How The Energy Drink Industry

How The Energy Drink Industry
For any product to be successfully marketed the company must first understand the environment in which they will be marketing their product.
Companies must market their products in a way that draws in consumers to purchase them. The energy drink industry was able to do this by making
people feel that they need this product in order to make it through their busy schedules. They not only marketed the product to college students,
young parents, busy professionals, but also to athletes. This paper will talk about how the energy drink industry was able to adapt to their
environment and market their product throughout economic changes and lifestyles using core competencies. "Core competencies are the
combination of pooled knowledge and technical capacities that allow a business to be competitive in the marketplace. Theoretically, a core
competency should allow a company to expand into new end markets as well as provide a significant benefit to customers" ("Core," 2016, p. 1). In
the sales industry, products may be popular one day and lose their popularity the next. Because of this, phenomena and how things are forgotten and
trends loss there appeal marketers must find new ways use their core competencies to make their products popular. It is important for these marketers
to determine how to make energy drinks fashionable while competing with other vendors who are trying to distribute their own brand of energy drinks.
History Red bull has been around since the early 1970
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The Soft Drinks Industry During The Market Revolution
During the Market Revolution in the U.S., drastic changes in the way of producing and selling goods have seen. The Market Revolution occurred
in the 19th century, or also known as the "Era of Good Feeling." Besides other development, the food and beverage industry also experienced a
rapid increase in productivity. This paper is going to summarize the history of the soft drinks industry and how the mass production has negatively
affected U.S. citizens' lives. Nowadays, soft drinks have become a popular drink that some people prefer them to pure water as a daily beverage.
The U.S. in particular consumes a huge amount of soft drinks each year. Soft drinks generally contained water, sweetener, and a flavor. Other terms
also referring to soft drinks are soda, sugary beverage, and carbonated beverage. People can easily buy soda, from a luxury restaurant to a small
vending machine. Soft drinks have a long history which emphasizes the evolution of business market revolution. Soft drinks were first introduced in
the 17th century by a European. They were just lemon sweetened water without carbonate. It was not until the early 1800s that the term "soda water"
was used as the manufacturer of imitated mineral water was patterned in the U.S. "Soda water" was consisted water and sodium bicarbonate. Then the
"soda fountain" was developed with a variety of flavor such as ginger, vanilla, and roots. Soda was known as a beverage that has medical benefits and
satisfying taste. The

Porter 's Five Industry Forces, Map The Soft Drink Industry
1. Using Porter's five industry forces, map the soft–drink industry. Bargaining Power of Buyers Essentially, the soft–drink industry is largest beverage
industry. It gross millions a year, and has different distribution channels. For example, these soft–drinks are sold in supermarket, Vending Machines,
Gas stations, etc. The cost is incomparable to the amount of consumer we currently have in America. If Americans consumer on average 50
gallons in a year. The cost of 2.00 is not missed by the average person. With that said, there is a least likely chance that a person would attempt to
duplicate the process at home. The soda making process is too time consuming, and inconvenient when a person can simply can go to the store to
purchase. Consumers can either be very loyal to the brand or fickle. Influx in prices can make consumers switch very quickly. However, there are
typically incentives associated with loyalty. There are giveaways and contest that entices the customers to keep purchasing. For example, Snapple
does this with a real fact on every lid. I personally know people that will buy the product just to read the facts. Bargaining Power of Suppliers The
soft–drink industry capitalizing on creating the best product. Each product has a different taste, formula, and color to entice the consumer. It is
important for the product to remain innovative in order to keep the consumers interested. The suppliers can easily differ, because they do not hold
much value or put

Soft Drink Industry Case Study
1.Why, historically, has the soft drink industry been so profitable? There are several reasons why the soft drink industry has been so profitable.
One reason is because these soda companies directly distribute to stores that sell their product. They do a good job in avoiding a middle man
which would cost a lot more. Instead, they handle all the packaging and bottling before the soda gets to the shelf so they don't have to pay those
extra costs associated with a middle man and keep all that profit. Also, carbonated drinks are cheap to produce and have a high profit margin.
Every aspect of the making and bottling process is inexpensive so it makes it very easy to turn a profit. This is the same for both bottles and
fountain sales. For the fountain all you have to do is install the fountain and then refill it so it is inexpensive. Another way they are profitable is
because these soda companies have contracts with stores making it impossible for competitors to sell their version of CSD's in the same location.
They put the contracts in place in order to avoid another company selling and taking their profit and also so the stores and restaurants won't make it
competitive for them when it doesn't have to be. These soda companies also do a great job of sponsoring events in which helps promote their
products which in turn drives profit. These soda companies also partner with certain locations in order to offer incentives if you buy the sodas. For
example, if you buy a ticket to a

A Short Note On The Energy Drink Industry
The energy drink industry is a fairly new market, with the top products being little under 30 years old. There are several strengths, weaknesses,
opportunities and threats in the sector that are unique to this particular industry. Through a SWOT analysis, I will analyze this markets' main
components.
The strengths of energy drinks are the specific branding, low rivalry, mainstream products, low pricing points, and powerful sponsorships. Each energy
drink producer has a specific brand that they have maintained to appeal to their audience, for example Red Bull's brand is taking the ordinary man and
making him extraordinary were as Monsters brand is maximizing your lifestyle and whatever that might entail whether that is sports or even
music. Although the brands are both amplifying, they are essentially for two different types of people. This makes the rivalry among competitors
fairly low. The specific branding allows for marketing towards specific people, eliminating the need for a rivalry. Energy drinks are also very
mainstream products, energy drinks are a familiar product to the public and everyone has a general idea of what it does and where to purchase one,
so it is not an undiscovered commodity. Because energy drinks can be found in your local grocery or corner store, the price range is fairly the same
ranging from $4.00–$6.00 per pack. The top energy drinks also maintain powerful sponsorships, Red bull is partnered with Felix Baumgartner and
Monster sponsors x–sports to

Coca Cola And The Soft Drink Industry For A Long Time
Brands are a representation of the consumer 's thought and opinion about the performance of a product, and as a business owner, you might own the
trademark, which identifies the brand, but consumers will help define your brand (Boykin (no date)). Brands can also be defined as a combination of
a product name, trademark logo, unique packaging and design, but despite these features, a brand does not truly exist yet because the product has no
history. Therefore, this essay examines how and why Coca Cola has dominated the soft drink industry for a long time compared to other producers and
this explains how branding has influenced the consumers and their buying decision.
The strength of a brand differs from one industry to another. In the past, branding was used to determine what goods belong to the different
producers, but today, as well as determining the difference, it is used to influence the buying decision of consumers and this is why it has become a
very important tool. The introduction of branding has become an influential part in the way we as consumers live our lives, this is because for every
purchase made, it is decided based on the brand we are most influenced by. In this modern society, brands not only represent the product, but also have a
strong connection with perceived quality, consumers ' lifestyle, social class and taste. Although, a newly established brand may have material makers
(Name, logo and unique packaging), the perception of the brand strength cannot

