...have consumed at least one soft drink beverage over a year time span (Kerin, 2010). Dr. Pepper/Seven Up, Inc is the largest division of Cadbury Schweppes PLC (Kerin, 2010). “Cadbury Schweppes PLC is the world’s third largest soft drink company, and the fourth largest confectionary company with product sales in over 200 countries” (Kerin, 2010). Dr. Pepper/Seven Up, Inc. is among one of the three major concentrated producers in the U.S. Dr. Pepper/Seven Up, Inc. owns 2% of market share in the soft drink beverage industry (Kerin, 2010). Cadbury Schweppes is known as the world’s “first soft drink maker”, and the “world’s largest non-cola soft drink producer and marketer” (Kerin, 2010). The company has several national brands and regional brands that are top leaders in the soft drink industry. Squirt was marketed by Dr. Pepper/Seven Up Inc. in the 1990’s by Cadbury Schweppes PLC (Kerin, 2010). In 1938 Herbert Bishop created a carbonated drink that required less fruit and sugar to produce (Kerin, 2010). The new drink “seemed to squirt onto the tongue just like squeezing a grapefruit” (Kerin, 2010). Squirt became a popular soft drink product in the 1950’s. Throughout the 70’s Squirt transitioned into a “brand that was a mainstream soft drink” (Kerin, 2010). Squirt is a caffeine free, low sodium carbonated soft drink brand with a distinctive blend of grapefruit juices (Kerin, 2010). Squirt leads the market with selling grapefruit “soft drink brand in the U.S” (Kerin,...
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...Summary * Problem Definition * Case Issue * Industry Analysis * Environmental Trends * Macro Factors * Competition and Competitors * Industry Trends * Customer Analysis * SWOT Analysis * Recommendations * Implementation Plan | 2334557881011 | EXECUTIVE SUMMARY: History: The company was started in 1783 in London as the world’s first soft drink maker. In 1880s Schweppes expanded worldwide and in 1960s the company diversified into food products. In 1969 Schweppes merged with Cadbury which was a cocoa making business started in England in the 1830s. Year | Acquisition | 1986 | Canada Dry soft drink brands | 1989 | Certain soft drink brands and purchased Gini brand of Belgium. | 1989 | Crush brand from Procter & Gamble for $220 million. | Cadbury Beverages, Inc., a beverage division of Cadbury Schweppes PLC acquired the Procter & Gamble brands namely Crush, Hires and Sun-drop in the year 1989. They had to re launch those brands into the market because those products were paced out by their competitors. This case especially deals with the Crush brand(an orange drink). Kim Feil who joined the division in 1989 as a Senior Product Manager for managing the re launch of Crush soft drink brand. There had been a lot of discussions regarding the crush brand. After making a thorough industry review, competitors positioning and the image which Crush has on its customers mind the senior marketing executives at Cadbury Beverages, Inc decided to focus...
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...Breaking Down the Chain: A Guide to the soft drink industry aCknowleDgments this report was developed to provide a detailed understanding of how the soft drink industry works, outlining the steps involved in producing, distributing, and marketing soft drinks and exploring how the industry has responded to recent efforts to impose taxes on sugar-sweetened beverages in particular. the report was prepared by sierra services, inc., in collaboration with the supply Chain Management Center (sCMC) at rutgers university – newark and new Brunswick. the authors wish to thank kristen Condrat for her outstanding support in all phases of preparing this report, including literature review and identifying source documents, writing, data analysis, editing, and final review. special thanks also goes to susanne Viscarra, who provided copyediting services. Christine fry, Carrie spector, kim Arroyo Williamson, and Ayela Mujeeb of ChangeLab solutions prepared the report for publication. ChangeLab solutions would like to thank roberta friedman of the yale rudd Center for food Policy and obesity for expert review. for questions or comments regarding this report, please contact the supervising professors: Jerome D. Williams, PhD Prudential Chair in Business and research director – the Center for urban entrepreneurship & economic development (Cueed), rutgers Business school – newark and new Brunswick, Management and Global Business department 1 Washington Park – room 1040 newark, nJ 07102 Phone: 973-353-3682...
