19 November, 2011
CARBONATED BEVERAGE INDUSRTY CASE ANAYLSIS
Hypothetical Market Structure provides four different categories an industry can be classified. Each category identifies a specific role a target market is classified. The carbonated beverage industry is no different. It has four target markets and they are classified as market leader, market challenger, market follower and market nichers (Kotler & Keller, 2009, p. 301). The market leader is usually one company that “has the largest market share… and usually leads the other [companies] in price changes, new-product introductions, distribution coverage and promotional intensity” (Kotler & Keller, 2009, p. 301). The market challenger “sets high aspirations” to market their resources to meet or exceed the market leader (Kotler & Keller, 2009, p.308). The market follower’s strategy is “product imitation” of the market leader (Kotler & Keller, 2009 p.310). The market nichers are different from the market leader, the market challenger and the market follower. The market niches are leaders in small markets that the other three marketers are not interested in developing specific products for. The Hypothetical Market Structure for the carbonated beverage industry is the Coca-Cola Company is the market leader. PepsiCo Inc. is the market challenger. Dr, Pepper Snapple Group (distributer of RC Cola) is the market follower and a market nicher is the Jones Soda Co (Beverageworld, n.d.). The carbonated beverage industry is very competitive. The Coca-Cola Company is the carbonated beverage market leader and PepsiCo Inc. is the market challenger striving to increase its market share by creating a comparable but yet slight different products in which customers feel is better and have more value. The competition between market leader and challenge is severe. Both companies’ prices are very competitive and...