...celebrities endorsing brands has been steadily increasing over the past few decades. Marketers acknowledge the power of celebrity in influencing consumer’s purchase decision. Millions of dollars are spent as the celebrity endorsement can bestow unique features upon a product that it may have lacked otherwise. Not lacking behind, Soft Drink companies are also advertising their product through various media and spending millions of dollars on celebrities to endorse their product. Around 35% of the total cost is spent by the Soft Drink Company especially in Advertising. Various Movie Actors and Sports Players are hired to endorse the Soft drink Brand. Therefore, I took this opportunity to study the Impact of Advertisement on Brand Preferences towards Soft Drinks. This research is a Descriptive Research where Primary data was collected from 80 respondents by using a questionnaire through Convenience Sampling and Secondary data was collected from Internet and Research papers. The Data collected was analyzed via using SPSS 16 Software. The major findings of the report are that the Advertisement has a severe impact on the brand preference towards Soft Drinks. Television is the first choice of people for searching the information, and then followed by...
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...Introduction of soft drink industry: Soft drinks introduced in seventeenth century. These were known as non carbonated soft drinks and prepared by mixing honey and lemon with water and this soft drink was sold in Paris in small plastic cups. Later on it was produced in large scale John Mathew invented an equipment which is capable of producing carbonated water in large scale. The first flavoured drink was prepared by Doctor Philip Sing Physic in 1807. Later on it was liked as health drink and liked by customers as well and ordered to be carried at home. After this demanded by peoples then it leads to manufacturing industries of bottle plants. This was an interesting phenomenon that soft drinks were coming on bottles and this increased the sales of soft drinks also. It was for the first time that the bottle was containing water with bubbles. For the first time Michael Ovens had started the glass blowing machine which were used in automatic production of bottles. With use of these machines 69000 bottles were produced in place of 1500 bottles which were hand-made. After all these efforts the Soft drink industry started centuries ago. In the present time soft drinks is a very large industry and it is known as cold drinks now. Now in India there are only two major competitors Pepsi and Coke. This industry comes in beverages industry in India and it is growing industry because everyone likes to have cold drinks but it is seasonal the sales of cold drinks are in boom mainly in...
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...Soft drink sales correlate with the weather Squashes and cordials are typical of soft drinks in seeing their strongest sales over the summer months as hydration and refreshment becomes more important to consumers. Following two warm summers in 2013 and 2014, 2015 saw fewer hours of sunshine over the key July and August months in particular. Summer 2015 was also wetter than average, with July seeing almost twice as much rainfall as in 2013 and 2014 (see Market Drivers). Squashes/cordials are traditionally a commodity category Squashes/cordials are a very affordable option against other soft drinks, helping to drive penetration to 82%. However, this has also contributed towards squashes/ cordials being seen as a cupboard staple which it is difficult to encourage consumers to pay more for. Super-concentrated squashes have had some success in raising the average price of the category (see Market Drivers). Sugar concerns impact the market Consumer concerns regarding the sugar in food and drink are widespread, driven by media coverage and the government’s efforts to tackle rising obesity. ‘No added sugar’ has become a prominent feature of many squashes/cordials, with Britvic removing all full-sugar variants from its Robinsons range from early 2015. Meanwhile, Ribena was among companies affected by Tesco’s delisting of full-sugar soft drinks targeting kids, although nosugar variants continue to be sold by the retailer (see Market Drivers). Companies...
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...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...
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...Barriers to entry One of the 5 forces that shape the soft drink industry is barriers to entry. The Coca Cola company says on its website it is facing strong competition from well-established global companies and many local participants. For this particular industry, the competitive forces are benign, (favorable). Most of the companies in the soft drink industry are profitable. The Coca Cola Company's main competitors are Dr.Pepper, Nestle and PepsiCo. These companies definitely have the advantage over there competitors. In porters 5 forces, Porter refers to supply-side economies of scale, where firms such as the CCC and PepsiCo can produce at large volumes enjoy lower costs per unit because they can spread fixed costs over more units, employ more efficient technology, or command better terms from suppliers. According to Porter's article, supply-side scale economies deter entry by forcing the aspiring entrant either to come in the industry on a large scale, which requires dislodging entrenched competitors. How does a newcomer circumvent the barriers to soft drink industry? Perhaps create new distribution channels of their own. Creating a niche market for their drink in the form of marketing to a certain segment in the soft drink industry Rivalry Among Existing Players * The industry is not growing rapidly. The growth rate for the industry is not rapid; it is in fact relatively small. This makes it very difficult for new entrants to compete with the already thriving...
