Soft drinks are enormously popular beverages consisting primarily of carbonated

water, sugar and flavouring. Some contain caffeine, some have fruit juice and most
of them have artificial additions for flavour and preservation. Some soft drinks
also have small percentages of alcohol but beverage standards require that the
percentage be less than 0.5% for a drink to qualify as "soft". Soft drinks are
rarely heated but can be stored and served at room temperature.
During the production process, of most importance is that the ingredient meets the
agreed specification on all major parameters/ Standards put in place are less
concerned about functional parameters such as major constituents but are more
concerned about the absence of impurities, safety for consumers and other physical
parameters. For a long time, soft drinks have been packaged in Plastic Bottles but
the emergence of aluminium cans and glass bottles is slowly changing the trend.
In every part of the world, there are major soft drinks producers. However, Coca-
Cola and Pepsi have dominated the market for a long time and registered a presence
in every part of the globe. In Europe, Perrier boasts of a good market share in the
region Bundaberg and Kirks do the same in Australia.
The industry has come under great criticism. As obesity and other health
complications become a priority in many countries, the industry is facing major
criticism from stakeholders in the health industry. Soft drinks have low nutrient
levels and are largely associated with many types of diseases such as obesity,
dental cavities, type 2 diabetes, and decreased immunity, many others. Many
Ingredients such as caffeine and sweeteners are on their own a source of major
concern. The industry is largely blamed for the number of obese children today and
the deteriorating health among children and adults alike. This is because, "unless
fortified, soft drinks contain little or no vitamins, fiber, protein, or other
essential nutrients".
As soft drinks continually lose popularity for health-related concerns,
manufacturers are forced to venture into other markets to boost profitability and
distribute risk. Big and small manufacturers of soft drinks find themselves
urgently requiring new products and sources of income. A recent study reveals that
soft drinks manufacturers are switching to natural sweeteners as more people become
health conscious. As more healthy products such as ice tea and bottled water gain
market shares, the soft drinks industry continues to suffer and becomes less
profitable. It is for this reason that there is a need for the industry to
diversify its markets by introducing more nutritious drinks such as vitamin-
enriched sports drinks. This paper aims at studying the soft drinks market and
establishing the viability of a new vitamin-enriched sports drink in the global
market. Through a survey that covered 500 people, the results will be used to
determine whether such a product would be viable or not.
To understand the soft drinks industry and the different parameters that drive it,
different books, journal articles, and government and non-governmental statistics
proved very helpful. The American Beverage Association is focused on providing
consumers, producers and different stakeholders with relevant and up-to-date
information on the industry and the different parameters affecting it. From their
report on soft drinks facts, it is clear that the industry remains among the most
vibrant and competitive. It is also among the industries with the highest levels of
revenue in different regions.
Anderson, in his book, the soft drink industry, helps the reader understand the
history of the industry and how it has grown with time. Anderson points out that
the industry has reached a maturity level, especially in developed countries,
denying manufacturers enough opportunities to experiment. Chaston on the other
hand, in his book on new marketing strategies to fit soft drink markets
circumstances, helps the reader understand how consumer tastes and preferences have
changed with time. While health was not a major concern for consumers a few years
back, today health concerns are shaping the way products are made and marketed.
Brandweek, an organization that conducts consumer surveys for different industries,
conducted a survey on the brand keys' customer loyalty leaders survey. From the
survey, Pepsi enjoys the biggest level of consumer loyalty, followed by Coca-Cola.
The report also reveals that due to a change in consumer preferences, the trend is
slowly changing and other smaller brands such as Red Bull are coming up on the
list.
In the journal of decision support systems, Chen describes the role of competitive
intelligence in different industries. Competitive intelligence has been key in
keeping the two giant companies ahead of the competition. Competitive intelligence
has especially played a key role in helping businesses use information and data to
their advantage by converting it into knowledge. To understand competition further,
Ford looks at competition and ethics in the modern age. In his books, the author
looks at how unhealthy competition strategies have influenced the industry. The
book points out a case study where the soft drinks industry nearly collapsed in the
1980s due to price wars.
