...Pepsi Sales Bubble with Limited Edition Soft Drinks Case Summary: Pepsi and its partner in the Japanese beverage market, Suntory, are using limited edition soft drinks to boost market share and increase sales gaining edge on its competition, Coca-Cola. Because the Japanese market is challenging, introducing a new product is very difficult. Consumers in the Japanese market would rather hunt limited-edition products make specifically for certain seasons, regions, or reasons. Others have been successful with this type of marketing there so Pepsi decided to launch its new strategy marketing limited-edition soft drinks. With it first launch the company sold out within weeks demonstrating its effectiveness. Various brands of limited-edition beverages were launched including Pepsi Blue, Pepsi Red, Carnival and Ice Cucumber, all were successful in the company’s new marketing strategy. Pepsi’s strategy is to create a unique flavor that will be approved by the mass and not to reintroduce it to the market, keeping limited-edition truly “limited”. Not only is this strategy effective in the Japanese market, it is all well in the U.S. The appeal to consumers is the value as a collector’s item, due to their novelty, rather than a beverage that is to be guzzled down. Personal Case Analysis In review of the case with Pepsi and Suntory, I learned that Pepsi and Suntory have an effective marketing strategy with the limited-edition line of products. This strategic plane...
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...Background of the company chosen: Hawaiian Punch is a well-known brand of fruit punch drinks owned by Dr. Pepper Snapple Group, Inc. (DPS). The company experienced several ownership handovers and some of the most recent ones include Procter & Gamble sold Hawaiian Punch to Cadbury Schweppes in 1999, and Dr. Pepper Snapple was spun off from Cadbury Schweppes in 2008. The Current Situation of the Company: The main source of our study comes from an intensive case study that illustrates Hawaiian Punch’s “Go-to-Market Strategy” decision option, faced by the company’s Marketing Director Kate Hoedebeck during the time span from year 2004 to 2005. As the number one fruit punch drink sold in the United States, Hawaiian punch enjoyed its continuous success. Its goals are very much aligned with the customers’ needs, in the long-term it aims to maintain its competitiveness through high customer satisfaction, extensive product development, easy accessibility and better profits attainable for retailers to stock and sell. In terms of its strengths, it has already become Cadbury Schweppes’ fourth largest brand by volume. Since the acquisition of Hawaiian Punch by Cadbury Schweppes from Procter & Gamble in 1999, the company had employed two distinct and separate manufacturing, sales and distribution networks to stock and serve identical or similar beverages for the same retail customer. This dual distribution strategy by many has been seen as one of Hawaiian Punch’s strength, leading it towards...
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...developed and went in market / broad consumer range under established sales force. By leveraging and pushing the pool of bottlers under them, the company went public and emphasized on the opportunity to put the beverage “in arm’s reach of desire”. To fulfill their desire to top the world as leading beverage suppliers, they won 4 of the world’s top 5 nonalcoholic beverage brands and they have setup operations in more than 200 countries all over the world with a strong portfolio of more than 2,800 products in these countries. On the hand, Pepsi Cola was founded in 1893. Following footsteps of coke, Pepsi also adopted franchise bottling system. Overcoming financial and legal hurdles around 1940’s Pepsi became second largest selling carbonated soft drink brand. In 1965 PepsiCo was formed through the merger of Pepsi and snack food giant Frito-Lay to exploit the non-CSD industries. With further successful merger and acquisitions with small and medium scale industries like Tropicana, Quaker Oats to name some they became world’s fifth largest food and beverage...
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...__________________________________ LETTER OF TRANSMITTAL Date: January 04, 2011 Lecturer, School of Business North South University Subject: Submission of survey Report on Appy Fizz and Grappo Fizz. It is a great pleasure and privilege for me to present the Internship report titled “APPY FIZZ and GRAPPO FIZZ market in Bangladesh” which was assigned to me as a working requirement for the completion of Internship Program. Throughout the study I have tried my level best to accommodate as much information and relevant issues as possible and tried to follow the instructions as you have suggested. I tried my best to make this report as much informative as possible. I sincerely believe that it will satisfy your requirements. I however sincerely believe that this report will serve the purpose of my internee program. I am grateful to you for your guidance and kind cooperation at every step of my endeavor on this report. I shall remain deeply grateful if you kindly take some pan to go through the report and evaluate my performance. My effort will be reworded only if it adds value to the research literature. Sincerely yours, _______________________________________ACKNOWDGEMENT First of all, I wish to thank the Almighty Allah, the Supreme Authority of the universe for immeasurable Grace and profound Kindness that he has bestowed on me for completing this valuable work. Successful completion of any course requires support from various persons. I have been...
