1. 1
Soft Drinks

2. 2
The Segment
Milk-Based Drinks
Fruit Juices and Nectars
Carbonated Soft Drinks

3. 3
Dominant Players

4. 4
Market Characteristics
 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.

5. 5
Critical Success Factors
 Brand strength
 Distribution network
 Bottling plants owned/efficient bottling
 Advertising expenditure
 Positioning, perceived value of product
 Visibility at retail locations

6. 6
Pepsi’s Marketing Mix
 Target segment – population in the age group
15–35 years
 Positioned as a ‘cool’ drink for the youth and
the ‘Gen Next’

7. 7
4Ps
 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

8. 8
 Product
• Product differentiation in terms of shape, bottles and cans,
colours and logos.
• Ultimately, difference in perception created
 Promotions
• Film stars and cricketers
• Sponsoring cricket tournaments
• Lifestyle products
4Ps

9. 9
Market Scenario
Sources:
Infoquest, Fruit Juices in India, 2005
Datamonitor SoftDrinks in India to 2010, 2006

10. 10
Amul
 Flavoured milk (Kesar, Elaichi, Rose),
Cool Café, Cool Coco, Lassi,
Buttermilk
 80% market share
 35% growth expected
 85% of sales in small outlets
 Shelf life 6 months
 No refrigeration required

11. 11
Real Fruit Juices
 Dabur Foods Division
 Pack sizes: 1ltr and 200 ml
 6 months expiry, Tetrapak
 40% market share
 25% yearly growth
 Different distribution networks for
200 ml and 1 ltr variants
 Distributor promotions: 12+1 and
15+1 packs

12. 12
Comparison
Brand
Major selling
SKUs
Pack size Pack type Retail price
Distributor
margin
Retailer
margin
Amul
Flavoured milk
(Kesar, Elaichi,
Rose)
200 ml Glass bottle Rs 10 4.25% 10%
Buttermilk, Lassi 200 ml Tetrapak Rs 7/Rs 12 4.25% 10%
Cool Café, Cool
Koko
200 ml Tetrapak Rs 12 4.25% 9%
Real
Orange, Mixed
Fruit Juices
200 ml Tetrapak Rs 10 6.5% 15%
Orange, Mango
Juice
1 ltr Tetrapak Rs 70 6.5% 15%
Activ: Orange-
Carrot
1 ltr Tetrapak Rs 75 6.5% 12%
Tropicana
Juice: Orange 200 ml Tetrapak Rs 12 5% 12%
Nectar: Mango,
Orange
200 ml Tetrapak Rs 10 6% 15%
Nectar: Orange 1 ltr Tetrapak Rs 60 6% 15%

13. 13
Market Characteristics - General
 Consumption of RTDs on the rise
 Have such drinks while on outings,
hanging out, or as thirst quenchers
 Consumption highly seasonal
 Shift from CSDs to Juices and MBDs
• Health concerns
• Pesticide controversy
 Preference for Tetrapacks
 Word of mouth plays a major role
 Cost not a major factor

14. 14
Market Characteristics - MBDs
 Has not made significant
inroads in the market
 Replacement for coffee or tea
during summer months
 More filling than fruit juices
 Preference for coffee and
chocolate flavours
 Do not stock MBDs at home
 Perception that they get spoiled
easily

15. 15
Market Characteristics - Juices
 Fast growing segment
 Seen as a replacement for CSDs
 Orange and Mango flavours
liked the most
 Health consciousness
increasing, prefer no
preservatives, sugar free
versions
 Prefer to store them at home,
over CSDs and MBDs

16. 16
Conclusions
 Carbonated drinks dominate the market
 Increased health consciousness making Fruit juices, MBDs
on a growth path
 Pesticide controversies affected CSDs significantly

17. 17
Inferences
 Fruit juice market witnessing high competition
• Major players Dabur, PepsiCo hold almost 80%
• Numerous smaller players trying to enter
• The previous year saw a launch of more than 10 new brands
 MBD market dominated by Amul
• Large distribution network
• Numerous variants
• Established credence in milk-based segment
• But still has tapped only a small segment of market

18. 18
Inferences
 Scope for entry in the MBD segment
• Availability in the market not in tune with possible demand
• Amul lagging in brand promotions and creation of hype
 Gradual change in consumer mindset
 Ready to accept non-carbonated drinks
 Distribution costs kept down by using packaging which
negated the need for refrigeration

19. 19
Thank You!