Analysis For Cola Essay

Analysis For Cola Essay-3
One of the major factors that have contributed to the success of Coca-Cola in the soft drink industry is a strong marketing strategy.

One of the major factors that have contributed to the success of Coca-Cola in the soft drink industry is a strong marketing strategy.

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The major components of income statements are analyzed for both the companies in respect of cost of goods sold, operating income, income before taxes and finally net income.

Cost of sales for Pepsi Co is around 43% of the sales whereas the same for Coca-Cola is around 35% of the sales which is substantially lower than that of Pepsi Co.

Coca-Cola’s brand name is known well throughout 90% of the world today.

The crucial concern over few years ago has been to acquire the brand name well off recognized.

Following are the attached tables for percentage change on horizontal basis for two companies....

s 19.60 18.95 18.51 Provision for Income Taxes 7.08 4.69 5.28 Income from Continuing Operations 12.52 14.26 13.23 Tax Benefit from Discontinued Operations 0.00 0.13 0.00 Net Income 12.52 14.39 13.23 Coca Cola Inc.

” According to an article in Fortune magazine, “In Japan, unit case sales went down by almost 5% in the second quarter of 1998.

it is really intimidating because despite the fact that Japan generates around 5% of worldwide volume, it contributes three times as much to profits.

Net income for Coca-Cola has remained on a stronger side pursuing around 21% of its sales.

On the other hand, Pepsi Co just managed to earn net income of 13% of its sales in the three years.

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