SOFTDRINK MARKETING BY MITESH

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By: SHIPALLLI (125 month(s) ago)

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Soft Drinks : 

1 Soft Drinks

The Segment : 

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

Dominant Players : 

3 Dominant Players

Market Characteristics : 

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.

Critical Success Factors : 

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

Pepsi’s Marketing Mix : 

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’

4Ps : 

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

Slide 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

Market Scenario : 

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

Amul : 

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

Real Fruit Juices : 

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

Comparison : 

12 Comparison

Market Characteristics - General : 

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

Market Characteristics - MBDs : 

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

Market Characteristics - Juices : 

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

Conclusions : 

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

Inferences : 

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

Inferences : 

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

Thank You! : 

19 Thank You!

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