The Soft Drink Industry Essay
Introduction
Today's global soft drink industry that is worth approximately 511.6 billion dollars can trace its history back to the days when the first mineral
water was found in natural springs (Reuters, 2014). According to Bellis (2014) people who started bathing in natural springs instantly realised that it
is a healthy thing to do and due to that it was said that mineral water has healing powers. The carbon dioxide or in other words the magic that was
behind the bubbles in natural spring water was soon discovered by the first scientists (Bellis, 2014). Later this wonder was the basis of invention of
carbonated soft drinks, like coke. The first soft drink which was simple lemonade made out of mineral water, lemon juice and honey was ... Show more
content on Helpwriting.net ...
According to Marketline (2013) particularly in 2012 the Irish soft drinks market has seen a growth of 1.3%, reaching total revenues of 1.3 billion
euros. In comparison, other major EU soft drink markets like Germany and France also had a market value growth over the same period, for instance,
German market had a CAGR of 2.2% while France had 2.6% CAGR (Marketline, 2013). Furthermore, considering the market volume for the period
2008–12, in the report (Marketline, 2013) statistics in the figure 1.2 has shown that a compound annual rate of change (CARC) was –1.6%. The market
consumption volume in 2012 deteriorated by 0.2% and reached a total volume of 0.7 billion litres (Marketline, 2013). The information above indicates
that in the recent years an Irish soft drink market has seen a marginal market value growth and a volume decline.
However the Marketline forecast shows that both market value and volume will progress in the near future. According to Marketline (2013) it is
predicted that from 2012 to 2017 the soft drink market value will increase by 11.8% and it will result in a total value of 1.5 billion euros (see figure
1.3). The forecasts show that 1.7% will be the CAGR for the five year period (Marketline, 2013). In the report (Marketline, 2013) it is also estimated
that from 2012 to 2017 the soft drink

Essay on 1. Why Is the Soft Drink Industry so Profitable?
1
1. Why is the soft drink industry so profitable?
An industry analysis through Porter's Five Forces reveals that market forces are favorable for profitability.
Defining the industry: Both concentrate producers (CP) and bottlers are profitable. These two parts of the industry are extremely interdependent,
sharing costs in procurement, production, marketing and distribution.
Many of their functions overlap; for instance, CPs do some bottling, and bottlers conduct many promotional activities. The industry is already vertically
integrated to some extent. They also deal with similar suppliers and buyers. Entry into the industry would involve developing operations in either or
both disciplines.
Beverage substitutes would threaten both ... Show more content on Helpwriting.net ...
Power of buyers: The soft drink industry sold to consumers through five principal channels: food stores, convenience and gas, fountain, vending, and
mass merchandisers (primary part of "Other" in "Cola Wars..." case). Supermarkets, the principal customer for soft drink makers, were a highly
fragmented industry. The stores counted on soft drinks to generate consumer traffic, so they needed Coke and Pepsi products. But due to their
tremendous degree of fragmentation (the biggest chain made up 6% of food retail sales, and the largest chains controlled up to 25% of a region),
these stores did not have much bargaining power. Their only power was control over premium shelf space, which could be allocated to Coke or Pepsi
products. This power did give them some control over soft drink profitability. Furthermore, consumers expected to pay less through this channel, so
prices were lower, resulting in somewhat lower profitability.
National mass merchandising chains such as Wal–Mart, on the other hand, had much more bargaining power. While these stores did carry both Coke
and Pepsi products, they could negotiate more effectively due to their scale and the magnitude of their contracts. For this reason, the mass merchandiser
channel was relatively less profitable for soft drink makers.
The least profitable channel for soft drinks,

Case Study : The Titans Of The Soft Drink Industry Essay
1. Introduce your industry and the two companies you chose. Tell something interesting about each company. You will need to do a little research to
find interesting information. This paragraph should be at least 5 sentences. As the titans of the soft drink industry, Coca–Cola Enterprises Inc.
(Coca–Cola) and PepsiCo, Inc. (PepsiCo) battle daily for consumers' tastes buds. Each day, consumers choose to enjoy brands from one of these two
companies. So much so, that Coca–Cola states, "There are nearly 10,450 soft drinks from Coca–Cola consumed every second of every day including
Diet Coke, Fanta and Sprite" (Coca–Cola). This ability to capture the market has also fueled Coca–Cola and PepsiCo's longevity for over 100 years. To
put this in perspective, Fox News illuminates that PepsiCo was, "One of the first companies in the U.S. to do away with the horse–drawn carriage
method of transporting product..." (Tierney).
2. Which company pays the highest dividend relative to the purchase price of the stock? Which ratio did you use to determine this? When analyzing
Coca–Cola and PepsiCo, PepsiCo's stockholders are receiving higher relative returns on their stock investment. Their Dividend Yield is at 2.6 %,
compared to Coca–Cola's at 2.4 %. PepsiCo is returning more to its investors in dividends by percentage annually than Coca–Cola. To calculate the
Dividend Yield, take the annual dividend per share and divide it by the market price of the share. The Dividend Yield measures the

The Energy Drink Industry Is A Growing Market With A Large...
1.Strengths: The energy drink industry is a growing market with a large consumer base with the ability to profit tremendously with a loyal customer
base. Energy drinks have a marketing strategy that stresses the increase in human performance. The examination incorporates brands that are marked
as either refreshments or dietary supplements which is easy to market to those who are physically active whether its exercising or engaging in
sports. According to Mintel reports, the total retail sales of energy drinks increased 3.9% in 2013 followed by a 5% increase in 2014. Top energy
drink companies will more than likely release new marketed products and increase prices to push the category trajectory upward as 2019 comes closer.
Weaknesses: Product differentiation may be very hard to execute. Most energy drinks are composed of the same ingredients. Most energy drinks have
between 70 and 200mg of caffeine. A can of Rock Star has 160mg of caffeine. According to the Innova Market Insights' Database the five most
common ingredients found in energy drinks are: Vitamin B12, Vitamin 6, Caffeine, Vitamin B3, and Taurine. To enter the energy drink industry your
product would have to be marketed differently whether it's a sports endorsement for example Chino MMG's endorsement with Monster Energy.
Coming from Baltimore City's 12 O'clock Boys, Chino MMG is a symbolic representation of Monster Energy's strategy to market to a different
consumer base to acquire more popularity within urban

The Carbonated Soft Drink Industry
Dr. Pepper/Seven Up, Inc. Squirt Brand.
....................................
1.How would you characterize the carbonated soft drink industry in the United States?
The soft drink industry is one of the most highly profitable industries in the USA. Also, the competitive market is a very large market. Americans
consumed about 53 gallons of soft drinks per person a year in 2000 by $ 60.3 billion!! Comparing with the market in 1990, since it was 47 gallons. In
recent years, the market growth has slowed.
The three major participants in US market: concentrate producers, bottlers, and retail outlets. In the U.S. market, there are about 500 bottlers, and
Concentrate producers are either owned or ... Show more content on Helpwriting.net ...
Pepper/Seven Up, Inc. and Squirt Competitive situation in the U.S. carbonate soft drink industry (considering different region/ethnic/age segments and
positioning)? Do a SWOT analysis.
The third–largest company in the U.S. is Dr. Pepper/ Seven Up, Inc. (DPSU) which consists of 14.7% market share. It is the most famous brands are
Dr. Pepper and Seven Up among the Soft Drink Brands. It has been Squirting the market by this company since 1995. The Unit Sales Volume Squirt
is $39 million to $54.6 million from the year 1990 to the year 2000. there are Five bottlers accounts by 50% for Squirt case, sequentially they are:
California alone represents by 38%, Los Angeles by 30%, Chicago by 7%, Detroit by 6%, San Diego by 4%, and Portland, Oregon by 3%.
..........................................
3.Given your assessment of the competitive situation, what are the pros and cons of (a) continuing the present market targeting and positioning
strategy and (b) adopting the recommendation made by Foote, Cone & Belding? (make a comparison table of pros and cons for each approach).
Squirt has been exposed to many numbers of Hispanics, those of Mexican descent primarily because of the beverage in Mexico which could be a
very beneficial for Squirt in the market in the U.S. by considering there is a very large Mexican population in the United States. In the other side, in
California alone there are around 77% of the Hispanic population is of Mexican ancestry. 77% of the 11,000,000, the Hispanic population = 8.47

