f beer per capita of beer versus 50 liters of soft-drinks). Both companiesare trying to increase their market share because distribution for bothproducts is no longer as limited as it was in 1989. Coca-Cola and Pepsi facestiff 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 problemin the Czech Republic is that many people think that Coca-Cola and Pepsi areproduced by the same company. Recently, Pepsi opened an office in Prague.Coca-Cola, on the other hand, has been trying to convince local shop ownersto stock and circulate its product. The main apprehension may be that theprice of Coke is twice the price of locally produced colas and a littlehigher than Pepsi. Coca-Cola has arrangements with 4 domestic bottlingcompanies 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'slead in the Czech Republic. Coke and Pepsi in Hungary: Traditionally, Pepsiheld the lead in Hungary with a strategy of putting the infrastructure inplace, upgrading it, and then marketing to the consumer. Pepsi plans toinvest $115 million which includes acquiring FAU, an Eastern Europeanbottler. Because of this, Pepsi will have greater control over distributionand quality. In May of 1993, Pepsi introduced Pepsi Light and had outdoor andtelevision advertising blitzes. Coca Cola, on the other hand, introduced CokeLight in the beginning of 1993, but did not mention its product name duringthe first few weeks of promotional advertising. Coca-Cola's strategy was toadvertise internationally for Central Europe. Hungarians saw the 'AlwaysCoca-Cola' commercials, along with the rest of the world, in April 1993. In1992, Coca-Cola lead Pepsi. In addition, Coca-Cola participates in countertrade agreements with Hungary. Coca-Cola trades its co...
