The Coca-Cola Company is widely established worldwide. It mainly deals with carbonated soft drinks. These drinks are distributed globally to restaurants, stores, and vending machines. The company has a registered trade mark of “Coca-Cola”, originating from the United Sates, on 27th March 1994. The coca cola company made an announcement in January 2013 that it had acquired the Bottling Coca-Cola company of Sacramento. This was a huge boost to this company because an extensive investment was pumped into the acquired company. The company increased its shares, and their market grew wider after extending to Sacramento. New investors were acquired and at the end of it, a huge profit was realized by the company. This news, therefore, led to a substantial increase on the stock price of the Coca cola Company due to an increased market level. Another news event that had a similar impact on the stock price of this company is the co acquiring interest of the Coca Cola Company in Fresh Trading Company Limited in February 2013.
The Pepsi company has had some negative news that had a great impact on their stoke price. In September 2013, a rumor was circulated via the social media and text messages that the consumption of the Pepsi drinks and any product from the company was to be halted. The information suggested that these products had been tainted and manufactured with blood that had the HIV virus. This information led to a decrease in the market power of the company, and lowered the stock price in order to save the company’s situation. Even though the status of the rumor was false, it had a negative effect on the customers of the company. Currently, Pepsi has a plan to invest five billion in Mexico, aimed at innovation and brand building. This is a move that will bolster the company’s position in key markets across the world and increase the stoke price.
Therefore, my investment decisions have to take concern on the kind of information that circulates about the given enterprise. My investment plans have to involve a good reputation of the investment to avoid tampering with the customers, and hence, the marketing system.
Coca Cola Company, & Quality Information Publishers (2013). Historic vending machine films. Asheville, N.C.: Quality Information Publishers.
Enrico, R., & Kornbluth, J. (2013). The other guy blinked: How Pepsi won the cola wars. Tononto: Bantam.