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Soft Drinks - 2 PDF
Soft Drinks - 2 PDF
INTRODUCTION
A soft drink (also called soda, pop, coke, soda pop, fizzy drink, tonic, seltzer, mineral,
sparkling water, lolly water, or carbonated beverage) is a beverage that typically
contains water (often, but not always, carbonated water), usually a sweetener, and
usually a flavoring agent. The sweetener may be sugar, high-fructose corn syrup, fruit
juice, sugar substitutes (in the case of diet drinks) or some combination of these. Soft drinks
may also contain caffeine, colorings, preservatives and other ingredients.
Soft drinks are called "soft" in contrast to "hard drinks" (alcoholic beverages). Small
amounts of alcohol may be present in a soft drink, but the alcohol content must be less
than 0.5% of the total volume[3][4] if the drink is to be considered non-alcoholic. Fruit juice,
tea, and other such non-alcoholic beverages are technically soft drinks by this definition
but are not generally referred to as such.
S o f t d r i n k market s i z e f o r F Y 0 0 w a s a r o u n d 2 7 0 m i l l i o n c a s e s ( 6 4 8 0
m i l l i o n bottles). The market witnessed 5- 6% growth in the early‘90s. Presently the
growth rate of soft drink industries in India is 22% as compare
t o t h e previous year. The market size for FY01 was around 7000 million bottles & the
market size for FY07 is expected to be 11000 million bottles. In Nagpur city, market size for
FY00 was around 0.04 million cases (9.6 lacks).The market witnessed 7 – 8% in the early
‘90’s.
History
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The first marketed soft drinks in the Western world appeared in the 17th
century. They were made of water and lemon juice sweetened with honey. In
1676, the Companies des Lemonades of Paris was granted a monopoly for the
sale of lemonade soft drinks. Vendors carried tanks of lemonade on their
backs and dispensed cups of the soft drink to thirsty Parisians.
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The government has adopted liberalized policies for the soft drink trade
to give the industry a boast and promote the I n d i a n b r a n d s
internationally. Although the import and manufacture
of international brands like Pepsi and Coke is enhanced in
I n d i a t h e l o c a l brands are being stabilized by advertisements, good
quality and low cost. The soft drinks market till early 1990s was in hands
of domestic players like campa, thumps up, Limca etc but with opening
up of economy and coming o f M N C p l a y e r s P e p s i a n d C o k e t h e
m a r k e t h a s c o m e t o t a l l y u n d e r t h e i r control. The distribution
network of Coca cola had6.5 lakh outlets across the country in FY00,
which the company is planning to increase to 8 lakhs by FY01. On the
other hand Pepsi Co's distribution network had 6 lakh outlets across the
country during FY00 which it is planning to increase to 7.5 Lakh.
Soft drinks are available in glass bottles, aluminum cans and PET bottles for
home consumption. Fountains also dispense them in disposable containers
Non-alcoholic soft drink beverage market can be divided into f r u i t
drinks and soft drinks. Soft drinks can be further divided
i n t o carbonated and non-carbonated drinks. Cola, lemon and
o r a n g e s a r e carbonated drinks while mango drinks come under non carbonated
category.
The market can also be segmented on the basis of types of products into cola products
and non-cola products. Cola products account for nearly 61-62% of the total soft
drinks market.
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The 50-bn-rupee soft drink industry is growing now at 6 to 7% annually. In India, Coke and Pepsi
have a combined market share of around 95% directly or through franchisees. Campa Cola has a 1%
share, and the rest is divided among local players. Industry watchers say, fake products also account
for a good share of the balance. There are about 110 soft drink producing units (60% being owned by
Indian bottlers) in the country, employing about 125,000 people. There are two distinct segments of
the market, cola and non-cola drinks. The cola segment claims a share of 62%, while the non-cola
segment includes soda, clear lime, cloudy lime and drinks with orange and mango flavors.
The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as Nepal's) compared
to Pakistan's 17 bottles, Sri Lanka's 21, Thailand's 73, the Philippines 173 and Mexico 605. The
industry contributes over Rs. 12 billion to the exchequer and exports goods worth Rs 2 bn. It also
supports growth of industries like glass, refrigeration, transportation, paper and sugar. The
Department of Food Processing Industries had stipulated that 'contains-no-fruit-juice' labels be pasted
on returnable glass bottles. About 85% of the soft drinks are currently sold in returnable bottles. There
was a floating stock of about 1000 million bottles valued at Rs 6 bn. If the industry were to abide by
the new guidelines, it would have to invest in new bottles, resulting in a cost outgo of Rs 5 bn.
