Soft drinks are known as non-alcoholic beverage containing syrup essence or fruit Concentrates that are mixed with carbonated water. Soft drinks are thirst quencher, hygienic and a drink of enjoyment. Soft drinks industries are quit old. Today Pepsi and Coca-Cola are the famous brands and both are multinational. The production of soft drink industry is based on the franchise system, where the parent companies supply the concentrates brand name and know how. The franchise unit that is the bottling unit supplies the production to the market. Hence the bottlers become very important for the successful operation of the soft drinks brand. The drinks are called soft drinks, only to separate them from hard alcoholic drinks. This drinks do not contains alcohol & broadly specifying this beverages, includes a variety of regulated 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. It is said that where there is a consumer, there is a
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patent was issued for the "means of mass manufacture of imitation mineral waters" to Simons and Rundell of Charleston, South Carolina. Carbonated beveragesdid not achieve great popularity in America until 1832, when John Mathews invented his apparatus for the making carbonated water. John Mathews mass manufactured his apparatus for sale to others. The drinking of either natural or artificial mineral water was considered a healthy practice. American pharmacists, who were selling most of the mineral waters, started to add medicinal and other flavorful herbs to the unflavored beverage. The early drug stores with their soda fountains became a popular part of American culture. Customers wanted to take the drinks home with them and the soft drink bottling industries grew from the consumer
From the review of U.S Census on the size of the market segment to which the marketing campaign of Dr. Thunder would target, it has been found that the marketing campaign would target around 3 million Americans. Over the past 10 years, it has been noticed that the target market segment has grown for about 7.7% (United States Census Bureau, 2013). Moreover, the target segment would expand by another 8.9% in the coming ten years. Upon understanding the dynamics of soft drink industry in USA, it is found that the following three factors have an impact on the consumer behavior of this industry:
In the United States SodaStream is more likely to be marketed as a trendy and “fun”
Pepsi was first represented in the beginning of 1890 with the purpose to relieve indigestion. Not until 1960’s, Pepsi received successes that competed against Coca-cola. Pepsi has always been a drink for the young generation, but now they want to change the association.
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.
aspects: Carbonated soft drinks industry's structure, evaluation of driving change factors in this industry and finally analysis of key strategic factors it is faced with.
Analysis of the Coca-Cola Company The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of soft-drink concentrates and syrups. The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of soft-drink concentrates and syrups. The Company markets many of the world's top soft drink brands, including Coca-Cola, Diet Coke, Sprite and Fanta. Through the world's largest and most pervasive distribution system, consumers in nearly 200 countries enjoy the Company's products at a rate of more than one billion serving a day.
Development in the political arena would have been handled well if Coke would have evaded having to sell 49% of its equity by approving to start new bottling plants. The timing of entry into the Indian markets brought In terms of promotional activities, the advertising and giving away of free offers and vacations by Coca cola and Basmati rice by Pepsi, the coca cola’s goal in connecting the youth to the market, the different promotional TV campaigns in India using of celebrities, and the Pepsi sponsorship of cricket and soccer sports. In terms of pricing policies, Pepsi got a quicker market share by their belligerent pricing policies and coca cola’s 15-25% price cut down in the market. In terms of distribution arrangement, the bottling and packaging of products for better distribution around Also, to save and recycle the usage of water.
American Soft Drink and the Company That Makes It. 3rd ed. New York: Basic, 2013.
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.
Soft drinks are popular worldwide taking up 25% of the beverage market. Nearly two hundred countries enjoy these drinks. These drinks consist of carbonated water, flavoring, and lots of sugar.
you can have a turn on the fortune wheel to win prizes such as Pepsi
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.
Coca Cola is the number one nonalcoholic beverage company and it is also the world's most recognizable brand. This company is the home for five other top drinks as well which are coke, diet coke, fanta and sprite. Having the world’s largest distribution system and selling to more than 200 countries worldwide, these soft drinks combined are All of these combined are worth in excess of 16 billion dollars.
There are a variety of beverages available to us today with a wide range of differences, some are flavored, carbonated, low calorie, energy boosters, and just plain water. When it comes down to carbonated drinks there are two major rivalry soda companies dominating the market. Coca Cola and Pepsi are two well know cola distributors with very credible history, but the question still remains one is America’s favorite? With the ongoing competition between Coca-Cola and Pepsi, each company is incorporating new strategies for marketing and advertising there brands. When comparing an advertisement from each of the companies, we will review how they appeal to consumers.
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...