soft drink industry final

7/29/2019 Soft Drink Industry Final

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SOFT DRINK INDUSTRY

BY:

Niladri Dey(121136)

Nirlep Shah(121137)

Pankhush Kapoor(121138)Piyush Goenka(121139)

Pramod Ghanshani(121140)


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What is soft drink?

Britannica Encyclopedia defines soft

drink as any non alcoholic beverage

usually carbonatedand normallycontaining natural or artificial sweetening

agents,edible acids, natural or artificial

flavours, and sometimes juice.


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3

The Segment

Milk-Based Drinks

Fruit Juices and Nectars

Carbonated Soft Drinks


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Carbonated Drinks Market of

India

Indian carbonated drinks market can be

termed as a duopolyas there are only

two major companies competing in this

market viz Coca Cola and Pepsi Co.


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The Product MixCOKE V/s PEPSI


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Sources : Beverage Digest

21%

52%

27%

Percentage Share in Carbonated Drinks

Market of World

Pepsi

Coca Cola

Others


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Sources : Beverage Digest

40%

56%

4%

Percentage Share in Carbonated Drinks

Market of India

Pepsi

Coca Cola

Others


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Sources : Euromonitor International 2011

0

0.5

1

1.5

2

2.5

3

2011 2012 2013 2014 2015

Carbonated Drinks Sales Forecast in India

Litres mn


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Major Success Factors

Availability

Visibility

Cooling

Range


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Major Issues

Changing Consumer Needs

Customer Brand Loyalty

Health Issues

Unstable Attitude of Youth

Other Beverages Juices etc.


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Porters Five Forces Model


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Applying Porters Five Forces to the

Soft drink industry

1. Bargaining Power of the Buyer

Vending Machine vs Fast Food Stores

2. Bargaining Power of the Suppliers

Raw Materials needed to produce concentrate are

basic commodities like Color, flavor, caffeine or

additives, sugar, packaging. Essentially these are

basic commodities. The producers of these products

have no power over the pricing hence the suppliers in

this industry are weak.


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3. Threat of New Entrant Bottling Network

Advertising Spend

Brand Image / Loyalty

Retailer Shelf Space (Retail Distribution)

Fear of Retaliation

4. The threat of Substitutes product Substitutes like water, beer, coffee, juices etc. are available to the

end consumers.

5. Competitive Rivalry within the industry Duopoly industry with Pepsi and Coke as the firms competing. The

market share of the rest of the competition is too small to cause any

upheaval of pricing or industry structure.


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Consumer Segmentation

Demographic Segmentation

Children

Teenagers (13-19)

Adults

Psychographic Segmentation


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Consumer Segmentation

Behavioral Segmentation


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Marketing Mix

Product

Product differentiation in terms of shape, bottles and

cans, colours and logos.

Ultimately, difference in perception created

Price

Initial penetration strategy

Prices move in tandem with oligopolistic nature of

business


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Marketing Mix

Promotions

Film stars and cricketers

Sponsoring cricket tournaments Lifestyle products

Place

Introduction in A+ cities such as Chennai, Mumbai,Delhi and move to the rest

Pepsi started in Chennai and Coke in Mumbai


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Pepsi-Coca Cola War


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Thank You !!

soft drink industry final

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