...Carbonated Soft Drinks Executive Summary – UK – June 2011 Carbonated Soft Drinks Executive Summary – UK – June 2011 Jonny Forsyth Senior Drinks Analyst The market has been helped by a number of levers: people are drinking less alcohol meaning that soft drinks as a whole have been gaining in ‘share of throat’; the British climate has improved since 2000 creating a greater demand for refreshing drinks; people have become less concerned about being healthy since the economic downturn; and the product is more competitively priced than all its competitors but for bottled water (which is available for free at home, so hardly a like-forlike comparison). 1 Carbonated Soft Drinks Executive Summary – UK – June 2011 The Market FIGURE 1: MARKET SIZE AND FORECAST FOR VALUE SALES OF CARBONATED SOFT DRINKS, 2006-16 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2006 (£m) 4,448 Market value (£m) Best case (£m) 5,929 Mintel forecast (£m) 5,214 Worst case (£m) 4,499 Confidence intervals 95% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 90% 70% 50% Est. Actual Forecast SOURCE: SYMPHONYIRI GROUP/MINTEL ESTIMATE Since 2006, the carbonated soft drinks market has shown all the signs of being mature, with volume sales remaining constant over this period. The market does, however, remain a huge revenue driver: worth £4.45 billion in 2011. Mintel forecasts that – helped by its value indulgence proposition, strong branding and the increasing popularity of...
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...will focus on the soft drink industry in the UK, especially on the two major carbonated, cola drinks producers Coca-Cola and Pepsi. Brief Background Soft drinks sector is a £11.5 billion industry. A report by Mintel (2008) shows that the soft drinks market is represented by five categories such as: carbonated drinks, bottled water, fruit juices and fruit drinks, smoothies and premium soft drinks. Carbonated soft drinks, or known in the UK as 'fizzy drinks', account for over half of the soft drinks market, with sales worth £6.038 billion in 2008. They are usually described as being sweet, with great amount of sugar or artificial sweeteners, and containing carbon dioxide, which makes them 'fizzy'. The leading flavours are cola and lemon. More than half of the UK market value is shared between two international giants: Coca-Cola and Pepsi. Both companies are based in the US. In the UK, Coca-Cola is produced by Coca-Cola Enterprises Ltd., and Pepsi by Britvic Soft Drinks PLC. (Keynote, 2008) By far, Coke holds the strongest position within the market with 48% of the retail sales. Holding the second place Pepsi is far behind with only 12% of the sales. For the past few years, due to health awareness, the demand for carbonated drinks has decreased. It was especially noticeable within the cola drinks such as Coca-Cola and Pepsi, hence the release of the low-sugar, healthy versions such as Coca-Cola Zero and Pepsi Raw. According to Carbonated Soft Drinks report (Mintel, 2008) cola...
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...(Refer To Appendix 1) 5 Micro Marketing Environment ( Refer to Appendix 2) 5 Conclusion 6 Appendix 1 7 PESTLE ANALYSIS 7 Political 7 Economic 7 Social 7 Technological 7 Legal 8 Environmental 8 Appendix 2 9 SWOT ANALYSIS 9 STRENGHTS 9 WEAKNESSES 10 OPPORTUNITIES 10 THREATS 11 References 13 Bibliography 13 Introduction This report provides an analysis and an evaluation on PepsiCo and how they apply the concepts of marketing and there customer segmentation models. This analysis includes Market segmentation, market targeting, Market positioning. PepsiCo International PepsiCo is a world leader in the convenient snacks, beverages and also the foods. The company has revenues of more than $39 billion and has over 185,000 employees. The company consists of PepsiCo Americas Foods, PepsiCo Americas Beverages, and PepsiCo International. Besides owning the Pepsi brands the company owns many brands such as Walkers Crisps, Tropicana, Gatorade, Mountain Dew and Quaker Oats. The company’s products are really highly recognised as well as recognised across the world. The company has attained a position of being the leader in soft drink bottling, the world’s largest snack chip producer and also the worlds largest franchised and company operated restaurant system. PepsiCo Mission Statement “Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities...