Neither Coke nor Pepsi is in a position to invest such a large amount.
Around 400,000 tones of raw material would be required to replace the existing stock of
bottles. Instead, the soft drink industry suggested that a seven-year moratorium be extended to the
industry so that it can incorporate the change in a phased manner. There is no such mandatory
requirement anywhere in the world to specifically label the glass surface of returnable bottles. The
government has decided to extend the date for replacing the bottles to end-march 2006. In the
meantime, the producers have shifted substantially to the use of PET bottles.
Soft and aerated drinks were considered products for the middle class and the affluent. That
segregation is no more valid. Soft and aerated drinks are consumed by all except those who cannot
afford to buy any drink. An NCAER study says that 91% soft drink sales are made to the lower,
middle and upper middle classes. The soft drink industry has been urging the government to categories
aerated waters (soft drinks) equitably with other consumer products of mass consumption and remove
special excise duty.
It may be recalled that Coca-Cola, the world's number one player, was present in India for a long time
in collaboration with an Indian producer but was thrown out in the late 1970s. It reappeared in India
following the economic liberalization era - but after its rival, world's number two, had already entered
in a big way following a long and tough fight against the opposition from the domestic producers.
When Coca-Cola re-entered, it installed a new milestone. It acquired the well flourishing India's top
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player, Parle. Since then it is basically a fight between the two American giants. Others are playing a
peripheral role, as adjuncts to the two MNCs. World's third biggest player, Cadbury Schweppes, had
also made an entry but was gobbled up by Coca-Cola. When Coca-Cola acquired Parle brands, it was,
in fact, buying the bottling facilities, the marketing network, and the established consumer preference
during the market build-up. The brands were a drag on the global brand. Coca-Cola decided to market
more effectively the Parle brands. It had in its armory Coke, Thumps Up, Limca and Fanta. The latest
to enter market was Parle’s erstwhile Rimzim, alongside Portello, a black currant flavored drink, very
popular in Sri Lanka.
Coca-Cola operates through 35 plants and 16 franchisees throughout the country, while PepsiCo has
20 plants, but it has 7 more franchisees at 23 to 16 of its rival. Coca-Cola claims a market share of
51%, while Pepsi has a share of 46%. The claims, however, remain disputed. The other smaller players
like Pure Drinks Ltd claim the rest of the market. The shares of the two lead players are consolidated
figures, which include the respective bottlers. Coca-Cola had approached the government for a five year
extension for divesting 49% equity in its bottling subsidiary, Hindustan Coca-Cola Holdings. It had
set up the marketing subsidiary as part of its strategy to integrate all its bottling operations, both
company-owned and franchisee bottlers, apparently keeping in line with its global policy. All together,
it had bought initially over 38 franchisee bottlers.
Soft Drinks in India market report offers a comprehensive guide to the size
and shape of the market at a national level. It provides the latest retail sales
data, allowing you to identify the sectors driving growth. It identifies the
leading companies, the leading brands and offers strategic analysis of key
factors influencing the market - be the new p r o d u c t development,
packaging, innovations& economic/lifestyle influences,
distribution or pricing issues. Forecasts illustrate how the markets set to change.
Soft drinks experienced another good year in 2006. The positive growth in
soft drinks in India was primarily driven by the increased
demand f o r fruit/vegetable juice and bottled water. With rising disposable
incomes and a preference for healthy and natural products, fruit/vegetable juice was
in great demand in 2006. Bottled water also continued its fast growth, with demand
stemming from the rising populations in cities and the crumbling
p u b l i c infrastructure for tap water.
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SOFT DRINKS FINAL PROJECT
l a c k o f p r o m o t i o n a l a c t i v i t y l e d t o t h e s l o w u p t a k e o f emerging
soft drinks. While soft drink producers in Western Europe bemoaned
yet another cold, wet summer in 2002, their counterparts in India
were struggling to keep up with demand, with exceptionally hot weather
there driving sales growth.