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... TOPIC The given topic for the assignment is – “to compare the Sales forecasting techniques and analyze sales forecasting using the demand function for any product in the market”. Based on the internal discussion the group has decided to study the trend for the UK soft-drink market, analyze and compare the sales forecasting using the demand function for the following products, a. Bottled Water b. Soft Drinks c. Carbonate Drinks All price information has been adjusted for inflation using UK CPI (Consumer Price Index) REFERENCES The following are the data references/sources used in this assignment, a. 2012 UK Soft-Drink report : Source : British Soft-Drink Association - www.britishsoftdrinks.com (a copy of the same is packaged with the assignment) b. UK CPI (Consumer Price Index) : Source : Office for National Statistics, Government of UK (a copy of the same is packaged with the assignment) INTRODUCTION UK is a highly developed country with highly dynamic groups of consumers for markets on foods and soft drinks consumers. Soft drinks market in...
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...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...
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...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...
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...Industry Analysis: Soft Drinks Meghan Deichert, Meghan Ellenbecker, Emily Klehr, Leslie Pesarchick, & Kelly Ziegler Strategic Management in a Global Context February 22, 2006 Industry Analysis: Soft Drinks Barbara Murray (2006c) explained the soft drink industry by stating, “For years the story in the nonalcoholic sector centered on the power struggle between…Coke and Pepsi. But as the pop fight has topped out, the industry's giants have begun relying on new product flavors…and looking to noncarbonated beverages for growth.” In order to fully understand the soft drink industry, the following should be considered: the dominant economic factors, five competitive sources, industry trends, and the industry’s key factors. Based on the analyses of the industry, specific recommendations for competitors can then be created. Dominant Economic Factors Market size, growth rate and overall profitability are three economic indicators that can be used to evaluate the soft drink industry. The market size of this industry has been changing. Soft drink consumption has a market share of 46.8% within the non-alcoholic drink industry, illustrated in Table 1. Datamonitor (2005) also found that the total market value of soft drinks reached $307.2 billion in 2004 with a market value forecast of $367.1 billion in 2009. Further, the 2004 soft drink volume was 325,367.2 million liters (see Table 2). Clearly, the soft drink industry is lucrative with a potential for high profits, but there are several...
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...Switching Cost 15 Buyer Information 16 Threat of Backward Integration 16 Pull Through 16 Brand Identity of Buyers 17 Price Sensitivity 17 Impact on Quality and Performance 17 Substitute Products 18 Relative price/performance relationship of Substitutes 18 Buyer Propensity to Substitute 18 Rivalry 18 Industry Growth Rate 20 Fixed Costs 21 Product Differentiation 21 Brand Identity 21 Informational Complexity 22 Corporate Stakes 22 Conclusion 23 Critical Success Factors 23 Prognosis 24 Bibliography 26 Appendix 27 Key Industry Ratios 27 Introduction Description The soft drink industry is concentrated with the three major players, Coca-Cola Co., PepsiCo Inc., and Cadbury Schweppes Plc., making up 90 percent of the $52 billion dollar a year domestic soft drink market (Santa, 1996). The soft drink market is a relatively mature market with annual growth of 4-5% causing intense rivalry...
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...Industry Analysis: Soft Drinks Meghan Deichert, Meghan Ellenbecker, Emily Klehr, Leslie Pesarchick, & Kelly Ziegler Strategic Management in a Global Context February 22, 2006 Industry Analysis: Soft Drinks Barbara Murray (2006c) explained the soft drink industry by stating, “For years the story in the nonalcoholic sector centered on the power struggle between…Coke and Pepsi. But as the pop fight has topped out, the industry's giants have begun relying on new product flavors…and looking to noncarbonated beverages for growth.” In order to fully understand the soft drink industry, the following should be considered: the dominant economic factors, five competitive sources, industry trends, and the industry’s key factors. Based on the analyses of the industry, specific recommendations for competitors can then be created. Dominant Economic Factors Market size, growth rate and overall profitability are three economic indicators that can be used to evaluate the soft drink industry. The market size of this industry has been changing. Soft drink consumption has a market share of 46.8% within the non-alcoholic drink industry, illustrated in Table 1. Datamonitor (2005) also found that the total market value of soft drinks reached $307.2 billion in 2004 with a market value forecast of $367.1 billion in 2009. Further, the 2004 soft drink volume was 325,367.2 million liters (see Table 2). Clearly, the soft drink industry is lucrative with a potential for high profits, but there are several...
