The always tasty and always refreshing soft drinks everyone loves to drink, whether it is Pepsi, Coca-Cola, Red Bull, etc., they are always welcomed. Soft drinks have to be distributed to multiple target markets in different parts of the world. From Pakistan, to Russia, to India, to the U.S., soft drinks are desired. Soft drinks are very popular in all developed areas of the world. From local beverages to international brands, to sport drinks and energy drinks, soft drinks are there to stay. Soft drinks are a multi billion dollar industry and the global demand for it, is only forecasted to grow (1). How can these products be delivered around the world to so many different people, catch the attention and satisfy the target market? Let’s see. …show more content…
Soft drink companies use a contractual vertical marketing systems which allows two or more parties to create a formal relationship in which they agree to certain terms, such as most recently Pepsi. In April 2015, Pepsi entered a contract with the National Basketball Association (NBA) for sponsorship, which means wherever an NBA logo is seen, a Pepsi product is likely to be seen. (2) Both, the NBA and Pepsi are beneficiaries of the deal because Pepsi sponsors the NBA and the NBA provides Pepsi with exposure to a likely target/audience in basketball players and fans. Other marketing systems such as multi-channel and horizontal marketing would not be as efficient in this market, as it is dominated by giants such as Pepsi and Coca-Cola which are very diverse when it comes to consumer …show more content…
A trend of health-conscious adult consumers in Europe and U.S. are shying away from sugar-full soft drinks. As a response, many soft drink corporations have begun experimenting, developing, and creating the same soft drinks but with more natural or “organic” ingredients. In an attempt to change an image to a more “health-conscious” soft drink, larger soft drink companies are developing “zero calories” or “low calories” soft drinks as well as more natural teas to satisfy the need. (4)
In order to satisfy this market needs, a well-rounded plan is needed to distribute the product. It is a perception that has to change internationally and the most appropriate way to approach this issue is indirectly. Through indirect exporting, the other intermediary companies can provide a range of services to include logistics and marketing tailored for that target market, likely making the product familiar, or
In order to understand the dangers of sugary drinks and foods, an explanation of their contents is necessary. These drinks and foods are composed of high carbohydrate-content, which is responsible for energy pr...
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...
What we choose to drink can affect our health just as much as our eating habits. It is because of this that more and more people are going for little-to-no calorie options rather than high calorie options, which are supposed to be the ideal, chose. But is it? Have you ever had a sip of diet soda or regular soda and wonder what makes this drink so good? Or maybe the exact opposite, like what makes this drink so bad for you? These drinks can feel so refreshing on a hot summers day or even after a long day of work. What’s not so refreshing is what these drinks can do to your body.
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.
Analysis of the carbonated soft drink (CSD) industry shows that there are 2 important players i.e. Concentrate Producers and Bottlers. Focusing on the downstream of the supply chain it is to be pointed out that concentrate producers incure relatively low fixed costs with respect to production plant, staff, equipment and R&D as the concentrate is produced of a more than 100 years old formula and relatively cheap raw material (e.g. caffeine). Concentrate is shipped to bottlers which incure relatively high fixed cost with respect to plant, equipment and staff and which add carbonated water and high fructose corn syrup to the concentrate, bottle or can, package and ship it to the respective retailer. Besides that CDS hold a big stake in the direct delivery of concentrate to diverse fountain accounts like McDonalds, Burger King etc.
Introduction Innocent is a well-established smoothie and health food company in its home market of the UK and has had success in moving into various markets in the European Union. With the added partnership with global brand Coca-Cola, it could be said that Innocent is in prime position to begin its expansion into new markets globally. This report will note the benefits and potential risks of entering the chosen market of Japan, based on research and theoretical analysis. Japan was first chosen due to initial research showing that it was one of the most health conscious countries in the world, with the lowest obesity rates. Further investigation showed their links with Coca Cola, and a gap in the market for ‘off the shelf smoothies’, despite the existing popularity of health drinks and demand for commuter friendly food.
There are plenty of sugary soft drinks in the market today. Sugary soft drinks are included as drinks defined by the US Department of Agriculture and the US Department of Health and Human Services in their Dietary Guidelines for Americans as “sugar-sweetened beverages” that contain different types of sugars that contribute calories. Examples of these are lemonade, sports drinks, energy drinks, carbonated sodas and sweetened teas and coffees (Marrow,2011).
Brand Image / Loyalty: Coke and Pepsi have a long history of heavy advertising and this has earned them huge amount of...
People can afford to buy more soft drinks under current economic situation. Recessions do not seem to affect sales of CSD. Although produced by main market players soft carbonated drinks cost more than similar products of local and private label manufacturers, consumers are willing to pay an extra price for the name, particular taste, and image. Fierce competition in 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 operation in China faced antitrust regulations, advertising restrictions, and foreign exchange control.
...e and Pepsi’s already established image as producers of premium product is key to discouraging other companies from entering the soft drink industry. However, as the market in the U.S has leveled off, they should continue to invest globally in marketing and advertising for further profit growth, which will in turn positively influence their well established brands to further increase soft drink sales and profits.
Surveys have shown that sugar-sweetened beverages are the primary source of added sugar in our diets. According to a Coca-Cola history website, the soft-drinks’ bottle sizes have been enlarged drastically over the past 40 years, basically meaning that we are drinking more soft drinks than ever. As an example, half of the population in the US consume sugary drinks every day, in which about 25 percent gain at least 200 calories from these drinks. Sugary drinks are also the top calorie source in teen’s diets, increasing the risk of diseases such as obesity, diabetes and heart problems from an early stage. It is a significant factor that leads to obesity, so I believe resisting these sugary drinks and promoting healthier products could definitely assist the goal of elevating the number of a healthy
PepsiCo discloses their stakeholder engagement as a contribution towards sustainability. As part of the company social responsibility and sustainability strategic planning, the company has put in place strict policies to guarantee a long-lasting relationship with all its stakeholders. According to the company website, ‘PepsiCo has established a strong relationship with NGOs and routinely engage them to leverage their areas of expertise or interest to help shape their CSR processes and tracking methods. These relationships have helped to better identify sustainability priorities that supports both the business model and the expectations of the stakeholders’ (PepsiCo 2013). PepsiCo invests mainly in activities linked to their chain of management, they totally applied Kramer and Porter’s ideas. Porter explains that businesses are socially responsible today because they realized that socially responsible activities build and develop credibility, integrity, and give competitive advantage.
If a company has set its objectives there is need to look into the following. Which countries are their target market and who are the consumers and how or which marketing strategy should they use to reach the consumers. The company needs to know what products are best for their chosen customers and if there may arise a need to adjust the company should be ready for it. The other thing they should consider are the import regulations in their country, market and the global rules also should focus on the competition involved looking...
As the world 's largest manufacturer and distributor of non-alcoholic beverages, Coca-Cola is certainly no stranger to global marketing. Established in the US, Coca-Cola initiated its global expansion in 1919 and now markets to more than 200 countries worldwide. It is one of the most recognizable brands on the planet and also owns a large portfolio of other soft drink brands including Schweppes, Oasis, 5 alive, Kea Oar, Fanta, Lilt, Dr Pepper, Sprite and PowerAde. Despite this, Coca-Cola often struggles to maintain its market share over its main rival PepsiCo in some overseas markets, particularly Asian countries.
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