The soft drink industry has been engulfed by an ongoing cola war stemming from a long-time battle between Coca-Cola and Pepsi Co. Recently both companies have introduced their products to the foreign market, but in order for either company to turn a profit, there is a large amount of red tape they must cut before production can begin. This paper will examine the new markets and the roadblocks that have stopped these companies for so long.

Established in 1886 and 1889, Coca-Cola and Pepsi Co., respectively, were among the first soft drinks invented and their popularity grew rapidly. By the 1930's, Coca-Cola appeared on over 20,000 walls, 160,000 billboards, 5 million soda fountain glasses and 400 million newspaper and magazine advertisements (Secret Formula p. 206). When the war (Second World) ended, the Coca-Cola Company had sixty-three overseas bottling plants in operation in venues as far-flung as Egypt, Iceland, Iran, West Africa and New Guinea (Secret Formula, p.265).

Since then, international marketing has become more complex and the following will study the new territories and the advancements that the companies have made.

"A Red Line in the Sand." The Economist, 1 October 1994: 86

Both Coca-Cola and Pepsi are trying to have their colas available in as many locations in Eastern Europe as possible, and are recognizing the concepts which are becoming more important in marketing to these countries: color, product attractiveness, visibility, and display quality. In addition, availability, acceptability and affordability are other key factors for Eastern Europe. Both companies hope that their western images and brand products will help to boost their sales. Coca-Cola has a universal message and campaign since it feels that Eastern Europe is part of the world and should not be treated differently. Currently, it is difficult to say who is winning the cola wars since the data from the relatively new market research firms focuses on major cities. Pepsi had a commanding 4 to 1 lead in 1992 in the former Soviet Union. Without this area, Coca-Cola has a 17% share versus Pepsi's 12% share in the soft drink industry. While both companies have been in Eastern Europe for many years, the main task now is to develop the market.

Some common words found in the essay are:
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Approximate Word count = 2504
Approximate Pages = 10 (250 words per page double spaced)