An Advertisement On The Food / Drink Industry
Today companies are very dependent on people getting their products shown. No matter where we are, we will always see some form of an
advertisement, whether it be a commercial, billboard, or anything else that a company uses to broadcast their product. Every company does it or else
they won 't have their product/business noticed by the public. On an average, American 's are shown to be susceptible anywhere from 250 to 3000
advertisements per day.One of the most dominant advertising strategies used today is the use of false advertisements. False advertising is being used
every day to give the user a point of excitement towards anything. Companies will put anything in the ads just to draw people towards their products.
One of the most dominant industry that does it is the food/ drink industry. These industries use everything possible to get consumer to purchase their
goods and the consumers don 't see what 's wrong with what they are doing. For example, beer companies want their consumers to feel a certain way
when they drink their beer, knowing that's not how they are going to feel. They just make you think that you are going to feel a certain way just so
you can buy their beer. Even though companies associate their products with feelings not associated with what they tell consumers, beer companies
should be fined for their false advertisings because more often you are not going to feel how the ads say you will.
Ever since people have been selling goods and services, they

Coca Cola And The Soft Drink Industry
Despite the mistake of introducing New Coke 32 years ago, Coca–Cola remains a force in the soft drink industry. However, amid this success,
Coca–Cola has found themselves in the middle of criticism due to undesirable health effects. These health effects include both short–term and
long–term concerns. In terms of long–term affects, Coca–Cola has been associated with type 2 diabetes and obesity (Malik VS, Popkin BM...). In fact,
individuals who drink 1–2 cans of sugary beverages, including Coca Cola, everyday are 26% more likely to develop type 2 diabetes (Malik VS,
Popkin BM...). Additionally, a study found the damage a can of coke has one hour after consumption. This study, which offers a wonderful perspective
to Coca–Cola's damaging affect... Show more content on Helpwriting.net ...
This is most evident with the focus group conducted for New Coke. Coca–Cola's emphasis on taste prevented important discussions regarding the
emotional attachment individuals had with the original Coke (Schindler, 23). This central focus on taste sets a poor model for conducting market
research and may have potentially prevented opportunities from altering Coca–Cola's brand identity into a more health–conscious brand. Additionally,
this issue stems from Coca–Cola segmenting the improper way. As a cheap drink that baby boomers demand it seems evident that Coca–Cola has
inadvertently segmented their customers by demographic variables such as income and age. Segmenting customer based on demographic variables
have their limitations (Sirsi, 53). For example, segmenting by income is ineffective due to the reason that people making the same amount of money
tend to spend it differently (Sirsi, 53). Coca–Cola inadvertently segmenting by demographic variables such as income and age shifted focus away from
correctly segmenting based on customer needs, which would include health effects. Moreover, Coca–Cola's approach to competitor analysis throughout
their history may have potentially caused this marketing issue. The New Coke example illustrates Coca–Cola's difficulty with this aspect of marketing
as New Coke was an attempt to duplicate Pepsi (Schindler, 22). This conflicts with a primary purpose of customer analysis, which is differentiating
themselves with

Food And Drink Industry Analysis Paper
Today in the world of modernism, it is extremely common for individuals to require an extra boost in order to be able to stay energized throughout
their work or school day. Some people consume energy drinks, and others require a cup of coffee every morning. For most people, they simply do not
have the time to drink a cup of coffee out of a mug at home where they can't take it along with them. That is why it is essential for the public to have a
portable coffee mug. For the marketing assignment, the product category that will be highlighted in this paper is a cup, more specifically, a traveling
coffee mug, why this product was chosen, the history of cups and traveling coffee mugs, and three famous traveling coffee mug companies and why
they ... Show more content on Helpwriting.net ...
This makes it more convenient for those who travel using bikes or backpacks often; it allows them to be able to accomplish other tasks without
having to hold their traveling coffee mug. This convenience causes great customer satisfaction; however, the product being marketed off for this
project will be more convent due to the fact that it will keep the traveling coffee cup warm at all times and it is a portable cup. To conclude, Contigo
is yet another great competitor as a result of its high quality product and how it adds even more convenience to the traveling coffee cup. (GearPatrol,
2013). The final competitor of the traveling coffee cup that will be marketed for this project is the company called Thermos. Thermos is yet another
famous traveling coffee mug brand. One of Thermos' highly rated traveling coffee mugs, their 14–ounce mug, is a great choice for multiple reasons. It's
a well sized cup, it has a rubber middle and handle so it's harder to get burned when picking it up, holds cool drinks and most importantly, it keeps the
content of the cup on the inside warm, (GearPatrol, 2013). This makes the Thermos an obviously large part of the competition; however, the product
that is going to be showcased will have more risk taking opportunities verses the Thermos. Thermos is a great company that is known for their various
functions of their coffee cups; however, there are ways for this company to be overpowered. Starbucks, Contigo, and Thermos are powerful competitors
against the product being marketed off in this project, but there are opportunities and marketing strategies to achieve higher

Marketing Strategy Of Soft Drink Industries Essay
MARKETING STRATEGY OF SOFT DRINK INDUSTRIES FACULTY GUIDE SUBMITTED BY:
– DESIGNATION Vipul Kumar Dr. ILA
chaturvedi B.COM (H) EVENING A3146913027 AMITY COLLEGE OF COMMERCE & FINANCE, NOIDA AMITY UNIVERSITY– UTTAR
PRADESH DECLARATION I declare that the work presented for assessment in this report is my own, that it has not previously been presented for
another assessment and that my debts (for words, data, arguments and ideas) have been appropriately acknowledged. And that the work conforms to
the guidelines for presentation and style set out in the relevant documentation. Vipul Kumar A3146913027 B.COM (H) evening
ACKNOWLEDGEMENT I owe a great many thanks to great many people who helped and supported me in completing my dissertation work. My
Deepest thanks to Ms. Ila Chaturvedi mam who was

Food And Drink Industries Companies
Introduction
As we all know, taste and smell are a "must have" for food and drink industries and one can easily imagine that these characteristics can be a clear
differentiating factor on the "the more the better" axis in the pharmaceutical, packaging or environmental sectors.
Many companies usually use human taste panels to measure taste and smell. However, human nose is very sensitive and experts can control panels.
Accordingly, this approach can carry a lot of variation over time. Moreover, this process is time consuming, costly and limited by the number of
samples that can be tested. It requires involving people from outside of the company so it is needed to deal with issues like confidentiality, safety and
public image. Based on any ... Show more content on Helpwriting.net ...
The results that are related to human data can make this measurement as "absolute" as possible.
In the measure phase, the advantage of E–noses and E–tongues is that they could reduce cycle times for each measurement as much as 80 or 90
percent, improve repeatability and reproducibility across data collection and acquire the data with lower price. Also, in the improving and control
phase, E–noses and E–tongues can help to design and implement experiments for given objects to find optimal process conditions. It is also worth
mentioning that the new measurement system can handle changes and sustain the profitable performance in a long–term perspective. This project was
focused on illustrating how E–noses and E–tongues help companies to improve their CTQs. So, although DMAIC team did not have a specific plan
and timeline for any specific company, the project can still get a medium grade for the first criteria since they completed their primary goal which
consisted in analyzing the benefits of using E–noses and E–tongues to help companies improve their product performance.
Application of Six Sigma Tools One of the most important segments is to use the tools and techniques in a correct and proper way within the Six
Sigma application. In the project's beginning, a Kano model was used to indicate how the "Soft attributes" such as Tastes as a differentiating factor can

