Premium Essay

Soft Drinks Indusrty

In:

Submitted By thepartyboy93
Words 2496
Pages 10
The soft drinks industry is a highly competitive market and has a wide variety of products which are sold within this market. These include bottled water, carbonates, dilutables, still and juice drinks, fruit juice and smoothies and sports/energy drinks.
From the 2012 UK Soft Drink Report it shows that the soft drinks industry has grown massively in value by 5.1% in 2011 which equates to £14.5 billion. Along with this consumption of soft drinks has risen by 0.7% to reach 14.6 billion litres. This shows the current size and value of the market to be on a constant rise, and will continue to rise with the increasing population of the UK and marketing of Soft Drinks companies.
The market sector as a whole can be seen as increasing. From looking at a Mintel report for each individual sector in the market I found that they all follow a similar trend. Drinks such as bottled water, carbonates, dilutables, smoothies along with still and juice drinks all follow the same trend as rising from around 2006 where the records begin, followed by a slight dip during the recession during 2008 and then a constant increase again. This is expected as the recession affected most market sectors around the world and because soft drinks are not a necessity in the home as the UK has clean running water the market for soft drinks sank a little, but since then has been on the increase. Smoothies showed a drastic change during the recession unlike any other of the segments, managed to plummet from £225 million to £130 million over the space of two years. This is mainly due to the smoothie craze during 2006-2007 where they were marketed extremely effectively and promoted both taste and healthy living, they were however very expensive and therefore were not seen as a necessity during the recession so their sales dropped massively. Sports and energy drinks are the final segment and are interesting

Similar Documents

Premium Essay

Crush

...Crush- 1) INDUSRTY ANALYSIS: STRUCTURE INDUSTRY ECONOMICS BRAND CATEGORY BUYER (CONSUMER) BEHAVIOR- I. structure 3 TYPES OF PRODUCTION/ participants- concentrate producers, bottlers and retail outlets 40 concentrate producers who make the flavors of the syrup. Responsible for national consumer advertisement, national promotions , & marketing research. 100 bottlers who sell to retailers- in store displays, campaigning. Merchandising and sales. Key success factor, without them the concentrate producers cant get their product to the supermarkets. Owned by either the producers which is verticle integration or franchises. Retailer outlets- supermarket, fountain, convenience stores, small retail outlets (independent Grocery store) II. industry economics Concentrate producers should sell more regular because they have higher sales with regular over diet. Cost them less to produce as well. III. Brand & category Over 900 registered brands in the market. Top 10 brands make up 71.4% market share all sold by coke, Pepsi, dr. pepper, and none of them sell orange drinks. Growth share matrix- current product, current market (market penetration such as arm and hammer) & new product, current market (new product development) if you have current product in a different market you have new market expansion and new product new market then that is market diversification. Soft drink category- diet vs. regular, & flavors (lemon lime etc.) ...

Words: 597 - Pages: 3

Premium Essay

Rasna Strategic Memo

...(ES) 11 3. Decision Stage 13 STRATEGIC IMPORTANCE 16 JUICE INDUSTRY 16 RESOURCES FOR NEW STRATEGY AS CONCENTRIC DIVERSIFICATION 17 mARKETING 17 Brand Strategy 17 Distribution Channel 17 Competitor Analysis 18 finance 19 Internal retained earning 20 Take loan from bank 20 Issue bond/debenture 20 Issue equity 20 Right issue 20 Venture capital 20 Human resource management 20 Job description 20 Job specification 20 Recruitment 20 Selection 21 Training & development 21 Performance evaluation 21 BALANCE SCORECARD TO CHECK STRATEGY EFFECTIVENESS 22 RECOMMENDATION 24 Bibliography 25 ABSTRACT Soft Drink Concentrate market (SDC) of India is 500 crore market. This market is getting in weak situation, main reason being today people in India do not find enough time to mix concentrate in water then drink. People prefer to drink ready-made drink. That is why this SDC industry is stagnating. Rasna is monopoly with 97% market share in SDC market. There are other players in this market like Tang (Kraft Foods), Suger Free and Coca cola products. But these players have very less market share; they do not dare to compete with Rasna. But Rasna itself seek to diversify in other...