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...factors; Socio-cultural, Technological, Economic, Political/Legal and Ecological, and how each of these may influence the firm now and in the near future. Once analysed, this document will then categorize them according to whether they represent an opportunity or threat to the firm and give recommendations on how the firm could convert threats to opportunities and also how to capitalise on current opportunity. The soft drinks market is a market with an estimated worth of £13,376million, a figure up 4.3% since 2006. The market volume is currently at 14,240million litres, up 0.5% since 2006 (sourced – Source: The BSDA Soft Drinks Report 2010, British Soft Drinks Association, compiled by Zenith International/Key Note - http://www.keynote.co.uk/market-intelligence/view/product/10396/soft-drinks--carbonated-%26-concentrated?medium=html), a figure that suggests demand for soft-drinks is ever increasing. However, following a flurry of negative publicity for sugary drinks, one major factor for the market and Pepsi themselves to consider is the health implications. With sugary drinks being linked as a “root cause” for obesity, importantly, recent legislation has been introduced, for example, limiting advertising to children, a huge lucrative market segment that Pepsi and other companies in the market have traditionally targeted. This main factor has influenced many of the external marketing factors, and has opened up a plethora of opportunities and threats for Pepsi to consider. However, these...
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...distribution capabilities that cannot be easily matched. Secondly, it is expensive to initially develop the infrastructure to produce the product. The case states that prices for bottle-filling lines range from $125,000 to over $100 million, not to mention the costs associated with “source certification, road grading, and installation of pumping equipment …” which require approximately $300,000 worth of investment. Threat of substitute products/services is high. Numerous bottled and non-bottled products that can easily substitute bottled water. The main factor that differentiates bottled water from other soft drinks is that it caters to a health-conscious market because it has no sugar and no calories. However, today, there are several healthy soft drinks that are ‘zero-sugar added’, ‘zero-calorie’ alternatives to water. Coke zero, crystal light powders, diet sodas, zero-calorie energy drinks, etc. are just some examples. Tap water is also a substitute product because many people simply trust the tap water of their municipality. Another substitute would be water filtration devices such as the Brita filter which filters tap water. Bargaining buyer power is high. Firstly, there are many bottled water lines and many non-water alternatives to choose from. Secondly, there are no major switching costs for consumers; the price difference between Aquafina and Dasani, for example, are so...
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...Specifications 4 Product and Parent Company 4 Target Market 4 Product’s Lifecycle 5 Development 6 Strategies and Product Mix 6 Pricing 7 Distribution 7 Branding 8 Promotion 8 Observations and Conclusions 9 References 10 Appendix 11 Executive Summary Being frequent consumers of soft drinks and having two members from Brazil in our group, we realized that even though the market for soft drinks can be considered saturated, it also shows some opportunities for different and innovative products that can add something extra to the current range of options for consumers. For this reason, we have decided to bring to the U.S. the most famous soda in Brazil, called “Guaraná Antarctica” that will bring a unique and surprising taste to those like us, who appreciate a tasteful and refreshing soda. Our project will give insight and provide details about how we plan to make our product one of the major competitors in the soft drink market. Our main objective is to provide a soda completely different from anything that can be found in the U.S. market, while we bring a product that is directly related to the Brazilian culture and could add some new perspectives on how we look at the soft drink market. We will look forward to present our idea to some beverage distribution companies in order to make it possible to bring the product in a large scale to the U.S., as we plan to partner with AmBev (the Brazilian company that produces the Guaraná) and create a direct supply chain to diminish...
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...Product Of Innocent Drinks Marketing Essay The report describes the marketing plan for the repositioning of the product “This Water” offered by “Innocent Drinks”. Company was founded in 1999 and offers smoothies and flavoured spring water in Super markets, coffee shops, cinemas and other outlets in UK and other countries. Company has decided to re-launch its existing product “This Water” in the cinemas in the UK with the new name “This Water Plus”. This report covers the marketing plan and marketing strategies to reposition the product. The period for the marketing plan is set from 2nd January 2011 to 1st September 2012. All the effecting factors are consider while planning the plan including current world and specifically UK economic position after recession as UK economy is still in process to gain its recovery position. Innocent Drinks has improved the design and packaging of its product to make it more attractive and focused on the corporate social responsibility. They used recycled material for the packaging and also contributes portion of the profit towards charitable work. They have targeted the UK cinemas to offer this product. Innocent Drinks is a UK based company established in 1999 by three Cambridge graduates. Its main business is producing smoothies and flavoured spring water. Company sells its products in supermarkets, cinemas and coffee shops. It has branches in UK, France, Austria, Denmark, Amsterdam, Brussels and Germany. Company enjoys 71% of UK smoothie market...
