brands include Pepsi, Diet Pepsi, Mountain Dew, Lay’s, Gatorade, Tropicana, 7 Up, Doritos, Brisk, Quaker Foods, Cheetos, Mirinda, Ruffles, Aquafina, Naked, Kevita, Propel, Sobe, H2oh, Sabra, Starbucks (ready to Drink Beverages), Pepsi Max, Tostitos, Mist Twist, Fritos, and Walkers.
Coca-Cola brands include Coca-Cola, Coke diet, Sprite, Fant Dasani water Minute Maid, Krest, Stoney, Vapre water, Powerade, Nestea, Fruitopia, Vio milk, Georgia, and hundreds of other drinks. The Coca-Cola products range from soft drinks in the soda to milk products, canned tea and coffee products, plain water, fruit juice products, and energy drinks. Pepsi deals with similar products although it offers additional fast foods in its categories.
Question 3: Advertising
The two firms have had the most rigorous advertising fronts to attract the masses in the shrinking market due to the environmental and health awareness concerns. The PepsiCo advertisements resonate with the youths as most of their adverts are youthful, musical, and fun-centered. It tries to portray as a youthful and a cool brand. The advertisements have moved away majorly from the traditional media like TVs and radios to the internet-based ads including the social media sites. Coca-Cola, on the other hand, appeals to the consumer emotions where the ads instill a sense of a community and bond.
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It’s ad concentrate on creating unity among communities and society.
Question 4: Sales
Coca-Cola made sales amounting to $35.4 billion (KO 63) contrasted to Pepsis sales of $63.5 billion. Pepsis sales have been over Coca-Cola’s sales mainly due to the sales of foodstuffs offered by PepsiCo. The trend has not changed and has been for the past decade.
Question 5: Reason for non-collusion
Coca-Cola and Pepsi serve as oligopolies as their products are homogenous and as such, they can control their prices. However, the change depends on the kinked demand curve relying on cut-throat competition in attracting customers. Colluding with the other firm would not add any value than the firm already enjoys. They, therefore, engage in competitive sales where each reduction from one firm is met by a reduction from the other. The oligopolistic competition benefits the consumers as they get the products at a cheaper price each firm tries to expand by cutting prices.
Work Cited
Coca-Cola Company. 2017 Coca-Cola annual report. Coca-Cola Website. https://www.coca-colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/2018/TCCCAR17.pdf [Accessed 12th November 2018]
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