The Energy And Sports Drink Industry
The energy and sports drink industry has been around for more than forty years. In those years the industry has gained many competitors. These
competitors are competing to be the most innovative and the best among its competition. Although they all may offer something different, the end goal
is to be profitable and to continue to grow globally in this industry. Many companies have succeeded and many have failed. However, the demands for
these products are increasing and more people are consuming these beverages on an hourly or daily basis.
PepsiCo has been and still is one of the main contenders in the alternative drink industry. They have upset the industry by being the largest seller of
beverages in the United States. The company ... Show more content on Helpwriting.net ...
272)". PepsiCo financial performance has consistently grown since 2009 and has remained in the top as a competitor in the industry.
Coca–Cola was discovered in 1886, and is known as the world's largest beverage company. This company understands the nature of competitive
important resources that allows
them to identify their best resources and capabilities to continue to advance the company. Coca–Cola's resources have contributed to the competitive
advantages and are important in the company's future strategies. Gamble (2011) states, "Even though Cola–Cola was the worldwide leader in carbonate
soft drink sales, it had struggled to build market share in alternative beverages and trailed PepsiCo by a significant margin worldwide in energy drinks,
sports drinks, and vitamin–enhanced beverages. Asia was the only geographic market where Coca–Cola's sales of alternative exceeded the sales of
PepsiCo's energy drinks, sports drinks, and vitamin–enhanced beverages. In the United States, Coca–Cola was the third–largest seller of alternative
beverages, with its combined sales of Powerade, Full Throttle, Nos, Rehab, TaB, and Vault energy drinks; glaceau vitaminwater; and Fuze
vitamin–enhanced drinks, falling just short of the sales of Red Bull energy drink (p.273)". Coca–Cola resources and capabilities have to be strengthened
and nurtured to remain competitive in the energy and sports drink industry.
Red

A Short Note On The Energy Drink Industry
Energy drinks are part of the broader soft drink category, which includes carbonated beverages, fruit and vegetable juices, bottle water, sports drinks,
beverages concentrates, ready–to–drink tea, and ready–to–drink coffee (Fontinelle). Because there are so many companies competing for the top spot
for the best energy drink, it is hard for small and new companies to compete. There are challengers amongst competitors as far as distribution, obtaining
shelf space, and offering something unique from the big three competitors: Red Bull, Monster, and Rockstar. Some of the new and smaller companies
can take on the opportunity of offering solely certified organic and Fair Trade ingredients, which is a big trend amongst a lot of people who prefer to
consume products with naturally grown and processed ingredients (Fontinelle). Another trend amongst the energy drink industry is adding additional
ingredients that are supposed to enhance athletic performance and recovery such as branched– chain amino acids and beetroot extract. Some threats
towards the energy drink industry is the health hazards it poses on its consumers. One of the main ingredients in energy drinks is caffeine. Caffeine is
a natural stimulant that constricts blood vessels in the brain. High doses can result in anxiety, dizziness, headaches and jitters (Health Hazards of
Caffeine). Caffeine is diuretic, meaning that it can cause one to urinate more than they normally do. It can also have a great impact on

The Carbonated Soft Drink Industry
The carbonated soft drinks (CSD) industry in the United State is considered to be in its maturity phase and there is a high degree of competition
within the industry . There are several producers of carbonated soft drinks; however, our focus is on the top three soft drink producers : Coca–Cola
(NYSE:KO) and PepsiCo (NYSE:PEP) and Dr. Pepper Snapple Group (NYSE:DPS) as they account for 41.9 percent, 30.3 percent and 14.8 percent of
CSDs market share respectively, according to IBISWorld (Graph 1). We will analyze aforementioned company 's revenue, net profit margin, current
ratio, quick ratio to get a better understanding of the competitor's capabilities within the industry. However, we should keep in mind that the companies
operate different business segments within itself. Therefore, its is difficult to attain information specific to the carbonated soft drink industry are
figures are based on estimates. The producers of the soft drinks continue to face difficulty in the marketplace partly due to factors such as economic
recession, the change consumer preference, cost of raw material, public policies over the past decade (Graph 2). Consumer are more health concerned
as critics have pointed that the soda industry is a contributing factor to the US obesity epidemic (Reuters) . Thus, the consumer are switching to
healthier substitutes such as flavored water and sports drinks. In the United State the CSD Industry which consists three segments regular carbonated
soft drinks, diet

The Level Of Competition In The Soft Drinks Industry
The level of competition in an industry determines the number of profits made by players in the industry. An industry with a high level of profits is
likely to attract many players which erode the profits made by firms gradually. A firm seeking to venture into a new industry should evaluate the level
of profits in an industry as well as how intense competition is in the industry before making a move. Porter's five forces model provides a
comprehensive framework that can be used to evaluate how intense the competition is in the industry. The soft drinks industry is an industry that is
very profitable but also exhibits cut throat competition. Coca–Cola and Pepsi companies are the players with much dominance in the soft drinks
industry. This paper explores the competition between Coca–Cola and Pepsi companies dubbed cola wars in the context of Porter's five forces model.
Threat of New Entrants (Low) This force analyzes the ease or difficulty of a new player entering an industry. Industries that are profitable but have
minimal barriers to entry attract many players who make the profits to plummet. Profits decrease when a large number of firms compete for a limited
market share (Hill & Jones, 2010). Therefore, existing players, particularly in a profitable industry, should create extensive barriers to entry to deter
new firms from entering the industry. Coca–Cola and Pepsi companies are the dominant players in the soft drinks industry (Yoffie, 2011). The two
companies

Naming And Packaging: Energy Drink Industry
Table of contents
Introduction 3
1 Naming and Packaging: marketing mix tools of the product 4
1.1 The products levels 4
1.2 Naming 5
1.2.1 The visual distinctiveness of a brand 5
1.2.2 Selecting the right name 6
1.3 Packaging 7
1.3.1 Definition 7
1.3.2 The functions of packaging 7
1.3.3 The importance of packaging 8
2 Packaging and Naming for the energy drink industry 9
2.1 Industry overview 9
2.1.1 Leading brands on the Australian market 10

