Soft Drink Annalysis

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Executive Summary

The soft drink industry is a highly competitive business fighting for market space in which there are dominant companies controlling the business. Coca-Cola and Pepsi Co. are the two largest companies that set the standards for nearly everything in the industry. These two companies compete heavily with each other in terms of advertising to gain market share, which smaller companies are left with attempting to be very creative and finding niche markets to attract customers. They set the general price for the industry, the labeling, promotion, and place for where their items are sold all around the world.

On all of the advertisements chosen, it seemed as if the core message was simply about getting their name out there and attaching their brand to either a particular celebrity or hobby/interest. Price of the item didn’t seem to be mentioned anywhere because it is usually generally understood what the price of a soft drink beverage is. Also, place and location of where these drinks could be purchased was also not common. Because soft drinks, especially the more popular ones owned by Coca-Cola and Pepsi Co, are available nearly everywhere, advertisers feel as if they didn’t need to re-iterate that fact. Many adverts didn’t display a lot of text on their promotions, but simply their name and a quick message.

Because loyalty in the soft drink industry is so important, there were many adverts that looked as if they were attempting to reach out to the younger generation to gain brand loyalty at a young age. Either through endorsing large sporting events, making special Christmas adverts, sponsoring athletes and celebrities and any other means possible, companies can reach out to consumers everywhere. Any type of media is also utilized to get everyone’s attention at every moment. Adverts are places in newspapers, television ads, bus stops, internet sites, vending machines, magazines, and essentially anywhere that can be advertised. Because price and availability don’t usually influence someone’s purchasing behavior of a soft drink, brand recognition and loyalty are stressed.

For smaller companies, like Canada Dry, it was apparent that they clearly had to segment, target and position themselves in a smaller market that may attract wealthier and older people. Their adverts were extremely focused and placed in ways where their target audience was likely to be seen. This was in large contrast to Pepsi Co. and Coca-Cola which segmented everyone, and created products to target nearly every one of those segments through different products. Recommendations were made stressing creativity and differentiation in order to truly set their name apart for their competitors in order to gain more market share.

Short Description of the Industry or Segment:

The soft drink industry is one of the largest industries in the world with many companies making billions of pounds every year. Some of the most well known brands make their business selling soft drinks, like the Coca-Cola Company, and Pepsi Company. Other companies include 7-up, Dr. Pepper, Fanta, Canada Dry, and many others. In fact Coca-Cola brings in over $31 billion a year (close to £20 billion) and PepsiCo making over $44.3 billion (close to £28 billion). Both of these companies are continuously growing, acquiring smaller companies and constantly fighting for market share. These drinks are extremely common, and sold at every grocery store, restaurant, and food stands everywhere. There are many varieties of these drinks like zero calories sodas, diet sodas, and seasonal flavoured drinks. The price of these drinks can vary between £0.50-£2.00 so prices usually aren’t a factor in peoples buying decisions. Also, soft drinks are general purchased by people of all ages. Children are usually discouraged from buying soft drinks because of their association with obesity, poor health, and other weight related issues. When looking at demographics, there is no minimum...
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