Griselda Ellora Jessica Feliciana Lou Nian Qin Rocky Simon Hia
Introduction Coca-Cola was first introduced in Indonesia around 1927 In 1971, along with the gain of new capital and business partners Coca Cola established the first modern bottling company in Indonesia named PT. The Jaya Beverages Bottling company. In 2000, three new Coca-Cola company in Indonesia was established: 1. PT. Coca-Cola Bottling Indonesia (CCBI) 2. PT. Coca-Cola Amatil Indonesia (CCAI) and 3. PT. Coca-Cola Distribution Indonesia (CCDI).
Current Situation Coca-Cola made a profit of $2.71Billion last year in the first six months, Pepsi did as well,taking into consideration of its size compared to Coca- Cola by bringing home an estimated $1.27 Billion just in the first six months.
The growth of middle class consumers expected to rise by 9 percent this year. Currently, the number of consumers of Coca-Cola reached 131 million.
Soft drink industry predict an increase in the consumption of beverages as much as 14 billion liters, or grew 40% during the 2014 World Cup performances (Growth Stage)
(Source: World panel survey Indonesian Institute)
Market Size The soft drink industry has been dominated 3 Companies
Competition is increasingly fierce among the big competitors. The leaders in the industry are Coca Cola, Pepsi and Cadbury Schweppes
Coca Cola, the market leader has over 350 different brands in over a hundred and eighty countries. Their most popular brands are Coke, Diet Coke, Fanta, Sprite, Coke Zero and many more
Pepsi, the second largest and Coca-Colas biggest competitor also has an array of soft drinks in its name. The most popular are Pepsi, Diet Pepsi, Mountain Dew, Mirinda, Pepsi One and many more Product Life Cycle Stage in Life Cycle The life cycle of popular soft drinks like Pepsi, Coke, Sprite, etc. is in the maturity stage, the popularity of these products is still strong, however; there is an increasing trend towards healthier soft drinks.
Maturity Stage At the maturity stage, growth is flatit does not increase or decrease. New consumers replace those who leave to purchase a competing product. Brand equity is at its highest at this point. Companies manage mature products through continued advertising. This advertising keeps the brand in the public eye and reminds consumers of the advantages this product has over the competition.
Result of Maturity By the time a product reaches maturity, the manufacturer has long since paid for all the major costs of production and product development. Because a mature product has established an effective distribution method, the costs of sales and distribution are low. As a result, products at the maturity stage usually make large profits. Businesses can use income generated by their mature products, often called cash cows, to develop and fund new products
Reasons for the Maturity Stage Recently, there has been a growing demand for alternatives to sugar-heavy soft drinks. Regular soft drinks today contain high fructose corn syrup, and have been blamed for contributing to various diseases A study from Harvard shows that soft drinks may be responsible for the doubling of obesity in children over the last 15 years As the soda pop fight rages on companies are increasingly relying on new products like non carbonated beverages like Fruit punch, Lemonade, Iced tea, etc. to take them to the next level.