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...ginger ale as a general soft drink for all occasions, After obtaining initial clearance to explore the concept further. Johnson spent considerable time perfecting the product ingredients and conducting laboratory field test. 1989 – Cadbury Schweppes Public limited company was one of the largest British owned confectionery and soft drink companies with marketing operations in more than 100 countries around the world. 1990 - The product was fully developed. In the soft drink industry, general soft drinks constituted the bulk of the market. Colas dominated by coca cola or PepsiCo brands therefore, most major benefits had exclusive agreements with either Coca cola or Pepsi Co to market their colas as the primary product line 1991 – Once decision was made Johnson would have to convince the bottlers to adopt the product and obtain their commitment to make it available in retail outlets by January 1991 Central Problem How would Schweppes make their product known not as adult soft drink but a soft drink for all Ages. Viewpoint: Sam Johnson – Associate Product Manager Strength * The relative consumption of the product for these two purposes varied in different regions of the united states. In the northeast, ginger ale was equally mixer with alcohol. Because the sales of both Schweppes and Canada dry were heavily concentrated in the northeast. A very large proportion of the total ginger ale marketed by the two divisions was consumed as a soft drink. Ginger ale is popular in...
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...epidemic facing today’s children. In a report published by the Center for Disease Control (2012), nearly 17% or 12.5 million children and adolescents in the United States are classified as obese. Obesity is defined as having a body mass index that is equal to or greater than the 95th percentile for children of the same age and sex. Childhood obesity can be the result of genetics but is mostly the result of continuous overeating with little or no physical activity to counter the number of calories ingested. Since childhood obesity remains a growing epidemic, the rise of childhood obesity can be attributed to such factors as increased entertainment media, targeting of children by marketing, larger portion sizes, and the consumption of sugar drinks. In today’s society, entertainment media devices such as smart phones, television, computers, video games and movies are an everyday part of life. With an extensive amount of media devices at our fingertips, children are spending an average of 7.5 hours a day engaged with some form of a communication device with the majority of that time allocated to watching television or playing video games (Center for Disease Control and Prevention, 2012). This increase in watching television or playing video games promotes a sedentary lifestyle, resulting in a dramatic decrease in physical activity. In an article from the National Institutes of Health (2008), the findings from a long-term study uncovered the activity level in a group comprised...
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...1. Why is the soft drink industry so profitable? An industry analysis through Porter’s Five Forces reveals that market forces are favorable for profitability. Defining the industry: Both concentrate producers (CP) and bottlers are profitable. These two parts of the industry are extremely interdependent, sharing costs in procurement, production, marketing and distribution. Many of their functions overlap; for instance, CPs do some bottling, and bottlers conduct many promotional activities. The industry is already vertically integrated to some extent. They also deal with similar suppliers and buyers. Entry into the industry would involve developing operations in either or both disciplines. Beverage substitutes would threaten both CPs and their associated bottlers. Because of operational overlap and similarities in their market environment, we can include both CPs and bottlers in our definition of the soft drink industry. In 1993, CPs earned 29% pretax profits on their sales, while bottlers earned 9% profits on their sales, for a total industry profitability of 14% (Exhibit 1). This industry as a whole generates positive economic profits. Rivalry: Revenues are extremely concentrated in this industry, with Coke and Pepsi, together with their associated bottlers, commanding 73% of the case market in 1994. Adding in the next tier of soft drink companies, the top six controlled 89% of the market. In fact, one could characterize the soft drink market as an oligopoly, or even a duopoly...
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...is the largest division of Cadbury Schweppes PLC that is the third largest soft drink companies and fourth largest confectionary company that sells its products in over 200 countries. Also, this company is the largest non cola soft drink company in the North America, and the third largest soft drink company in the United States. They are rated among first 10 companies based on their product share. However, some of their products represent a market leader in specific categories. Market situation In the United States there are more than 900 registered brand names for carbonated soft drink. Most of these brands are recognized and accepted in the local regions and they mostly represent the taste of the local consumers. Taste of the locals are changing over time and where there were just colas taste was accepted in the past; in the last decade there is significant growth (30%) in popularity of flavored soft drinks. Flavors such as orange, cherry, grape, lemon lime are much more represented in the market. For the purpose of soft drink production there are three groups of participants in the chain production. These are: concentrate producers, bottlers, and retail outlets. Three major concentrate producers in the United States are Coca Cola Company, Pepsi Cola Company, and Dr Pepper/Seven Up, Inc. However, there are more than 500 bottlers that also convert flavor concentrate into carbonated soft drinks, but the three biggest concentrate producers also owned companies that provide...