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...The several factors that make it very difficult for the competition to enter the soft drink market include Barriers to Entry: Cost of Establishment: Due to high capital intensive requirement to establish new bottling plant in Bangladesh, investors cannot entry into the market. This financial barrier can be a major barrier for new entrants Advertising Expenses Abdul Monem Limited spends about $51 million in five years to frequently advertise Coca Cola products through mass media. They choose standard banner and color to advertise.This makes it extremely difficult for an entrant to compete with the incumbents and gain any visibility Brand Image and Loyalty Coca cola is another oldest brand in Bangladesh. From the last 50 year Coca cola hasbeen marketing its products through local representatives of Bangladesh. Coke has a long history of heavy advertising and this has earned them huge amount of brand equity and loyal customer’s all over the world. This makes it virtually impossible for a new entrant to match this scale in this market place. Retailer Shelf Space and Retail Distribution Channel: Abdul Monem Limited has a strong distribution channel to distribute their Coca Cola. They make Coca Cola easy to get and available to the customer everywhere through their expert distributors channel. Their transport facilities, channels of distribution, coverage area, etc. are maintained very securely. This makes it tough for the new entrants to convince retailers to carry and...
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...Pepper’s strong position in the flavored carbonated soft drinks (CSD) market. Dr Pepper owns some of the most popular CSD and non carbonated beverages (NCB) brands. The company holds the #1 position in the flavored non cola CSD market in the US with a market share of 40% in 2011. Dr Pepper soft drink, the most popular CSD brand, holds the #2 position in the flavored CSD market in the US. The company’s portfolio of well-established flagship brands offers a strong competitive advantage and strengthens its position in the market. Further, the company makes regular marketing investments to build brand value. Over the last three years, the company has invested more than $100 million for marketing of popular brands. In 2010, Dr Pepper launched its Rapid Continuous Improvement (RCI) program under which the company is working to free up critical resources, people, time and money so that these can be used to build brand value. Therefore, the company has been able to reduce inventory and storage costs and improve cash flows, which can in turn be returned to shareholders via dividends and share repurchases. Dr Pepper anticipates that the program will lead to productivity savings of at least $150 million through 2013. Though the commodity cost pressures have subsided in recent times, the company’s weak volume growth and lack of exposure outside US keep us on the sidelines. Further, changing consumer preferences toward healthier drinks, as a result of heightened awareness, are affecting...
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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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...THE 2010 UK SOFT DRINKS REPORT INVESTING IN REFRESHMENT SOFT DRINKS – INVESTING IN REFRESHMENT REPORT METHODOLOGY/BACKGROUND Specialist food and drink consultancy, Zenith International, has been commissione to produce commissioned enith this 2010 BSDA UK Soft Drinks Report. All data and insights contained in this report were produced using Zenith’s internal market databases and primary research. In compiling its research, Zenith relies on the goodwill and cooperation of companies active in the marketplace. During Zenith’s annual research into the UK soft drinks industry, over 250 soft drinks producers are regularly contacted. This includes larger branded operators, retailer own label specialists, contract packers and a significant number of smaller independent companies. Based on individual producer volumes for the year, market, sector and segment totals are calculated from the ‘bottom up’. At a sector and segment level, adjustments are then made for any double counting of contract and licensed bottling. Estimates for unauthorised soft drink imports sold through the ‘grey market’ are also included. This is more pronounced in categories such as energy drinks rather than dilute to taste drinks, for example. A complete picture of the UK soft drinks market across all sales channels is produced, through Zenith’s extensive study of the largest soft drinks companies, alongside small to medium sized operators and own label specialists. The market figures presented therefore encompass...
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