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Industry analysis
- 2. people in INDIA drink ltr of carbonated drink in a year1.25billion 5.9billion Nielsen reports Says the industry has seen a value growth of & volume growth of 11% CAGR 5% CAGR The industry was estimated to be in 2013$25500 million It is projected to reach at by 2019$34761.36 million
- 3. P E TS E L
- 4. P O R T E R ‘S 5 FACTORS 1 BARGAINING POWER OF BUYERS 2 BARGAINING POWER OF SUPPLIERS 3 THREAT OF NEW ENTRANT 4 THREAT OF SUBSTITUTES RIVALRY5
- 5. 1 BARGAINING POWER OF BUYERS Switching suppliers is very easy in such competitive market Highly price sensitive customers may change brand easily Carbonated drink is not a NEED BARGAINING POWER OF CUSTOMERS IS HIGH
- 6. 2 BARGAINING POWER OF SUPPLIERS Bottling equipment manufacturers, secondary package suppliers Its easy to become a supplier Easy for the firm to switch suppliers BARGAINING POWER OF SUPPLIER IS LOW
- 7. 3 A lot of capital is required to enter into the industry Difficulty in assessing distribution channels Retaliation from current companies THREAT OF NEW ENTRANT IS LOW
- 8. 4 THREAT OF SUBSTITUTES Available substitutes do not cost much Customers are likely to go for substitutes as they want a healthy lifestyle THREAT OF SUBSTITUTE IS HIGH
- 9. 5 RIVALRY Two major players are COCA COLA & PEPSI CO They have retained 96% share but lack overall growth RIVALRY IS HIGH
- 10. ECONOMIES OF SCALE These are sold in high volume Aggressive marketing campaigns Large scale operation pass cost saving Soft drinks are not niche market
- 11. YouThank MishraKirtee Rosalin Mohanty Gouri Ganesh PatroGembali Abiram Biplab Nath