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...study provides information regarding the past performance, current analysis, stock valuation, market evaluation, and industry comparison. In this analysis and case study, The following key elements comprise the Panera Bread strategy: 1. Capitalize on market potential by opening both company-owned and franchised Panera Bread locations as quickly as possible. Management planned to expand the number of Panera Bread locations by 17% annually through 2010 and to achieve EPS growth of 25% annually. The addition of the franchising option to the strategy has proven to be key in acquiring desired market penetration. 2. Offer a more nutritious fast food dining option. Panera Bread’s signature product is fresh-baked artisan bread made with limited ingredients and no preservatives or chemicals. The rest of the Panera menu offerings are built upon this bakery expertise. The menu groups were fresh baked goods, made-to-order sandwiches and salads, soups, light entrees, and café beverages. 3. Compete successfully in five submarkets of the food-away-from-home industry. Panera Bread utilizes its distinctive menu, signature café design, inviting ambience, operating systems, and unit location strategy to compete successfully. The submarkets that Panera competes in are: breakfast, lunch, day-time “chill out”, light evening fare for take-out or dine-in, and take-home bread. Panera’s goal was to increase dining at multiple meal times: breakfast, lunch, daytime “chill out”, and dinner. 4....
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...demands for carbonated drinks are very low. The averages of them buying carbonated drinks are three bottles a year. There are ways for PepsiCo and Coca-Cola responses to the sheer scale of operations in terms of product policies, promotional activities, pricing policies and also distribution arrangements. Product policies are the guidelines developed by an organization or government to manage the activities within the organization or country. As for this case, India had set a limit of sales for foreign beverage companies in order to make sure that the local beverage companies are able to compete with foreign beverage companies. The sales of soft drinks for foreign companies like Coca-Cola and PepsiCo concentrate to local bottlers could not exceed 25 percent of the total sales for new venture and Pepsi Foods Ltd. was required to process and distribute local fruits and vegetables. India’s government also mandated that Pepsi Food’s products are promoted under the name of “Lehar Pepsi”. As for Coca-Cola, this company had once entered India’s market but had failed to maintain in the market. But in May 1990, Coca-Cola has decided to reenter India’s market through a joint venture with Britannia and was called “Britco Foods” that introduced Kinley and fruit drinks to India’s market. It is important that foreign beverage companies such as PepsiCo and Coca-Cola are active in promotional activities in order to increase the numbers of purchase of carbonated drinks in the country. PepsiCo...
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...Almost anybody in the United States can attest to drinking a soft drink beverage from time to time. There are those who even indulge in them on a daily basis. For decades the soft drink industry has produced an immeasurable amount of fluids consumed. In 2012 a study conducted by the Huffington Post found that 48% of Americans drink soda on a daily basis. It’s no surprise that the soft drink industry is a multi billion-dollar industry. Just like any other large, established industry, it is almost impossible for a smaller organization to enter the trade and be profitable. It is especially difficult to compete in the soft drink industry with the two tycoons The Coca-Cola Company and PepsiCo. Having been around for as long as they have –Coca Cola 1892, PepsiCo 1965 the two companies have crushed their industry rivals and dominated the soda trade making the threat of potential entrants extremely low. The barriers to entry are too high because of unequal access to distribution channels. Usually consumers acquire their soft drinks alongside a meal at a restaurant or maybe a gas station. No restaurant is going to place a new soft drink flavor alongside popular generic flavors that are known to sell and no gas station is going to sell a product that they’re unsure is going to sell. Not only that but the capital requirements required in order to compete with The Coca-Cola Company and PepsiCo are inconceivable. A smaller organization may attempt to market their products locally and survive...
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...Indian Soft Drinks Market 1970’s and early 80’s—the entry and exit of Coke India has proved to be perhaps the toughest battle ground for the Cola giants. Coca-Cola was the 1st international soft drinks brand to enter India in early 1970’s. Indian market was dominated by domestic brands, with Limca being the largest selling brand. Cola was the largest selling flavor with market share of 40%, Lemon drinks 31% and orange drinks only 19%. Up till 1977, Coca-cola was the leading soft drink brand in India. But due to norms set by the Foreign Exchange Regulation Act (FERA), Coca-Cola left India and did not return till 1993 after a 16 year absence from the Indian beverage market. FERA needed Coca-Cola to reveal its secret concentrate formula as well as reduce its equity stake which was not acceptable. Pure drinks, Delhi launched Campa-Cola, to take advantage of Coke’s exit and by the end of 70’s, was the only Cola drink in the Indian market. In 1980, Parle, another major Indian player launched ThumsUp, the drink which till date is most popular soft-drink in India. Pure Drinks strongly objected to ThumsUp being called a “soft” drink as it felt its taste is too strong. For over a decade, Parle led the Indian soft-drinks market, with its market share reaching a peak of 70% in1990. Late 80’s and early 90’s— Pepsi’s struggle to enter India Pepsi saw the exit of Coke as a God send opportunity to capture then estimated 900 crore market of India. India was then a highly regulated...
