Market Potention for Sm Jaleel in Germany

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MARKET POTENTIAL

The German market for soft drinks continued to drive positive off-trade volume sales growth in 2011. According to analyst group Sanford Bernstein, between 2005 and 2010, Germany's soft drinks market increased by 10% in value, to EUR12.2bn (US$16.6bn). Carbonated soft drinks were the top performers, growing value by 23%. Volume sales for the total soft drinks market increase by 11.6% over the same period, to 20.1bn litres. Additionally, in 2009, Germany was ranked as the highest consumer of soft drinks in Europe showing great market potential for SM Jaleel to pursue. It is necessary to look at the general market for soft drink as if there is not a culture of drinking soft drink in Germany there would be no market for Chubby even though it is one of the only soft drink products for children worldwide. As mentioned before the age group 0-14 years accounts for 13.2% of the population which equals 6 000 000 children. The age group 25-54 years accounts for 42.2% which would represent the parents who would also be the buyers who have a US $39,100 GDP per Capita showing that Germans would not reject buy goods seen as unnecessary. Looking at these statics we can see that going into the soft drink beverages sector with our product, Chubby, there should be high chances of being successful and may lead to higher levels of profits for SM Jaleel and also the economy in Germany since there is a culture of soft drink consumption and a high amount of children. However, the German culture and the European culture in general also is very health conscious. As health consciousness continued to rise, German consumers demand for healthy replenishment preferably water and therefore this might pose a problem.
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