2.1.2 Target market of the energy drinks 10
2.2 Packaging issues and trends on the energy beverage market 11
2.2.1 Capacity and materials 11
2.2.2 Graphics and scripts 13
2.3 Naming issues on the energy drinks market 15 ... Show more content on Helpwriting.net ...
This is why we decided to focus on the second level of the energy beverages, their name and package. (www.learnmarketing.net/product.htm, 14/09
/2004)
First, what lies behind the concepts of naming and packaging?
1.2 Naming
"The naming of the product, service or company is called branding. Abrand or name is the label that consumers associate with your product. For this
reason, a brand or name should help communicate the product's positioning and its inherent drama for the consumer" (Roman G. Hiebing Jr and Scott
W. Cooper; The successfulmarketing plan, a disciplined and comprehensive approach; 2003).
McCarthy, Perreault and Quester define branding as "the use of a name, symbol, design or combination of the three to identify a product" and more
particularly a brand name as "a word, letter, or group of words or letters used to identify a product" (Basic Marketing, a managerial approach; 1997).
1.2.1 The visual distinctiveness of a brand
"The name is composed of the title by which the company, product, or service is commonly known and the graphic forms of identification, including
symbols, logotypes or signatures, tag lines, and representative characters" (Roman G. Hiebing Jr and Scott W. Cooper; The successful marketing plan,
a disciplined and comprehensive approach; 2003).
Some products, as paper clips, or energy drinks, are poorly differentiated by their "physical"

Super Group's Competitiveness In The Hot Drink Industry
This report is focused on studying how Super Group Ltd can increase its competitiveness in the hot drink (F&B) industry. 1.1 Company's
BackgroundSuper Group (Super) is an instant food and beverages (F&B) brand distributor and owner based in Singapore that operates their business
through two different segments of branded consumer and food ingredients. Super is established in 1987 and got listed in Singapore Stock Exchange
(SGX) in 1994. The group is the pioneer in introducing instant cereals and has established 15 strategic manufacturing facilities in 6 different countries
including Thailand, Myanmar, and Singapore. Super's branded consumer segment develops and distributes more than 300 consumer brands of instant
beverages and convenient... Show more content on Helpwriting.net ...
Has high level of advanced technologies and manufacturing facilitiesNo change no the current skillsFit Skills are suitable for vertical diversificationTo
constantly improve its R&D skills to keep up with the technologies and innovate more new products

Consumer Behaviour- Soft Drink Industry
Consumer behavior
Soft drink – Thums Up
Introduction
The soft drink industry in India is one of the most competitive with many international and domestic players operating in the market. Initially domestic
players like Parle group dominated the Indian soft drink market with brands like Thums up, Limca, Goldspot etc. However with the re–entry of MNC
players like Pepsi in 1991 and Coca–Cola in 1993, the market took a decisive shift in favour of these MNCs and over the years Coca–Cola and Pepsi
have become the prominent players in the market.
Soft drinks can be principally classified into carbonated and non–carbonated. Carbonated drinks include cola, lemon and orange flavors while non
carbonated drinks principally comprise of mango flavor. ... Show more content on Helpwriting.net ...
Sanjiv Gupta, President and CEO of Coca–Cola India, joined Coke in 1997 as Vice
President, Marketing and was instrumental to the company's success in developing a brand relevant to the Indian consumer and in tapping India's vast
rural market potential. Following his marketing responsibilities, Gupta served as Head of Operations for Company–owned bottling operations and then
as Deputy President.
Product Range
The product range of Coca–Cola includes beverages like: * Coca–Cola
The parent brand of Coca–Cola Company, Coca–Cola has a truly remarkable heritage. The world's favourite drink.
* Thums Up
Strong Cola taste. Thums Up is a leading sparkling soft drink and most trusted brand in Indian soft drink market.
* Sprite
A global leader in the lemon lime category, it is second largest sparkling beverage Brand in India. Sprite with it's cut–thru perspective has managed to
be a true teen icon. Sprite's all about being true to yourself and living by the simple and honest code of your own instincts. No more....no less.
* Fanta

Over the years Fanta has occupied a strong market place and is identified as "The Fun Catalyst". Perceived as a fun youth brand, Fanta stands for its
vibrant color, tempting taste and tingling bubbles.
* Limca
Lime 'n' lemoni Limca can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limca has remained unchallenged as the No.1 Sparkling
drink in the Cloudy lemon segment.
* Minute Maid Pulpy Orange
One of world's

The Energy And Sports Drink Industry
"Pay careful attention to your own work, for then you will get the satisfaction of a job well done, and you will not need to compare yourself to
anyone else" Galatians 6:4 (Dake's Annontated Reference Bible). People who are satisfied with their job are more likely to want to improve their
company as well as their personal life. God teaches us to take pride in our actions and not to compare ourselves to what others are doing or have. The
energy and sports drink industry was able to use their resources to compete with other companies in order to make their company great. This paper will
talk about the sports drink industry and whether or not they are competitively important, the resources they have at their disposal, and how they use...
Show more content on Helpwriting.net ...
They also used other marketing techniques such as advertising at sporting events and having professional teams use their products. Because of their
different marketing techniques and resources, they were able to make their product appealing to the populace.
Strategy
Companies such as Pepsi–Cola and Coca–Cola were able to determine whether their strategy was successful by measuring their sales and their earnings
growth. Companies are able to tell how successful they are by their overall financial strength and their ability to retain customers (Gamble et al., 2013).
The soft drink industry was able to change their image by endorsing their sports drink and vitamin water products as being healthier. They also made
people aware of how important it is to keep the body hydrated and proved that their product could help. Their strategy was to appeal to a healthier
clientele who are more active customers, than they previously had with their soda clientele. They were able to draw in these new customers and
develop a different marketing perspective. They were able to attract new customers who were not interested in their soda line but wanted a healthier
drink.
Competitive resource capabilities "A resource is a competitive asset that is owned or controlled by a company; a capability is the capacity of a
company to competently perform some internal activity. Capabilities are developed and enabled through the deployment of a company's resources"
(Gamble,

. Soft Drink Industry Five Forces Analysis:
. Soft Drink Industry Five Forces Analysis:
Soft drink industry is very profitable, more so for the concentrate producers than the bottler's. This is surprising considering the fact that product sold
is a commodity which can even be produced easily. There are several reasons for this, using the five forces analysis we can clearly demonstrate how
each force contributes the profitability of the industry.
Barriers to Entry:
The several factors that make it very difficult for the competition to enter the soft drink market include:
Bottling Network: Both Coke and PepsiCo have franchisee agreements with their existing bottler's who have rights in a certain geographic area in
perpetuity. These agreements prohibit bottler's from taking on ... Show more content on Helpwriting.net ...
Also soft drink companies diversify business by offering substitutes themselves to shield themselves from competition. Rivalry:
The Concentrate Producer industry can be classified as a Duopoly with Pepsi and Coke as the firms competing. The market share of the rest of the
competition is too small to cause any upheaval of pricing or industry structure. Pepsi and Coke mainly over the years competed on differentiation and
advertising rather than on pricing except for a period in the 1990's. This prevented a huge dent in profits. Pricing wars are however a feature in their
international expansion strategies.
2. Economics of Bottling vs Concentrate Business
Factor
Bottling Business
Concentrate Business

