Holland Sweetener Essay

(1) Baseline: Product: aspartame was a strong substitute of saccharin with better flavor and low calories, especially for diet soft drink. There was no other competitive product at that time. Market: Aspartame had a great potential

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

The section covers background information, core products/services, mission and strategic objective, SWOT (Strength, Weaknesses, Opportunities and Weaknesses) analysis and targeting strategy of the company.

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

2005 study found that the total market value of soft drinks was calculated to be $307.2 billion in 2004 was predicted to rise. The forecast showed that the market value will reach $367.1 billion in 2009 (Agriculture and Agri-Food Canada, 2017). The soft drink volume was 325,367.2 million liters in

Industry Analysis: Cadbury Schweppes (CS) is comprised of a global confectionery and beverage company. For the purpose of this case we will maintain our focus on the confectionery business and the assessment of adding to their sugar confectionery portfolio. CS is number three in the beverage business but see the opportunity to become the largest confectionery in the world. The categories are chocolates, sugar and chewing gum. At this time Adams is the number two sized in the gum business. This industry operates on “bigger is better in confectionery”. Their strategic discussions and ambitions appear to stay true, in mentality, to this mantra. This mantra could be potentially dangerous to the business. CS had a presence in over 70

A slow growing market is a great way to characterize the energy beverage category in late 2007. This industry was increasing in profits still but was not increasing in profits as quickly due to factors such as market maturity, increasing in prices, competition and new hybrid products (Kerin & Peterson, 2010). The market was still very small but was dominated by Red Bull due to it being one of the first energy drinks, which caused it to dictate the market and have more of an advantage than the other energy beverages. So in late 2007 the market for energy drinks was still

The use of artificial sweeteners in beverages and food has been on a steady rise since 1969, the year it was authorized in the United States of America. The popularity of artificial sweeteners has been on a rise because of the benefit that it is a zero calorie sweetener .Even though artificial sweeteners have some great benefits many scientists believe that it causes adverse effects such as cancer, weight gain and depression. I strongly believe that consumers are not aware of the side effects of artificial sweeteners hence the increase in consumption since 1969.

NutraSweet, Equal, Spoonful, and Equal-Measure are all brand names for aspartame, a low calorie sugar substitute used in more than 90 countries to sweeten foods and beverages. Aspartame is a synthetic chemical that is created through the combination of the amino acids phenylalanine and aspartic acid, and a small amount of methanol. Aspartame can be found in several products, such as soft drinks, over-the counter drugs, vitamin and herb supplements, instant breakfasts, candy, breath mints, cereals, sugar-free chewing gum, coffee, juice, and tea beverages, tabletop sweeteners, and gelatin desserts. This product may have seemed like a dream come true when it was first invented in 1981

stores counted on soft drinks to generate consumer traffic, so they needed Coke and Pepsi products. But due

Vermijs could expect two responses from NutraSweet: try to “save” its monopoly by fighting and low the price and start a price-war with HSC; or accept the entrant and its pricing and finally share the market.

The debate between naturally derived sugars and low-calorie artificial sweeteners has been going on for years now. As our population’s obesity rate grows every year and health concerns related to weight-control grows along with it, natural sugar is scrutinized and we are told to keep away from it as it is our enemy. Over the last couple of decades, we have been introduced to more and more varieties of artificial sweeteners promising to deliver the same sweetness or even more sweetness than natural sugar (some offer as much as 200 times more sweetness than sugar) but with a much lower calorie content, or some even no calories at all. Artificial sweeteners such as Splenda, Sweet n’ Low, NutraSweet, and Equal have become popular as “better alternatives” to table sugar, promising to help battle weight gain and actually assist in losing weight. However, does this make it the healthier option? As with all things, both natural sugar and artificial sugar have their pros and cons, but in order to find the best option in regards to our health and futures, it’s important to weigh them according to scientific findings and research.

The soft drink industry is one of the most highly profitable industries in the USA. Also, the competitive market is a very large market. Americans consumed about 53 gallons of soft drinks per person a year in 2000 by $ 60.3 billion!! Comparing with the market in 1990, since it was 47 gallons. In recent years, the market growth has slowed.

The last two topics within Porter’s Five Force Analysis are the threats of substitutes and new entries. The threat of substitutes for PepsiCo and Pepsi products could be considered quite high. In recent years, Americans have been cutting back soda consumption, approximately 1.2% in 2015, and 0.9% in 2014 (Taylor, 2016). Customers have been replacing soft drinks, in particular, with water, coffees, and all natural juices. This also leads the way for the threat of new entries. As people are tending to lean away from traditional soft drinks, the threat of new entrants could be considered moderate. This is because the cost of entry is relatively low as it is not a technology driven industry. Most of the cost of entry would be related to branding and marketing of the new product (Thompson, 1996). In recent years many competitors have entered the market with desirable ingredients and non-soft-drink beverages.

This report will cover the background understanding about the confectionery industry and do an in-depth analysis of the micro and macro environment. In addition, the market segmentation, market positioning and target market that Whittaker’s is concerned with is also discussed.