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...to the advance nation. Marketing is about winning this new environment. It is about understanding what consumers want and supplying it more conveniently. Marketing deals with identifying and meeting human needs and social needs. One of the shortest definitions of marketing is “meeting needs profitably”. The consumer market may be identified as the market for product and services that are purchased by individuals as household for their personal consumption. soft drinks is a typical consumer product purchased by individual primarily quench their thirst and also for refreshment. Different types of soft drinks are available in the market and more or less content of all soft drinks is same. The market of soft drinks is facing a cutthroat competition and many companies are floating in the market with their product with different brands names. Thus in a country like India where more than 50% of total population exists below poverty line, the consumer cannot afford such high price for soft drinks. As a result the trading activities of the soft drinks industry are concentrated in and around big cities and town where the purchasing power of population is considered comparatively high. Soft drinks industry in India has an annual sale of about 4000crores, with per capita consumption of soft drinks at a low of seven bottle per annum (even Pakistan has a per capita consumption of 14; in china and U.S.A is more than 800 bottles) is due to price factor. The marketing manager is responsible...
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...explains the economics of the soft drink industry and its relation with profits, taking into account all stages of the value chain of the soft drink industry. By focusing on the war between Coca-Cola and PepsiCo as market leaders in this industry – with a 90% market share in carbonated beverages – the study analyses the different stages of the value chain (concentrate producers, bottlers, retail channels, suppliers) and the impact of the modern times and globalisation on competition and interaction in the industry. Throughout this analysis, I will assess how the strategic interaction between the two players allowed the creation of a “healthy" competition, where both companies need each other in order to remain competitive. Afterwards, I will go on to analyse the way that pricing and output decisions have affected the industry’s profits. Finally, I will discuss how Coca-Cola and PepsiCo could sustain their leadership in a market increasingly dominated by non-carbonated drinks. WHY IS THE SOFT DRINK INDUSTRY SO PROFITABLE? The soft drink industry refers to all drinks which do not contain alcohol. However, the original definition referred to carbonated and non-carbonated drinks made from concentrate. In this case discussion, I will take into consideration the US market, where the three major players – PepsiCo, Coca-Cola and Cadbury Schweppes – represent 90% of the market, with PepsiCo and Coca-Cola holding the largest share. In the soft drink industry, the distribution and production...
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...Neuromarketing Marketing Essay This research project examines the new concept of marketing research methodology called neuromarketing to find out the intrinsic values that lay behind consumers purchasing behaviour. The 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....
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...Why, historically, has the soft drink industry been so profitable? The soft drink industry has historically been one of the most profitable industries. Coke and Pepsi, the two most dominant players in the soft drink industry, were both originally created in the late 1800’s as “medicines” and were sold exclusively from drug store soda fountains. Over the years both companies have continued to expand and have more recently shifted focus to non-carbonated soft drinks as well. The reason for the soft drink industry’s profitability can be explained based on Michael Porter’s competitive industry forces framework, while strong marketing techniques and perhaps some luck of being in a growing industry played a role as well. While the industry could have supported several soft drink manufacturers, Coke and Pepsi were the only major players. Both companies had a big head start on the competition, and Coke prevented many early entrants by taking legal action against any imitating brands. Also, even though Coke and Pepsi were competitors they were not hindered by being established rivals since the industry was constantly growing. The former CEO of Pepsi, Roger Encino, even attributed the competition with Coke as a contributing factor towards Pepsi’s continued innovation and success. A lack of new entrants into the soda industry has also been a component towards the industries’ profitability as well. Over the past century, Coke and Pepsi’s innovative marketing and customer outreach campaigns...