(Data from Exhibit 5)
As the above table indicates concentrate business is highly profitable compared to the bottling business. The reasons for this are:
Higher number of bottler's when compared to the concentrate producer's which fosters competition and reduces margins in the bottling business
Huge capital costs to set up an efficient plant for the bottlers while the capital costs in concentrate business are minimal
Costs for distribution and production account for around 65% of sales for bottler's while in the concentrate business its around 17%
Most of the brand equity created in the business remains with concentrate producer's
Possible Reasons for Vertical

entering the soft drinks industry in india
Entering the Soft Drinks Industry in India
Global and International Business Contexts
Word Count: 2896
Contents
Contextual Analysis:
Page: 3: Background to India:
Page 3: Porter's National Diamond: Factor Conditions
Page 3: Porter's National Diamond: Demand Conditions
Page 4: Porter's National Diamond: Firm Strategy, Structure and Rivalry
Page 5: Porter's National Diamond: Related and Supporting Industries
Page 5: Porter's National Diamond: Role of Chance
Page 5: Porter's National Diamond: Role of Government
Page 6: Porter's Five Forces: Buyer Power
Page 6: Porter's Five Forces: Supplier Power
Page 6: Porter's Five Forces: New Entrants
Page 6: Porter's Five Forces: Substitutes
Page 7: Porter's Five ... Show more content on Helpwriting.net ...
Glocalisation entails local and global activities acting simultaneously, where they would "think globally and act locally" (Glocalisation, no date). By
adapting to the local environment, the MNC could gain a competitive advantage as an international brand as they would appear to take in to account
the local surroundings of their brand and they are more likely to be successful as they would be selling a product that the local Indians would want. The
MNC should internationalise to respond to the megatrend of competitors, which is a deterministic force, and then compete through adaptation of their
product to suit the local surroundings in India. The strategy the MNC should consider after analysing the demand conditions is to consider both price
and value together. They should differentiate themselves from othersoft drink suppliers by offering a strong brand that young Indians are conscious of
(Soft Drinks in India, 2011) but also an acceptable price. Although there is a huge poor population in India, if the MNC were to target Southern India

as suggested after looking at the factor conditions, research by the Bureau of South and Central Asian Affairs (2011) depict a large and growing
middle–class population of India that have a disposable income of between $4,166–$20,833 per year; this suggests that they could price their product in
correspondence with the other brands

Financial Analysis On The Soft Drink Industry
Financial Analysis: ROE: The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation 's
profitability by revealing how much profit a company generates with the money shareholders have invested. (Text book Definition). ROE is
expressed as a percentage and calculated as: Return on Equity = Net Income/Shareholder 's Equity Net income is for the full fiscal year (before
dividends paid to common stock holders but after dividends to preferred stock.) Shareholder 's equity does not include preferred shares. Return on
equity (ROE) is one of the most important indicators of a firm 's profitability. ROE shows how well a company uses investment funds to generate
earnings growth and is an indicator of potential dividend growth. By completing a ROE analysis using the DuPont formula, an investor can understand
the key drivers of that return: profitability, operating efficiency, and financial leverage. The importance of the DuPont analysis becomes clear when
examining the soft drink industry. Three companies combined hold almost 90% of the entire market share of the carbonated soft drink in the U.S. –
Coca–Cola (NYSE:KO), PepsiCo (NYSE:PEP) and Dr. Pepper Snapple (NYSE:DPS). All three have an ROE of approximately 27–28%, suggesting
that they are evenly matched in terms of profitability and potential growth. However, a closer examination using the DuPont equation shows some
important differences. DuPont Analysis Below is the DuPont

Strategic Management and Personal Media Players
Apple, Inc. in 2010
Assignment Questions
1.What are the chief elements of Apple's overall competitive strategy? How well do the pieces fit together? Is the strategy evolving?
2.What are the key elements of Apple's strategy in computers, personal media players, and smartphones? Have its strategies in its core businesses
yielded success? Explain.
3.What does a competitive strength assessment reveal about Apple's computer business, as compared to the leaders in the personal computer industry?
Use the methodology in Table 4.2 to support your answer. Does it appear that the company's competitive positions in personal media players and
smartphones or stronger or weaker than its position in computers?
4.Does it make good strategic sense ... Show more content on Helpwriting.net ...
5.What grade would you give Southwest management for the job it has done in implementing and executing the company's strategy? Which of
Southwest's strategy execution approaches and operating practices do you believe have been most crucial in accounting for the success that Southwest
has enjoyed in executing its strategy? Are the any policies, procedures, and operating approaches at Southwest that you disapprove of or that are not
working well?
6.What weaknesses or problems do you see at Southwest Airlines as of mid–2010?
7.Does the AirTran acquisition make good strategic sense for Southwest?
8.What strategic issues and problems do Gary Kelly and Southwest executives need to address as they proceed to close the deal with the AirTran
acquisition and contemplate how best to integrate AirTran's operations and AirTran's employees into Southwest?
9.What recommendations would you make to Gary Kelly and Southwest executives as the company heads into 2011?
Competition in Energy Drinks, Sports Drinks and Vitamin–Enhanced Beverages
Assignment Questions
1.What are the strategically relevant components of the global and U.S. beverage industry macro–environment? How do the economic characteristics
of the alternative beverage segment of the industry differ from that of other beverage categories? Explain.
2.What is competition like in the alternative beverage industry? Which of the five

The Energy Drink Industry Must Have A Swot Analysis
The energy drink industry must have a SWOT Analysis just like any other industry in order to assess the market before entering. The strengths in the
energy drink industry are its "quick fix" for consumers; their products serve as a quick burst of energy for their target consumers of people on the go.
Other strengths include the high brand awareness and relative attractiveness in the industry. Everyone knows what energy drinks are and the purpose
they serve so companies in this industry do not have a problem integrating their product into the energy drink industry; this serves as a critical success
factor in the industry. Energy drinks being relatively attractive in the industry is a definite strength in terms of advertising because often energy drinks
are portrayed as that "must have" product that the consumer cannot go without. Every industry has its weaknesses, the weaknesses the energy drink
industry incur are the ease of entry, maintaining a strong customer base, the slightly above average prices, and lack of distinction. The relatively low
entry barriers make it easy for practically anyone entering the energy drink industry, creating many avenues for competitors to come in. Also, due to the
many companies in the industry this makes it difficult for companies to maintain a strong customer base and differentiate their product since there are
countless different energy drink options and most energy drinks are made with the same base ingredients. The primary

How The Soft Drink Industry
In this essay, I would like to discuss the structure and the development of the Soft Drink Industry and how it manages to stay alive and profitable,
over the years. The reason why I chose this topic is because I wanted to study how the Soft Drink Industry operates from selling beverages to growing
very successful. In this essay, my intentions are to inform the reader about the responsibilities a Soft Drink Industry must take to survive in the long
run and also answer the questions that I have created for this essay. The way I will arrange this essay is to begin explaining the background
information about what a Soft Drink are and how it became industrialized. Next I will discuss how the industry operates and what makes the industry
very ... Show more content on Helpwriting.net ...
Then, in the late 1800s, the popular soft drink brands "...Root Beer, Dr. Pepper, Coca–Cola and Pepsi–Cola..." have emerged and competed against one
another. By the time the development of modern life began to increase at a fast pace, manufactures had to change the formula for creating soft drinks.
They began turning soft drinks into "...alternatives to alcohol and/or as stimulants." rather than therapeutic medical drinks. "After World War II, the
soft–drink industry became a leader in television advertising, the use of celebrity endorsements, catchy slogans, tie–ins with Hollywood movies, and
other forms of mass marketing, particularly focusing on young consumers and emphasizing youth–oriented themes." At that point, the soft drink
industries started to gain huge attraction towards its consumers and tried to find new ways to raise the customer's demand further. Such as providing
healthy options like "...sugar–free and low–calorie diet sodas, beginning in the 1960s, and later, caffeine–free colas..." and they also began providing
larger bottles at a low price. Such as the time when "...Pepsi challenged the industry leader by offering a twelve–ounce bottle for the same five–cent
price as Coke 's standard