Datamonitor, an organization that conducts surveys and does analyses for different
industries has presented the parameters that influence profitability and revenues
in the global soft drinks industry. Among the parameters discussed include prices,
foreign policies, agricultural activities, population growth, labor markets and
health factors, among others. Deichert, together with other authors, also discusses
the industry from the same perspective and gives an industry analysis in the year
2009, in the midst of the financial crisis. Due to the global nature of the
industry, the report points out that it was among the most affected due to reduced
consumer wealth and purchasing powers.
DiMeglio discusses in detail the issue of health and its relationship with the soft
drinks industry. In the International Journal of Metabolic Disorders, in his
article on foods, the author discusses the effects of food intake on body weight.
It is through his analysis that the reader understands how the consumption of soft
drinks affects health. The industry has for a long time used artificial sweeteners
and preservatives, most of which contain too much sugar than is recommended by
doctors. As a result, many children and adults who regularly consume the products
are overweight and are likely to suffer other medical complications such as high
blood pressure and diabetes. The author points out that the initiative by different
governments to fight obesity has affected soft drinks sales negatively. It is for
this reason that many producers are now investing in new products and having more
healthy options for their consumers.
The Euromonitor International report on the soft drinks industry this year analyzes
different companies' market share and positions in the market. It also discusses
new innovations by different soft drinks manufacturers and how they are shaping the
future of the industry. Among the innovations are production technologies and
different marketing strategies such as online marketing. Finally, Fleisher in his
book, controversies in the soft drinks industry, describes the industry as the most
enduring and among the oldest. The author points out that the soft drinks industry
plays a big role in shaping the global economies and its future still looks bright.
The soft drinks market has been the most buoyant for a long time now. Energy and
sports drinks still command good authority in the market even though there is a big
growth in the retro drink segment after the recent economic crisis. Different
economies have registered different results in the last two years, a factor that
contributed to the fact that different economies have faced challenges after the
economic crisis.
The Russian economy registered the biggest growth in the soft drinks industry last
year. The region's GDP grew by 5% and production volume in the region grew by 10%.
In Saudi Arabia, population growth and hot weather throughout the year kept the
soft drink market stable. The market is among those affected by consumers' health
concerns and therefore, health-oriented products such as vegetable and pure fresh
juice products performed better. The bigger and developed markets such as Europe
and North America are reported to have stagnated growth in the last few years. This
is partly attributed to the global crisis. Analysts however argue that it is
largely due to the fact that these markets have reached a maturity level, making it
hard for producers to experiment. According to Schweppe, "as soft drinks
manufacturers emerge from the global recession, many faces continued decline in
developed countries due to maturity". It is also notable that as more economies
recover, credit accessibility is bigger and more competitors will emerge. More
companies are therefore looking beyond their domestic markets to stay profitable
and grow revenues. More companies are also looking at expanding their products
categories to increase revenue. Another emerging trend is mergers by smaller
companies to create strategic partnerships that will allow them to gain access to
new and bigger geographies.
The other reason for slowed growth is health concerns about soft drinks. "The Obama
administration has pushed the fight against obesity further up the policy agenda,
notably in areas such as labeling and advertising, ensuring a busy year for soft
drinks lobbyists". The European region such as the UK has also put in place
measures to help fight obesity and encourage more healthy eating. These factors
have presented a good opportunity for healthy beverages such as bottled water but
negatively affected other drinks with artificial sweeteners and additives.
The Asian market has continually reported a positive trend, a factor largely
attributed to the growing population and an economy that has recovered faster than
other regions. Other developing markets such as Africa are currently a target for
the big companies as they capitalize on the fact that these markets have recorded
increased consumer wealth in the recent past. These markets present opportunities
for major products in the industry and offer a good environment for further
experiments.
The sports drinks industry is slowly growing as more people begin to appreciate
sports and fitness. Sports drinks can be categorized into three classes; Isotonic,
hypertonic and hypotonic. "These drinks have an equal concentration of salt and
sugar as the body, higher concentration of salt and sugar than the body and lower
concentrate of salt and sugar than the body respectively". Sports drinks are used
by sportspeople to reduce the risk of water intoxication, a situation caused by
excessive consumption of water to replace electrolytes lost during sweating. The
benefits of sports drinks include their ability to balance the body's electrolytes
levels, give energy and provide the body with carbohydrates required for muscle
strength. As a result of these benefits and as more people become actively involved
in sports, the industry is experiencing a heightened level of activity. The biggest
brands in the industry include Gatorade, Staminade, Isostar, Powerade and Lucozade.
