0
1<br />Soft Drinks<br />
2<br />The Segment<br />Milk-Based Drinks<br />Fruit Juices and Nectars<br />Carbonated Soft Drinks<br />
3<br />Dominant Players<br />
4<br />Market Characteristics<br /><ul><li>Extremely competitive, market dominated by Pepsico and Coke
The total value of sales in this segment in the year 2006 were Rs 7000 crore
The growth rate of the consumption  22% p.a.</li></li></ul><li>5<br />Critical Success Factors<br /><ul><li>Brand strength
Distribution network
Bottling plants owned/efficient bottling
Advertising expenditure
Positioning, perceived value of product
Visibility at retail locations</li></li></ul><li>6<br />Pepsi’s Marketing Mix<br /><ul><li>Target segment – population in ...
Positioned as a ‘cool’ drink for the youth and the ‘Gen Next’</li></li></ul><li>7<br />4Ps<br /><ul><li>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</li></li></ul><li>8<br />4Ps<br /><ul><li>Product
Product differentiation in terms of shape, bottles and cans, colours and logos.
Ultimately, difference in perception created
Upcoming SlideShare
Loading in...5
×

Chapter 15 (soft drinks)

1,022

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,022
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
83
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Chapter 15 (soft drinks)"

  1. 1. 1<br />Soft Drinks<br />
  2. 2. 2<br />The Segment<br />Milk-Based Drinks<br />Fruit Juices and Nectars<br />Carbonated Soft Drinks<br />
  3. 3. 3<br />Dominant Players<br />
  4. 4. 4<br />Market Characteristics<br /><ul><li>Extremely competitive, market dominated by Pepsico and Coke
  5. 5. The total value of sales in this segment in the year 2006 were Rs 7000 crore
  6. 6. The growth rate of the consumption 22% p.a.</li></li></ul><li>5<br />Critical Success Factors<br /><ul><li>Brand strength
  7. 7. Distribution network
  8. 8. Bottling plants owned/efficient bottling
  9. 9. Advertising expenditure
  10. 10. Positioning, perceived value of product
  11. 11. Visibility at retail locations</li></li></ul><li>6<br />Pepsi’s Marketing Mix<br /><ul><li>Target segment – population in the age group 15–35 years
  12. 12. Positioned as a ‘cool’ drink for the youth and the ‘Gen Next’</li></li></ul><li>7<br />4Ps<br /><ul><li>Place
  13. 13. Introduction in A+ cities such as Chennai, Mumbai, Delhi and move to the rest
  14. 14. Pepsi started in Chennai and Coke in Mumbai
  15. 15. Price
  16. 16. Initial penetration strategy
  17. 17. Prices move in tandem with oligopolistic nature of business</li></li></ul><li>8<br />4Ps<br /><ul><li>Product
  18. 18. Product differentiation in terms of shape, bottles and cans, colours and logos.
  19. 19. Ultimately, difference in perception created
  20. 20. Promotions
  21. 21. Film stars and cricketers
  22. 22. Sponsoring cricket tournaments
  23. 23. Lifestyle products</li></li></ul><li>9<br />Market Scenario<br />Sources:<br />Infoquest, Fruit Juices in India, 2005<br />Datamonitor SoftDrinks in India to 2010, 2006<br />
  24. 24. 10<br />Amul<br /><ul><li>Flavoured milk (Kesar, Elaichi, Rose), Cool Café, Cool Coco, Lassi, Buttermilk
  25. 25. 80% market share
  26. 26. 35% growth expected
  27. 27. 85% of sales in small outlets
  28. 28. Shelf life 6 months
  29. 29. No refrigeration required</li></li></ul><li>11<br />Real Fruit Juices<br /><ul><li>Dabur Foods Division
  30. 30. Pack sizes: 1ltr and 200 ml
  31. 31. 6 months expiry, Tetrapak
  32. 32. 40% market share
  33. 33. 25% yearly growth
  34. 34. Different distribution networks for 200 ml and 1 ltr variants
  35. 35. Distributor promotions: 12+1 and 15+1 packs</li></li></ul><li>12<br />Comparison<br />
  36. 36. 13<br />Market Characteristics - General<br /><ul><li>Consumption of RTDs on the rise
  37. 37. Have such drinks while on outings, hanging out, or as thirst quenchers
  38. 38. Consumption highly seasonal
  39. 39. Shift from CSDs to Juices and MBDs
  40. 40. Health concerns
  41. 41. Pesticide controversy
  42. 42. Preference for Tetrapacks
  43. 43. Word of mouth plays a major role
  44. 44. Cost not a major factor</li></li></ul><li>14<br />Market Characteristics - MBDs<br /><ul><li>Has not made significant inroads in the market
  45. 45. Replacement for coffee or tea during summer months
  46. 46. More filling than fruit juices
  47. 47. Preference for coffee and chocolate flavours
  48. 48. Do not stock MBDs at home
  49. 49. Perception that they get spoiled easily</li></li></ul><li>15<br />Market Characteristics - Juices<br /><ul><li>Fast growing segment
  50. 50. Seen as a replacement for CSDs
  51. 51. Orange and Mango flavours liked the most
  52. 52. Health consciousness increasing, prefer no preservatives, sugar free versions
  53. 53. Prefer to store them at home, over CSDs and MBDs</li></li></ul><li>16<br />Conclusions<br /><ul><li>Carbonated drinks dominate the market
  54. 54. Increased health consciousness making Fruit juices, MBDs on a growth path
  55. 55. Pesticide controversies affected CSDs significantly</li></li></ul><li>17<br />Inferences<br /><ul><li>Fruit juice market witnessing high competition
  56. 56. Major players Dabur, PepsiCo hold almost 80%
  57. 57. Numerous smaller players trying to enter
  58. 58. The previous year saw a launch of more than 10 new brands
  59. 59. MBD market dominated by Amul
  60. 60. Large distribution network
  61. 61. Numerous variants
  62. 62. Established credence in milk-based segment
  63. 63. But still has tapped only a small segment of market</li></li></ul><li>18<br />Inferences<br /><ul><li>Scope for entry in the MBD segment
  64. 64. Availability in the market not in tune with possible demand
  65. 65. Amul lagging in brand promotions and creation of hype
  66. 66. Gradual change in consumer mindset
  67. 67. Ready to accept non-carbonated drinks
  68. 68. Distribution costs kept down by using packaging which negated the need for refrigeration</li></li></ul><li>19<br />Thank You!<br />
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×