Soft Drinks Industry: Presented by Vishnupriya.G

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SOFT DRINKS

INDUSTRY

PRESENTED BY
VISHNUPRIYA.G
DEFINITION OF SOFT DRINK
Soft drinks are non-alcoholic water based flavored
drinks that are optionally sweetened, acidulated, carbonated
and which may contain fruit, fruit juice and /or salts; their
flavor may derive from vegetable extracts or other aromatic
substances.
INDUSTRY OVERVIEW
The first marketed soft drinks appeared in the 17th
century as a mixture of water and lemon juice
sweetened with honey.
Soft drinks means carbonated drinks.
Today, soft drink is more favorite refreshment drink
than tea, coffee, juice etc.
The main production of soft drink was started in 1830’s.
Nearly 200 nations consume soft drinks with an annual
consumption of more than 34 billion gallons.
HISTORY
1798 - The term "soda water" first coined.
1830 – The main production of soft drink was started.
1861 - The term "pop" first coined.
1886 - Dr. John S. Pemberton invented "Coca-Cola" in
Atlanta, Georgia.
1898 - "Pepsi-Cola" is invented by Caleb Bradham.
1899 - The first patent issued for a glass blowing
machine, used to produce glass bottles.
1929 - The Howdy Company debuted its new drink "Bib-
Label Lemon-Lime Sodas" later called "7 up". Invented by
Charles Leiper Grigg.
1957 -The first aluminum cans used.
1959 - The first diet cola sold.
1970 - Plastic bottles are used for soft drinks.
1973 -The PET bottle created.
Raw materials used in soft drinks
 Water
 Flavour
Acids
Carbon Dioxide
Colour
Sugar
The Manufacturing Process
Clarifying the water
Filtering, sterilizing, and dechlorinating the water
Mixing the ingredients
Carbonating the beverage
Filling and packaging
GLASS BOTTLE FILLING MACHINE
TYPES
Glass bottles
Aluminum cans
PET bottles for home consumption
Non-alcoholic soft drink beverage market can be divided
two types .
a) Fruit drinks
b) Soft drinks.
Soft drinks can be further divided two types
a) Carbonated
b) Non-carbonated drinks.
SOFT DRINKS BRANDS
Top 10 Soft Drinks
Coca-cola Classic (coca-cola)
Pepsi-cola (PepsiCo)
Diet Coke (coca-cola)
Mountain Dew (PepsiCo)
Diet Pepsi (PepsiCo)
Dr Pepper (Cadbury-Schweppes)
Sprite (coca-cola)
Fanta (coca-cola)
Caffeine-Free Diet Coke (coca-cola)
Diet Mountain Dew (PepsiCo)
THE TOP 5 COUNTRIES IN SOFT
DRINK CONSUMPTIONS
1. United States : 216 litres
2. Ireland : 126 litres
3. Canada : 119.8 litres 
4. Norway : 119.8 litres  
5. Belgium : 102.9 litres 

 The per capita consumption of soft drinks in India is


estimated at 3 bottles per annum which is quite low as
compared to many other developing countries.
MAJOR PLAYERS IN INDIA
India is one of the lowest soft drink consuming countries
in the world.
The two global majors
PepsiCo -PepsiCo is founded by Donald M. Kendall,
President and Chief Executive Officer of Pepsi-Cola and
Herman W. Lay, Chairman and Chief Executive Officer of
Frito-Lay, through the merger of the two companies.

Coca – Cola - Coca-Cola was invented in May 1886 by


Dr. John S. Pemberton in Atlanta, Georgia.
The Coca-Cola Company is the world's largest beverage
company, largest manufacturer, distributor and marketer
of non-alcoholic beverage concentrates and syrups in the
world.
COKE VS PEPSI
4PS OF PEPSI AND COKE

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.
PRODUCT
Product differentiation interms of shape, bottles and
cans, colours and logos.
Ultimately, difference in perception created

PROMOTIONS
Film stars and cricketers
Sponsoring cricket tournaments
Lifestyle products
PRODUCT THAT PREFERED MORE BY GENERAL
PUBLIC
 
AGE GROUP
PARAMETERS GIVEN BY GENERAL PUBLIC
DO ADVERTISEMENT CAN INCREASE
SALES
COCA COLA ISSUE
Coca-Cola has been the target of many campaigns to
ban the sale of soft drinks after a study by the Center
for Science and Environment found that
Coca-Cola and Pepsi products sold in India contained
high levels of pesticides.

Polluted drinking water and toxic waste have plagued


the small Indian village of Plachimada since Coca-Cola
first opened a plant next to the residents' homes.
Health effects
Obesity and weight-related diseases
Dental decay
Soft drinks and bone density
SWOT ANALYSIS
STRENGHTS WEAKNESSES
BASIC CONSUMER NEGATIVE CLAIM
NEED TRADITIONAL
LARGE AND GROWING PRESERVATION
MARKET NARROW RANGE OF
DIFFERENT FLAVOURS MATERIALS
AND PACKAGES
LOW COST
Opportunities Threats
Establish facts and Healthy Issues
use potential PR Environmentalism
New Packaging Distribution costs
materials
Replace alcoholic
drinks
Further replace tea
and coffee
CONCLUSION
 The soft drink industry has increased 25% annually.
In the market, Coca-Cola and Pepsi are the biggest
companies in this industry.
 After the S.W.O.T analysis, we see that there are
limitations for these following segments such as
unstable in attitude and lifestyle, less brand loyalty,
health concern and ageing population.

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