Words: 5921 - Pages: 24

Premium Essay

Soda

...With high-calorie, high-fat, cheap food available on every street corner, it has become easy to blame food consumption for America’s obesity epidemic. However, what we choose to drink can affect our health just as much as, if not more than, our eating habits. That is why more and more people are cutting high-calorie sodas and going for little-to-no calorie, supposedly healthier options. Sure, we’re told that drinking eight glasses of water daily should be one of our health goals, but drinking only water can get a little boring. And why would a person choose to pack on the extra 155 calories from that can of Coca-Cola when she can have a can of Diet Coke and get almost the same taste for no calories? Diet sodas attempt to cut the calories that are in regular soda by developing sweeteners that don’t contain the calories of corn syrup, which is used in regular soda. Even though they do not contain calories, though, these sweeteners still do pose some potentially serious health concerns. There are many reasons people prefer soft drinks to juice or plain water. Most sodas have a taste that water can’t compare to. Some people like the light, citrusy flavors of 7Up and Sprite, while others go for a sweeter tasting soda, like Coca-Cola. They’re all carbonated, so the fizziness adds to the already-sweet flavor. But even though there are tons of different flavors, most of the non-diet soda is sweetened with the same thing: corn syrup, which is being used as a cheaper alternative to sugar...

Words: 1379 - Pages: 6

Premium Essay

Cola Wars

...An inexorably changing climate toward a more health conscious consumer has created a strategic quandary for the carbonated soft drink (CSD) giants, Coke and Pepsi: how to regain lost market share of their premier products and return to high annual growth rates seen previously? Although consumer craving for CSDs is not to be underestimated, the growing market demand for alternatives must not be ignored. The strategy going forward should be multifold. 1. Both Coke and Pepsi must actively try to capture market share in the non-carb drinks market. In order to remain nimble and respond expeditiously and with agility to changing market demands, both firms must continue to reconsolidate their concentrate producing and bottling facilities under a single operation; & 2. Pepsi and Coke must accelerate efforts to identify a low-cost, low-calorie sugar substitute that retains the flavor of their flagship products. The winner of this race is likely to have a huge advantage and could commandeer a significant portion of the soft drink market. 3. A rapidly growing middle class in developing nations provides an untapped market for both Pepsi and Coke. While Coke is already an established name in many of these countries, Pepsi is yet to take hold and should actively attempt to expand its global operations through strategic acquisitions and joint ventures. Analysis Industry Analysis: For decades, a strategically inspired pas de deux between Coke and Pepsi has waged on as each firm jockeyed...

Words: 937 - Pages: 4

Premium Essay

Pepsi

...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...

Words: 16554 - Pages: 67

Premium Essay

Panera Bread Company in 2011

...Case 8: Panera Bread Company in 2011—pursuing growth in a difficult economy This case 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...

Words: 1017 - Pages: 5

Premium Essay

Coca-Cola Marketing Channel Strategy Study in China

...Coca-Cola marketing channel strategy study in China Chapter Coca-Cola Company's development in China         Section the basic situation of Coca-Cola Company         1. Coca-Cola and the company's produce         Coca-Cola, the world's one hundred years the popularity of the wonderful liquid is from the United States in 1886 in Atlanta, Georgia pharmacist John Dr. Peng Bodun (John S. Pemberton) in the backyard at home, will Carbonated water and sugar and other ingredients mixed in a triangle pot in the invention.         "Coca-Cola" is the English name was Pemberton's assistant and partner in accountant named Robinson. Robinson is a classical calligrapher, he considered that 'the two capital C character will look great', so he had to personally write cursive scripts using Spencer's 'Coca-Cola'. 'coca' is the son of refined spices cocoa leaves, 'cola' is the fruit of the cocoa component removed. "Coca-Cola" trademark has not changed over the past century.         In 1892, businessman Hom Chandler in 2300 U.S. dollars to buy all the secrets of Coca-Cola franchise, and the creation of Coca-Cola Company. Under his leadership, less than three years Bianba Coca-Cola extended to across the country. In 1899, Benjamin Franklin Thomas andղķʿ??̘ Whitehead signed with the Candler regional development in the United States most of the bottling business contracts. Since then its development momentum will be unstoppable in 1904 developed into a 120 bottling...

