Analysis Of The Soft Drink Industry Within The U.K

6874 words - 28 pages

1Introduction2Market segmentation3Governmental and environmental factors4Economic indicators5Capital requirements6Proprietary Product Differences7Absolute Cost Advantage8Learning Curve9Access to Inputs10Proprietary Low Cost Production11Brand Identity12Access to Distribution13Supplier concentration14Impact of Input on Cost or Differentiation15Threat of Backward or Forward Integration16Accesses to Capital17Summaries of Suppliers18Buyers19Buyer Volume20Buyer switching cost21Threat of backward integration22 Price to total purchases23Market leaders and their brands24Conclusion25 References1.This paper will explore Porter's Five Forces to determine whether or not this is an attractive industry and ...view middle of the document...

3Concentrates810825800775750-7.4Bottled water39042545042550028.2Total6,2606,5006,7506,6007,22515.4% ChangeYear-on-year-3.83.8-2.29.5rsp -- retail selling pricesSource: Key Note2. Market segmentationTable 8.2: Major Manufacturers and Distributors of Soft Drinks, 2000SectorMajor BrandsCompanyCoca-Cola Enterprises Carbonates; fruit drinksCoca-Cola, Diet Coke, Lilt,Fanta, Sprite, Five Alive,Schweppes¹Britvic Soft Drinks Carbonates; fruit drinksPepsi, Diet Pepsi, PepsiMax, Tango, R Whites7-Up, Quosh, BritvicRobinson's, Aqua LibraSmithKline BeechamCarbonates; concentratesLucozade, RibenaProcter & GambleFruit drinksSunny DelightAG BarrCarbonatesIrn Bru, TizerRHM FoodsJuicesDe L'Ora, Just JuicePremier WatersMineral waterEvian, VolvicNicholsCarbonates; dilutablesVimtoNestléBottled waterPerrier, Vittel, Buxton¹ -- Schweppes brands owned in the UK onlySource: Key NoteTable 8.3: Leading Take-Home Brands of Soft Drinksby Value (£m at rsp), 1999Value (£m at rsp)BrandMain Version(s)Coca-ColaCarbonate (cola)620Pepsi ColaCarbonate (cola)184RibenaConcentrate170Robinson's Concentrate/RTD167Sunny DelightFruit drink161LucozadeCarbonate (energy)119TangoCarbonate (fruit)90TropicanaFruit juice77Irn BruCarbonate (fruit)73LiltCarbonate (fruit)55Ocean SprayFruit drink52FantaCarbonate (fruit)51rsp -- retail selling pricesSource: ACNielsen/Off Licence News 26th May 2000DistributionAs in most drinks sectors, take-home has come to dominant the market volume, but with prices and margins constantly under threat, while consumption away from home continues to produce the value-added element.Table 8.4: Distribution of Soft Drinks by Value and Volume (%), 1999ValueVolumeCarbonatesGrocers (take-home)6070Catering/on-trade/impulse4030Total carbonates100100Concentrates/RTDGrocers (take-home)7080Catering/on-trade/impulse3020Total concentrates/RTD100100RTD -- ready-to-drinkSource:Key Note3. Governmental and Environmental Factors, etc.Globalisation has affected many drinks, producing two-way traffic in most countriesColonial connections are important, having given rise to popular drinks such as rum, derived from the sugar-cane industry. However, the US has had a growing impact on the UK in drinks, with companies such as Coca-Cola, Anheuser-Busch and Procter & Gamble targeting the UK and other European countries for growth once their domestic markets have been saturated. In recent years, the international consolidation of drinks industries has forced governments -- both national and regional, such as the EU -- to pay closer attention to cross-border mergers as they influence domestic markets. This has affected companies such as Diageo, Coca-Cola, Cadbury-Schweppes and most of the larger European brewing groups.The soft drink industry currently has had very little impact on the environment. One environmental issue of concern is that the use of plastics adversely affects the environment due to the unusually long time it takes for it to degrade. To combat...

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