To give athletes more benefits, many producers are now incorporating other
nutrients such as vitamins in the drinks.
"A porter's Five analysis of the industry reveals that market forces are favorable
for profitability". The soft drinks industry has shown tremendous growth in
profitability for both the bottlers and concentrate producers. These two parts of
the industry have always been dependent of each other since the birth of the
industry. "They share costs in procurement, production, marketing and
distribution". Some of their activities and functions also overlap. For example,
bottlers conduct promotional activities and some concentrate producers still do
bottling, even though very few do that now.
The soft drinks industry is having a hard time retaining customers as more and more
people embrace healthy options. It is for this reason that the industry needs to
develop new products and expand its markets to increase revenue. Big and small
manufacturers of soft drinks find themselves urgently requiring new products and
sources of income. A recent study reveals that soft drinks manufacturers are
switching to natural sweeteners as more people become health conscious. As more
healthy products such as ice tea and bottled water gain market shares, the soft
drinks industry suffers. The new product is vitamin-enriched, offering more health
benefits to the consumers and making it easier to convince the markets.
The sports drink market size for energy drinks has grown by 19% in the last year.
The growth definitely means that launching a sports drink to the market right now
is a good and timely investment. The fact that the sports drink market in many
regions is still in its growing stages puts the new product in a position where it
can grow and develop with the market as they stamp their authority in it.
Consumers' spending levels in many markets, especially in the developing world, are
going up offering a promising situation for the product.
The product's strategy will involve conducting a comprehensive market analysis, a
demographic study, designing a pricing strategy and ensuring a well-established
distribution channel, which is already available through willing distributors
looking to win contracts with new products in the market. Risks involved in the
market include a highly competitive environment and the market's access to low-cost
producers such as China. To counter these challenges, the product will need to
build a strong brand and work on brand loyalty, which will ensure that its
customers don't change preferences when cheaper products come in.
Soft drinks are enormously popular beverages consisting primarily of carbonated
water, sugar and flavouring. Some contain caffeine, some have fruit juice and most
of them have artificial additions for flavour and preservation. Some soft drinks
also have small percentages of alcohol but beverage standards require that the
percentage be less than 0.5% for a drink to qualify as "soft". Soft drinks are
rarely heated but can be stored and served at room temperature.
During the production process, of most importance is that the ingredient meets the
agreed specification on all major parameters/ Standards put in place are less
concerned about functional parameters such as major constituents but are more
concerned about the absence of impurities, safety for consumers and other physical
parameters. For a long time, soft drinks have been packaged in Plastic Bottles but
the emergence of aluminium cans and glass bottles is slowly changing the trend.
In every part of the world, there are major soft drinks producers. However, Coca-
Cola and Pepsi have dominated the market for a long time and registered a presence
in every part of the globe. In Europe, Perrier boasts of a good market share in the
region Bundaberg and Kirks do the same in Australia.
The industry has come under great criticism. As obesity and other health
complications become a priority in many countries, the industry is facing major
criticism from stakeholders in the health industry. Soft drinks have low nutrient
levels and are largely associated with many types of diseases such as obesity,
dental cavities, type 2 diabetes, and decreased immunity, many others. Many
Ingredients such as caffeine and sweeteners are on their own a source of major
concern. The industry is largely blamed for the number of obese children today and
the deteriorating health among children and adults alike. This is because, "unless
fortified, soft drinks contain little or no vitamins, fiber, protein, or other
essential nutrients".
As soft drinks continually lose popularity for health-related concerns,
manufacturers are forced to venture into other markets to boost profitability and
distribute risk. Big and small manufacturers of soft drinks find themselves
urgently requiring new products and sources of income. A recent study reveals that
soft drinks manufacturers are switching to natural sweeteners as more people become
health conscious. As more healthy products such as ice tea and bottled water gain
market shares, the soft drinks industry continues to suffer and becomes less
profitable. It is for this reason that there is a need for the industry to
diversify its markets by introducing more nutritious drinks such as vitamin-
enriched sports drinks. This paper aims at studying the soft drinks market and
establishing the viability of a new vitamin-enriched sports drink in the global
market. Through a survey that covered 500 people, the results will be used to
determine whether such a product would be viable or not.
