Soft Drink Industry Analysis for Mental Wealth 1: Task 2 Presentation

This presentation provides a comprehensive analysis of the soft drink industry, focusing on market trends, competitor information, and relevant factors. It begins with an introduction and outlines the product class, specifically soft drinks, highlighting key companies like Coca-Cola and PepsiCo. The analysis delves into the sector's dynamics, emphasizing evolving consumer preferences and the rise of healthier alternatives. A PEST analysis examines the political, economic, socio-cultural, and technological factors influencing the industry. The presentation also applies Porter's Five Forces model to assess the competitive landscape. Key market trends, including health and wellness, premiumization, convenience, and direct-to-consumer offerings, are discussed. Finally, the presentation concludes with a list of references. This presentation is a valuable resource for students seeking to understand the intricacies of the soft drink industry. Desklib provides additional study materials such as past papers and solved assignments to aid in learning and academic success.

Mental Wealth 1: Academic
and Digital Proficiency
(Task 2)

 Introduction
 Product Class
 The analysis of the sector
 Competitors information
 Market trends
 References
Table of Contents

In this presentation, the particulr product class that has been
taken into consideration is Soft Drinks where, a number of
companies like Coca-Cola Co, PepsiCo Inc and many more has
been taken into consideration to show analysis of the sector,
information about market trends and competition as well.
Introduction

The Soft Drink Production industry has as of late been portrayed by a high
level of item advancement and tested by changing customer tastes. Wellbeing
efforts bringing issues to light of high sugar utilization have empowered the
multiplication of no-and low-sugar drinks. In like manner, administrators have
quickened the market discharge and advancement of more advantageous
options in contrast to customary brands that intrigue to wellbeing cognizant
buyers. Natural brands like Coca-Cola have held piece of the pie in both their
customary and diet varieties, yet rising rivalry from filtered water stays a
conspicuous danger. Over the five years through 2018-19, industry income is
figure to decay at a compound yearly pace of 0.6% to £4.5 billion.
Product Class

Continue

It is the ideal opportunity for administrators to stock Soft Drink Production industry, which
responds to rising buyer interest for a more beneficial refreshment decision too. Client experience
is a higher priority than any time in recent times, so retailers must intend to offer inventive soda
pops (Soft Drinks), lower in sugar however impeccably served, to stand apart from the group.
The analysis of the sector

PEST Analysis:
 Political Factor: Organisations should deliver wholesome data of their item to the client. Likewise,
Employees must be given at any rate the necessary the lowest pay permitted by law and segregation
isn't endured in the work environment.
 Economical Factor: Soft Drinks sector encounters advertise stuns in times of downturn. Also from
2008, the industry has attempted to recover its past market quality. The business is required to take a
positive turn with an extension of 27% by 2015; the most elevated increment till 2008.
 Socio-Culture Factor: Eating fewer carbs has gotten an entirely attractive, mainstream pattern
which powers the soda business to make new items that meet customer inclinations.
 Technological Factor: This factor has improvised coordinations assist items with traveling through
conveyance channels all the more viably. This keeps appropriation costs down while expanding
deals data to purchasers.
Continue…

In order to analyse the competitve environment, Porter’s Five Forces Model has been applied and
it is presented underneath:
Porter’s Five Forces Model:
 Bargaining Power of Buyers: High bargaining power of buyers due to rapid change among
needs and requirements of customers in relation to diet coke and so on.
 Bargaining Power of Suppliers: This power is weak because, ingredients are easily available
and there are many suppliers, reducing company’s switching cost. Many substitutes for sugar
can be used like corn syrup, sweetener.
 Threat of Substitutes: The threat of substitutes can be reduced by expanding the products
such as non carbonated drinks like juice, tea, coffee and plain water.
Competitor information

There are ample number of trends that came in front of Soft Drink
industry are given underneath:
 Increased focus on health and wellness.
 Premiumization
 Convenience
 Direct to consumer offerings.
Markets trends

Sturmey, S. G., 2017. British shipping and world competition. Oxford
University Press.
Heaney, D. F. ed., 2018. Handbook of metal injection molding. Woodhead
Publishing.
Ashurst, P., Hargitt, R. and Palmer, F., 2017. Soft drink and fruit juice
problems solved. Woodhead Publishing.
Online
5 trends transforming the beverage industry. 2020. [Online]. Available
through: <https://home.kpmg/xx/en/blogs/home/posts/2019/08/five-trends-
transforming-the-beverage-industry.html>.
References

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