Per capita consumption of beer, the national drink in the Czech Republic, exceeds that of soft-drinks by 3 to 1(165 liters of beer per capita of beer versus 50 liters of soft-drinks). Both companies are trying to increase their market share because distribution for both products is no longer as limited as it was in 1989. Coca-Cola and Pepsi face stiff competition from domestic producers, whose products are lower-priced. Because of this, domestic producers have a market share of about 60%. Coca-Cola and Pepsi each have a market share between 10%-25%. Another problem in the Czech Republic is that many people think that Coca-Cola and Pepsi are produced by the same company. Recently, Pepsi opened an office in Prague. Coca-Cola, on the other hand, has been trying to convince local shop owners to stock and circulate its product. The main apprehension may be that the price of Coke is twice the price of locally produced colas and a little higher than Pepsi. Coca-Cola has arrangements with 4 domestic bottling companies and acquired a new plant in 1992 in which it has invested almost $20 million. This may be one reason why Coca-Cola is closing in on Pepsi's lead in the Czech Republic.Coke and Pepsi in Hungary:Traditionally, Pepsi held the lead in Hungary with a strategy of putting the infrastructure in place, upgrading it, and then marketing to the consumer. Pepsi plans to invest $115 million which includes acquiring FAU, an Eastern European bottler. Because of this, Pepsi will have greater control over distribution and quality. In May of 1993, Pepsi introduced Pepsi Light and had outdoor and television advertising blitzes. Coca Cola, on the other hand, introduced Coke Light in the beginning of 1993, but did not mention its product name during the first few weeks of promotional advertising. Coca-Cola's strategy was to advertise internationally for Central Europe. Hungarians saw the 'Always Coca-Cola' commercials, along wit...
