SOFT DRINK INDUSTRY

BY: Niladri Dey(121136) Nirlep Shah(121137) Pankhush Kapoor(121138) Piyush Goenka(121139) Pramod Ghanshani(121140)

What is soft drink?

Britannica Encyclopedia defines soft drink as any non alcoholic beverage usually carbonated and normally containing natural or artificial sweetening agents,edible acids, natural or artificial flavours, and sometimes juice.

The Segment
Milk-Based Drinks

Fruit Juices and Nectars

Carbonated Soft Drinks

Carbonated Drinks Market of India

Indian carbonated drinks market can be termed as a duopoly as there are only two major companies competing in this market viz Coca Cola and Pepsi Co.

The Product Mix

COKE V/s PEPSI

Percentage Share in Carbonated Drinks Market of World

21% 27%

Pepsi Coca Cola Others

52%

Sources : Beverage Digest

Percentage Share in Carbonated Drinks Market of India

4%

40% Pepsi Coca Cola Others 56%

Sources : Beverage Digest

Carbonated Drinks Sales Forecast in India

3

2.5

1.5

Litres mn

0.5

0 2011 2012 2013 2014 2015

Sources : Euromonitor International 2011

Major Success Factors

Availability Visibility Cooling Range

Major Issues
Changing Consumer Needs Customer Brand Loyalty Health Issues Unstable Attitude of Youth Other Beverages Juices etc.

Porters Five Forces Model

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.

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.

Consumer Segmentation
Demographic Segmentation
Children Teenagers (13-19) Adults

Psychographic Segmentation

Consumer Segmentation
Behavioral Segmentation

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

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

Pepsi-Coca Cola War

Thank You !!