Reference no: EM132413987

In the US, Coca Cola enjoys market share dominance over Pepsi Cola in a ratio of 35:27. Overseas, Coke is even stronger, with Pepsi dominating about 5% of available markets. Coke's advertising expenditures globally are $1.8 Billion per year, whereas Pepsi is spending less than half of that. Moreover, Coca Cola is a global brand, and can deploy all advertising expenses toward a single brand value statement. Pepsi must fragment its promotional spending against a multitude of culturally appropriate messages. Coke's dominance has challenged and frustrated Peps for many decades and, at time, dominated Pepsi's board discussions.

1) What steps must Pepsi Cola take to become dominant in its current markets? Please cite examples and be very specific in your recommendations.