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... Table of Contents Introduction 2 Task 1-A 2 Primary Research Plan 2 Customer profile 3 Customer preference 3 Customer attitude and buying behavior 4 Data Collection Method 5 Sampling Techniques 5 Task1-B 6 Secondary Research Plan 6 Size of the market & Market structure 6 Competitors and their market share 7 Task 2 8 Summary of Collected Data and research findings 8 Data analysis 9 Study of correlation 9 Task 3 10 Report to senior manager 10 Health and wellness issues in the beverage industry 11 Task 4 14 Project Plan for the development of a new product 14 Resource Allocation 15 Project Costing 15 Business Analysis on the projected revenue and cash flow 16 Conclusion 17 References 17 Appendix 18 Introduction Star Bottling and packaging company is a medium sized business which is working for years in the UK market. Recently Star has decided to follow the diversification growth strategy by introducing a new product in a new market. The opportunity exists outside the current market. The beverage industry of UK is highly attractive and Star is planning to launch new drinks in the UK market. As the coordinator of the new product development it is important to analyze the customer profile and the customer preference and the consumer buying behavior and attitude about the soft drinks. This report focuses on data collection about the UK beverage industry, the current trends in the market, the major competitors and the...
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...Description: Examines the industry structure and competitive strategy of Coca-cola and Pepsi over 100 years of rivalry. New challenges of the 21st century included boosting flagging domestic cola sales and finding new revenue streams. Both firms also began to modify their bottling, pricing, and brand strategies. They looked to emerging international markets to fuel growth and broaden their brand portfolios to include noncarbonated beverages like tea, juice, sports drinks, and bottled water. For over a century, Coca-Cola and Pepsi-Cola had vied for the "throat share" of the world's beverage market. The most intense battles of the cola wars were fought over the $60 billion industry in the United States, where the average American consumes 53 gallons of carbonated soft drinks (CSD) per year. In a "carefully waged competitive struggle," from 1975 to 1995 both Coke and Pepsi had achieved average annual growth of around 10% as both U.S. and worldwide CSD consumption consistently rose. This cozy situation was threatened in the late 1990s, however, when U.S. CSD consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi. The case considers whether Coke's and Pepsi's era of sustained growth and profitability was coming to a close or whether this apparent slowdown was just another blip in the course of a century of enviable performance. A rewritten version of an earlier case by Michael E. Porter and David B. Yoffie. Essay: The case study “Cola...
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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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...Product and Brand Strategies Cola Wars Continue: Coke and Pepsi in 2010 1. Why, historically, has the soft drink industry been so profitable? Coca Cola was formulated in 1886 by a pharmacist in Atlanta who started to sell it in drug stores as a ‟portion for mental and physical disorders.“ Five years later the Asa Candler acquired the formula for Coca-Cola syrup which was a well-protected secret of the company. He also granted the first bottling franchise which grew qucikly. In the following years a lot of imitations were fight agressively by court for protecting their carbonated soft-drink (CSD) with its special flavour. Later on Coca Cola was advertised as a ‟lifestyle“ product and the international business began to develop. Pepsi was founded in 1893 and they also adopted a franchise bottling system which built up a big network very quickly. About 20 years later Pepsi went bankrupt and later on they declared bankrupcy the second time. However business went on and Pepsi built up a marketing strategy ‟Twice as much for a nickel, too.“ Pepsi step for step gained market shares and became the second behind Coca Cola. The competition in the soft drink industry began to grow. The soft drink industry consists of bottlers and suppliers. One fact which supports the profitability of the soft drink industry is that there are only two relevant players Coca Cola and Pepsi who have enough power for setting rules. The rivalry between both can be seen as a copmpetitive...
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...A study on perception of soft drinks and fast foods advertisements and its impact on youth lifestyle and eating habits Today it is a matter of great pride to see that India as a nation stands with a population of 1,166,079,217 (July 2009) and out of which two-third of the population lies below 35 years of age. India is considered as one of the youngest nation in the world. According to various national and international organisations the age group of youth generally lies between 15-35 years. This vulnerable group is being highly influenced by the advertising industry whose focus has shifted from family and elderly to youth and kids. With the increased employment of youngsters due to the entry of BPO’s, KPO’s, MNC’s in the Indian sub-continent, marketers have got a new set of potential buyers in the form of young and restless . This segment comprises of those who are more open to adapt new products, ideas and follow trends set up by advertising world. Advertising today carries the blame of manipulating and duping audience. The moment you open your idiot box for multifaceted reasons you can see a clutter of advertisements, a commercial of 7 up ends up with a girl kissing a boy, ads of all juices making claims that all of them are preservative free, dangerous stunts being performed in ads of Thumps up and Mountain dew, open and free broadcast of inner wears at prime time encouraging the opposite sex to assault. All advertisement of several branded deo’s end in seductive mode. Ads...