A new report from beverage industry a n a l y s t s Canadian
e s t i m a t e s t h a t consumption in India leapt by 13 per cent as a
result of the heat wave, and p r o d u c e r s will clearly try to
c a p i t a l i z e o n t h i s r a p i d a d v a n c e i n y e a r s t o come. Still drinks
remain the largest single sector, according to Canadian, and while
sales of packaged still drinks grew strongly, the sector as a whole was held
back by almost flat consumption of unpackaged or loose
alternatives.
The report talks about the soft drink retail industry in our
country, like industry performance, future prospects, growth
o p p o r t u n i t i e s , e t c . T h e forecast given in this report is not based on a
complex economic model, but is intended as a rough guide to the direction in
which the market is likely to move. This forecast is based on a correlation
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between past market growth and present market growth. The report provides
a keen insight of soft drink industry in India by analyzing various market
segments and retail formats p r e s e n t i n t h e i n d u s t r y . I t h e l p s c l i e n t s
to understand the various types’ p r o d u c t s available in soft
drink industry and their future scope. The overview on
opportunities and future forecast on the soft drink retail
industry helps the clients analyze the future course of direction and
major growth areas of the industry. The project contains an executive summary
and d a t a o n v a l u e , v o l u m e a n d s e g m e n t a t i o n o f m a r k e t i n I n d i a .
It provides textual analysis of the industry’s prospects,
competitive landscape and leading companies with a two-year
forecast of the soft drink industry. It is supported by the key
macroeconomic and demographic data affecting the market by including
the detail information on market size, measured by both v a l u e a n d v o l u m e
o f m a r k e t s h a r e s w h i c h a r e c o v e r e d b y m a n u f a c t u r e r and/or brand.
Types Of Drinks
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A v ariant of s oda i n the United States cal led " phos phate s oda "
appeared i n the l ate 1870s . I t bec ame one of the mos t popular
s oda fountain dri nks from 1900 through the 1930s , with the
l emon or orange phosphate bei ng the mos t bas ic . The dri nk
c onsi sts of 1 US fl oz (30 ml ) frui t s yrup, 1/2 teas poon of
phos phoric ac id , and enough c arbonated water and i c e to fi l l a
gl as s . Thi s drink was c ommonly s erved i n pharmac ies .
Artificial mineral waters, usually called "soda water", and the soda
fountain were mostly popular in the United States. Beginning in
1806, Yale University chemistry professor Benjamin Silliman sold
soda waters in New Haven, Connecticut. He used a Nooth apparatus
to produce his waters. Businessmen in Philadelphia and New York
City also began selling soda water in the early 19th century. In the
1830s, John Matthews of New York.
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Over 1,500 U.S. patents were filed for a cork, cap, or lid for the
carbonated drink bottle tops during the early days of the bottling
industry. Carbonated drink bottles are under great pressure from
the gas. Inventors were trying to find the best way to prevent the
carbon dioxide or bubbles from escaping. In 1892, the " Crown
Cork Bottle Seal" was patented by William Painter, a Baltimore,
Maryland machine shop operator. It was the first very successful
method of keeping the bubbles in the bottle .
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Health Effects
The consumption of sugar -sweetened soft drinks is associated with obesity, type
2 diabetes, dental caries, and low nutrient levels.[15] Experimental studies tend
to support a causal role for sugar-sweetened soft drinks in these ailments,
though this is challenged by other researchers. "Sugar -sweetened" includes
drinks that use high-fructose corn syrup, as well as those using suc rose.
Many soft drinks contain ingredients that are themselves sources of concern:
caffeine is linked to anxiety and sleep disruption when consumed in excess, and
some critics question the health eff ects of added sugars and artificial
sweeteners. Sodium benzoate has been investigated by re searchers at University
of Sheffield as a possible cause of DNA damage and hyperactivity. Other
substances have negative health effects, but are present in such small quantities
that they are unlikely to pose any substantial health risk provided that the
beverages are consumed only in moderation.
In 1998, the Center for Science in the Public Interest published a report titled
Liquid Candy: How Soft Drinks are Harming Americans' Health . The report
examined statistics relating to the increase in soft drink consumption and
claimed that consumption is "likely contributi ng to health problems." It also
criticized marketing efforts by soft drink companies.
