Articles Philippines Blog Archive Soft Drinks
Soft drink market size for FY00 was around 270mn cases (6480mn bottle). Market witnessed 5 - 6% growth in the early'90s. Presently the market growth has growth rate of 7-8% per year compared hittours to 22% growth rate last year. The market size for FY01 is expected 7000mn bottle.
The market preference is highly regional based. While cola drinks have main markets in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks are popular in southern states. Sodas too are sold largely in southern states besides sale through bars. Western markets have preference towards mango flavored drinks. hittours Diet coke presently constitutes just 0.7% of the total carbonated beverage market.
The government has adopted liberalized policies for the soft drink trade to give the industry a boast and promote the Indian brands internationally. Although the import and manufacture of international brands such as Pepsi and Coke is enhanced in India the local brands are stabilized by advertisements, good quality and low cost.
The soft drinks market until the early 1990s was in the hands of domestic players like Campa, thumps up, Limca etc but with the opening of the economy and coming of MNC players Pepsi and Coke the market has fully come under their control. The distribution network of Coca Cola is the 6.5lakh outlets across hittours the country in FY00, the company is planning to increase to 8 lakhs by FY01. Otherwise the distribution network of Pepsi Co is 6 lakh outlets hittours across the country during FY00 which it is planning to increase 7.5Lakh by FY01.
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 fruit drinks and soft drinks. Soft drinks can be further divided into carbonated and non-carbonated beverages. Coca-Cola, lemon and oranges are carbonated drinks while mango drinks under non carbonated category. hittours
The market can also be segmented on the basis of the types of products of Coca-Cola products and non-cola products. Coca-Cola products account for nearly 61-62% hittours of the total soft drinks market. The brands hittours that fall in this category are Pepsi, Coca-Cola, thumps Up, Diet Coke, diet Pepsi etc. Non-cola segment which constitutes 36% will be divided into 4 categories based on the types of flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango.
an analysis of the industry through Porter's Five Forces reveals that market forces are favorable for profitability. Determining both focus theindustry hittours producer (CP) and bottlers are profitable. Thesetwo part of the industry is highly interdependent, sharing costs in procurement, production, marketing and distribution. Many of their functions overlap, for example, the CPs do some bottling, andbottlers conduct many promotional activities. Industry is vertically integrated to some extent. They also deal with similar suppliers and buyers. Entry into the industry hittours is involved developing operations in either or both disciplines. Replacement beverages would threaten both CPs and their associated bottlers. Because of operational overlap and similarities in their market environment, we can include both CPs and bottlers in our definition of the soft drinks industry. In 1993, CPs earned 29% pretax profits on their sales, while bottlers earned 9% profits on their sales, for a total industry profitability hittours of 14% (Exhibit 1). The industry as a whole that it generates positive economic profits rivalry:
income is highly concentrated industry, hittours with Coke and Pepsi, together with their associated bottlers, large 73% of the cases in 1994 Adding in the next tier of soft drink companies, the top six controlled 89% of the market. In fact, one could characterize the soft drink market as an oligopoly, hittours or even a duopoly between Coke and Pepsi, resulting hittours in positive economic profits. To be sure, there was tough competition between Coke and Pepsi for market share, and this occasionally hampered profitability.
For example, price wars resulted in weak brand loyalty and eroded margins for both companies
Soft drink market size for FY00 was around 270mn cases (6480mn bottle). Market witnessed 5 - 6% growth in the early'90s. Presently the market growth has growth rate of 7-8% per year compared hittours to 22% growth rate last year. The market size for FY01 is expected 7000mn bottle.
The market preference is highly regional based. While cola drinks have main markets in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks are popular in southern states. Sodas too are sold largely in southern states besides sale through bars. Western markets have preference towards mango flavored drinks. hittours Diet coke presently constitutes just 0.7% of the total carbonated beverage market.
The government has adopted liberalized policies for the soft drink trade to give the industry a boast and promote the Indian brands internationally. Although the import and manufacture of international brands such as Pepsi and Coke is enhanced in India the local brands are stabilized by advertisements, good quality and low cost.
The soft drinks market until the early 1990s was in the hands of domestic players like Campa, thumps up, Limca etc but with the opening of the economy and coming of MNC players Pepsi and Coke the market has fully come under their control. The distribution network of Coca Cola is the 6.5lakh outlets across hittours the country in FY00, the company is planning to increase to 8 lakhs by FY01. Otherwise the distribution network of Pepsi Co is 6 lakh outlets hittours across the country during FY00 which it is planning to increase 7.5Lakh by FY01.
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 fruit drinks and soft drinks. Soft drinks can be further divided into carbonated and non-carbonated beverages. Coca-Cola, lemon and oranges are carbonated drinks while mango drinks under non carbonated category. hittours
The market can also be segmented on the basis of the types of products of Coca-Cola products and non-cola products. Coca-Cola products account for nearly 61-62% hittours of the total soft drinks market. The brands hittours that fall in this category are Pepsi, Coca-Cola, thumps Up, Diet Coke, diet Pepsi etc. Non-cola segment which constitutes 36% will be divided into 4 categories based on the types of flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango.
an analysis of the industry through Porter's Five Forces reveals that market forces are favorable for profitability. Determining both focus theindustry hittours producer (CP) and bottlers are profitable. Thesetwo part of the industry is highly interdependent, sharing costs in procurement, production, marketing and distribution. Many of their functions overlap, for example, the CPs do some bottling, andbottlers conduct many promotional activities. Industry is vertically integrated to some extent. They also deal with similar suppliers and buyers. Entry into the industry hittours is involved developing operations in either or both disciplines. Replacement beverages would threaten both CPs and their associated bottlers. Because of operational overlap and similarities in their market environment, we can include both CPs and bottlers in our definition of the soft drinks industry. In 1993, CPs earned 29% pretax profits on their sales, while bottlers earned 9% profits on their sales, for a total industry profitability hittours of 14% (Exhibit 1). The industry as a whole that it generates positive economic profits rivalry:
income is highly concentrated industry, hittours with Coke and Pepsi, together with their associated bottlers, large 73% of the cases in 1994 Adding in the next tier of soft drink companies, the top six controlled 89% of the market. In fact, one could characterize the soft drink market as an oligopoly, hittours or even a duopoly between Coke and Pepsi, resulting hittours in positive economic profits. To be sure, there was tough competition between Coke and Pepsi for market share, and this occasionally hampered profitability.
For example, price wars resulted in weak brand loyalty and eroded margins for both companies
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