To understand the soft drinks industry and the different parameters that drive it,
different books, journal articles, and government and non-governmental statistics
proved very helpful. The American Beverage Association is focused on providing
consumers, producers and different stakeholders with relevant and up-to-date
information on the industry and the different parameters affecting it. From their
report on soft drinks facts, it is clear that the industry remains among the most
vibrant and competitive. It is also among the industries with the highest levels of
revenue in different regions.
Anderson, in his book, the soft drink industry, helps the reader understand the
history of the industry and how it has grown with time. Anderson points out that
the industry has reached a maturity level, especially in developed countries,
denying manufacturers enough opportunities to experiment. Chaston on the other
hand, in his book on new marketing strategies to fit soft drink markets
circumstances, helps the reader understand how consumer tastes and preferences have
changed with time. While health was not a major concern for consumers a few years
back, today health concerns are shaping the way products are made and marketed.
Brandweek, an organization that conducts consumer surveys for different industries,
conducted a survey on the brand keys' customer loyalty leaders survey. From the
survey, Pepsi enjoys the biggest level of consumer loyalty, followed by Coca-Cola.
The report also reveals that due to a change in consumer preferences, the trend is
slowly changing and other smaller brands such as Red Bull are coming up on the
list.
In the journal of decision support systems, Chen describes the role of competitive
intelligence in different industries. Competitive intelligence has been key in
keeping the two giant companies ahead of the competition. Competitive intelligence
has especially played a key role in helping businesses use information and data to
their advantage by converting it into knowledge. To understand competition further,
Ford looks at competition and ethics in the modern age. In his books, the author
looks at how unhealthy competition strategies have influenced the industry. The
book points out a case study where the soft drinks industry nearly collapsed in the
1980s due to price wars.
Datamonitor, an organization that conducts surveys and does analyses for different
industries has presented the parameters that influence profitability and revenues
in the global soft drinks industry. Among the parameters discussed include prices,
foreign policies, agricultural activities, population growth, labor markets and
health factors, among others. Deichert, together with other authors, also discusses
the industry from the same perspective and gives an industry analysis in the year
2009, in the midst of the financial crisis. Due to the global nature of the
industry, the report points out that it was among the most affected due to reduced
consumer wealth and purchasing powers.
DiMeglio discusses in detail the issue of health and its relationship with the soft
drinks industry. In the International Journal of Metabolic Disorders, in his
article on foods, the author discusses the effects of food intake on body weight.
It is through his analysis that the reader understands how the consumption of soft
drinks affects health. The industry has for a long time used artificial sweeteners
and preservatives, most of which contain too much sugar than is recommended by
doctors. As a result, many children and adults who regularly consume the products
are overweight and are likely to suffer other medical complications such as high
blood pressure and diabetes. The author points out that the initiative by different
governments to fight obesity has affected soft drinks sales negatively. It is for
this reason that many producers are now investing in new products and having more
healthy options for their consumers.
The Euromonitor International report on the soft drinks industry this year analyzes
different companies' market share and positions in the market. It also discusses
new innovations by different soft drinks manufacturers and how they are shaping the
future of the industry. Among the innovations are production technologies and
different marketing strategies such as online marketing. Finally, Fleisher in his
book, controversies in the soft drinks industry, describes the industry as the most
enduring and among the oldest. The author points out that the soft drinks industry
plays a big role in shaping the global economies and its future still looks bright.
The soft drinks market has been the most buoyant for a long time now. Energy and
sports drinks still command good authority in the market even though there is a big
growth in the retro drink segment after the recent economic crisis. Different
economies have registered different results in the last two years, a factor that
contributed to the fact that different economies have faced challenges after the
economic crisis.
The Russian economy registered the biggest growth in the soft drinks industry last
year. The region's GDP grew by 5% and production volume in the region grew by 10%.