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M o s t s o f t d r i n k s c o n t a i n h i g h c o n c e n tr a t i o n o f s i m p l e
c ar b o h y d r a te s : g l u c o s e , f r u c to s e , s u c r o s e an d o th e r s i m p l e
s u g ar s . O r a l b ac te r i a f e r m e n t c ar b o h y d r a te s an d p r o d u c e
a c i d , wh i c h d i s s o l v e s to o th e n a m e l d u r i n g th e d e n t a l d e c a y
p r o c e s s ; th u s , s we e te n e d d r i n k s ar e l i k e l y to i n c r e a s e r i s k of
d e n t a l c ar i e s . T h e r i s k i s g r e a te r if th e f r e q u e n c y of
c o n su m p ti o n i s h i g h . T h i s h a s l e d to d e n t i s ts r e f e r r i n g to s o f t
d r i n k s as " l i q u i d c h a i n s a ws " .
A l ar g e n u m b e r of s of t d r i n k s a r e ac i d i c , a n d s o m e m a y h av e a
p H o f 3 . 0 o r e v e n l o we r . D r i n k i n g ac i d i c d r i n k s o v e r a l o n g
p e r i o d of ti m e an d c o n ti n u o u s s i p p i n g c a n th e r ef o r e e r o d e th e
to o th e n a m e l . H o we v e r , u n d e r n o r m a l c o n d i ti o n s , s c i e n tif i c
e v i d e n c e i n d i c a te s C o c a - C o l a ' s a c i d i ty c a u s e s n o i m m e d i a te
h ar m . U s i n g a d r i n k i n g s tr a w i s o f te n ad v i s e d b y d e n ti s ts a s
th e d r i n k d o e s n o t c o m e i n to a s m u c h c o n t a c t wi th th e te e th . I t
h a s a l s o b e e n s u g g e s te d th a t b r u s h i n g te e th r i g h t af te r
d r i n k i n g s of t d r i n k s s h o u l d b e av o i d e d a s th i s c an r e s u l t i n
a d d i t i o n a l e r o s i o n to th e te e th d u e to th e p r e s e n c e of ac i d .
I n a me t a - an al ys i s o f 88 s t ud i e s, d r ink in g s o da c o r r el a t es wi t h
a d e c r ea s e in mi l k c ons u mp t i on a l o ng wi t h t h e v i t a min D,
v i t a min B6 , v i t a min B12 , c a l c i u m, p r o te in a nd o t h er
mi cr on u tr i en ts . P h os ph or us , a mi cr on u tr i en t, c a n b e f ou n d in
c o l a - ty pe b e ve r ag es , b u t t he r e may b e a r i s k in c o ns umin g t oo
mu c h. P h os ph or us a n d c al c i um a r e u s ed i n t h e b o dy t o c r e a te
c a l c iu m- p hos ph a t e, wh i c h i s t h e ma in c o mpon en t o f b on e.
Howev er , t h e c o mb in a t ion o f t o o mu c h p h os ph or us wit h t o o
l i t tl e c a l c i u m i n t h e b od y ca n l ea d t o a d e g en er a t ion o f b o ne
ma ss . Re s e ar c h s u gg e s ts a s t a t is t i c al l y s i g n if i c an t i n ver se
r el a t io nsh i p be t we en c ons ump t i on o f c ar bo n a te d b e ver ag e s an d
b on e mi n er al d e ns i ty i n y ou ng g i r l s, whi c h p l a c es t h e m a t
i n cr e as ed r i sk o f s u f fer in g fr a c t u r e s i n t h e f u t ur e.
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SOFT DRINKS FINAL PROJECT
On e hy p o th esi s t o e x pl a in t h i s r el a t i ons h i p i s t h a t t h e
p h os ph or i c a c id c o n t a ine d i n s ome s of t d r i nk s ( c ol as ) d is pl a c es
c a l c iu m f r om t h e b on es , l owe r ing b on e d ens i ty o f t h e s k el e t on
a n d l e a d in g to we a ken e d bo ne s, or o s t eo p or o s is . Howe v er ,
c a l c iu m me t a bo l is m s tu d i es b y Dr . Rob er t He a n ey su gge s t e d
t h a t t h e n e t e ff e c t o f c a r bona t e d so f t dr ink s, ( i n cl u d ing c o l a s,
wh i ch u s e p ho sp h or ic a c i d a s t h e a c i d l e n t) o n c a l c i um
e x cr e ti on i n u r in e was n eg l ig i bl e. He ane y c on cl u d ed t h a t
c a r bon a t ed sof t d r i nks , wh ic h d o n o t c on t a in t h e nu tr i en ts
n e ed e d f or b on e h e a l th, may d i s pl a c e o t he r f o o ds wh i ch d o,
a n d t h a t t h e r e a l i ss u e i s t ha t p e opl e who d r ink a l o t o f so f t
d r ink s al so t e n d t o h av e a n o v er al l d i e t t h a t i s l ow in
c a l c iu m. [ 49] I n t h e 1950s a n d 1960s t h er e we r e a t t e mp t s in
F r an ce a nd J ap a n t o b an t he s al e o f Co ca - Col a a s d ang er o us
s in c e p h os ph a te s c a n b l o c k ca l c i um a b s or p ti o n. Howev er , t h e se
wer e u ns u c ce ss f ul a s t h e a mo un t s o f p h os ph a t e we r e sh own t o
b e t oo smal l to h a ve a si gn i f ic a n t e f f ec t .
