Soft Drinks

1
The Segment

Milk-Based Drinks

Fruit Juices and Nectars

Carbonated Soft Drinks

2
Dominant Players

3
Market Characteristics

 Extremely competitive, market dominated by Pepsico and

Coke
 The total value of sales in this segment in the year 2006
were Rs 7000 crore
 The growth rate of the consumption 22% p.a.

4
Critical Success Factors

 Brand strength
 Distribution network
 Bottling plants owned/efficient bottling
 Advertising expenditure
 Positioning, perceived value of product
 Visibility at retail locations

5
Pepsi’s Marketing Mix

 Target segment – population in the age group

15–35 years

 Positioned as a ‘cool’ drink for the youth and

the ‘Gen Next’

6
4Ps

 Place
• Introduction in A+ cities such as Chennai, Mumbai, Delhi and
move to the rest
• Pepsi started in Chennai and Coke in Mumbai
 Price
• Initial penetration strategy
• Prices move in tandem with oligopolistic nature of business

7
4Ps

 Product
• Product differentiation in terms of shape, bottles and cans,
colours and logos.
• Ultimately, difference in perception created
 Promotions
• Film stars and cricketers
• Sponsoring cricket tournaments
• Lifestyle products

8
Market Scenario

Sources:
Infoquest, Fruit Juices in India, 2005
Datamonitor SoftDrinks in India to 2010, 2006

9
Amul

 Flavoured milk (Kesar, Elaichi, Rose),

Cool Café, Cool Coco, Lassi,
Buttermilk
 80% market share
 35% growth expected
 85% of sales in small outlets
 Shelf life 6 months
 No refrigeration required

10
Real Fruit Juices
 Dabur Foods Division
 Pack sizes: 1ltr and 200 ml
 6 months expiry, Tetrapak
 40% market share
 25% yearly growth
 Different distribution networks for
200 ml and 1 ltr variants
 Distributor promotions: 12+1 and
15+1 packs

11
Comparison
Major selling Distributor Retailer
Brand Pack size Pack type Retail price
SKUs margin margin
Flavoured milk
(Kesar, Elaichi, 200 ml Glass bottle Rs 10 4.25% 10%
Rose)
Amul
Buttermilk, Lassi 200 ml Tetrapak Rs 7/Rs 12 4.25% 10%
Cool Café, Cool
200 ml Tetrapak Rs 12 4.25% 9%
Koko
Orange, Mixed
200 ml Tetrapak Rs 10 6.5% 15%
Fruit Juices
Orange, Mango
Real 1 ltr Tetrapak Rs 70 6.5% 15%
Juice
Activ: Orange-
1 ltr Tetrapak Rs 75 6.5% 12%
Carrot
Juice: Orange 200 ml Tetrapak Rs 12 5% 12%
Nectar: Mango,
Tropicana 200 ml Tetrapak Rs 10 6% 15%
Orange
Nectar: Orange 1 ltr Tetrapak Rs 60 6% 15%

12
Market Characteristics - General
 Consumption of RTDs on the rise
 Have such drinks while on outings,
hanging out, or as thirst quenchers
 Consumption highly seasonal
 Shift from CSDs to Juices and MBDs
• Health concerns
• Pesticide controversy
 Preference for Tetrapacks
 Word of mouth plays a major role
 Cost not a major factor

13
Market Characteristics - MBDs
 Has not made significant
inroads in the market
 Replacement for coffee or tea
during summer months
 More filling than fruit juices
 Preference for coffee and
chocolate flavours
 Do not stock MBDs at home
 Perception that they get spoiled
easily

14
Market Characteristics - Juices

 Fast growing segment

 Seen as a replacement for CSDs
 Orange and Mango flavours
liked the most
 Health consciousness increasing,
prefer no preservatives, sugar
free versions
 Prefer to store them at home,
over CSDs and MBDs

15
Conclusions

 Carbonated drinks dominate the market

 Increased health consciousness making Fruit juices, MBDs
on a growth path
 Pesticide controversies affected CSDs significantly

16
Inferences
 Fruit juice market witnessing high competition
• Major players Dabur, PepsiCo hold almost 80%
• Numerous smaller players trying to enter
• The previous year saw a launch of more than 10 new brands
 MBD market dominated by Amul
• Large distribution network
• Numerous variants
• Established credence in milk-based segment
• But still has tapped only a small segment of market

17
Inferences

 Scope for entry in the MBD segment

• Availability in the market not in tune with possible demand
• Amul lagging in brand promotions and creation of hype

 Gradual change in consumer mindset

 Ready to accept non-carbonated drinks
 Distribution costs kept down by using packaging which
negated the need for refrigeration

18
Thank You!

19