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...COCA-COLA CO THE, SWOT ANALYSIS, IN SOFT DRINKS (WORLD) March 2013 SCOPE OF THE REPORT Scope This global profile focuses on the industry trends in soft drinks. All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2012). 2012 figures are based on part-year estimates. All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised. SOFT DRINKS OFF-TRADE RTD VOLUME 534.8 billion litres Bottled Water 192 billion litres Carbonates 169.5 billion litres Fruit/ Vegetable Juice 62 billion litres Sports and Bottled Sports and Energy Drinks Water Energy Drinks 205.1 billion15 billion litres 16.2 billion litres Concentrateslitres 43 billion litres Concentrates 43.7 billion litres RTD Tea 30.1 billion litres RTD Coffee 4.5 billion litres The Coca-Cola Company slightly underperformed the world’s soft drinks market amid the recession in Western Europe...
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...COCA-COLA CO THE, SWOT ANALYSIS, IN SOFT DRINKS (WORLD) March 2013 SCOPE OF THE REPORT Scope This global profile focuses on the industry trends in soft drinks. All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2012). 2012 figures are based on part-year estimates. All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. SOFT DRINKS OFF-TRADE RTD VOLUME 534.8 billion litres Bottled Water 192 billion litres Fruit/ Sports and Carbonates Bottled SportsWater and Vegetable Energy Drinks 169.5 billion Energy Drinks Juice 205.1 billion15 billion litres litres litres 16.2 billion 62 billion litres Concentrateslitres 43 billion litres Concentrates RTD Tea RTD Coffee 43.7 billion 30.1 billion 4.5 billion litres litres litres Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible...
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...SCOPE OF THE REPORT Scope This global profile focuses on the industry trends in soft drinks. All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2012). 2012 figures are based on part-year estimates. All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised. SOFT DRINKS OFF-TRADE RTD VOLUME 534.8 billion litres Bottled Water 192 billion litres Carbonates 169.5 billion litres Fruit/ Vegetable Juice 62 billion litres Sports and Bottled Sports and Energy Drinks Water Energy Drinks 205.1 billion15 billion litres 16.2 billion litres Concentrateslitres 43 billion litres Concentrates 43.7 billion litres RTD Tea 30.1 billion litres RTD Coffee 4.5 billion litres The Coca-Cola Company slightly underperformed the world’s soft drinks market amid the recession in Western Europe and slow economic recovery in the US. It is actively expanding in low...
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...Public Health Nutrition: 14(4), 653–660 doi:10.1017/S1368980010002442 Pepsi and Coca Cola in Delhi, India: availability, price and sales Fiona C Taylor*, Ambika Satija, Swati Khurana, Gurpreet Singh and Shah Ebrahim South Asia Network for Chronic Disease, C-1/52 First Floor, Safdarjung Development Area, New Delhi 110016, India Submitted 19 February 2010: Accepted 16 July 2010: First published online 6 October 2010 Abstract Objective: India is experiencing increased consumption of sugar-sweetened carbonated drinks, consumption that may be associated with increased risk of type 2 diabetes and obesity. The aim of the study was to determine the availability, price and quantity sold of ‘Pepsi’ and ‘Coca Cola’ in their ‘regular’ and ‘diet’ forms in Delhi and London. Design: A questionnaire about the availability, price and quantity sold per day of both regular and diet Pepsi and Coca Cola was devised and piloted. Using this, a survey of food and drink outlets within a 100 m radius of randomly selected Metro stations was conducted in both cities. Subjects: Store vendors, owners and staff of food and drink outlets. Setting: Delhi, India; London, United Kingdom. Results: In Delhi, of the outlets stocking regular Pepsi and Coca Cola, only 34 % sold diet versions and these were more readily available in the most affluent areas than in the poorest areas (34 % v. 6 %, Z 5 3?67, P , 0?001). This social patterning was not observed in London. Little price differential between regular and diet...
