Current Market Conditions

Topics: Coca-Cola, Soft drink, Pepsi Pages: 4 (955 words) Published: March 31, 2009
Current Market Conditions

Team B

Gladys Arroyo, Antoinetthe, Sonja Cynel, Adriana Cedant and Sandra Florez

ECO/365 Principles of Microeconomics

University of Phoenix


Market Structure of the Carbonated Drinks Industry

The carbonated drink industry is a very extensive worldwide and has also encouraged an increase in similar industries such as the packaging field that handles the production of cans, glass, and plastic bottles for example, and at the same time is generating significant revenue for additional service industries like advertising. The carbonated drink industry consists of the raw material retailers and providers. Most of the time, the larger beverage firms have leading positions in the distribution and retail channels for this type of products. The leading firms within the industry have long-term contracts with most of the important retailing names like supermarkets so their market share positions are more secure within the industry. Often the producers sell the beverages directly to retailers like big supermarket chains, big names like Coca Cola and Pepsi produce many different types of beverages taking over other markets like bottle water. This carbonated beverages usually are sold in different type of packaging like 12 bottle cases, six packs or individual; also a large amount of condensed lines like syrups are sold to other distributors like fast food chains that sell the product to the end user consumer as a fountain drink.

New companies entering the market

A new organization must consider several market sectors when launching into the carbonated soft drink industry. New establishment must research various details such as barriers to entry, technology development, international markets, and operating cost structure. The organization must also identify the forces that have an affect on supply and demand.

Major competitors in the carbonated soft drink industry are identified as Coca Cola,...
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