The Soft Drinks Industry During The Market Revolution

Essentially, the soft-drink industry is largest beverage industry. It gross millions a year, and has different distribution channels. For example, these soft-drinks are sold in supermarket, Vending Machines, Gas stations, etc. The cost is incomparable to the amount of consumer we currently have in America. If Americans consumer on average 50 gallons in a year. The cost of 2.00 is not missed by the average person. With that said, there is a least likely chance that a person would attempt to duplicate the process at home. The soda making process is too time consuming, and inconvenient when a person can simply can go to the store to purchase. Consumers can either be very loyal to the brand or fickle. Influx in prices can make consumers switch very quickly. However, there are typically incentives associated with loyalty. There are giveaways and contest that entices the customers to keep purchasing. For example, Snapple does this with a real fact on every lid. I personally know people that will buy the product just to read the facts.

The soft drink industry is one of the most highly profitable industries in the USA. Also, the competitive market is a very large market. Americans consumed about 53 gallons of soft drinks per person a year in 2000 by $ 60.3 billion!! Comparing with the market in 1990, since it was 47 gallons. In recent years, the market growth has slowed.

     PepsiCo. Incorporated and The Coca-Cola Company are the two largest and oldest archrivals in the carbonated soft drink (CSD) industry. Coca-Cola was invented and first marketed in 1886, followed by Pepsi Cola in 1898. Coca-Cola was named after the coca leaves and kola nuts John Pemberton used to make it, and Pepsi Cola after the beneficial effects its creator, Caleb Bradham, claimed it had on dyspepsia. The rivalry between the soda giants, also known as the "Cola Wars", began in the 1960’s when Coca-Cola's dominance was being increasingly challenged by Pepsi Cola. The competitive environment between the rivals was intense and well-publicized, forcing both companies to continuously establish and

The first soft drinks in the 17th century weren’t originally carbonated. Instead, they had the ingredients of lemon juice, water and sweetened with honey. In 1767 the first-ever carbonated soft drink was created, and it was made by a doctor named Joseph Priestley. The first flavoured carbonated soft drink ever to be made was in the year 1807. It was made by a man named Philip Syng Physick. In the early years many pharmaceutical companies established the pop fountains. Consumers assumed that soft drinks had healing assets, and basically considered these drinks to be soda remedies for example, it could of cured head aches In fact, “Coke was developed while looking for an antidote to the common morphine addictions that followed the Civil War:

In the analysis for the adoption of the three theoretical perspectives, the Coca-Cola Company shall be used because of its existence as early as the 19th century (Ford, Stephens, & Cooper, 2007). Coca-Cola is the biggest company in the world dealing with the production and marketing of soft beverages. Moreover, it has one

With the only access to alcohol being through gangster organisations and speakeasies, many people turned to soft drinks as a new social drink. Consequently this lead to a boom in the soft drink industry with companies

When a person is deciding what to eat and drink, they must always look at how it will affect them, regardless of how good it tastes. Every food is filled with things that are good and bad. Soft drinks are the most consumed beverage in the world today. Unfortunately, soft drinks are extremely toxic. Whether soft drinks satisfy thirst and taste good, this should not be a good enough reason to drink it. We should all do our bodies a favor and stop drinking soda.

The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten

convenience and gas, fountain, vending, and mass merchandisers (primary part of “Other” in “Cola Wars…”

As we all go about our day, we rush to place to place. Around us there are things for sale, people everywhere trying to make money. As we are rushing around, we all tend to get thirsty as we have a thousand things going on. In America we have dozens of choices when it comes to soft drinks, although the two most widely known are Coca-Cola and Pepsi. Many are often stuck between choosing Coke or Pepsi; even though they are slightly different in appearance, taste, and price it makes a world of difference to the customer.

Soft drink industry is very profitable, more so for the concentrate producers than the bottler’s. This is surprising considering the fact that product sold is a commodity which can even be produced easily. There are several reasons for this, using the five forces analysis we can clearly demonstrate how each force contributes the profitability of the industry.

In an industry dominated by two heavyweight contenders, Coke and Pepsi, in fact, between 1996 and 2004 per capita consumption of carbonated soft drinks (CSD) remained between 52 to 54 gallons per year. Consumption grew by an average of 3% per year over the next three decades. Fueling this growth were the increasing availability of CSD, the introduction of diet and flavored varieties, and brand extensions. There is couple of reasons why the industry is so profitable such as market share, availability and diversity and brand name and world class marketing.

The case explains the economics of the soft drink industry. There activities that add value to consumer at nearly every stage of the value chain of the soft drink industry. The war is primarily fought between Coca-Cola and PepsiCo as market leaders in this industry; who combined have roughly a ninety percent market share in their industry. The impact of globalization on competition has allowed both of these major players to find new markets to tap which has allowed each continued growth potential.

Based on Robinson (2016), in the 18th century (1767), the Englishman Doctor Joseph Priestley found out oxygen and then developed the carbonated drinks, which is known today as soft drinks. In the late of 1800, Coca-Cola brought its product to the US market before delivering it to the UK. Soda drinks industry is a profitable market regarding the successful strategies and the cost of goods. Recent statistics research found that more than ( 1.9 ) billion liters of soda drinks are sold in the UK on trading every single year. The category raised by (4.3) percent last year, while sales in the best segment improved by ( 75 ) percent.

The change in the consumers' taste is another key trend in the industry. Many substitutes to carbonated soft drinks gained more popularity among consumers. Exhibit 5 shows an increase in the consumption of bottled water from 11.8 in 1998 to 13.2 gallons/capita in 2000, and that of juices from 10 to 10.4 gallons/capita at the expense of