Questions 3 and 5 Frozen Coke and Burger King and the Richmond Rigging 12 Case 8.17 president of Coca-Cola's Foodservice and Hospitality Division, was looking on sells fountain-dispensed soda...
Frozen Coke and Burger King and the Richmond Rigging 12 Case 8.17 president of Coca-Cola's Foodservice and Hospitality Division, was looking on sells fountain-dispensed soda to restaurants, convenience marts fountain division, a division responsible for one-third of all of Coke's revenues , and Tom Moore, president of sales in the The fountain division fourn theaters. Sales were stagnant, and he knew from feedback from the salespeople that Pepsi ias moving aggressively in the area. In 1999, Pepsi had waged a bidding war to try to seize s customers. Coke held about 66% of the fountain drink business and 44.3% of the market overall. Pepsi held 22% of the fountain market and 31.4% of the overall soda e war between the two giants had been reduced to a price war. One might say Coke' soda rket. Th ma that Coke's fountain sales were flat oore envisioned a potential new product line as he looked at the Frozen e, Frozen Coke was a convenience store item only. Frozen Coke team at Coke pitched the idea of having owever, M Coke products. At that tim was still a little-known product, and Moore's rozen Coke at Burger King, along with a national advertising push that would pus h Coke's tountain sales but also increase food sales at Burger King as customers came in to try the newly available product. Their pitch to Burger King was that Frozen Coke would draw customers and that the sales of all menu items would increase as a result. Burger King was not ready for a marketing push because it had just lived through two marketing disasters. efirst was the failure of the introduction of its new fries, and another was a costly ad campaign to boost sales of the Whopper, with no impact but a great many angry franchise s who had been required to help pay for the ads. Before Burger King would invest Th owner 12"The author has done consulting work with the Burger King team of Coca-Cola. All information in this case is from s and/or third party publications