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Soda Wars

by Elaine Schwartz    •    Mar 18, 2011    •    461 Views

Diet Coke just pushed Pepsi out of the #2 spot in soda sales.

Other soda facts…

As reported by Beverage-Digest, Coke (17%) remains the most popular carbonated soft drink with Diet Coke (9.9%) next and then Pepsi (9.5%) and Mt. Dew (6.8%). The number next to each brand is its market share. Fanta, a Coca-Cola brand, is last among the top ten names.

As for each firm’s market share, Coca-Cola is at 42%, PepsiCo, 29.3%, Dr. Pepper Snapple 16.7% and Cott Corp., 4.8%. Among the “premium priced energy drinks,” Red Bull is first with a .8% share of the market.

Total sales of carbonated drinks indicate that we are drinking less soda. Our consumption of the top three brands, Coke, Diet Coke and Pepsi declined. However, sales of Diet Mountain Dew and Diet Dr. Pepper were up. Similarly, we are buying more Dr. Pepper, Mt. Dew and Sprite.

Should Pepsi have had a super bowl ad?

The Economic Lesson

Competing in an oligopolistic market, it is crucial for Coca-Cola, PepsiCo and Dr. Pepper Snapple to achieve product differentiation through non-price competition. An oligopoly is a market that typically has several large, mass producing dominant firms and many customers. Market entry and exit are difficult.

 

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