Rise Of The Carbonated Beverage Industry

756 words - 4 pages

Introduction
The global market for international soft drink industry is about $ 198 billion out of which the giants like Coca Cola and Pepsi hold a major stake. The marketing and sales trends vary from one country to another depending on the geographic and climatic conditions. Cadbury Schwepps is the third major player in the global soft drink industry. The three giants occupy about 90% of the total market. Over the past few years, the global trends have clearly indicated that the consumption of carbonated and non-carbonated soft drinks has nearly doubled. The western countries such as North and South America and Canada are consuming twice amount of beverage as they did nearly 10 years ago. ...view middle of the document...

Celebrities and sports people are regularly roped in to endorse the products.
Expansion in the rural market in Developing and under developed countries
Rural population accounts for more than 3 billion Million consumers, or ~70 per cent of the population in developing countries and accounts for ~50 per cent of the total FMCG market. The working rural population is approximately 400 Millions. In addition, an average citizen in rural area has less than half of the purchasing power as compare to his urban counterpart. Still there is an untapped market and most of the FMCG Companies are taking different steps to capture rural market share. The market for FMCG products in rural India is estimated ~ 52 per cent and is projected to touch ~ 60 per cent within a year. Coca Cola and Pepsi are the largest players in the industry and has the widest market coverage. (Barbara and Murray, 2006c)

Export of soft drinks- “Leveraging the Cost Advantage”
Cheap labour and quality soft drink products & services have helped developing countries to represent as a cost ad-vantage over other Countries. Even the Government of these countries has offered zero import duty on capital goods and raw material for 100% export oriented units. Multi National Companies like Coca cola and Pepsi out-source its product requirements from smaller...

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