Introduction
Today’s global soft drink industry that is worth approximately 511.6 billion dollars can trace its history back to the days when the first mineral water was found in natural springs (Reuters, 2014). According to Bellis (2014) people who started bathing in natural springs instantly realised that it is a healthy thing to do and due to that it was said that mineral water has healing powers. The carbon dioxide or in other words the magic that was behind the bubbles in natural spring water was soon discovered by the first scientists (Bellis, 2014). Later this wonder was the basis of invention of carbonated soft drinks, like coke. The first soft drink which was simple lemonade made out of mineral water, lemon juice and honey was first marketed back in the 17th century (Bellis, 2014).
Nowadays the global soft drink industry is far more complex than it was back then. The industry consists of thousands of soft drink manufacturers that are trying very hard to invent a marvellous product and market it properly to consumers so it could stun the world like the Coca-Cola once did. For a company that wants to extend the range and has no awareness or knowledge about the particular foreign test market, a detailed analysis of that market is must in order to succeed. This paper will give an in-depth review, analysis and forecast of an Irish soft drink market which will include vital elements like market value, volume, share, segmentation, and distribution. This paper will also provide valuable information on current trends and will include all five Michael Porter’s forces which will determine the competitive environment and indicate how it might affect the profitability. Based on the analysis specific recommendation concerning the ent...
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17. Carter Lorraine (2012) ‘Eco Packaging, Essential for Your Profitability and the Environment Available’, Persona Design Blog, 1 October. Available at: http://www.personadesign.ie/blog/going_green_with_sustainable_packaging_essential_for_your_long_term_profitability_and_the_environment (Accessed 10 April 2014).
18. Safefood 2009 DRINKS: Consumer knowledge and practice in relation to drinks for children and young people [online]. August 2009, p1-25. Available from: https://www.safefood.eu/SafeFood/media/SafeFoodLibrary/Documents/Publications/Research%20Reports/9650_Drinks_Interior-Cover.pdf [Accessed: 18/04/2014].
19. Euromonitor (2014) Soft Drinks in Ireland [online] April 2014. Available from: http://www.euromonitor.com/soft-drinks-in-ireland/report [Accessed: 18/04/2014].
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.
Beverage giant Coca-Cola wants to get a little love for its iconic cola drink from the upscale consumer set, so its decided to create and test-market a sleek set of contoured aluminum bottles for its flagship Coke brand. Yes, we said aluminum bottles.
Control of market share is the key issue in this case study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share.
Soft drink industry is very profitable, more so for the concentrate producers than the bottler’s. This is surprising considering the fact that product sold is a commodity which can even be produced easily. There are several reasons for this, using the five forces analysis we can clearly demonstrate how each force contributes the profitability of the industry.
BOSTRÖM, M., & KLINTMAN, M. (2008). Eco-standards, product labelling and green consumerism. Houndmills, Basingstoke, Hampshire, Palgrave Macmillan.
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...
Pedersen, Esben Rahbek and Peter Neergaard. "Caveat Emptor- Let the Buyer Beware! Environmental Labelling and the Limitations of 'Green' Consumerism." Business Strategy and the Environment 15 (2006): 15-19.
Environmental conservation is a major challenge for businesses today. This is because environmental measures are often regarded as measures that reduce profitability of an organization. As a result of this, ethics are introduced to ensure that a business is doing what is right all the time. These ethics become fundamental elements in defining what is moral and what is legal because a legal action does not necessary imply that it is ethical. In the US, companies are under pressure to comply with demands of safeguarding the environment. The pressure is not only emanating from federal regulations, but also from the clients. A latest development in marketing strategies has even identified that packaging is becoming influential in attracting customers. Clients in the 21st century do not go to the market and buy an item just for the sake of satisfying their needs, but rather consider other features regarding the product they want to buy. One of the main features they look at is how the product, in its entirety, is conforming to the necessities of making the earth a better place to live. In this regard, clients, in this century, are very considerate on how a product is packaged. Any business that wants to succeed in this century must presume that each customer is an environmentalist. Using this presumption, the business will not have a problem with ethical issues in packaging their products. This paper examines ethical issues surrounding packaging practices in the US and how the packaging practice conform to the environmental regulations for a better environment. This paper also checks on how the packaging practice has evolved and aligned itself to ethical pract...
Coca Cola markets nearly 2,400 beverages products in over 200 geographic locations. As a result development of a superior value system is imperative to their operations. Throughout this paper we will analyze their value system by using Michael Porter's value chain analysis model. In an attempt to paint a current picture of the non-alcoholic beverage industry we will assess the market activity by using mergers, acquisitions and IPO’S as our benchmarks to determine if the market is growing or contracting.
“Packaging is something physical that is produced from a wide range of raw materials, and so its production and disposal will have important environmental considerations, too” (Ambrose and Harris, 2011). The main idea is that the book looks at Environmental Consideration in packaging, but have gone through the thinking process of what is “wrong and right” in design. It also goes into Sustainable packaging and this section gives an answer to one of the questions I posed, whether it is important to consider ethics in design because it also considers the Ecology “The need to produce sustainable packaging has become more and more widespread as environmental awareness grows about the danger of excessive production, consumption and the generation of waste.” (Ambrose and Harris, 2011) It proves my statement that in this contemporary world we cannot any longer consider only aesthetics without incorporating ethical values in what we design and produce. The book also shows “Life-cycle assessment” and “Waste Hierarchy”. It mentions “Creating Packaging Statements” and “Reusing
Although produced by main market players, soft carbonated drinks cost more than similar products from local and private label manufacturers, consumers are willing to pay an extra price for the name, particular taste, and image. Fierce competition in the CSD industry forces Coca-Cola and PepsiCo to expand into new and emerging markets which present high potential for the company’s development. However, some foreign markets proved to be highly competitive. Coca-Cola Company’s operations in China faced antitrust regulations, advertising restrictions, and foreign exchange controls. iii.
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
PepsiCo is one of the most recognized names in the snack and beverage industry, with brands like Frito-lay, Gatorade, Tropicana, and Quaker, however, it is best known for its flagship soft drink brand - Pepsi and its rivalry with Coca-Cola. To begin, PepsiCo first caught my Interest in the way it manages its business and markets its products. PepsiCo being a relatively young company compared to its rival Coke, has proven to be a formidable opponent going “head to head” with one of the biggest companies in the world (Coca-Cola). Now, when I notice PepsiCo’s growth, the first thing that came to my mind was that it is thanks to its great marketing campaigns, that Pepsi has grown to become the globally recognized brand that it is today. I also admire PepsiCo because I think the there is a high level of entrepreneurship in the way they acquired smaller brands like Gatorade thereby eliminating their competition before they become competition.
As shown earlier, political actions and policies has definitely had an impact the market for soft drinks in India. The soft drink market in the country of India consists of only six product distinctions. They are cola, cloudy lemon, orange, soda, mango, and clear lemon. India’s government would prefer to ideally protect its local industries ...
The soft drink industry is a highly profitable industry and its success is due to the large consumption of non-alcoholic beverages through which both concentrate producers and bottlers are profitable. Given the U.S. Industry consumption Statistics, Exhibit 1, it is clear that, after deducting beer and wine, soft drinks account for about 90 % of the total liquid consumption, while Coke and Pepsi account for about 75 % of the soft drink industry. The high consumption of CSDs is related to the soft drink industry selling to consumers through five principal channels: food stores, convenience stores, vending, fountain and other. Out of the five channels the case describes vending as the most profitable channel for the soft drink...