The USDA's recommended daily intake ( RDI) of added sugars is less than
10 teaspoons per day for a 2,000 -calorie diet. High caloric intake
contributes to obesity if not balanced with exercise, with a large amount of
exercise being required to offset even small but calorie -rich food and drinks.
Until 1985, most of the calories i n soft drinks came from sugar or corn
syrup. As of 2010, in the United States high-fructose corn syrup (HFCS) is
used nearly exclusively as a sweetener because of its lower cost, while in
Europe, sucrose dominates, because EU agricultural policies favor
production of sugar beets in Europe proper and sugarcane in the former
colonies over the production of corn. HFCS has been criticized as having a
number of detrimental effects on human health, such as promoting diabetes,
hyperactivity, hypertension, and a host of other problems. [53] Although
anecdotal evidence has been presented to support such claims, it is well
known that the human body brea ks sucrose down into glucose and fructose
before it is absorbed by the intestines. Simple sugars such as fructose are
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SOFT DRINKS FINAL PROJECT
In 2003, the Delhi non -profit Centre for Science and Environment
published a disputed report finding pesticide levels in Coke and Pepsi
soft drinks sold in India at levels 30 times that considered safe by
the European Economic Commission. This was found in primarily 12
cold drink brands sold in and around New Delhi. The Indian Health
Minister said the CSE tests were inaccurate, and said that the
government's tests found pesticide levels within India's standards
but above EU standards.
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SOFT DRINKS FINAL PROJECT
Government Regulations
Schools
In recent years, debate on whether high -calorie soft drink vending machines
should be allowed in schools has been on the rise. Opponents of the (soft
drink) vending machines believe that soft drinks are a significant
contributor to childhood obesity and tooth decay, and that allowing soft
drink sales in schools encourages children to believe they are safe to con sume
in moderate to large quantities. Opponents argue that schools have a
responsibility to look after the health of the children in their care, and that
allowing children easy access to soft drinks violates that responsibility.
Vending machine proponents believe that obesity is a complex issue and soft
drinks are not the only cause. They also note the immense amount of funding
that soft drink sales bring to schools. Some people take a more moderate
stance, saying that soft drink machines should be allowed in schools, but that
they should not be the only option available. They propose that when soft
drink vending machines are made available on school grounds, the schools
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I n t h e U n i t e d S t a t e s a n d e l s e wh e r e , l e g i s l a t o r s , h e a l t h e x p e r t s
and consumer advocates are considering levying higher tax es on
the s ale of sof t drinks and other s weetened bever ages to help
curb the epidemic of obesity among Americans, and its harmf ul
imp act on overall he alth. Some speculate that higher taxes could
help reduce soda consumption. Others s ay that taxes could help
f und education to incre ase consumer awareness of the unhealthy
eff ects of excessive sof t drink consumption, and also help cover
cos ts of c ar in g f or conditions r esul tin g f rom o verconsu mp tion
In J anu ary 2013, a Br itish l obby group c al led f or the price of
sug ary f izzy drinks to be increased, with the money r aised (an
estimated £1 billion at 20p per liter) to be put to wards a
"Children's Future Fund", overseen by an independent body,
wh ich wo uld en cour ag e ch ildre n to e at he al th ily in school.
In March 2013, New York City's mayor Michael Bloomberg proposed to ban the
sale of non-diet soft drinks larger than 16 ounces, except in con venience stores
and supermarkets. A lawsuit against the ban was upheld by a state judge, who
voiced concerns that the ban was "fraught with arbitrary and capricious
consequences". Bloomberg announced that he would be appealing the verdict.
