Pepsi and Coca cola companies in Australia (report) Essay

Pepsi and Coca cola companies in Australia (report) - Essay Example Various theories will be cited and discussed and then their practical application to Pepsi and Coke will be discussed. Introduction: Â  CONSUMER BEHAVIOR Consumer behavior is an enigma for marketers all over the world. Countless number of strategies and approaches has been designed by marketers to understand the reasons behind why buyers choose a certain product over another similar product. However, a concrete model or method describing consumer behavior which guarantees a positive response from the buyer in the form of purchases or repeated purchases is yet to be formed. Even consumers themselves do not know what factors influence them towards making a certain buying decision. Broadly it can be said that consumer purchases are influenced strongly by cultural, social, personal and psychological characteristics. 2. Company overview & history 2.1 Company 1 The Coca Cola Company is one of the world’s largest beverage companies which manufactures, distributes and markets non-alc oholic beverages and syrups. The company is popularly known for its premium brand, Coca Cola, and therefore also shares the same name. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than 400 brands in over 200 countries or territories and serves 1.5 billion servings each day. (Press Centre: Coca-Cola) The mission stated by Coca Cola declares its purpose as a company and serves as a standard against which its actions and decisions are weighed. To nourish the world To inspire moments of optimism and happiness... To create value and make a difference. (Our Company: Coca-Cola) The ultimate objectives of its business strategy are to increase volume, expand its share of worldwide nonalcoholic ready to drink beverages sales, maximize its long-term cash flows, and create economic value added by improving economic profit. (Khan) In Australia, Coca Cola Amatil is the company which has been licensed to bottle and distrubute Coca Cola company soft drinks and beverages in other countries. It is considered as the largest non-alcoholic beverage company within the Pacific Rim. Coca Cola Amatil has expanded itself in the last six years. It has expanded itself to include a wide range of products comprising of water, fruit juices, energy drinks, sports drinks, vegetable products, coffee and water. In August 2006, it ventured into the business of spirited beer brands. It ventured into a joint business with SABMiller and from April 2007, it became the seller and distributor of the products of Maxxium. 2.2 About Pepsi Co Pepsi Co is a Fortune500 company. It is a global American corporation with its headquarters based in Purchase, Harrison and New York. It has vested interests in manufacturing, distribution and marketing of grain based snack foods, beverage s and other products. The company was found in 1965 when the Pepsi Cola Company and the Frito Lay Company were merged. PepsiCo has immensely expanded itself and its product range since then. It now has a n expanded namesake product Pepsi and various other beverage brands to its credits. The company has been immensely successful in terms of revenue generation. In 2009 along PepsiCo’s product lines generated sales were 1 billion dollars each and the company products were distributed in 200 countries round the globe. The net revenues across the globe were $ 43.3 billion and based on these net revenues PepsiCo was named as the second largest food and beverage business in the world. In America it is considered as