Words: 3232 - Pages: 13

Premium Essay

4th Place

...way, Mexico follows Denmark, Hungary and France, and could become the fourth country to establish a tax of this kind. According to a 2012 national survey, almost a third of Mexican adults are obese, while nearly 40% are overweight, making it the fattest industrialized nation. The government, as well as some NGOs, argues that the tax will increase soft drinks prices, resulting in a decrease of their demand and a shift toward healthier products. At the same time, they want the revenue collected to be use in preventive campaigns. It may look like a great policy, but in my opinion it will not work here are four reasons why:   1) Bottled soda is the sixth most important product between foods and beverages for the average Mexican household, with 1.14% of the income being spent on it; milk has a share of 1.44% and beer occupies the first place with a share of 1.59%. Beer is harmful and is already highly taxed but still widely consumed, what would make soft drinks different? 2) For low-income families, soft drinks represent a necessity that provides cheap calories relative to healthier, more expensive products. The demand for soft drinks for these families is more inelastic to changes in price than for other households, meaning they will keep buying them. Therefore, the tax will strike them harder, making it regressive. 3) The prevailing legislation in Mexico does not allow earmarking taxes. Political willingness will determine whether revenue funds preventative and informational...

Words: 630 - Pages: 3

Free Essay

Soft Drinks Research

...Assessment 2: Group Research Proposal Project “The effect of soft drinks on human weight” Done By: Dana Sahwan 201000400 Maryam Ali 201000402 Zahra Almeshaimea 201000392 Hawra Ali 201000334 Abrar Almajed 201000333 1/3/2013 Bahrain Polytechnic Luke Snelling Table of Contents 1.0 Introduction. 3 1.1 Abstract. 3 1.2 Relevance to the Bahrain Business Community. 3 2.0 Main Body. 3 2.1 Literature Review. 3 2.2 Methods. 7 3.0 Conclusion 8 3.1 Time. 8 3.2 Cost. 8 3.3 Examiners. 8 3.4 Sources. 9 3.5 Final Result. 9 4.0 Bibliography 10 1.0 Introduction. 1.1 Abstract. This proposal aims to test the effect of soft drinks on the human weight. This topic is vital because obesity leads to serious deceases and stops people from participating in the simplest activities, and in terms corrupts the living of a normal lifestyle. The methods we are aiming to use are experiments and interviews. 1.2 Relevance to the Bahrain Business Community. Researches were conducted on the effect of drinking soft drinks on a human’s body, clarify that it would increase the chances of getting overweight. Overweight can lead to serious deceases, such as strokes, cancer and cardiovascular diseases. Therefore, Bahraini businesses would be exposed to the possibility of reduced productivity rate, because of the consumption of soft drinks on their employees. As a result of reduced productivity, a company's profit can possibly be minimized which in terms could...

Words: 2672 - Pages: 11

Premium Essay

Negotiation

...oca Cola War Case Study Cola Wars Continue: Coke and Pepsi Case Analysis 1. Soft Drink Industry (SDI) overview The industry considered in this analysis is Soft Drink Industry (SDI). SDI serves customer needs for refreshing and cold non-alcoholic beverages, with main industry sectors being: carbonated drinks, fruit punches, and bottled water sectors. There are three dominant companies in the industry, namely: Coca-Cola, Pepsi, and Schweppes. The soft-drink industry includes the following four major types of participating companies: • Producers of syrups and concentrates, • Bottlers, • Retail channels, and • Suppliers. 2. Porter’s Five Forces Analysis of the Soft Drink Industry (SDI): Soft Drink industry’s Carbonated Drink sector is 66 billion industry in US alone. Soft Drink industry remains very profitable, with pre-tax profits of 30% and 9% for concentrate producers and bottlers respectively. The following five forces analysis will attempt to show factors contributing to the profitability in the industry. Risk of entry by Potential Competitors: It is difficult for new entrants to enter the market because of few factors: First, in order to produce soft drinks a new company would have to have bottling or some other kind of packaging capacities or contracts with bottlers or packagers. To build a new bottling plant is very capital intensive and to enter in a contract with existing bottlers is difficult if not prohibited by the Coca-Cola and Pepsi’s agreements with existing...

Words: 321 - Pages: 2

Premium Essay

Rhaspberry Scheepes

...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...

Words: 806 - Pages: 4

Premium Essay

Coca Cola

...Cultural Impact on Business: A Case Study on Coca Cola’s Cultural Issues in India admin August 20, 2012 Blog No comments Socio Cultural barriers faced by coca cola in India Coca – cola, the world’s largest selling soft drink company had established its strong presence in the world since 1886. Coca-Cola is the first international soft drink brand to enter the Indian market in the early 1970’s. Till 1977 Coca-Cola was the leading brand in India; later, due to FERA (Foreign Exchange Regulation Act), they left India and didn’t return till 1993. Coca-Cola had to face many issues regarding its quality, resource exploitation and market exploitation along with price-quality trade-offs. People all over India are challenging Coca-Cola for its abuse of water resource. Coca-Cola had affected both quality and quantity of ground water. Due to its waste extracts, Coca-Cola was criticized for polluting the nearby fresh water and ground water and soil; because of this issue, farmers are suffering from water scarcity. Despite all these social and cultural issues, customers are using Coca-Cola due to its strong brand reputation all over the world. This is because Indians are now using more soft drinks and the youngsters are more in this category. However, with many studies and policy changes, Coca-Cola will be able to establish its brand reputation and increase its market share in the near future. This report is prepared from an organizational point of view. The point here is to prepare a report...

