Premium Essay

Soft Drinks Output

In:

Submitted By thayahunnyy
Words 1679
Pages 7
ECO 740 SOFT DRINK DEMAND ESTIMATION

Prepared by:
Bajuriah binti Yunus
Salmiwati binti Mohamad Jamili
Suraya Hani binti Su’id
Zerafinas binti Abu Hassan

Prepared for :
Prof. Dr. Saadiah Mohamad

In economics demand can be defined the relationship between the prices of a commodity and the quantity of the commodity which the consumer wants to buy at certain price. It is essentially the attitude and reaction of a consumer towards the commodity they want to purchase. Demand forecasting involves techniques including both informal methods and quantitative methods, such as the use of historical sales data. As an example, soft drink consumption in cans per capita across 48 contiguous in the United States can be defined using multiple regression analysis. It used to be multiple regressions due to involving several independent variables which is six-pack price, income per capita and mean temperature.
Table 1
Soft Drink Demand Data Cans/Capita/Yr 6-Pack $ Price Income $/ Capita Mean Temp
Alabama 200 2.19 13 66
Arizona 150 1.99 17 62
Arkansas 237 1.93 11 63
California 135 2.59 25 56
Colorado 121 2.29 19 52
Connecticut 118 2.49 27 50
Delaware 217 1.99 28 52
Florida 242 2.29 18 72
Georgia 295 1.89 14 64
Idaho 85 2.39 16 46
Illinois 114 2.35 24 52
Indiana 184 2.19 20 52
Iowa 104 2.21 16 50
Kansas 143 2.17 17 56
Kentcuky 230 2.05 13 56
Lousiana 269 1.97 15 69
Maine 111 2.19 16 41
Maryland 217 2.11 21 54
Massachussets 114 2.29 22 47
Michigan 108 2.25 21 47
Minnesota 108 2.31 18 41
Mississpi 248 1.98 10 65
Missouri 203 1.94 19 57
Montana 77 2.31 19 44
Nebraska 97 2.28 16 49
Nevada 166 2.19 24 48
New Hampshire 177 2.27 18 35
New Jersery 143 2.31 24 54
New Mexico 157 2.17 15 45
New York 111 2.43 25 48
North California 330 1.89 13 59
North Dakota 63 2.33 14 39
Ohio 165

Similar Documents

Premium Essay

Hawaii Punch

...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...

Words: 3088 - Pages: 13

Premium Essay

Marketing

...Introduction Founded by the pharmacist and US-American John Stith Pemberton (1831-1888) in 1886, the Coca Cola Company is the world's leading manufacturer in the soft drink industry. Once started with just one product, Coca Cola, meanwhile the company conceived more than 500 brands. Not only the range of products changed but also the quanitity of countires the Coca Cola Company is operating in. One of the major goals of the organisation is quite self-explanatory and transparent. They want to manufacture products with a tremendous quality which encourage the company to remove from the top competitors and satisfy the customers appropriatley. The destination of the company in the soft drink industry as the world's leading producer is among others based on the effective evaluation of its internal and external environment. In the following essay i am going to thematize diverse aspects. (Source: Homepage of the Coca Cola Company) Political: In consideration of the fact that 71 % of the net income arises from the sale in interantional markets, adverse political determining factors in global markets can damage the company's businesses. Social: The tendencies concerning a much healthier life are omnipresent and inevitably affected the soft drink industry considerably. Because a healthy life is always related with sugar-free drinks like water. Technological: Certainly there are several technologies which can be used to propagate...

Words: 730 - Pages: 3

Premium Essay

Case Analysis

...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...

Words: 1415 - Pages: 6

Premium Essay

Cola Wars: Coke and Pepsi in the 21st Century

...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...

Words: 3841 - Pages: 16

Premium Essay

Coke Case Study

...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...