Coca Cola And The Soft Drink Industry
This report examines a very dominant company, Coca–Cola, in the soft drink industry in order to report it's financial health. This article covers the
economics and nature of business employed by Coca–Cola. The financial analysis covers the companies common–size income statements and balance
sheets, and various financial statement ratios such as liquidity, capital structure and solvency, return on investment, operating performance,asset
utilization and market measures from year 2009 to year 2013. Then conclusions are drawn based upon results of said financial analysis. An analysis is
then given at the end of the report.
Coca–Cola
Coca–Cola is a strong leader in the highly profitable soft drink/beverage industry lead by their Chief ... Show more content on Helpwriting.net ...
Coca–Cola's higher profit margin and dividends are certainly very attractive to a potential investor, but it's competitor's growth potentials, business
diversification, low short–term liquidity risk, low long– term solvency risk, good return on investment and efficient asset utilization definitely make the
other company's stock a better investment choice. In my opinion, Coca–Cola is a good buy. They have a very high ROI and is a fairly low–risk stock.
Balance Sheet Analysis
Coca–Cola total current assets have been gradually increasing over the years in 2009 they only had about $17.55B in total current assets and have
increased to about $31.3B in 2013. This translates respectively to total assets and in 2013 they reached a record high of about $90.06B. This seems
very promising however you must consider total liabilities and equity which has also been increasing. With last year's total liabilities at about $56.9B
and total equity at about $33.2B. A gradual increase of all three aspects proportionately indicates a healthy financial position.
Income Statement Analysis
Coca–Cola is able to grow its sales every year by an average rate of 11.53% from year 2010 to year 2013, slightly slower than its competition and has
also been severely decreasing since 2011. But Coca–Cola maintained a Gross Profit Margin of 60.74% last year. This could indicate that Coca– Cola
was successful in controlling its raw ingredients cost either by buying with lower price or by effective

Case Study Of Carbonated Drinks Industry
Carbonated Drinks Industry: How do advertising outlays affect Profitability and Sales
CREDITS
Varun Srivastava (357)
Vivek Chauhan(261)
Pankaj Goswami (334)
Himanshu Singh (375)
EXECUTIVE SUMMARY
Carbonated Soft Drinks (CSD) industry has been notorious since the 1980s for excessive advertising and huge outlays on promotion through media.
Coca Cola and Pepsi, the two major players in this industry have been known to spend as much as 35% of total expenditures on advertising.
This study was intended to study the impact of advertising outlays on total sales to figure out whether there is method to this madness in CSD industry.
The results of the study on the advertising vs sales data of Coca Cola Company over the years 1993–2006 strongly support the decision of the company
to engage so highly in promotion.
The covariance of advertising expenditure and sales was found to be 1.05
The correlation of advertising expenditure and sales was found to be .94
BACKGROUND AND MOTIVATION
Background
In the late 18th century, scientists worked extensively on development of carbonated drinks, trying to replicate the carbonated mineral water from
natural springs. In 1767, Englishman Joseph Priestley, discovered the method of making carbonated water. Swedish chemist Tobern Bergman invented
... Show more content on Helpwriting.net ...
The purpose of an advertising campaign is described as to keep reminding the worth of the product to the customers rather than just being sales . The
importance of advertising has been extensively explained with help of certain examples such as the process of building consumer interest, Increase

consumer confidence, build consumer familiarity. Non consumer enterprises, NGO's have also realized the importance of advertisement and
advertising has been used to reach societal–oriented

Carbonated Soft Drink Industry For Management 400
This is a case analysis of the carbonated soft drink industry for Management 400. First, to set our boundaries of the industry, I will set the boundaries
of the carbonated soft drink industry. The carbonated soft drink industries are companies that are in the production of soda products, sports drinks, and
energy drinks. The production and distribution of carbonated soda drinks can be broken down into four separate sections: concentrate producers,
bottlers, retail channels, and suppliers. The first section is the producers of concentrate syrups. These are companies like Coca–Cola, Pepsi, and Dr.
Pepper who specialize in creating the concentrates. The second groups are the bottlers of soda products. The bottlers, buy concentrate from companies
like Coca–Cola, then add carbonated water and other sweeteners, and then bottle the product for delivery to retailers. The third sections are retail
channels. Retail channels are supermarkets, fountain outlets, gas stations and other stores where soda is sold to end consumers. The suppliers to the
industry make up the last of the major players in the carbonated soft drink industry. The suppliers in the industry supply both the concentrate producers
and also the bottling. The soda production industry has a fairly concentrated market with two major companies accounting for 70% of the market share.
The Coca–Cola Company is by far the leading company in the industry with over 40% share of the market. Its closest competitor is the PepsiCo

Sports Drinks Industry Analysis
Executive Summary We have noticed an increasing number of businesses catering to the recent rise of a new target market: the health–conscious
consumer. At Nike, our goal has always been to give consumers what they want now, as well as to anticipate their future tastes, and to thus tailor our
strategy to accommodate those tastes. We have recognized an unfilled market potential in the non–carbonated energizing sports drink arena, thus
developing an entirely new product category. Our branding strategy is to enter the market by carving a new niche of protein–enriched energizing sports
drinks. Our objective is to educate consumers about the new drink, as well as to make a profit and gain market share in the industry. We hope that by...
As a result of these trends, consumption of youth–oriented products has grown as people strive to be in good shape. The Nike Motion energizing
sports drink will provide the energy these people need to accomplish their objectives. Ethnic trends are likewise changing, with baby boomers retiring,
and an increasing young Latino population emerging, along with an influx of Asians. The Hispanic population, becoming the largest minority segment
in 2002, has grown 70 percent over the past decade to approximately 37 million (14.1 percent of the U.S. population).1 These youths lead fast–paced
lifestyles, frequently juggling school, work, and personal lives. For the younger generation, regardless of ethnic background, feeling tired is not an
option. The popularity of the sports and energy drinks has proven this fact. We at Nike thus believe that Nike Motion will be a tremendous success,
appealing to a health–conscious population with our alluring natural ingredients, while simultaneously satisfying the increasing need for energizing
products. Political and Legal Environment: The political environment could have a significant effect on us if we were to market Nike Motion in
foreign countries. Constant changes in exchange rates and political systems are important to keep in mind. As to the legal environment, each and every
firm

Pepsico : The Food And Drink Industry
You'll either love them or hate them, PepsiCo has grown over the years with different brands becoming a dominate company is the food and drink
industry. In recent years they have been getting a bad reputation due to their unhealthy drinks and foods. In a 20 ounce bottle of Pepsi, there is 13.8
teaspoons of sugar. "Two out of three adults and one of three children in the United States are overweight or obese." Studies have shown that the
number of health problems that are related to obesity is due to the increased consumption of sugary drinks. High sugar drinks are being compared to
cigarettes, along with fast food restaurants that are high in fat. I will discuss how PepsiCo became a leader in the beverage industry by looking into ...
From the 1980s to the 90s PepsiCo had brought on many different brands such has popular Mug Root Beer, and 7–Up. PepsiCo was involved in other
countries such has the United Kingdom with Walker's Crisps, and in Mexico with cookie company Gamesa. Ready to drink teas from Lipton were
brought on in 1993 along with other bottled products like Aquafina water in 1994. Their largest acquisition was Quaker Oats in 2001 for $13.9
billion. This acquisition brought many categories such as oatmeal and snack bars, but the brand that made it worth the high cost was Gatorade. In
recent years they have bought a leading Russian food and beverage company for $3.8 billion. PepsiCo's strategy of having a diverse group of brands
from snack foods to high in sugar drinks have allowed them to grow with these close relationships.
When looking at the value chain of PepsiCo, one of PepsiCo's strongest aspects is their distribution. They can deliver products to their customers in
many different ways. Direct store delivery (DSD), customer warehouses, and third–party distributor networks. PepsiCo has the ability to satisfy their
customers with plenty of options when it comes to getting the product to the store shelves. By having a DSD system, PepsiCo has its drivers bring
product to the stores and see what is selling and what is not. This is an effective method if the products are needed to be restocked for events like the
Super

