Chapter 15 (soft drinks)
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This document discusses the soft drinks market in India, which is dominated by carbonated soft drinks from Pepsi and Coke. It notes that fruit juices and milk-based drinks are growing in popularity due to increasing health consciousness. Fruit juices have the fastest growth and are seen as healthier alternatives to carbonated drinks. Amul has the largest market share for milk-based drinks but has only tapped a small segment of the potential market. The soft drinks market is very competitive and critical success factors include strong brands, distribution networks, advertising, and positioning of products.
Chapter 15 (soft drinks)
- 1. 1Soft Drinks
- 2. 2The SegmentMilk-Based DrinksFruit Juices and NectarsCarbonated Soft Drinks
- 4. 4Market CharacteristicsExtremely competitive, market dominated by Pepsico and Coke
- 5. The total value of sales in this segment in the year 2006 were Rs 7000 crore
- 6. The growth rate of the consumption 22% p.a.5Critical Success FactorsBrand strength
- 8. Bottling plants owned/efficient bottling
- 10. Positioning, perceived value of product
- 11. Visibility at retail locations6Pepsi’s Marketing MixTarget segment – population in the age group 15–35 years
- 12. Positioned as a ‘cool’ drink for the youth and the ‘Gen Next’74PsPlace
- 13. Introduction in A+ cities such as Chennai, Mumbai, Delhi and move to the rest
- 14. Pepsi started in Chennai and Coke in Mumbai
- 15. Price
- 17. Prices move in tandem with oligopolistic nature of business84PsProduct
- 18. Product differentiation in terms of shape, bottles and cans, colours and logos.
- 19. Ultimately, difference in perception created
- 20. Promotions
- 21. Film stars and cricketers
- 23. Lifestyle products9Market ScenarioSources:Infoquest, Fruit Juices in India, 2005Datamonitor SoftDrinks in India to 2010, 2006
- 24. 10AmulFlavoured milk (Kesar, Elaichi, Rose), Cool Café, Cool Coco, Lassi, Buttermilk
- 25. 80% market share
- 27. 85% of sales in small outlets
- 28. Shelf life 6 months
- 29. No refrigeration required11Real Fruit JuicesDabur Foods Division
- 30. Pack sizes: 1ltr and 200 ml
- 31. 6 months expiry, Tetrapak
- 32. 40% market share
- 34. Different distribution networks for 200 ml and 1 ltr variants
- 35. Distributor promotions: 12+1 and 15+1 packs12Comparison
- 36. 13Market Characteristics - GeneralConsumption of RTDs on the rise
- 37. Have such drinks while on outings, hanging out, or as thirst quenchers
- 39. Shift from CSDs to Juices and MBDs
- 40. Health concerns
- 43. Word of mouth plays a major role
- 44. Cost not a major factor14Market Characteristics - MBDsHas not made significant inroads in the market
- 45. Replacement for coffee or tea during summer months
- 46. More filling than fruit juices
- 47. Preference for coffee and chocolate flavours
- 48. Do not stock MBDs at home
- 49. Perception that they get spoiled easily15Market Characteristics - JuicesFast growing segment
- 50. Seen as a replacement for CSDs
- 51. Orange and Mango flavours liked the most
- 52. Health consciousness increasing, prefer no preservatives, sugar free versions
- 53. Prefer to store them at home, over CSDs and MBDs16ConclusionsCarbonated drinks dominate the market
- 54. Increased health consciousness making Fruit juices, MBDs on a growth path
- 55. Pesticide controversies affected CSDs significantly17InferencesFruit juice market witnessing high competition
- 56. Major players Dabur, PepsiCo hold almost 80%
- 57. Numerous smaller players trying to enter
- 58. The previous year saw a launch of more than 10 new brands
- 59. MBD market dominated by Amul
- 62. Established credence in milk-based segment
- 63. But still has tapped only a small segment of market18InferencesScope for entry in the MBD segment
- 64. Availability in the market not in tune with possible demand
- 65. Amul lagging in brand promotions and creation of hype
- 66. Gradual change in consumer mindset
- 67. Ready to accept non-carbonated drinks
- 68. Distribution costs kept down by using packaging which negated the need for refrigeration19Thank You!