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...2006” focuses on describing Coke and Pepsi within the CSD industry by providing detailed statements about the companies’ accounts and strategies to increase their market share. ‘ Cola war’ is the term used to describe the campaign of mutually targeted television advertisement & marketing campaigns between Coke & Pepsi. Furthermore, the case also focuses on the Coke vs. Pepsi goods which target similar groups of costumers, and how these companies have had and still have great reputation and continue to take risks due to their high capital. Both Coke & Pepsi have segmented the soft drink industry into two divisions, via – 1.Production of soft drink syrup. 2.Manufacturing & distribution of soft drinks at retail level. Coke & Pepsi have chosen to operate primarily on the production of soft drinks syrup,while leaving independent bottlers with more competitive segment of the industry.The purpose of this report is to gain insight into the possible strategies that can be applied, in order to expand the overall throat share in the future. History revealed that a highly competitive strategy that was utilized in the past by both companies resulted in cannibalization. Because of this, the report is described from the perspective of both Coca-Cola and Pepsi. This report focuses on increasing the overall share and finding new opportunities in the unrevealed markets. STRUCTURE OF THE SOFT DRINK INDUSTRY : 1. Concentrated Producers Main activities includes...
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...long project assignment, I sat down and tried to think of what company to research on.Being military, I thought seriously about researching more about the defense contractors that serve our mission.Upon further thought, I realized defense contractors would be a poor choice since their marketing tactics would behard to research. I then got the recent Fortune magazine to research the Fortune 500. Walmart, ranked number one;may have been a good choice since my husband claims we should own stock with how much I shop there.However, I decided on number 92 on the Fortune 500, the Coca-Cola Company. "The Coca-Cola Company marketsfour of the world's top-five soft drink brands, including Diet Coke, Fanta and Sprite. " happento drink a lot of DietCoke. The company leads the soft drink industry with a 50 percent market share. For the purpose of thisassignment, I will discuss the Coca-Cola Company's competition and the how the Coca-Cola Company's marketingimpacts the company's financial objectives. But first, I will present the Coca-Cola's Company's mission.The Coca-Cola PromiseThe Coca-Cola Company's mission, also known as the Coca-Cola Promise is to "benefit and refresh everyone ittouches "and to "When we bring refreshment, value, joy and fun to our stakeholders, then we successfully nurtureand protect our brands, particularly Coca-Cola. " This blue chip company has remained a leading competitor in thesoft drink industry for 115 years because of its unwavering devotion to the Coca-Cola Promise...
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...Marketing Strategy Squirt Case Squirt - Nature of industry, market, and buyer behavior In the United States, people consume more carbonated drinks than tap water. Research has shown that the average American drinks about 53 gallons of soft drinks per year. However, soft drink consumption has declined over the past few years. The soft drink industry has three major participants in the production and distribution; concentrate producers, bottlers, and retail outlets. Concentrate producers are responsible for consumer advertising and promotion programs, product development and planning and market research. The bottler’s responsibility is to set up local and retail trade promotions. Among this is selling and servicing retail outlets, placements and maintenance of advertisements, and the restocking of retailer’s shelves and vending machines. Competition in the soft drink industry is mostly relevant among the top three companies; Coca-cola, Pepsi-Cola, and Dr. Pepper/Seven Up. Each of these companies offers a product similar to Squirt, but each has their own variation. Coca-Cola’s Fresca is also a grapefruit flavored carbonated rink, but it has sugar and is caffeine free. Coco-cola also offers Mello Yellow and Surge. Pepsi-Cola has the largest carbonated citrus drink called Mountain Dew. The Organization Squirt Brand carbonated drink is a caffeine-free, low sodium soft drink that is a blend of grapefruit juices mixed with carbonation. It is the best selling carbonated grapefruit...
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