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...RED BULL GMBH IN SOFT DRINKS (WORLD) April 2013 SCOPE OF THE REPORT Scope This global profile focuses on the industry trends in soft drinks. Disclaimer All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2012). 2012 figures are based on part-year estimates. Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised. All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. SOFT DRINKS OFF-TRADE RTD VOLUME 534.8 billion litres Carbonates 169.5 billion litres Fruit/Vegetable Juice 62.0 billion litres Concentrates 43.7 billion litres © Euromonitor International Bottled Water 192 billion litres Sports and Bottled and Energy Drinks Sports Energy Water 15 billion litres Drinks 205.1 billion 16.2 billion litres Concentrates litres 43 billion litres RTD Tea 30.1 billion litres RTD Coffee 4.5 billion litres SOFT DRINKS: RED BULL GMBH While Red Bull remains...
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...Product Strategy – Coca Cola or Coke from the Coca Cola Company Coca Cola Company is the world’s largest beverages company and the No. 1 provider of sparkling beverages, ready-to-drink in the world. It is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverages which is headquartered in Atlanta, Georgia. The company is best known for its flagship product Coca-Cola which invented in 1886 by pharmacist John Stith Pemberton. The famous product of the company is Coca-Cola or often referred to simply as Coke. The name refers to two of its original ingredients which are kola nuts, a source of caffeine and coca leaves. Coca-Cola or Coke is the most popular and biggest selling carbonated soft drink, as well as the best known brand in the world. According to Edinburgh Evening News (2010), Coca-Cola has become the first brand to top 1 billion in annual UK grocery sales. It was a big amount and proved that Coca-Cola has dominates the market of soft-carbonated drinks. The Coca-Cola Company sells beverages product in more than 200 countries as referred to the company 2005 Annual Report. From the report, it was also stated that out of more than 50 billion beverage servings of all types consumed worldwide everyday drinks containing trademark by Coca Cola and as result from that, Coca-Cola accounted more than half of the company’s total sales. In addition, as according to Jim Fink in his article (Investing Daily, 2012), Coke is one of the...
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... seeking to expand in international markets. PepsiCo looked mainly to its core product, carbonated fizzy drinks, but also diversified its product offerings. It bought Frito-Lay, the snack business in 1965, beginning its long history of diversification, to reduce its dependence on cola drinks. In 1993, it launched bottled water, Aquafina, and in 1998, it acquired Tropicana juice brands, placing it in a good position to benefit from rising consumer demand for healthier drinks. In 2001, it acquired Quaker Oats, the cereals and snacks business, following the collapse of Coke’s negotiations to buy the company, revealing divisions on strategy within Coke’s board. With Quaker Oats came Gatorade, the market leader in energy drinks, further diversifying PepsiCo’s portfolio of companies. Aquafina water and Gatorade drinks have seen rises in sales, helping PepsiCo to offset declining sales of sugary carbonated drinks, where consumers have become concerned about health and obesity. Coca-Cola has also belatedly launched new products diversifying from sugary fizzy drinks, having launched Minute Maid fruit juice to challenge Tropicana, Dasani to take on Aquafina, and Powerade to compete with Gatorade. PepsiCo’s diversification programme and it’s brand building expertise has made it the world’s fourth largest food and beverage company. Coke, relies on carbonated fizzy drinks for 80 percent of profits on the other hand, is market leader in...
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...TOWS Development November 5, 2013UncategorizedGroup Threats 1. Competitors ( e.g Tesco using their own brand) 2. Possibly some marketing restrictions from the ASA or the European Union. (for making unproven claims such as calling their products “superfoods” without backing it up by any medical science) 3. Recession/economy slowing down/ consumers spending less money in supermarkets Opportunities 1. They could improve their brand by making their own store (juice bar) 2. Being mostly owned by Coca Cola creates many opportunities to operate internationally 3. Government and the EU passing legislation to promote healthy food/drinks Weaknesses 1. High price 2. Do it yourself (People making juice themselves because it is much cheaper) 3. Allergy to certain fruits Strengths 1. Being known as a friendly environmental company (Good Reputation) 2. Widely known brand (Majority of the market) 3. Seasonal Products (Innocent Big Knit) 4. Wide range of products Threats and weaknesses 1. Innocent can manage their threats and competitors by lowering their price of products as they higher than supermarkets using their own brands such as Tesco. Also during the recession they could make extra promotions to make it more affordable their consumers. 2. They can use the advantage of convenience when facing DYI products. Also promoting them as a healthy company that operates with government schemes could boost their sales even though their prices seem higher. Weaknesses and opportunities ...
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