What Conceptual Blocks Were Experienced by Coke Executives?

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As my research, the market shares of Coke are larger than the Pepsi in the world, also in the China. In fact, in my mind, Pepsi’s adverting is greater and more than Coke since I was a little girl. And every year Pepsi would invite the hottest Chinese star as their spokesperson. In addition, my friends and I drunk more Pepsi than Coke when we were young kids. However, the truth is Coke’s market share in China still larger than Pepsi. But after I came to the U.S., some other Chinese friends who from different cities told me they and their friends more like Coke but they also admit that Pepsi’s adverting is greater and more than Coke in China. Thus, I think the market share of Coke and Pepsi are related to the time, region, and marketing. Although Pepsi did great job in marketing and sales in the last 20 years and they always try to find a new way to increase their market share and brand awareness, Coke are always always earlier than Pepsi. Time is really a very significant factor in this case.

Last but not the least, I think Coke and Pepsi’s marketing strategies are different according to their advertising in China. Pepsi are target more younger people since their advertising are always invited the hottest Chinese star. And Coke are try to target all customers that from different ages since Coke’s advertising in China always shows a picture that the whole family get together and share the happy time and share the Coke-cola. I guess maybe Pepsi know that their product is sweeter than Coke, and younger generation are more like sweet taste. But Coke target more people than the Pepsi, its may other reason why Coke’s market shares larger than Pepsi. [pic 1] [pic 2]

Another funny reason I think Coke’s market shares larger than Pepsi in China is because Coke’s packing is red and Pepsi’s packing is blue. Chinese people extremely like red color because it represents good lucky.

3.6. What do you learn from this case that would help you advice other organizations, such as Microsoft in protecting its market from Google, Barnes & Noble.com in displacing Amazon.com, or American Greetings in becoming the dominant player in the greeting card business?

There are many companies doing similar business in the competitive market. It is very important that companies set their own business strategies to meet their customers’ needs instead of following with their competitors’ strategies without thinking of their company’s vision and mission. There are three things I learn from this case.

First of all, it is necessary to build a unique business strategy and solve the competition problems creatively while facing the competition with a similar company. Secondly, while facing competition, companies should not try to solve problems only looking too narrowly, screening out other important issues, and making assumptions that inhibit problem solutions. And other very important thing is doing the overall research and analysis, it is really can help the company find the root of the problems and find the correct ways to react. Thirdly, in the competitive market, it is very important to be creative and innovative. For example, Pepsi is too similar with Coke and Coke is the first one into the market. At last many many years, Pepsi’s market shares always lower than the Coke’s. Thus, Pepsi maybe can develop some other new products in to the market to increase their market shares instead of only focus on the one product. Fourthly, the analytical problem solving is very important when a company is facing the competition. Defining the problems, generating the alternatives, analyzing the alternatives, and implementing the solutions should all be carried out carefully and comprehensively. Thinking deeply and broadly can help eliminate the mistakes occur and reduce the unexpected results.