Soft Drink Industry Case Study

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 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 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.

Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different?

Lastly, bottling companies have done nothing about recycling, and have left arguably the most important part for everybody else to deal with. Because of this, our oceans are filling with plastic waste and quickly killing our ecosystems. Our beaches will become involuntary garbage dumps and our sand will be replaced by broken down plastic debris. This example again shows corporate greediness, but also shows how big this issue is and how it affects everyone, because it affects the entire

Four years ago, a city-council member in Richmond, California, got his colleagues to put a measure on the local ballot asking voters to impose an extra tax on sugary drinks like soda. The council member, Jeff Ritterman, had special insight into how sugar was ruining his neighbors’ health. Before becoming a politician, he’d spent nearly thirty years as the chief of cardiology at Kaiser Permanente’s campus in Richmond, a bleak industrial town north of Berkeley, where the biggest employer is a Chevron refinery and many residents are poor. As in other communities with similar demographics, half of Richmond’s children were overweight or obese. It was clear to Ritterman that this had a lot to do with their sugar consumption.

Huge capital costs to set up an efficient plant for the bottlers while the capital costs in concentrate business are minimal

The last stage of the product life-cycle is the decline stage. I have chosen the Soda drinks for this stage due to many reasons. The demand for soda drinks is waning down in many countries due to their high calories and malnutrition. In this stage, demand will decrease and companies will reduce prices and some of them will discontinue their operation. Diet sodas such as PerpsiCo and Coca-Cola brands number one in the soda market, their sales declined for the 11th consecutive year in the U.S. The volume declined 0.9% in 2014 and 1.2% in 2015 with all the three biggest players falling demand (Kell, 2016). In this stage, the most soda drinks company continue providing high quality to sustain their brand and shifting to low calories or diet beverages.

Coca-Cola Company has realized significant growth since its establishment to become a global leader in the marketing, manufacturing, and distribution of syrup and soft drinks. Out of the four generic strategies, the company has followed the differentiation strategy to make its products unique in the market. Its interest is to maximize the market share through the development of the most innovative products and the establishment of effective strategies to influence the customer’s decisions. In such a way, the company has integrated various strategies to ensure that desirable results are attained in the market. Its strategic choices align with the differentiation strategy in an attempt to make its products unique and meet diverse market requirements. To reduce its weaknesses, the company should consider exploiting key opportunities in the market including venturing in the packaging of water, promotion of new brands, and launching of healthy products. In particular, the vision and mission statement of Coca-Cola seems to have reconfirmed and changed in this process of company’s strategic analysis.

1. What is PepsiCo’s corporate strategy? Briefly identify the business strategies that PepsiCo is using in each of its consumer business segments in 2008.

In year 1965, PepsiCo Inc. is founded by Donald M. Kendall and Herman Lay. PepsiCo Inc. was merged by Pepsi-Cola and Frito-Lay in 1965. PepsiCo is an American multination industry that selling food and beverage. PepsiCo Inc. is the second-largest organisation that produces food and beverage in the world.

Pepsi-Cola is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in stores, restaurants and from vending machines. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1903, including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and Brazil), Pepsi Next (available in Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico, Pepsi One, and Pepsi Ice Cucumber in Japan .Pepsi cola is situated is an Industry that is dominator by two Competitors Coca

1.) Why do companies like Pepsi need to globalize? What are the various ways in which foreign companies can enter a foreign market? What hurdles and problems did Pepsi Face when it tried to enter India during the 1980s?

Long before now has branding been considered as one of the peripheral aspects of business. Manufacturers, investors and other key players focused on the product without paying much attention to the consumer. But as the business landscape got tougher, marketing became not just an integral part of business but one of the fundamental principles of success.

This is to certify that the project entitled “A Comparative study on consumption patterns of Soft Drinks and Fruit Juices” done by Mr. Tamoghna Chatterjee is an authentic work carried out by him at Eastern Institute of Management under my guidance. The matter embodied in this project work has not been submitted earlier for the award of any degree or diploma to