Topic: Comparative Study of Pepsi and Coca-cola
The Battle of the Giants
Soft Drink Industry
The Soft Drink Industry consists of establishments primarily engaged in manufacturing non-alcoholic, carbonated beverages, mineral waters and concentrates and syrups for the manufacture of carbonated beverages. Establishments primarily engaged in manufacturing fruit juices and non-carbonated fruit drinks are classified in canned and Preserved Fruit and Vegetable Industry. Principal activities and products: • Aerated waters;
• Carbonated beverages;
• Mineral and spring waters;
• Soft drink concentrates and syrup; and • Soft drink preparation carbonating.
What is Soft Drink?
Soft drinks are enormously popular beverages consisting primarily of carbonated water, sugar, and flavouring. A nonalcoholic, flavored, carbonated beverage usually commercially prepared and sold in bottles or cans. Applying Porter’s Five Forces to the soft drink industry
1. A fierce competition exists among very few players: - Duopoly industry - Intense rivalry between Coke and Pepsi 2. The threat of substitutes is reduced by the expansion of products portfolio: - Many alternative beverages e.g. juice, tea 3. Suppliers have less bargaining power: - Many substitutes for sugar and packaging e.g. sugar - corn syrup, sweeteners packaging - glass, plastic, metal cans 4. Different levels of bargaining power exist among the groups of buyers: - Vending Machine – no buyer bargaining power - Fast Food chain – more bargaining power 5. Strong barriers to new entrants: - Amount of capital investment require - Exclusive territories in distribution channel - The access to retail channel s
Industry S.W.O.T Analysis:
▪ Basic Consumer Need
▪ Large and growing market
▪ Different flavors and packages
▪ Low Costs
▪ Negative Claim
▪ Traditional Preservation
▪ Narrow range of material
▪ Establish facts and use potential PR
▪ New Packaging materials
▪ Replace alcoholic drinks
▪ Further replace tea and coffee
▪ Healthy Issues
▪ Soft Drink in School Guideline
▪ Distribution costs
Consumption of Soft Drink in India
India is one of the lowest soft drink consuming countries in the world. According to per capita in India is 5 bottles per year, while highest consumption in USA of 800 bottles per year.
Lower, Lower middle & upper middle class consume 91% of soft drink market.
|Brands |Rs. (Crore) | |Thums Up |1740 | |Coke |1350 | |Limca |1030 | |Fanta |600 | |Kinley |540 | |Sprite |400 | |Maaza |350 | |7 UP |250 | |Mirinda |210...