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A glass of cola served with ice cubes Soft drinks displayed on grocery store shelves
Carbonated drinks
Appletiser or Appletise
Aquarias
Barq's
Coca-Cola
o Coca-Cola Relentless
o Coca-Cola With Orange
o New Coke
o Coca-Cola C2
Coca-Cola Zero
Sprite Zero
Grapetiser
Peartiser
Vault (soft drink)
o Vault Red Blitz
Leed
Lilt
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Diet Coke
o Diet Coke with Lime
o Diet Coke Lemon
Coke Lite
Fanta
o Wild Strawberry Fanta
o Strawberry Fanta
o Tangerine
o Cream Soda
Fresca
Sprite
Tab
o Tab Clear
o Coca Cola Black Cherry
Thums Up
Limca
Mirinda
Mountain Dew
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o MDX
o AMP Energy
Pepsi
o Pepsi Cola
o Pepsi Max
o Pepsi Lime
Sierra Mist
Diet Pepsi
Duke's
o Cherry 7Up
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Jolt Cola
Kiwi Cola
Mecca Cola
Panda Cola
Panda Pops (drinks brand)
Sport Cola
Virgin Vanilla Cola
American Cola
Planet Cola
Topsia Cola
Pop Cola (Philippines)
Kola Shaler
Britvic
o Tango (drink)
o Tango Clear
Cariba (drink)
Tropicana Tw!ster Soda
Squirt
Quatro
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Barr
o Irn Bru
o Tizer
Tizer Fruitz
Tizer "ItzRed" Colourz
Bawls
Carters Refreshing Root Beer
Cool Mountain Beverages
Cupido Drink, Italy
Dr Brown's
Fizz
Freekee
Kinnie
Lucozade
Monster Energy
Peanuts (drink)
Pocari Sweat
Oronamin C Drink
Red Bull
Schweppes Tonic
Sodastream
Volvic
o Volvic Splash
o Volvic Revive
Buxton
Damavand
Highland Spring
Perrier
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Vittel
o Vittel Raspberry
Voss (water)
thirst cola
Monster Moca
Monster
Amp
Rockstar
Big Buzz
Double D'S
Nestle
Masafi
Aqua Guard
Nectar
Aquafina
Borsec
Dorna
Bellywashers
Britvic
o J2O
Copella
Minute Maid
Pomegreat
T and T Jazz Berry Alternative Fruit Mix Drink
Tropicana
bottlegreen drinks
Britvic
o Robinsons (drink)
o Robinsons For Milk
Kia-Ora
Ribena
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PG Tips (Unilever)
Tetley
Typhoo
Yorkshire Tea
Nescafe
Maxwell House
Chocolate
Take One Chocolate Instantly
AktaVite
Ovaltine
Horlicks
Poopeis
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Soft drink industry is very profitable, more so for the concentrate producers than the
bottler’s. This is surprising considering the fact that product sold is a commodity which
can even be produced easily. There are several reasons for this, using the five forces
analysis we can clearly demonstrate how each force contributes the profitability of the
industry.
The several factors that make it very difficult for the competition to enter the soft drink market
include: Bottling Network: Both Coke and PepsiCo have franchisee agreements with their existing
bottler’s that have rights in a certain geographic area in perpetuity. These agreements prohibit
bottler’s from taking on new competing brands for similar products. Also with the recent
consolidation among the bottler’s and the backward integration with both Coke and Pepsi buying
significant percent of bottling companies, it is very difficult for a firm entering to find bottler’s
willing to distribute their product. The other approach to try and build their bottling plants would be
very capital-intensive effort with new efficient plant capital requirements in 1998 being $75 million.
The advertising and marketing spend (Case Exhibit 5 & 6) in the industry is in 2000 was
around $ 2.6 billion (0.40 per case * 6.6 billion cases) mainly by Coke, Pepsi and their
bottler’s. The average advertisement spending per point of market share in 2000 was 8.3
million (Exhibit 2). This makes it extremely difficult for an entrant to compete with the
incumbents and gain any visibility.
Coke and Pepsi have a long history of heavy advertising and this has earned them huge
amount of brand equity and loyal customer’s all over the world. This makes it virtually
impossible for a new entrant to match this scale in this market place.
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SOFT DRINKS FINAL PROJECT
It is a set of controllable tactical marketing tools - product, price, place & promotion - that the firm
blends to produce the response it wants in the target market.
