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CHAPTER 1: INTRODUCTION
Beverage Industry in India: A Brief Insight
In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers.
FIGURE 1: BEVERAGE INDUSTRY IN INDIA The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows: * Alcoholic, non-alcoholic and sports beverages
* Natural and Synthetic beverages
* In-home consumption and out of home on premises consumption. * Age wise segmentation i.e. beverages for kids, for adults and for senior citizens * Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption. If the behavioral patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable.
Four strong strategic elements to increase consumption of the products of the beverage industry in India are: * The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages. * The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages. * Consumer education is a must to bring out benefits of beverage consumption whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category. * Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and consume. The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy.
The Carbonated Drinks Industry In India; A Perspective
The Rs.17000 crore market of carbonated drinks industry in India looked really bad just after the “Pesticide” controversy last year. But some cool promotions and quick reactions by cola companies have handled the crisis satisfactorily. The controversy has thought the industry few lesson or so and in the process consumer and the economy also benefited. “Colas, contributing more than 50 per cent to fizzy drink sales, saw a huge slide after the pesticide controversy, but are believed to be making a come back. Thanks to increased advertisement spends which is over 20 per cent higher than last year. There is some good news on the non-cola segment. The lime and lemon segments with brands like sprite and 7up have registered a 30 to 40 per cent growth, although on a smaller base. “ Nevertheless, the battle between two cola giants, Coke & Pepsi, did not go any slow. Rather it has become fiercer. They are now fighting each other even at the local level. That too the trend is as old as start of this millennium. The present scenario of the carbonated drinks market is behaving the way it has all to do with a duopoly situation. A duopoly is a competitive situation where there are two competitors, normally of roughly equal size. Although in every place they have local competitors and there is a huge unorganized flavoured water...