Words: 1082 - Pages: 5

Premium Essay

Porter's Five Forces of Soft Drinks Industry

...MANAGERIAL RESPONSE TO THREATS Threat of new entrants Barriers to entry: It is very common that the existing company in a industry will set the barrier to the new entrants. Because these new entrants might become the strong potential competitors in the future and take away large profit from the existing company. For these new entrants, they will carry out pretty attractive competition and use better financial strength to seize current and potential market. These moves will lower the benefits of existing business and the return of investment. To prevent this situation happen, Coca-Cola will set different barriers to discourage the potential entrants. I will discuss other enter barriers. Product differentiation One of the most important factors to determine whether a business can be successful is whether they have the compared advantages. It is very important to use the differentiation strategy to make your products known by the customers. Products that easy to remember and recognize by the customers are different from others. This difference can be the service of the company, the high quality, the name of brand. All of these characteristics will set up the customers loyalty in the market. Under the advantage of differentiation strategy, even though the new entrants maybe try their best to attract the customers with lower prices or other things, they may still suffer a loss in profit because the loyalty of the customers. Capital requirement Whenever and wherever people decide...

Words: 2953 - Pages: 12

Premium Essay

Carbonated Drink War - Case Analysis

...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...

Words: 1482 - Pages: 6

Free Essay

Economics and Ethical Issues

...Introduction (Background of Mrs. Acres Pies) Mrs. Acres Homemade Pies derived from Shelly Acres whose grandmother gave her a family recipe for making pies. Shelly Acres loved to cook so she decided to start her own business called Mrs. Acres Homemade pies. The company produced specialty pies and sold them in local supermarkets and selected family restaurants. In the first six months Shelly Acres and three part time employees sold 2,000 pies for $4.50 each, netting $1.50 profit per pie. The business was so successful they could not keep up with demand. In order to meet demand Shelly Acres had to expand operations, borrow money, and increase staff to four full-time employees. Production and sales of the homemade pies increased to 8,000 pies per month and profits increased to $12,000 per month. Shelly Acres’ homemade pies continued to increase beyond what she could supply. Now Shelly has the dilemma of making a decision of how she should proceed with her company in the short run and long run to continue to make profits. Short-Term Supply, Demand and Price In the short run with supply staying constant and demand increasing. Shelly Acres will have to make a decision whether to increase price to maintain supply and demand. With an increase in demand in pies will raise both the equilibrium price and equilibrium quality. In the short run Shelly Acres has expanded her operations, borrowed money, and increased her staff in order to keep up with demand. In the short term of things...

Words: 1207 - Pages: 5

Free Essay

Coca Cola and Crown Mixed Alcohol Beverage

...Coca Cola and Crown Mixed Alcohol Beverage ECO/365 Coca Cola and Crown Mixed Alcohol Beverage People have been drinking Coca Cola since 1886. Every day 1.7 million Coca Cola soft drinks are bought worldwide. However, there has not been a studied of how many people drink Coca Cola it is easy to say that several million people drink Coca Cola every day (Coca Cola Company, 2010). According to eMed Expert (2013), “People drink Coca Cola because, it is tasty, it is everywhere, the convenience of “Grab- n Go,” soda habits, and caffeine addiction has a part in why soda is consumed”. Because several million people drink Coca Cola the corporation is considering developing a new proposed product. Coca Cola thought since an estimate of 130.6 million people drink alcohol, Coca Cola will be teaming up with Crown to make a pre-made mix Coca Cola and Crown alcoholic beverage. Crown has already agreed to the conditions that Coca Cola has thought of and what is in stake for them. Coca cola has to take into consideration what factors affect demand, supply, and equilibrium prices. Coca Cola also has to discover who are their competitors, potential customers, and buyers. The next step Coca Cola has to figure out what issues or opportunities they may face from the effects of long-term profitability with this new product such as price elasticity of demand, technological innovation, relationship between the amount t of labor and capital of the law of diminishing marginal productivity...

Words: 711 - Pages: 3

Premium Essay

Soft Drink Industry

...project on soft drink Industry in the first place. He showed us different ways to approach a research problem and the need to be persistent to accomplish any goal. Without his encouragement and constant guidance we could not able to finish the project. He was always there to meet and talk about any query. Last, but not least, we would like to thank all class mates and hostel mates who support us throughout the project. Introduction to Soft Drink Industry The main production of soft drink was stored in 1830’s & since then from those experimental beginning there was an evolution until in 1781, when the worlds first cola flavored beverage was introduced. These drinks were called soft drinks, only to separate them from hard alcoholic drinks. The drinks do not contains alcohol & broadly specifying this beverages, includes a variety of regulated companies that manufacture carbonated soft drinks, diet & caffeine free drinks, bottled water juices, juice drinks, sport drinks & even ready to drink tea/coffee packs. So we can say that soft drinks mean carbonated drinks. Today, soft drink is more favorite refreshment drink than tea, coffee, juice etc. Raw Materials used in Soft Drinks There are different types of raw materials used in different soft drinks. Most of the raw materials are as under: 1. Water The simple sweetened soft drink contains about 90% of water, while in diet drinks; it contains 95% of water. 2. Flavour Flavour is of great importance in soft...

