PepsiCo in Mexico

Problems and Issues This case describes the complexity of PepsiCo's competitive position in the Mexican soft-drink market during the late 1990's. Between 1993 and 1996 PepsiCo and Coca-Cola waged a classic cola war in Latin America. The goal for both companies was to gain market share and by the end of 1996, Coca-Cola had clearly won the Latin America cola war. In 1993 PepsiCo enjoyed a 42% market share in Venezuela thanks to the success of its bottling partner, the …

…its market share return. Once these strategies are implemented and successful, PepsiCo should then concentrate on gaining share in the Latin American market from share leader Coca-Cola. References: "Coke v Pepsi", January 29, 1994, The Economist, pp. 67-68. DeNitto, Emily. (1994) "Pepsi, Coke think international for future growth", Advertising Age, p. 44. Moffett, M., & Soto, T. (1996). PepsiCo in Mexico: Anatomy of an Affiliate's Exposure (Case Study A06-97-0003). Thunderbird. The American Graduate School of International Management.