Case Study Of Carbonated Drinks Industry

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.

Advertising has been defined as the most powerful, persuasive, and manipulative tool that firms have to control consumers all over the world. It is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service. Its impacts created on the society throughout the years has been amazing, especially in this technology age. Influencing people’s habits, creating false needs, distorting the values and priorities of our society with sexism and feminism, advertising has become a poison snake ready to hunt his prey. However, on the other hand, advertising has had a positive effect as a help of the economy and society.

The Coca-Cola organization has made exemplary strides mainly to offer a variety of products to its clients even with the competitive nature of the market. Consumers’ choice gets based on the brand aspect in which the organization wins most customers' heart against its rivals. Even though a significant number of people deny cases to having inclination picking between Coca-Cola items or its rivals', many have a strong desire in some way. Many inclines toward Coca-Cola products since the organization has more than hundred years of history and predictable brand image. This picture is engraved in a lot of people subsequently end up purchasing their beverages. It is out rightly conspicuous in the company’s high market share in the field of soft drinks.

Ironically, both Pepsi and Coke have similar beginnings: both were created in the 19th century and both were the results of the experimental work of innovative pharmacists. Coke was created in 1886 by Atlanta pharmacist John Pemberton while Pepsi was developed in 1898 by North Carolina pharmacist and drugstore owner, Caleb Bradham.

Coca Cola has settled on numerous pricing choices yet there is doubtlessly their definitive objective to amplify shareholder esteem. Hence, Coca Cola uses lower value point to infiltrate new markets that are particularly delicate to cost. Coca Cola does that to face the opposition and to raise brand mindfulness among the populace. When it is firmly executed, it re positions itself as a premium contrasted with various contenders. The brand has a picture of acquiring impalpable advantage way of life, gathering association, snippet of bliss & satisfaction. However the advertising technique still concentrates on a reasonable pleasure in life (Coca-Cola Company

Coke has a larger CSD product category when compared to PepsiCo, but PepsiCo operates more additional food business than Coke. It also has a strong positioning on diet cola market.

There are several reasons why the soft drink industry has been so profitable. One reason is because these soda companies directly distribute to stores that sell their product. They do a good job in avoiding a middle man which would cost a lot more. Instead, they handle all the packaging and bottling before the soda gets to the shelf so they don’t have to pay those extra costs associated with a middle man and keep all that profit. Also, carbonated drinks are cheap to produce and have a high profit margin. Every aspect of the making and bottling process is inexpensive so it makes it very easy to turn a profit. This is the same for both bottles and fountain sales. For the fountain all you have to do is install the fountain and then refill it so it is inexpensive. Another way they are profitable is because these soda companies have contracts with stores making it impossible for competitors to sell their version of CSD’s in the same location. They put the contracts in place in order to avoid another company selling and taking their profit and also so the stores and restaurants won’t make it competitive for them when it doesn’t have to be. These soda companies also do a great job of sponsoring events in which helps promote their products which in turn drives profit. These soda companies also partner with certain locations in order to offer incentives if you buy the sodas. For example, if you buy a ticket to a

water, sweetener, and a flavor. Other terms also referring to soft drinks are soda, sugary beverage, and carbonated beverage. People can easily buy soda, from a luxury restaurant to a small vending machine. Soft drinks have a long history which emphasizes the evolution of business market revolution. Soft drinks were first introduced in the 17th century by a European. They were just lemon sweetened water without carbonate. It was not until the early 1800s that the term “soda water” was used as the manufacturer of imitated mineral water was patterned in the U.S. “Soda water” was consisted water and sodium bicarbonate. Then the “soda fountain” was developed with a variety of flavor such as ginger, vanilla, and roots. Soda was known as a beverage that has medical benefits and satisfying taste. The

Before Dr. Pemberton died in 1888, he sold parts of the business with majority of it to Asa G. Candler an Atlanta businessman. Under Candler’s leadership, Coca‑Cola distribution grew to soda fountains beyond Atlanta. And because of the increasing demand for Coca-Cola, Joseph Biedenharn was so impressed and led by a desire to make the beverage easily transportable that he installed a bottling machinery behind his soda fountain, becoming the first person to bottle the drink.

