Cosmos Bottling Corporation

• Main Author: Bernardino, Rachel
• Format: text
• Language: English
• Published: Animo Repository 2002
• Subjects: Soft drink industry > Management > Philippines; Soft drink industry > Philippines; Cosmos Bottling Corporation
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3971
• Institution: De La Salle University

Competitive intensity has always described the oligopoly that is the soft drink industry. Characterized by the capital-intensive business of an impulse product, players are always trying to grab top of mind awareness and market shares from one another to ensure continued consumer patronage. Cosmos Bottling Corporation's (CBC) current strategy is niche marketing focused on the CDE market with the goal of building its business to service all homes and markets. Unlike Coke and Pepsi that heavily relies on brand image to sell their products, CBC has dared to change the rules of branding and employed a strategy revolving around the value for money (quality and pricing) before building its brand image. Having focused on the CDE market, CBC has acquired significant expertise in serving its market and continues to believe that this market will continue to be the logical market to serve moving forward. The strategy has proven profitable having grown volume from 16 million cases in 1989 to approximately an average of 80 million cases in 2000. But the recent acquisition of CBC by competitor and market leader, San Miguel Corporation (SMC) and The Coca Cola Company (TCCC), the company's role in the industry as well as part of the SMC conglomerate comes into play. Despite a potential conflict of interest (in terms of which company to prioritize for the growth and distribution), it is deemed logical for the CBC to perform a complementary role to Coke. With Coke's strength in the ABC markets and Pop Cola's growing business in the CDE markets, continued dominance by the food and beverage giant, SMC, in the carbonated soft drink industry in inevitable.