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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 !!