In the United States, The Soft Drink Manufacturing and carbonated beverages market is dominated by three major companies. They are Coca-Cola, PepsiCo, and the Dr. Pepper Snapple Group. These companies account for 66% of the total market shares Coca-Cola (28.6%), Pepsi Co Inc (26.8%), and the Dr. Pepper Snapple Group (8.6%). The carbonated soft drinks account for 65%, and noncarbonated beverages account for 35% of the industry market. The demand for soft drinks is driven by consumer tastes preferences and demographics. The United States soft drink manufacturing sector has 250 companies that have revenue combined with $40 billion dollars according to recent reports. The carbonated soft drinks global sales are equal to an estimate of $350 billion dollars per year. The global sales revenue includes nonalcoholic beverage industry as well as ice tea and bottled water.

Advertising is “non-personal communication of information usually paid for with an identified sponsor who is persuasive in nature about products or ideas.” (Marketing Seminar MKT5540: 2003) The advantage of this marketing method is that it is public, it is persuasive and there is an avenue to be highly creatively. For these reason advertising is usually seen in

Coca-Cola is the popular company, with different and correct point of view. Coca-Cola’s marketing campaign is one of the most popular in all around the world. This company is still succeeding and bringing new ideas how to promote the same old good soft drinks market.

Then, in the late 1800s, the popular soft drink brands “…Root Beer, Dr. Pepper, Coca-Cola and Pepsi-Cola…” have emerged and competed against one another. By the time the development of modern life began to increase at a fast pace, manufactures had to change the formula for creating soft drinks. They began turning soft drinks into “…alternatives to alcohol and/or as stimulants.” rather than therapeutic medical drinks. “After World War II, the soft-drink industry became a leader in television advertising, the use of celebrity endorsements, catchy slogans, tie-ins with Hollywood movies, and other forms of mass marketing, particularly focusing on young consumers and emphasizing youth-oriented themes.” At that point, the soft drink industries started to gain huge attraction towards its consumers and tried to find new ways to raise the customer’s demand further. Such as providing healthy options like “…sugar-free and low-calorie diet sodas, beginning in the 1960s, and later, caffeine-free colas…” and they also began providing larger bottles at a low price. Such as the time when “…Pepsi challenged the industry leader by offering a twelve-ounce bottle for the same five-cent price as Coke 's standard

A Marketing Strategy comprises of many components which are associated with each other and incorporate a company 's publicising goals. Coca-Cola is a foremost example for successful marketing brand that is known and adored all over the world. The origin of a strong Marketing Strategy consists of a proper analysis, exploring all important factors which are required to achieve a desired target. I explore my knowledge of interest to know the effectiveness of the strategies used by a coca cola company to increase the sales and attract more customers for company benefits and customer satisfaction. The Coca Cola Company is the fastest growing corporation which has experienced dramatic growth, succeeding from nine glasses per day to nearly 4.5 billion cases on an annual basis. However, Coca-Cola offers nearly 400 brands in over 200 countries and controls the highest market share (44%) in the soft drink market. Coca-Cola has grown to one of the world 's biggest and most successful companies. Such a success could only be achieved by strong and outstanding Marketing strategies. This report provides information about Coca-Cola’s Marketing Strategy and analyzes its strength and how the company increase their productivity by using market segmentation plans.

This report highlights the product coca cola and the various different ways it has achieved success in the global market. It will outline various elements relating to consumer behaviour and its implications for creating marketing strategies for this brand. This product is chosen due to its market recognition, brand identity, and market leadership. Firstly, this report briefly describes about the company and its highlighted product coca cola from various articles and the company’s website. Thereafter the report will further outline Coca cola’s market segmentation, targeting and positioning. The articles written by Demetris Vrontris and Iain Shap; and by Vendredi provided great insights over its marketing strategies of Coca Cola. Observational research was used to observe various consumer purchase patterns and buying decisions. Later highlights over the latest growing trends, market share, market size, operating revenues and profits are discussed in detail. Further this report talks about the use of internet and its effects on the consumers purchase decisions. Lastly, a comparative analysis between Coca cola and Pepsi is conducted.