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...product name. On August 5, 2003 the CSE (Center for Science and Environment) released a critical press release that name 12 soft drinks brands, Coke brand included, that were sold in and around Delhi to have contain a deadly pesticide residues (CSE Press Release, “Hard Truths about Soft Drinks, 5 Aug 2003). CSE claimed that these dangerous pesticides were known to cause cancer, cause failure of the nervous and reproductive systems, birth defects, and damage to the immune system. Along with the hazardous chemicals found by CSE, there were very limited regulations in place for this industry to follow. These soft drink companies were receiving exemptions for the industrial licensing under the Industries (Development and Regulation) Act of 1951 that would have probably had a chance to take notice to these soft drink contamination events (CSE Press Release, 5 Aug 2003). In response to these very strong allegations from the Center for Science and Environment, Coke Enterprise of India launched their own internal investigation by sending their own sample of their soft drinks to laboratories for testing as a way of supporting their claim against CSE. Samples that were sent by Coke to labs for testing came back with no signs of detecting pesticides Coke claimed CSE’s allegations to be untrue and questionable because of their method of testing the soft drink products. Coke India’s CEO, Sanjiv Gupta threatened to...
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...Pepsi International is a world renowned brand. It is a very well organized multinational company, which operates almost all over the world. In Pakistan It also has proved itself to be the No.1 soft drink. Now days Pepsi is recognized as Pakistanis National drink Pepsi's greatest rival is Coca Cola. Coca Cola has an international recognized brand. Coke's basic strength is its brand name. But Pepsi with its aggressive marketing planning and quick diversification in creating and promoting new ideas and product packaging, is successfully maintaining is No.1 position in Pakistan. Pepsi is operating in Pakistan, through its 12 bottlers all over Pakistan. These bottlers are Pepsi's strength. Pepsi has given franchise to these bottlers. Bottlers, produce, distribute and help in promoting the brand. Pepsi also launched its fast food chain KFC i.e. "Kentucky Fried Chicken." We also did analysis of the soft dink industry in Pakistan and world wide. The soft drinks set to become world's leading beverage sector. Global consumption of soft drinks is rising by 5% a year. Table of Contents Titles Page # 1. Introduction 01 2. Mission and vision statement 01 3. Facts about company 02 4. Pepsi in Pakistan 04 5. Product in spot light 09 6. Market analysis of soft drink 10 7. Pakistani soft drink industry 13 8. Industrial SWOT analysis 14 9. External Environmental factors 16 10. Internal Environmental factors 21 11. Pre-marketing Mix 25 12. Marketing Mix strategies 27 13. Conclusion...
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...research will focus on the soft drink industry in the UK, especially on the two major carbonated, cola drinks producers Coca-Cola and Pepsi. Brief Background Soft drinks sector is a £11.5 billion industry. A report by Mintel (2008) shows that the soft drinks market is represented by five categories such as: carbonated drinks, bottled water, fruit juices and fruit drinks, smoothies and premium soft drinks. Carbonated soft drinks, or known in the UK as 'fizzy drinks', account for over half of the soft drinks market, with sales worth £6.038 billion in 2008. They are usually described as being sweet, with great amount of sugar or artificial sweeteners, and containing carbon dioxide, which makes them 'fizzy'. The leading flavours are cola and lemon. More than half of the UK market value is shared between two international giants: Coca-Cola and Pepsi. Both companies are based in the US. In the UK, Coca-Cola is produced by Coca-Cola Enterprises Ltd., and Pepsi by Britvic Soft Drinks PLC. (Keynote, 2008) By far, Coke holds the strongest position within the market with 48% of the retail sales. Holding the second place Pepsi is far behind with only 12% of the sales. For the past few years, due to health awareness, the demand for carbonated drinks has decreased. It was especially noticeable within the cola drinks such as Coca-Cola and Pepsi, hence the release of the low-sugar, healthy versions such as Coca-Cola Zero and Pepsi Raw. According to Carbonated Soft Drinks report (Mintel, 2008)...
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