In Saudi Arabia, population growth and hot weather throughout the year kept the
soft drink market stable. The market is among those affected by consumers' health
concerns and therefore, health-oriented products such as vegetable and pure fresh
juice products performed better. The bigger and developed markets such as Europe
and North America are reported to have stagnated growth in the last few years. This
is partly attributed to the global crisis. Analysts however argue that it is
largely due to the fact that these markets have reached a maturity level, making it
hard for producers to experiment. According to Schweppe, "as soft drinks
manufacturers emerge from the global recession, many faces continued decline in
developed countries due to maturity". It is also notable that as more economies
recover, credit accessibility is bigger and more competitors will emerge. More
companies are therefore looking beyond their domestic markets to stay profitable
and grow revenues. More companies are also looking at expanding their products
categories to increase revenue. Another emerging trend is mergers by smaller
companies to create strategic partnerships that will allow them to gain access to
new and bigger geographies.
The other reason for slowed growth is health concerns about soft drinks. "The Obama
administration has pushed the fight against obesity further up the policy agenda,
notably in areas such as labeling and advertising, ensuring a busy year for soft
drinks lobbyists". The European region such as the UK has also put in place
measures to help fight obesity and encourage more healthy eating. These factors
have presented a good opportunity for healthy beverages such as bottled water but
negatively affected other drinks with artificial sweeteners and additives.
The Asian market has continually reported a positive trend, a factor largely
attributed to the growing population and an economy that has recovered faster than
other regions. Other developing markets such as Africa are currently a target for
the big companies as they capitalize on the fact that these markets have recorded
increased consumer wealth in the recent past. These markets present opportunities
for major products in the industry and offer a good environment for further
experiments.
The sports drinks industry is slowly growing as more people begin to appreciate
sports and fitness. Sports drinks can be categorized into three classes; Isotonic,
hypertonic and hypotonic. "These drinks have an equal concentration of salt and
sugar as the body, higher concentration of salt and sugar than the body and lower
concentrate of salt and sugar than the body respectively". Sports drinks are used
by sportspeople to reduce the risk of water intoxication, a situation caused by
excessive consumption of water to replace electrolytes lost during sweating. The
benefits of sports drinks include their ability to balance the body's electrolytes
levels, give energy and provide the body with carbohydrates required for muscle
strength. As a result of these benefits and as more people become actively involved
in sports, the industry is experiencing a heightened level of activity. The biggest
brands in the industry include Gatorade, Staminade, Isostar, Powerade and Lucozade.
To give athletes more benefits, many producers are now incorporating other
nutrients such as vitamins in the drinks.
"A porter's Five analysis of the industry reveals that market forces are favorable
for profitability". The soft drinks industry has shown tremendous growth in
profitability for both the bottlers and concentrate producers. These two parts of
the industry have always been dependent of each other since the birth of the
industry. "They share costs in procurement, production, marketing and
distribution". Some of their activities and functions also overlap. For example,
bottlers conduct promotional activities and some concentrate producers still do
bottling, even though very few do that now.
The soft drinks industry is having a hard time retaining customers as more and more
people embrace healthy options. It is for this reason that the industry needs to
develop new products and expand its markets to increase revenue. Big and small
manufacturers of soft drinks find themselves urgently requiring new products and
sources of income. A recent study reveals that soft drinks manufacturers are
switching to natural sweeteners as more people become health conscious. As more
healthy products such as ice tea and bottled water gain market shares, the soft
drinks industry suffers. The new product is vitamin-enriched, offering more health
benefits to the consumers and making it easier to convince the markets.
The sports drink market size for energy drinks has grown by 19% in the last year.
The growth definitely means that launching a sports drink to the market right now
is a good and timely investment. The fact that the sports drink market in many
regions is still in its growing stages puts the new product in a position where it
can grow and develop with the market as they stamp their authority in it.
Consumers' spending levels in many markets, especially in the developing world, are
going up offering a promising situation for the product.
The product's strategy will involve conducting a comprehensive market analysis, a
demographic study, designing a pricing strategy and ensuring a well-established
distribution channel, which is already available through willing distributors
looking to win contracts with new products in the market. Risks involved in the
market include a highly competitive environment and the market's access to low-cost
producers such as China. To counter these challenges, the product will need to
build a strong brand and work on brand loyalty, which will ensure that its
customers don't change preferences when cheaper products come in.