PRODUCT
PRICE
Product Variety
List Price
Quality
MRP
Designs
TARGET Discounts
Features
CUSTOMERS Allowances
Brand name
INTENDED Pay Period
Packaging
POSITIONING CR Terms
PLACE
Sizes
Channels
Services
PROMOTION Coverage
Warranties
Advertising Assortments
Returns
Personal Selling Locations
Sales Promotion Transportation
Public Relation Logistics
Effective marketing would be blending the marketing mix elements into a coordinated
programme designed to achieve the company’s marketing objective by delivering value to
consumers. Cola - Cola has always worked upon their marketing mix tools since its entry
into India and Coke’s objective has been to strengthen their brand in important segments
of the market and to gain a competitive edge over Pepsi brands.
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SOFT DRINKS FINAL PROJECT
a) PRODUCT
Coke was launched in India in Agra, October 24, in '93', soon after its traditional
all Indian launch of its Cola. at the sparking new bottling plants at Hathra, near
Agra. Coke was back with a bang after its exit in 1977. Coke was planning to
launch in next summer the orange drink, Fanta-with the clear lemon drink,
sprite, following later in the year. Coke already owns more brands than it will
over need, since it has bought out Ramesh Chauhan. Coke just needs to juggle
these brands around dextrously to meet its objectives, to ensure that Pepsi does
not gain market share in the process. For if a vacuum develops, it is Pepsi which
has the brand muscle and the distribution network to grab customers today-not
Coke. But Coke could not reduce its marketing support for Thums Up until its
own Cola would hit the four major metros (Delhi. Bombay, Calcutta and Madras)
Therefore, Coke had to give its existing levels of support for Parle's brands and
would push Thums Up and Limca. Coke has plans to' use quality and hygiene as
USPs. Their aim seems to be to expand market by market, Learning from their
mistakes. In, 1998 Coke's product line includes Coca-Cola, Thums Up, Fanta, Gold
Spot, Maaza, Citra, Sprite, Bisleri Club Soda and Diet Coke.
PACKAGING Coca-Cola India Limited (CCIL) has bottled its Cola drink in
different sizes and different packaging i.e., 200 ml bottle, 300 ml. Bottle, 330 ml.
Cans, 500 ml. Bottle fountain Pepsi, and bottles of 1 and 1.5 ltr
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SOFT DRINKS FINAL PROJECT
1. Product:
The product (Coca-Cola soft drink) includes not just the liquid inside but also the
packaging. On the product-service continuum we see that a soft drink provides
little service, apart from the convenience. Soft drinks satisfy the need of thirst.
However, people are always different, some want more and others want less.
Therefore Coca-Cola has made allowances for that by providing many sizes. We
also have particular tastes, and again they have provided several options. So,
although thirst is what is needed to be satisfied and that is the core benefit, we
are receiving other benefits in the taste and size. Coca-Cola has developed several
different flavours and sizes as mentioned above, but also several brands such as
Sprite, Lift, Fanta and Diet Coke which increase the product line length, thus
making full use of the market to maximize sales. The product is convenient, that
is - bought frequently, immediately, and with a minimum of comparison and
buying effort. The quality of the soft drink is needed to be regularly high. Sealed
caps ensure that none of the "fizz" is lost. The bottles are light, with flexible
packaging, so they won't crack or leak, and are not too heavy to casually walk
around with. The cans are also light and safe.
Coca-Cola,
Coca-Cola classic,
caffeine free Coca-Cola,
diet Coke
caffeine free diet Coke,
diet Coke with lemon
Vanilla Coke,
diet Vanilla Coke,
Cherry Coke,
diet Cherry Coke,
Fanta brand soft drinks,
Sprite,
diet Sprite
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SOFT DRINKS FINAL PROJECT
2. Price:
Like any company who has successfully endured a century of existence, Coca-
Cola has had to remain tremendously fluent with their pricing strategy. They
have had the privilege of a worthy competitor constantly driving them to be
smarter, faster, and better. A quote from Pepsi Co's CEO "The more successful
they are, the sharper we have to be. If the Coca-Cola Company didn't exist, we'd
pray for someone to invent them." states it simply. The relationship between Coca-
Cola & Pepsi is a healthy one that each corporation has learned to appreciate.
