Soft Drink Market in China

SOFT DRINK MARKET IN CHINA 1
China’s soft drinks Market.
Name
Institution
Date
Course
Tutor
City/Sate

SOFT DRINK MARKET IN CHINA 2
Introduction
Marketing is the ability to create a lasting relationship with customers and at the same time
device ways in which the customers can be satisfied through selling and buying of products and
services. Due to the globalization of markets, a company should not entirely depend on the
domestic market because it will only contribute to its disadvantage. This means by all possible
means a company should consider launching its products in other foreign markets because this
will contribute greatly to the growth and expansion of the company. Considering the exceeding
crowding of the soft drinks market in the U, this report will therefore focus on the PESTLE
analysis for starting a soft drink company in China.
China is a prime market for soft drinks because of its wider scope of development and
industrialization. The population of the country has tremendously grown over the years an aspect
that increases the possibility of a wider market. The climate of the country is always hot an
aspect that will increase the consumption of soft drinks since in most cases the drinks will be
used to quench thirst (Lemoi Ping 2018 p. 23). Individuals working in the industrial sector of the
country are among the potential customers and recipients of the company’s products and services
since a majority of them work for long hours an aspect that leads to most of them to rely on the
supply of foodstuffs and drinks from the sellers. The company will therefore be able to secure a
good market for its products since it will initiate a supply system to the interested customers and
at the right time (Benjamin 2019 p. 39). Soft drinks are also associated with happiness thus in all
the occasions and festivities of the Chinese, the demand of the soft drinks will be higher an
aspect that will increase the supply. Our company will enter the China market as an exporter of
soft drinks. This entry strategy is preferred since the government in China has taken measures to
escalate local consumption and the stream of imports from other states (Journal of Business

SOFT DRINK MARKET IN CHINA 3
Ethics 2015, p. 810). These measures are identified through several government initiatives like
reducing levies on particular consumer goods and the creation of new zones of trade in Tianjin,
Guangzhou, and Fujian.
PESTLE Analysis
This is a marketing strategy or tool used to study an environment that an enterprise is
undertaking its operations in or indenting to launch its operations. In this analysis, particular
attention is given to the political, economic, social, technological, legal and environmental
factors which may have an impact to the enterprise operations.
Political
The political setting and factors helps a company to determine the extent to which the
government of the day will influence the operations of the company. This should be considered
since the government may impose heavy taxation to the company due to the fact that it is a
foreign company. The extent at which how politics and campaigns impact business should be
analyzed critically (Sun and Jiang 2015 p. 1077). For instance in the previous election the
Chinese government had put so much pressure on foreign companies that did not meet the
government requirements. Obtaining permits and a go ahead to establish soft drinks company
operations is then very important before a concrete idea is arrived at (Meyer 2016 p. 25). The
company’s, mission and strategy should be communicated early in advance to ensure the
government is fully aware and that there is no backlash with the government at the start of the
operations.

SOFT DRINK MARKET IN CHINA 4
Economical
From 1985 -2015, the Chinese economy has been the fastest growing in the world. But in the
recent years the growth has slowed down due to maturity and stability. In the 2017 ranking its
Gross Domestic Product (GDP) was ranked among the top 80 globally having grown at a double
digit annually (Ping Chen And Xiaojin 2017 p. 6). This means that the country is a prime
investment ground for the soft drinks business to flourish. The competition from the Coca Cola
operations in the country should also be considered so as to minimize the chances of venturing
into a viable business in a non-viable place. The prices will also be considered and compared
with those of currently running soft drinks operations to avoid selling at prices that will lead to
rejection of the products at the start. To succeed in the Chinese competitive market the company
needs to consider revising its supply strategies, prices and the general service provision so as to
win more customers.
Social
The social factors will either impact a business positively or negatively. The Chinese social
setting is business oriented. Most of the citizens are always working throughout the year except
during the one month of festivities in the whole country (Chen and Sun 2018 p. 134). This aspect
therefore gives business a conducive environment to flourish and undertake its activities. During
the festivities, the consumption of soft drinks increases since the drinks are associated with
happiness. All occasions are graced with foodstuffs in the accompaniment of soft drinks in many
cases. This therefore makes china a viable market that the company should launch its operations
in. more to this the working population always use soft drinks to derive pleasure since hard
drinks are not accepted in working places because of the outcomes that are associated with