Carbonated Soft Drink Analysis - 1394 Words

COKE vs PEPSI ADVANCED CORPORATE STRATEGY – SCIENCES PO CASE STUDY EXECUTIVE SUMMARY 1. A profitable industry based in: - - - A solid business model. Potential and relatively easy to diversify: space for complementary products (leverage brand equity) Good financial muscle. The soft drink industry is facing new challenges. The carbonated drink market has lost pace but there are several opportunities to overcome the situation. 2. Concentrate producers and Bottlers are extremely interdependent. Although having very different sources of profitability they ultimately rely on the same customers. The fundamental difference between CPs and bottlers is added value. The biggest source of added value for CPs is their proprietary,†¦show more content†¦Concentrate producers and bottlers, inextricably linked but†¦ Concentrate producers Inputs Process Output Few ingredients: caramel coloring, flavors, caffeine†¦ Little capital investment Concentrate Bottlers Concentrate, sweeteners and packaging Capital-intensive and high speed production lines Product ready to be sold to customers On one hand CPs support bottlers by: †¢ Investing in advertising, promotion, market research †¢ Negotiating on behalf of bottlers suppliers to achieve a reliable, faster and cheaper delivery On the other †¢ Bottlers buy concentrate from CPs using a formula that determine a price linked to the consumer price index. †¢ They are allowed to handle concentrates produced by others brands but who are not directly competing brands. ïÆ'   They are ultimately dependent on the same customers 4 †¦different in terms of profitability Different sources of value: †¢ oncentrate producers get value from their C secret recipe. Thanks to this un-replicable proprietary they can leverage on the price of the concentrate. †¢ ottlers must handle both with: B -the concentrate producers which grant them exclusive territories (to reduce rivalry) and share some cost savings but asks high price for their product. -their customers, to create strong relations that will ensure higher sells and shelf space, but want to pay less for not switching to other brands. (Direct store door agreements) Net sales Cost of sales Gross profit Conc. producerShow MoreRelatedCarbonated Soft Drinks - How Do They Work? Essay562 Words   |  3 PagesCarbonated Soft Drinks - How Do They Work? Carbonated soft drinks have a huge history since their foremost inception. They are sweetened carbonated water, i.e. sugar laced aqueous solution of Carbon dioxide; and conventionally they are served, as well as enjoyed, chilled. The term ‘soft’ is basically an obligatory benchmark for carbonated drink makers that sets the limits of solute in the solution to less than or equal to 0.5% by volume. The earliest instances of soft drinks were sherbets madeRead MoreEssay about Cadbury Beverages Case Analysis912 Words   |  4 PagesCADBURY BEVERAGES INC. CASE ANALYSIS Cadbury Beverages Inc. Case Analysis October 3, 2010 Cadbury Beverages, Inc. Case Analysis Marketing executives at Cadbury Beverages, Inc. want to re-launch the following brands: Crush, Hires, and Sun-Drop soft drinks. However, Cadbury has seen several challenges arise in the eve of their next attempt to lead the market. Senior marketing executives decided to focus generally on the Crush brand of fruit flavored carbonated beverages. The key issues thatRead MoreCase Study Analysis: Cadbury1460 Words   |  6 PagesCase Analysis: Cadbury Beverages, Inc. Crush Brand  ® Case Analysis: Cadbury Beverages, Inc. 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The company can trace its beginnings to 1783Read MoreThe Soft Drink Manufacturing And Carbonated Beverages Market Essay979 Words   |  4 PagesIntroduction: In the United States, The Soft Drink Manufacturing and carbonated beverages market is dominated by three major companies. They are Coca-Cola, PepsiCo, and the Dr. Pepper Snapple Group. These companies account for 66% of the total market shares Coca-Cola (28.6%), Pepsi Co Inc (26.8%), and the Dr. Pepper Snapple Group (8.6%). The carbonated soft drinks account for 65%, and noncarbonated beverages account for 35% of the industry market. The demand for soft drinks is driven by consumer tastesRead MorePorters Five Forces Analysis Of Pepsico1241 Words   |  5 Pages In the case of PepsiCo, analyzing the non-alcoholic beverage industry using Porter’s Five Force Analysis allows for assessment and adjustment to the strategic plans implemented to sustain competitive advantage. 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