Rise of the Carbonated Beverage Industry

557 Words2 Pages
bulb-icon

Recommended: The beverage industry of Coca Cola and PepsiCo an introduction

Introduction
The global market for international soft drink industry is about $ 198 billion out of which the giants like Coca Cola and Pepsi hold a major stake. The marketing and sales trends vary from one country to another depending on the geographic and climatic conditions. Cadbury Schwepps is the third major player in the global soft drink industry. The three giants occupy about 90% of the total market. Over the past few years, the global trends have clearly indicated that the consumption of carbonated and non-carbonated soft drinks has nearly doubled. The western countries such as North and South America and Canada are consuming twice amount of beverage as they did nearly 10 years ago. With the introduction of retail sector and changing preferences of the consumer, one can easily find that the demand of these drinks have risen to a considerable proportion. (Datamonitor, 2005)
Emergence of Retail sector and increase in product Mix
With the emergence of retail sector, the marketing and advertising strategies of soft drink companies changed drastically. The soft drink industry was not just limited to production of soda drinks. With the changing preference and choices of customers, healthy drinks were also lunched. Minute Maid, Tropicana and diet soda are some of the examples of the changes made by these giants in order to garner the attention of the public. In the year 2013, more than 90% of the market was dominated by three major soft drink companies. The industry seems to be going in the oligopoly manner for a long time now. Coca cola remains the undisputed leader of this industry with nearly 50% market share closely followed by Pepsi. (Datamonitor, 2005)
Marketing and advertising
The business environment in this sector is...

... middle of paper ...

...lability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage

Works Cited

Datamonitor. (2005, May). Global Soft Drinks: Industry Profile. New York. Reference Code: 0199-0802. Murray, Barbara. (2006c). Carbonated Beverages. Hoovers. Retrieved February 13, 2006, from http://premium.hoovers.com/subscribe/ind/overview.xhtml?HICID=1049
Hein, Kenneth. (2004). Brand Loyalty 2004. Retrieved February 12, 2006 from http://www.brandkeys.com/news/press/102504Brandweek.Loyalty.pdf Murray, Barbara. (2006a). The Coca-Cola Company. Hoovers. Retrieved February 13, 2006, from http://premium.hoovers.com/subscribe/co/factsheet.xhtml?ID=10359
Sicher, J. D. (2005). Beverage Digest/Maxwell ranks U.S. soft drink industry for 2004. Retrieved
February 10, 2006 from http://www.beverage-digest.com/pdf/top-10_2005.pdf

Show More
Related

  • Persuasive Essay On Coke Vs Pepsi

    824 Words  | 2 Pages

    Coke continuously out-stands Pepsi, even though they share a very similar taste and colour, however Coke should not be the drink that receives all the love and attention for what it offers. Despite their similar soda colour, the drinks actually contain some different ingredients, which produce a different taste, and affect the body differently. Furthermore, the way the companies markets their drinks makes a huge contribution to how successful their products will become. The major element for success however stems from their impact on society and how the companies utilize their social power to evolve. The two major soda companies are constantly head to head with one another, yet it is what they do that sets them apart.

    Read More

  • Competitive Analysis: Monster Beverage Corporation

    1028 Words  | 3 Pages

    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...

    Read More

  • Dr. Pepper/Seven Up, Inc.

    1741 Words  | 4 Pages

    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.

    Read More

  • Cola War Between Coca-Cola and PepsiCo

    1372 Words  | 3 Pages

    Cola Wars Environmental Analysis 1. Introduction 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. 2. What is the difference between a.. External environmental analysis a. Macrolevel environment (PESTEL analysis) i. Political New federal nutrition guidelines identified CSD as the largest source of obesity-causing sugars in the American diet.

    Read More

  • Soft Drink Industry: Degree of Rivalry

    1510 Words  | 4 Pages

    As it was mentioned already above the key players in the Irish soft drink market are Coca-Cola, Britvic Plc., PepsiCo, and Groupe DANONE. The game is concentrated on these four key players which hold a total market volume of 57.5%. This indicates that market shares among players in the industry are not equally distributed. The market is quite fragmented and that the market giants are operating along with other smaller companies which account for total market volume of 42.5%. As mentioned already above the industry growth rate in recent years was relatively slow, due to this fact the level of the rivalry increased (Marketline, 2013). In general sluggish growth rate makes very difficult for new players to compete with the already existing firms in the industry.

