Carbonated Soft Drinks - How Do They Work? Essay

The soft-drink industry capitalizing on creating the best product. Each product has a different taste, formula, and color to entice the consumer. It is important for the product to remain innovative in order to keep the consumers interested. The suppliers can easily differ, because they do not hold much value or put

Given your assessment of the competitive situation, what are the pros and cons of (a) continuing the present market targeting and positioning strategy and (b) adopting the recommendation made by Foote, Cone & Belding? (make a comparison table of pros and cons for each approach).

     PepsiCo. Incorporated and The Coca-Cola Company are the two largest and oldest archrivals in the carbonated soft drink (CSD) industry. Coca-Cola was invented and first marketed in 1886, followed by Pepsi Cola in 1898. Coca-Cola was named after the coca leaves and kola nuts John Pemberton used to make it, and Pepsi Cola after the beneficial effects its creator, Caleb Bradham, claimed it had on dyspepsia. The rivalry between the soda giants, also known as the "Cola Wars", began in the 1960’s when Coca-Cola's dominance was being increasingly challenged by Pepsi Cola. The competitive environment between the rivals was intense and well-publicized, forcing both companies to continuously establish and

In 1885, at a drugstore in Waco Texas, a man by the name of Wade Morrison had hired Charles Alderton. Alderton was a pharmacist but he also served soft drinks to his customers. Back in that time there weren’t as many soft drink selections to choose from so Alderton would often combine sweeteners with fruit extracts. He had invented many different flavors. However one flavor sold better than

The existing concentrate business is largely controlled by Coca-Cola Company (Coca-Cola) and PepsiCo (Pepsi), together claiming a combined 72% of the U.S. carbonated soft drink (CSD) market sales volume in 2009. Refer to Exhibit 1 for an illustration of the CSD industry value chain. For more than a century, Coca-Cola and Pepsi have maintained growth and large market shares through mastering five competitive forces, shown in Exhibit 2, that drive profitability and shape the industry structure.

The first soft drinks in the 17th century weren’t originally carbonated. Instead, they had the ingredients of lemon juice, water and sweetened with honey. In 1767 the first-ever carbonated soft drink was created, and it was made by a doctor named Joseph Priestley. The first flavoured carbonated soft drink ever to be made was in the year 1807. It was made by a man named Philip Syng Physick. In the early years many pharmaceutical companies established the pop fountains. Consumers assumed that soft drinks had healing assets, and basically considered these drinks to be soda remedies for example, it could of cured head aches In fact, “Coke was developed while looking for an antidote to the common morphine addictions that followed the Civil War:

Joseph Priestley started by figuring out that the gas he was working with was heavier than air. By pouring water quickly and roughly between two glasses held over a vat. The gas dissolved in the water. This was the discovery of soda water.

The original source of all carbonated drinks was Joseph Priestley. Aside from being an English clergyman and scientist, his curiosity sparked from the gas that bubbled from fermentation vats. Using this interest in gas, he created sparkling water in 1772. Basing his knowledge off of Priestley’s work, John Pemberton created a syrup that was originally made for medical purposes. He used this syrup and sparkling water to create the tasty drink known as “Coca-Cola”.

Recently there has been an ongoing battle between the US government and large soda companies. money is the sole purpose behind this battle. Soda companies want to sell their product by whatever means are necessary while the government wants to decrease the obesity rate in the country. Because the government intervined with this, the soda companies continued sales by advertising the sodas being good for you. Soda companies such as Pepsi released advertisements that used tactics to make Americans believe their product is healthy, good to buy and beneficial to the consumer.

Coca-Cola Company history originated in 1886 when the “curiosity of an Atlanta pharmacist, Dr. John S. Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda fountains” (Coca Cola History, 2013, para. 1). He generated flavored syrup, took it to his

Normally when deciding what to drink, one would consider a soda more than a water. Even though sodas have more taste to them, they have many bad side effects along with it. On the other hand, water does not have many, if any at all, bad side effects. Even though water does not have any bad side effects, people need to watch what they are drinking the water out of. Many of the plastic containers are made from a mixture of chemicals which cause a variety of health concerns. Although soda can be refreshing to our taste buds, water is the better alternative if one is watching for health benefits, and money expenses However, canned soda is better for the environment in relation

The U.S and its people have been facing health problems for the longest time, from all kinds of diseases and health issues- obesity and type 2 diabetes specifically. Obesity and being overweight are problems that teens and adults are facing in the U.S. and is continuing to increase each and every day. The food stamp act created in 1964 was initially designed to help provide food for people in need of help at a time when hunger was one of the main problems hitting the U.S, many years later, while the hunger issue is still existing, the program adjusted at a slow pace to a better nutritional program. For the past couple of years, it has been argued on whether soda and other sugary drinks should be bought on the supplemental Nutrition Assistance

In an industry dominated by two heavyweight contenders, Coke and Pepsi, in fact, between 1996 and 2004 per capita consumption of carbonated soft drinks (CSD) remained between 52 to 54 gallons per year. Consumption grew by an average of 3% per year over the next three decades. Fueling this growth were the increasing availability of CSD, the introduction of diet and flavored varieties, and brand extensions. There is couple of reasons why the industry is so profitable such as market share, availability and diversity and brand name and world class marketing.

Based on Robinson (2016), in the 18th century (1767), the Englishman Doctor Joseph Priestley found out oxygen and then developed the carbonated drinks, which is known today as soft drinks. In the late of 1800, Coca-Cola brought its product to the US market before delivering it to the UK. Soda drinks industry is a profitable market regarding the successful strategies and the cost of goods. Recent statistics research found that more than ( 1.9 ) billion liters of soda drinks are sold in the UK on trading every single year. The category raised by (4.3) percent last year, while sales in the best segment improved by ( 75 ) percent.

Considering that soft drinks are one of the most popular drinks to a lot of people all around the world, unfortunately, a lot of them love to drink it almost every day and may not live without it. Soda becomes addictive, preventing one from drinking what the body needs the most which is water. In the market, there is a infinite amount of choices with multiple varieties of flavors, different tastes, ranges from classic soda to diet soda. However, consumers do not recognize clearly the negative effect of soft drinks that have a high chance of eroding their health away. Some of these examples include dental erosion, energy intake, obesity and other health issues. Nowadays, people live a healthy life to avoid health problems, so taxes on soft