The Sports Energy Drink Industry
This case study written by Krupa Kansaru on the history of Red Bull and their success in making the sports energy drink market what it is today has
shown the key strengths of the company. The obvious strength that the Red Bull company has a unique and early start in the sports energy drink
industry. CEO Dietrich Mateschitizin was quoted in the case study, he says that "if we don't create the market, it doesn't exists," this quote parallels
with Red Bull as a whole. Starting in the 1980s Red Bull used abstract marketing strategies involving differentiation, "word of mouth", and buzz
marketing to popularize the product instead of using a traditional approach by launching their product and waiting to integrate it into mainstream
media. Red Bull thrusted itself into communicating with its customers and fan base by launching events, working closely with event coordinators, and
strategic product placement. Red Bull also holds much strength by associating the product and brand with athletics and extreme sports. Targeting a
younger generation and portraying the idea of a "fuller and freer life" has proven to truly engage the popular culture and counter culture alike. It is
stated in the case study that Red Bull holds a seventy percent market share in over one hundred countries statistics like that show the company's true
strength especially compared to competitors like Monster and Rockstar.
Weaknesses
Using the platform of epic adventures and excited living Red Bull gained many

The Energy Drink Industry : Red Bull Gmbh
In 1997, the lives of millions of Americans changed after the consumption of one special beverage owned by an Austrian drink company, Red Bull
GmbH. Red Bull was founded by International Marketing Director, Dietrich Mateschitz, in the mid 1980's, who partnered with Thai manufacturer,
Chaleo Yoovidhya, who had been selling his caffeinated beverage (KratingDaeng) in Thailand since 1976. Originally selling at $2.19 per 8 ounce can,
Red Bull was marketed in the United States as an alternative to soft drinks created by Pepsi and Coca–Cola. Not only did people find this drink an
excellent alternative to typical caffeinated beverages, the introduction of this refreshment created the start of the highly marketable and extremely
competitive energy ... Show more content on Helpwriting.net ...
2) Global expansion is an important strength within this industry because consumers around the world have so much to achieve in a world where so
many feel that there is "not enough time in a day." Through consumption of energy drinks, it allows people around the world to fight their body's
desire for rest and provides just enough extra energy to get them through their day. Weaknesses are also very prevalent within this industry: 1) Pricing
is a large factor in terms of high consumption rates of energy drinks. Red Bulls are sold at almost double the price of soft–drinks, a small cup of coffee,
and other beverages with the same caffeinated abilities. Because of their prices, Red Bull must be sure that they are selling a product that is worth the
cost. 2) Energy Drinks are typically focused on younger generations (young adults/athletes) and those that live extremely active lifestyles. This means
that there are at least 2 other generations that typically have no interest in consuming the product. 3) Non–organic energy drinks in large consumption
can be detrimental to the body causing health issues if not taken in moderation. Many people that use these products consistently can become addicted
to the caffeine, leading their body becomes dependent on the extra caffeine and sugars which can

Coke And Pepsi Has Shaped The Soft Drink Industry
COMPETITORS
Over 100 years, intense rivalry between the two– Coke and Pepsi has totally shaped the soft drink industry of the world (combined they are 73% of the
market share). The most battles of the cola wars were fought over the industry in the USA, where the consumption by an average American is 53
gallons of carbonated soft drinks per year. In a competitive struggle, from 1975 to 1995 both had achieved average annual growth of around 10%
because of increase in soft drink consumption consistently in US and worldwide. Then this cozy situation was threatened in the late 1990s, when the
consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi.
Globalization provides both with unique challenges as ... Show more content on Helpwriting.net ...
In case of shortage of the raw materials the prices have to be increased in order to match the expected the expected revenue which further brings down
the demand. Similarly, natural calamities also affect the demand sometimes in the same manner.
6.)Cultural factors
To make its place in a society, a brand has to connect with the social values prevailing in the culture. Pepsi is currently associated with the western
culture and is trying to make its place in the eastern one too. Various cultures hold different perceptions which have to be assessed carefully by Pepsi
to localize its brand in new cultures.
ECONOMIC AND NON ECONOMIC GOALS OF PEPSI
1.Sales Maximization: Sales Maximization involves business charging lower price to capture a large market share. Profit is a goal of the firm but it
gives more priority to sales maximization as its efficient management and cost reduction has already given them much profits. Pepsi owns more than
25% of the market shares and also dominates the sales market. So, it marks its price in such a way that it is pocket friendly for the consumers. In order
to promote sales maximization, it aims to have a strong market position and launches its products in more than 200

Energy Drinks And The Energy Drink Industry
Energy drinks have outperformed the growth in carbonates in the last few years, and present a substantial opportunity for beverage manufacturers to
extract further growth from their sales. There are many driving forces of change and critical success factors in the energy drink industry. Companies
such as Coke Cola and Pepsi contend with criticism from health officials due to the excessive caffeine in most high–energy drinks. However, before the
2000's consumers were accustomed to carbonated soft drinks as the traditional beverage. The shift to an energy drink, sports drink, and vitamin
enhanced waters increased sales while becoming an alternative beverage choice for a fast–paced mobile society. Therefore, this industry endures many
... Show more content on Helpwriting.net ...
. Pepsi's and Coke Cola's Dominant Economic Characteristics.
These two–company's economic characteristic include their market size and growth rate from the early 2000's to 2010. Coke and Pepsi have struggled
for years in the carbonated and non–alcoholic sector. According to Barbara Murray (2006c) "But as the pop fight has topped out, the industry 's giants
have begun relying on new product flavors and looking to noncarbonated beverages for growth." (Murry, 2006). For instance, Coke boasts in the
advertisement as the king of the soft drink; as a consumer of both products, I agree. About 15 years ago, I was selected to participate in a critiquing
of Coke and Pepsi products. Additionally, my travel to Africa in 2007 and 2010 provided the same raving review for the Coke Cola products.
Apparently, Coke and Pepsi have been rivals for ages locally, regionally, nationally, multinational, and globally, therefore, one expects them to have an
on–going rivalry when marketing the high–energy beverages. The Coca–Cola Company leads the world in manufacturing, marketing and distributing
soft drinks. The company is styled as unstoppable due to its universal appeal ranging from Minute Maid orange juice, Dasani purified water to
PowerAde sports drinks and Fuze vitamin–enhanced water. Indeed, despite the fact that Coca–Cola has ruled the drink market for the twenty years,
however, "the soft–drink giant is struggling as per–capita consumption of soda has hit multi–decade lows."

How The Energy Drink Industry

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