According to market experts belief, the ready-to-drink (RTD) industry will continue to boom and is not expected to reach capacity level in the near future. Consumer need for the convenience and time-saving services and the positive criticisms as well as the studies on the benefits of tea drinking almost all around the world are the major reasons make the iced-tea market one of the leading expanding RTD industry.
Thus, there are two major target markets for iced-tea. First group is the consumers on the go, which can be the employees, students and other consumers, who their busy life style demands for augment productivity with lesser time consumption. Therefore, there is a need for products that are accessible and readily available. Convenience
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The positive reviews on the benefits of tea drinking have stirred an interest in iced-tea market. One of the main factor for the improving iced-tea market performance is its health benefits. The belief that tea is very good for the body makes it more logical to drink more tea and less soda or other drinks. Consumers consider drinking iced-tea as a healthy habit. Many tea drinkers choose iced-tea sold in single-serve containers because it is really inexpensive and you can get it just about anywhere. It is good news for health conscious individuals as now they can enjoy a refreshing and nutritional drink.
Future demand for the iced-tea market is based on the growth rate of current market segment bases. However, the RTD tea drinks to not fell out of fashion in competition with new flavors of carbonates and renewed brands without sugar and preservatives launches, such as carbonated bottled water, fruit and vegetable juice, carbonates and RTD coffee,must take care of its opportunities and
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Apart from this marketing faces a growing marketing terms of population. One of the greatest opportunity that RTD tea market has its huge market which is increasing as the population is increasing. New product in the global will capture the early adaptors. Today’s world population exceeds 6.6 billion people and is expected to increase to 8.1 billion by 2030(1.2% annual increase).Tea is the most widely consumed beverage in the world next to water, and for example can be found in almost 80% of all U.S. households. It is the only beverage commonly served hot or iced, anytime, anywhere, for any occasion. On any given day, over 158 million Americans are drinking tea.Approximately 85% of tea consumed in America is
In the beverage industry, any types of beverage can be a substitute products for Thai Beverage’s product offerings. The threat of substitute products is huge. BCG
However, Britons are moving towards consuming different kind of drinks, such as squashes, diet colas, energy drinks, tea and so forth. There is also a new breed of health conscious male consumers in the UK. This was due to the increased focus on obesity by the government and media. Therefore, Britons have decreased the frequency of consuming cola drinks. Our company sees this as an opportunity to revive the cola market by producing fusion drinks which combines the traditional cola with the new preferred drinks of Britons.
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten brands sold. Colas are the dominant flavor in the U.S carbonated soft drink industry; however, popularity for flavored soft drinks has grown in recent years. The changing demographics of the U.S population have been an important factor in the growing popularity of these flavored soft drinks. The possible impact of this factor will be addressed later in the case.
Water makes up 75% of human body. It is the most important ingredient in our bodies. Today many people ignore drinking water and concentrate more into the carbonated drinks. One of the main reasons I would think people drink more carbonated drinks (such as sodas and sport drinks) is because of the way a company hype up their products and use their marketing strategies to influence people into buying them. Many benefits come out of drinking water. First, it quenches one’s thirst much better than any carbonated drinks. Second, it keeps one’s skin clear and healthy looking. In addition, it protects the human body from several diseases. Many people choose drinking sodas and sports drinks than water because water does not have much of a taste and carbonated drinks are flavored and tasteful. I guess I am one of those people who has being caught on to the hype of the soda companies. I do not really drink much water I would say I barely drink two cups a day, but I know the how good water is for my body. So I am modifying my behavior by adding more water to my diet.
According to the “Competition in the Bottled Water Industry in 2006 Case,” bottled water industry became the one of the world’s most attractive beverage categories, as more and more people began to focus on health and fitness. Consumers start realizing the need of proper hydration, and they began purchasing bottled water instead of drinking tap water, because they were worried about safety of tap water, which tasted like chemicals. Actually, tap water contained chemicals, such as chlorine and fluoride, which are harmful for human body; however, this problem was solved when the bottled water was brought to the market. Due to bottled water’s convenience, purity, and portability, and safety, bottled water industry began to rise rapidly. During
The ready to drink (RTD) market is an industry sector that has good growth potential and room for competition because it has not been saturated with products.
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
Dr Pepper Company is the oldest major manufacturer of soft drink concentrates and syrups in the United States. Dr Pepper is the company's principal brand. Cadbury Schweppes PLC acquired Dr Pepper/Seven-Up Cos. Inc. in March 1995. The new business will be called the Dr Pepper Company, which will focus on the Dr Pepper brand by handling all beverage system sales, which account for 75 percent of its business, in addition to related independent bottlers. The second operating group will be Cadbury Beverages/Seven Up Co., which will service independent bottlers not carrying Dr Pepper. Dr Pepper/Seven Up soft drink brands now hold about 16 percent of the U.S. market. Dr Pepper and Seven-Up are among the top 10 carbonated soft drinks, with Dr Pepper being the top non-cola soft drink. Other soft drink include: A&W Root Beer, Canada Dry, Schweppes, Welch's, Sunkist, Squirt, Crush and Hires (Levy 1999). According to the soft drink industry report, there is large sales growth recently in non-colas. Dr Pepper was number three in the industry. The reason is because non-colas have above-average caffeine level, and will be aimed at the 12-to 21-year-old market. Obviously, management sees this product as an opportunity to more fully participate in the growing popularity of non-colas.
While tea is said to be healthier, it is the second most consumed morning beverage. Why is that? On an average day, only one in five American adults drink tea. The average tea drinker takes in more than twenty times more flavonoid antioxidants per day than non-tea drinkers. So those non-tea drinkers are missing out on their daily helping of flavonoid. Caffeine in tea isn't as much of an issue as it is in coffee.
Tata tea’s global over and above strategy is to become the market and the leader in tea production in India, increase capacity its reach in the global market and end up being the global tea market leader where Unilever is often currently positioned. For this the company has adopted the appr...
Experimentation with the new market for carbonated beverages on the decline coke has done experiments in new flavors and healthier alternatives to try to stay competitive. As well as investing in “Keurig Green Mountain is a K-Cup maker but has a new Keurig Cold that can deliver Coca-Cola through the new system.” (Cooper, 2014)
Tea is consumed all over the world not only for its simulating effect but for the med...
External environmental analysis of US carbonated soft drink (CSD) industry allows concluding that declining CSD sales call for changes in industry operations whereby market players can benefit from the fundamental shift in the industry development and maintain its leadership positions in beverage market. Analyses of macrolevel, industry, and competitive environments suggest that expansion, strong brand recognition, and changes in value chain will be key success factors in the future industry development.
An effort has been made to do a comparative study on two tea selling companies so as to practically comprehend the consumer perceptions and choice of consumers on the two brands. A survey is done by providing with a questionnaire to a group of people of various ages who consumes tea.
This competitive advantage has been rendered sustainable as other players have found it difficult to catch up with the company's competitive strategy. In spite of this clear advantage, it was noted that the company faces some challenges being the world leader in soft drink distribution. The canning and bottling of the product which is done in many countries have now fallen into the hands of independent companies, thus it becomes hard for a given company to control the quality of the packaging