In order to grab market share Pepsi began to drop prices (even with summer
approaching, which was contrary to policy in America). Shortly thereafter, Coca-
Cola decided to drop their prices slightly, but focused on the reduced price point
of their 200mL container. Coca-Cola products would appear, on the shelf, to have
the most expensive range of soft drinks common to supermarkets, at almost
double the cost of no name brands. In India, the average income of a rural
worker is Rs.500 a month. Coca Cola launched a 200 ml bottle for just Rs.5, an
affordable amount on the pockets of the rural audience.
3. Place:
Coca-Cola entered foreign markets in various ways. The most common modes of
entry are direct exporting, licensing and franchising. Besides beverages and their
special syrups, Coca-Cola also directly exports its merchandise to overseas
distributors and companies. Other than exporting, the company markets
internationally by licensing bottlers around the world and supplying them with
the syrup needed to produce the product. There are different types of franchising.
The type that is used by Coca-Cola Company is manufacturer-sponsored
wholesaler franchise system. Coca Cola has managed their company’s marketing
and sales strategy within channels. Have you ever considered the significance of
the Coke vending machine to the success and profitability of the Coca Cola
Company? This channel is direct to consumer and vending machines often have
little to no competition and no trade or price promotions.
The Coke Company operates three primary delivery systems for its business
channels:
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SOFT DRINKS FINAL PROJECT
For smaller channels Coke does advanced sale delivery for convenience
stores, drug stores, small supermarkets and on-premise fountain accounts.
Supermarkets
Convenience Stores
Fast Food
Petroleum Retailers
Chain Drug Stores
Hotels/Motels/Resorts
Mass Merchan-disers
U.S. DOD Military Resale retail commands: AAFES, NAVRESSO and
DECA
Vending
PROMOTION STRATEGIES
GETTING SHELVES
They get or purchase shelves in big departmental stores and display their
products in that shelves in that style which show their product more clear and
more attractive for the consumers.
UTC SCHEME
UTC mean under the crown scheme, Coca Cola often do this type of scheme and
they offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash
prizes etc. This scheme is very much popular among children.
DISTRIBUTION CHANNELS
1. Direct selling
2. Indirect selling
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SOFT DRINKS FINAL PROJECT
Direct Selling: IN direct selling they supply their products in shops by using their
own transports. They have almost 450 vehicles to supply their bottles. In this type
of selling company have more profit margin.
Indirect Selling
They have their whole sellers and agencies to cover all area. Because it is very
difficult for them to cover all area of Pakistan by their own so they have so many
whole sellers and agencies to assure their customers for availability of Coca Cola
products.
Vizi cooler
Freezers
Display racks
Free empty bottles and shells for bottles
ADVERTISEMENT
Print media
Pos material
Tv commercial
Billboards and holdings
PRINT MEDIA
They often use print media for advertisement. They have a separate department
for print media.
POS Material
Pos material mean point of sale material this includes: posters and stickers
display in the stores and in different areas.
TV COMMERCIALS
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RESEARCH OBJECTIVE
Primary Source:
It is the source which collects the primary data through Questionnaire and record
the raw data for further analysis, Primary source is used by the face-to-face
survey with the customers of the company.
Secondary Source:
Secondary source is the internet, magazines, and old data files of the research.
Sampling Technique
The sampling technique which has been used in this research is simple Random
sampling. This has been used in order to simplify the process of sample collection
and to use our own wisdom and parameters in relation to selection of sample.
Sample size: 50
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SOFT DRINKS FINAL PROJECT
a) Male
b) Female
3. How old are you?
a) Below 10
b) 10-19
c) 20-35
d) 36-50
e) 51 & Above
4. Do you enjoy the product?
a) Yes
b) No
c) It's not bad
5. What brand would you say is more popular among the public?
a) Coca-Cola
b) Pepsi
c) Other
6. Do you enjoy Coca Colas advertisements on TV?
a) Cheap
b) Slightly over priced
c) Expensive
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8. If you were to see the Coca Cola logo somewhere would you recognize it?
a) Yes
b) No
9. How often do you buy the product?
a) Never
b) Once/few times a year
c) Few times a month
d) Few times a week
e) Everyday
10. Where do you buy Coca-Cola products the most?
a) Super Markets
b) General stores
c) Restaurants (McDonald's, Subway, KFC etc)
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http://en.wikipedia.org/wiki/Soft_drink
"After soda ban nutritionists say more can be done", Boston Globe,
"Critics Say Soda Policy for Schools Lacks Teeth New York Times,
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