Soft Drinks Case Study

Coca-Cola, Pepsi, energy drinks, juice, and enhanced water are just a few soft drinks that we are familiar with and consume on the daily. Soft drinks can be defined as a beverage that is usually carbonated, but is not alcoholic or intoxicating. The soft drink industry in both India and China are very popular. China’s developing economy and India’s increasing of market volumes has aided the soft drinks market to develop into many more varieties and product trends. Consumption of soft drinks in these countries is driven by market values, category segmentation and marketing of new product innovations.

In India, its market has experienced strong growth in the last couple of years. Food and Beverages account for more than half of household spending.

“Diversification into a wide variety of beverages is one of the key focus areas for Coca- Cola to drive this growth in India.” Coca-Cola has produced single served cans for consumers. Smaller sizes of can with lower prices can be very cost effective. The Coca-Cola company is also planning on developing new flavors. Lemon-Lime flavored drinks are currently the trend across India. These new flavors are part of their marketing strategies to connect with local consumers. One strategy is to create ethnic like products such as fruit-based drinks. Krishnakumar the president states that, “With the new approach, Coca-Cola is hoping to establish a stronger connection with consumers. “If you have fruits growing only in your area, and if you have a beverage based on that, it obviously gives you good connect.” (The Economic

In China, most soft drinks are consumed by households and catering market. Still drinks account for the largest segment in the soft drinks market. Followed by, packaged water, which accounts for 20 percent. In like matter, China’s leading distribution channels coming from on trade with 53.7% share of total market value. On trade channels are less diverse which gives companies more range of new innovations. Researchers are predicting a forecast volume of 151,764.1 million liters and growth of 5.7 percent in the year