    Read More

  • Pepsi and Coke in the Czech Republic

    1972 Words  | 4 Pages

    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.

    Read More

  • Coke Vs Pepsi In The 1990s

    757 Words  | 2 Pages

    Soft drinks consisted of: flavor base, sweetener, and carbonated water. On the other hand, there are main participants in the cola industry: concentrate and syrup producers, bottles, and distributors. 1-Concentrate Producers (CP): They blended the needed raw, then packaged in plastic canisters, and then shipped to the bottler. This process needed little capital investment in machinery, overhead or labor. 2- Bottlers: They added carbonated water and high fructose corn syrup then bottled the soft drink and delivered it to customer's accounts. It is worth mentioning here that only Coke added sugar before shipping thee blend to the bottlers. This process was capital-intensive.3-Distributors: In 1993, Pepsi-Cola and Coca-Cola each had a 16% share of all retail channel volume, and the main distribution channel for soft drinks was supermarkets. Historically, Pepsi focused on sales through retail outlets, while Coke on fountain sales. Suppliers: CPs and bottlers purchased two major inputs: packaging, and sweetens .When diet soft drinks were introduced; Pepsi and Coke negotiated with artificial sweetener companies and sold its concentrate to bottles already sweetened.

    Read More

  • Coke Strategy

    1374 Words  | 3 Pages

    Coca Cola is the leading manufacturer, marketer and distributor of soft drinks in the world. With domestic market nearing saturation, the potential for growth lies in international markets. In recent years, economic, political and social changes have made the global environment more uncertain, forcing Coke to reevaluate its strategy, structure and culture to maintain a competitive advantage. The following is a dynamic analysis that tracks the evolution of Coke’s strategy from global standardization to a multi-domestic strategy that emphasizes national responsiveness.

    Read More

  • Five Differents Types of Consumption

    1027 Words  | 3 Pages

    Wilcox, G. B., Kamal, S., & Gangadharbatla, H. (2009). Soft drink advertising and consumption in the united states 1984-2007. International Journal of Advertising, 28(2), 351.

    Read More

  • The Coca-Cola Industry

    1753 Words  | 4 Pages

    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.

    Read More

  • Coca-Col Marketing Mix Assignment Of The Coca Cola Company

    1844 Words  | 4 Pages

    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.

    Read More

  • Case Analysis of Coca Cola

    1830 Words  | 4 Pages

    In the 1980s, under CEO Roberto Goizueta, Coca-Cola was a global brand with a growing presence in global-emerging markets like Europe, Russia, and South East Asia. It beat back its main rival Pepsi to be a leader in the carbonated beverage market with a 70% market share. During the 1990s however, under new CEO M. Douglas Ivester, the company’s market share started declining due to political (regulatory), economic, social (consumer), and technological (operations) challenges in the marketplace.

    Read More

  • Ethical Issues In Coca Cola

    1187 Words  | 3 Pages

    Challenges in the last 10 years have been a direct result of the decline in sugary beverages. Thus, the sales of carbonated drinks have declined for the last 10 years and the industry has struggled as consumers began to make healthier choices (DeCarlo, 2016). Moreover, consumers reduced their soda consumption and leaned more towards juices, water, and other options such as protein drinks (DeCarlo, 2016). Other challenges have been Coca-Cola’s footprint worldwide. Notably, in 2005, Coca-Cola was selling and operating in 16 countries from Bahrain to Zimbabwe (DeCarlo, 2016).

    Read More

  • Comparison Of Coca-Cola Vs Pepsi

    1007 Words  | 3 Pages

    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.

    Read More

  • Trends Of Coca Cola

    857 Words  | 2 Pages

    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)

    Read More

More about Rise of the Carbonated Beverage Industry

Open Document