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    Major Players

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    ShanaySingh
    The document discusses several factors that affect the beverage industry including changes in laws and regulations, political and economic conditions, taxes and costs, currency fluctuations, consumer preferences that vary by country, and the efficiency of marketing and promotional programs. It also mentions the importance of packaging, equipment, water accessibility, and climate. The industry is dominated by two major players, Coca-Cola and Pepsi, with similar product lines, pricing, and distribution strategies. There is potential for substitutes from other beverages and bargaining power for both buyers and suppliers.

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    Major Players

    Uploaded by

    ShanaySingh
    196 views6 pages
    The document discusses several factors that affect the beverage industry including changes in laws and regulations, political and economic conditions, taxes and costs, currency fluctuations, consumer preferences that vary by country, and the efficiency of marketing and promotional programs. It also mentions the importance of packaging, equipment, water accessibility, and climate. The industry is dominated by two major players, Coca-Cola and Pepsi, with similar product lines, pricing, and distribution strategies. There is potential for substitutes from other beverages and bargaining power for both buyers and suppliers.

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    The document discusses several factors that affect the beverage industry including changes in laws and regulations, political and economic conditions, taxes and costs, currency fluctuations, consumer preferences that vary by country, and the efficiency of marketing and promotional programs. It also mentions the importance of packaging, equipment, water accessibility, and climate. The industry is dominated by two major players, Coca-Cola and Pepsi, with similar product lines, pricing, and distribution strategies. There is potential for substitutes from other beverages and bargaining power for both buyers and suppliers.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    196 views6 pages

    Major Players

    Uploaded by

    ShanaySingh
    The document discusses several factors that affect the beverage industry including changes in laws and regulations, political and economic conditions, taxes and costs, currency fluctuations, consumer preferences that vary by country, and the efficiency of marketing and promotional programs. It also mentions the importance of packaging, equipment, water accessibility, and climate. The industry is dominated by two major players, Coca-Cola and Pepsi, with similar product lines, pricing, and distribution strategies. There is potential for substitutes from other beverages and bargaining power for both buyers and suppliers.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    • Changes in laws and regulations

    • Changes in non-alcoholic business era


    • Political conditions, specifically in international markets
    • Ability to penetrate emerging and developing markets
    • Changes in laws and regulations
    • Level of economic growth in the country and in the industry
    • Tax rates, interest rates and labour costs
    • Fluctuations in currency exchange rates
    • Distributes the majority of its products in cultured countries
    • In America, people focus on their health
    • In Japan, they created 30 alternative flavours

    • The efficiency of a company's advertising, marketing, and promotional programs


    • Packaging design, new equipment and new factories

    • Water accessibility
    • Climate changes affect the beverage industry greatly
    • Advantage of humid climates who would enjoy Coca Cola drinks as a means to cool down

    • Coca Cola retains all rights related to their business


    • Patented process
    Competitive Rivalry Threat of new entrants

    -high
    -very low
    -two major players-Coca
    -global market of carbonated
    Cola & Pepsi
    drinks is highly saturated
    -nearly of the same size and
    -new entrants cannot benefits
    have similar products
    from the economies of scale
    -level of differentiation is
    low
    - intense price competition
    Porter’
    Threat of substitutes
    s5 Bargaining power of buyers

    -high Forces -high


    -beverages made by Pepsi, -fuelled by the availability of great
    fruit juices, and other hot and choice of cola beverages
    cold beverages
    -no switching costs for customers
    -switching costs are low for
    -the price elasticity of products
    the customers Bargaining power of
    -segment of ‘Coke addicts’ is not
    -quality of the substitute suppliers
    -varies according to the significant
    products is also generally
    good type of supplier
    -Supplier Diversity Program
    promotes diversity among
    suppliers for noble reasons
    MAJOR PLAYERS AND MARKET STRUCTURE
    • Market is dominated by two firms : The Coca-Cola Company and PepsiCo .
     In 2008, Coca Cola offered 25 brands and 133 varieties while PepsiCo offered 17
    brands and 161 varieties
    • Similar marketing mix across brands:
     Wide, but homogenous product lines. Eg: Coca Cola has Thums Up and Fanta, Pepsi
    has Mountain Dew and Mirinda
     Low pricing strategy due to availability of substitutes
     Distribution channels include retailing through supermarkets, vending machines,
    local stores
     Sales-oriented promotion with aggressive advertising
     No differentiating segmentation and positioning strategies due to high availability of
    substitutes
    World’s leading and most selling soft drink brand

    Strong Brand Portfolio : Mostly Carbonated drinks - Sprite, Fanta, Diet Coke

    Cost Control :

    Outsources bottling operation to FEMSA

    Segmentation :

    According to product type

    Demographic : Thumbs Up caters mainly to youth as it symbolizes adventure, while


    Fanta caters mainly to children with its tangy taste

    Psychographic : Diet Coke caters to health conscious people


    2nd largest soft drink brand in the world

    Brand Portfolio : Diversified – Pepsi, Tropicana, Gatorade, 7UP, Mirinda

    Segmentation is similar to Coca Cola

    Some degree of positioning:

    Projected itself as consumer products company rather than pure beverage company with ‘Dew
    and Doritos’

    Breakfast option : Tropicana juices

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