Marketing Research on Soft Drinks

MARKETING RESEARCH ON SOFT DRINKS

This is marketing research on the soft drink market which was conducted and analyzed on the basis if a survey. The survey mainly included questioners having both open ended and closed ended questions.The survey in enclosed with the research report

Description

Carbonated drinks made without any alcohol are called Soft Drinks. They are also known as Coke/Soda/Pop etc. Hot chocolate, teas, coffee etc are usually excluded from this classification. They are sold in a variety of sizes and manner. In pakistan., they are often sold in two-liter bottles, one liter plastic bottles, 24 and 20 fluid ounce bottles and in 12 fluid ounce cans. Packaging is also available in many different quantities including six packs, 12 packs and cases of 24 and cases of 36.

The Soft Drinks Company is one of the leading manufacturers, distributors, and marketers of non alcoholic beverage concentrates and syrups. They produce non alcoholic beverage concentrates and syrups which are sold to bottling partners. The bottlers usually add carbonated water with the concentrates and sweeteners and then bottle the product and sell it to wholesalers or retailers. Soft Drinks owns more than 400 brands in which they market for in over 200 different countries (Soft Drinks Datamonitor, 2007). Soft Drinks includes variety of juices, sports drinks, teas, and water. They operate in eight segments, but most of their revenues come from three of those segments. Their three major segments are North America, South Asia and the Pacific Rim, and Bottling Investments.

Market Structure

The soft drink industry is a global marketing phenomenon. In essence, it is simply a blended water drink with sweeteners, flavors and additives. The success in advertising and marketing this product lies in convincing billions of consumers to drink these instead of straight water or other less expensing alternatives. The brand recognition of this industry is extraordinarily high. In 2002, world sales exceeded US $193 billion. In contrast, fruit sales were just US $69 billion. Global consumption is currently in excess of 327 billion liters.

Pepsi and Coca-Cola, between them, hold the dominant share of the world market. Cadbury Schweppes follows a close third. Coca-Cola has approximately half of the world market share and sells 4 out of the top 5 soft drink brands in the world. Coca Cola sales for 2006 reached US $24.1 billion. It has profit margins of 20% and a market capitalization of US $130 billion. Pepsi sales stood at US $36 billion but this also includes snacks and other foods.

Some analysts view the definition of soft drinks incomplete and wish to add ready to drinks also, to this industry. If they are added as well, these would add another 1.3 billion servings to 50 billion servings for these drinks

Marketing Objectives

Future growth for Soft Drinks will emerge from their focus shift towards the global market as well as the health conscious market. They are implementing and continuing to build on their global strategy . Soft Drinks would like to continue to market to countries around the world outside of the United States. They are having growth in emerging markets in Pakistan, India and Western ASIA .This will be their major focus in the future, because they feel this is where their major growth opportunities lie.

Consumers are moving towards a healthier lifestyle, which in turn is causing Soft Drinks to expand their products to continue to meet their needs. They would like to focus on providing juices, sport drinks, and water lines that will aim at the more health conscious market. Soft Drinks has been performing trials on their Minute Maid Heart Wise orange juice to prove that it does help lower cholesterol and improve health. Also they are having trials for their Enviga green tea which can help boost metabolism. This new market is huge and creates a lot of growth opportunity for Soft Drinks. Consumer behavior is changing therefore Soft Drinks must adjust their marketing strategies and product lines to meet the consumers' needs.

Industry Definitions

• Fizzy drinks: drinks injected with carbon dioxide at high pressure are called Fizzy drinks.

• Floats: soft drink with scoops of ice-cream

• Soda: another term for soft drink

• Pop: another U.S. term for soft drinks

• Coke: a derivative and brand name of Coca-Cola, often used as a label for soft drinks in general.