Words: 3353 - Pages: 14

Premium Essay

Coca Cola

...1970’s, made to exit due to foreign policies. After re-entering a hiatus of 16 years, Coco Cola has reached to each and every corner of India. Being one of the largest beverage companies in India, Coca Cola is now available through length and breadth of India. An Introduction to Coca Cola India:- Coca cola is a well-known American beverage giant, which sells concentrated soft drink worldwide. The journey for Coca cola begins when Pharma Scientist John Pemberton first formulated Coco Cola recipe in 1886 in Columbus, Georgia. Later in 1889, Coca Cola formula and brand was sold to Asa Candler who then incorporated the company Coca Cola in 1892. Rest is a history as the world knows. Coca Cola is now currently offers more than 500 products over 200 countries. Coca Cola has first opened its bottling plant in New Delhi in 1950 and existed in the market till 1977. India was not the easiest place to conquer for Coca Cola during 1970’s. Domestic brands such as Limca, Thums up were dominating brands in India at that time. By the time Coca Cola exited Indian Market in 1977, it was one of the leading soft drink brand. In 1977, when Morarji desai led Janata Party came into power, new foreign trade act called Foreign Exchange Regulation Act (FERA) was implemented. Under this regulation act, foreign companies were made to dilute its equity stake to its Indian counterparts if they wish to remain in the country. However has refused to bow down to Indian government regulation act and formally...

Words: 1735 - Pages: 7

Premium Essay

Company G 3 Year Marketing Plan

...Threats 6 Market Objectives 6 Product Objective 6 Price Objective 6 Place Objective 6 Promotion Objective 7 Marketing Strategies 7 Product Strategies 7 Price Strategies 7 Place Strategies 7 Promotion Strategies 7 Tactics and Action Plan 8 Product Action Plan 8 Price Action Plan 8 Place Action Plan 8 Promotion Action Plan 8 Monitoring Procedures 9 Introduction Company G is a well-established company with an exceptional reputation in the electronics market. Company G’s engineers and designers have been extremely successful in the small appliance market for a number of years. Our new product for this three year marketing plan is an In-Home Soda Machine. The In-Home Soda Machine allows users to create their own carbonated drink from a variety of flavors conveniently in their own home. Mission Statement The newest appliance by Company G is the In Home Soda Machine. It allows individuals and families the ability to make soda in their home quickly and inexpensively. Consumers will be able to choose from 60 different flavors and have fresh soda in 30 seconds. This new appliance complies with our mission statement of: “We enable consumers to improve the quality and convenience of their lives by providing innovative electronics solutions. The Product The In-Home Soda Machine is a sleek and easy to use small appliance that comes in six different colors to match the décor of your kitchen. The In-Home Soda Machine is designed to create...

Words: 2469 - Pages: 10

Free Essay

Marketing Report

...(a) Buyer responses 7 1. DESCRIPTION OF THE PRODUCT (a) Product name: Springs (b) Description Springs is bottled carbonated water (sparkling water) which is water with carbon dioxide under pressure dissolved in it. It is introduced as plain drinking water or flavoured with no sweetener. It is similar to naturally occurring mineral water. The carbon bubbles make the water more interesting without adding calories. People who are health conscious can choose springs as a fun alternative to soft drinks containing artificial flavours and colours. (c) Product range * Plain carbonated water * Flavoured carbonated water (containing natural flavours) * Orange flavour * Lime flavour * Grape flavour * Raspberry flavour (d) Launch Carbonated water is easily available internationally but it is not yet a part of Pakistani market. We plan to introduce seltzer water in Pakistan, initially Islamabad and Rawalpindi region to reduce the trend of harmful soft drinks consumption. (e) Entry Strategy Springs will enter the market by using the strategy of Product development; having a new product in an existing market. Springs (f) Product Characteristics Certain are the important attributes of springs: * It is...

Words: 1528 - Pages: 7