Words: 4470 - Pages: 18

Premium Essay

Marketing Plan for Milk Tea

...MCGR 352, Section 005 Professor: Constantina Kavadas Marketing Plan Part 1: Market and Consumer Profile Date of submission: Wednesday, March 29th, 2006 2 * 2. The following marketing plan forms the basis for the introduction of an innovative new product by the Coca-Cola Company. The analysis allows us to outline the best strategies to follow for the achievement of the company’s strategic goals. “Bubble Buzz” will be marketed as a unique functional drink while striving to reinforce the company’s status as the leader in innovation and successful product launches. The marketing strategies will enable to reach a market size of an estimated 8,688,300 people (targeted) with a forecasted sales growth prospect of 7.3% over the next 4 years, while satisfying the needs of the still-unserved market for ready-to-drink bubble tea. Success will be reflected by a sizeable capture of market shares within this market, while strategically carrying the company up to the top spot as the market leader in the functional drinks segment of soft drinks. Brief description of the company The Coca-Cola Company’s core undertaking is to benefit and refresh everyone it reaches. Founded in 1886, we are the world’s leading manufacturer, marketer, and distributor of non-alcoholic beverage concentrates and syrups, which are used to produce nearly 400 beverage brands that make up for our wide portfolio. Our corporate headquarters are established in Atlanta, and we are holding local operations in over 200 countries...

Words: 7890 - Pages: 32

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

Report on Pepsi

...cola. 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 39 14. Suggestions...

Words: 8277 - Pages: 34

Premium Essay

Relaunch Product

...[pic] Sub bhool hoja Cool….. SUBMITTED TO: A research report submitted to SIR HAMMAD UR REHMAN as the fulfillment of the requirement for the Marketing course. GROUPS MEMBERS Member Name: Yasmeen Amber Registration # 20592 Signature: __________________ Member Name: Hina Najeeb Kapadia Registration # 20784 Signature: __________________ Member Name: Syed Mohsin Nazeer Registration # 21402 Signature: __________________ Member Name: Hassan Iqbal Registration # 21504 Signature: __________________ Member Name: Syed Abdul Moiz Waheed Registration # 21310 Signature: __________________ Member Name: Rameez Registration # Signature: __________________ ACKNOWLEDGEMENT We would like to acknowledge that the completion of this Re launch report was not easy at all without the meaningful supervision and guidance provided by our respected course instructor SIR. HAMMAD UR REHMAN. The report contains a primary objective of conducting a structured research regarding the re launching of RC Cola. It was the guidance and supervision provided by SIR. HAMMAD UR REHMAN. This motivated us and made us strive to the end up with a valid and authentic conclusion that how RC Cola should be re launched. We would also like to thank SIR. HAMMAD UR REHMAN. for keeping us focused, and creating such an amazing environment for us to learn Principle Of Marketing...

Words: 4598 - Pages: 19

Premium Essay

Marketing Plan

...product i.e. it can be served as a hot drink as well as an iced drink; in both ways it will give the same satisfaction to the customer and there will be no weather constraint for this product and it can be used through out the year. So the Aloe Tea will not be a seasonal drink and this will be the main source of success of the product. The product will be introduced to capture the 20% market share in the category of functional drinks market. The market is still unnerved for this segment and the company will be going to introduce a new a market trend as well as going to challenge its competitors. This product will lead the company in functional drink market and will carry the company on the top spot. The target market for the product will be the health conscious and energetic customers. Our product will broadly describe the main benefits of tea, Studies continue to show the beneficial properties of teas, with health benefits ranging from lower cholesterol levels to improve arterial health and decreasing chance of cancer. This positive press has definitely increased the demand for tea. In the first year of operation the Aloe Tea will be introduced in Pakistan because there are more potential and enthusiastic customers and we can get result more quickly about the success of product. The Company will increase its market share through targeted advertising to increase the number customers who want convenience and are looking to have a drink of unique nature which will give...

Words: 5677 - Pages: 23