Since 2006, the soft drinks market has been "flourishing" thanks to two factors: rising disposable incomes and well-being. Consumer lifestyles are undergoing a major change due to a growing awareness of the link between diet and health. On the other side, enhanced living standards, especially in emerging markets, allow consumers more freedom in terms of product purchase, and consequently help in the market dynamics.
Many causes can be attributed to the profitability of the soft drink market. This market covers carbonates, fruit/vegetable juices, bottled water, functional drinks, concentrates, RTD tea, RTD coffee and Asian specialty drinks.
Bottled water overtook carbonates as the leading soft drinks sector by off-trade volume thanks to shifting attitudes to health in developed as well as emerging markets. Besides, consumers are now aware of the importance of hydration thanks to the rising temperatures caused by climate change. The mix of these two factors have prompted the manufacturers to double their efforts in positioning themselves profitably in an increasingly competitive marketplace.
Functional drinks represent the fastest growing sector of the soft drinks market, thanks to the strong trend towards healthier and busier lifestyles and convenience. Manufacturers are faced with the challenge of maintaining consumer interest in an increasingly competitive environment. Consequently, functional drinks have to focus on brand extensions for introducing new products which could target specific consumer demographics, and the development of "hybrid" drinks, which is a combination of functional drinks with other successful soft drink formats.
As for carbonates, even though they have a less than healthy image, they still represent a major force in the global soft drinks market. With the expanding focus on wellbeing, carbonates started "to witness the introduction of low-calorie and low-sugar products", as the manufacturers are trying to stimulate sales growth. Moreover, using fruit flavors and natural ingredients, or simply sparkling fruit juices are regarded as carbonate options.
Coca-Cola and PepsiCo were the world leaders of the "soft drinks" market for January 2000. John Pemberton created the Coca-Cola brand in 1886 in Atlanta whereas Caleb D. Bradham created Pepsi-Cola brand in 1898.
Owing to their strong reputation & the infatuation of their customers, their sales have increased dramatically and put them "under the spotlight". Ever since their creation, these two soda giants have been involved in a constant business war.
Both brands are synonymous with American culture worldwide and is present on a global scale thanks to company strategies which have been adapted to each different culture. Due to an increase in sponsorships and several horizontal acquisitions, they have acquired significant positions in their consumers' lifestyle.
[...] With the expanding focus on wellbeing, carbonates started "to witness the introduction of low-calorie and low-sugar products”, as the manufacturers are trying to stimulate sales growth. Moreover, using fruit flavors and natural ingredients, or simply sparkling fruit juices are regarded as carbonate options. Coca-Cola and PepsiCo were the world leaders of the "soft drinks" market for January 2000. John Pemberton created the Coca-Cola brand in 1886 in Atlanta whereas Caleb D. Bradham created Pepsi-Cola brand in 1898. Owing to their strong reputation & the infatuation of their customers, their sales have increased dramatically and put them “under the spotlight”. [...]
[...] For nearly all all companies has been a hard year and it shows in their financial data. For Coca-Cola, the economic downturn had a negative impact on income and goal as shown below. Given the annual report, the number of outstanding shares 2,305,123,938. (02/22/2010). This graph shows that after the economic downturn, Coca-Cola regained strength and is doing better than its peers. The economic downturn has impacted Coca-Cola less than its peers & the company has witnessed an increase in its total returns faster than them. [...]
[...] The company should lower this ratio for bankers and confidant shareholders for the proper management of its long-term debt. The equity ratio increased in 2009, due to total increased assets of around $8,000 million. The equity ratio is the structure of the financial liabilities, which shows the degree of independence to the third party. When the equity ratio is above it implies that some long-term resources have not been employed. For Coca-Cola, there is a good long term management of the investment in resources. [...]
[...] Coca-Cola generated revenues worth $ 31.9 billion in the Financial Year ended December 2008, registering an yearly increase of over 2007. The company's net total income was worth $ 5.8 billion in FY2008, a decrease of over 2007. Geographic Segmentation: Coca-Cola operates manually in six segments: North America, Eurasia and Africa, Europe, Latin America, Pacific, and bottling investments. North America accounted for of the total revenues in FY2008. Revenues from North America reached $ 8.2 Billions in 2008, a yearly increase of over FY2007. [...]
[...] That means it has a growing popularity among children and teenagers and they are drinking a toxic potion. PML also tested two soft drink brands sold in the US, to see if they contained pesticides. They did not. The question, therefore, is: How can apparently quality-conscious multinationals market products unfit for human consumption? CSE found that the regulations for the powerful and massive soft drinks industry are much weaker when compared to the industry for bottled water. The norms that exist are to regulate the quality of cold drinks. [...]
Source aux normes APA
Pour votre bibliographieLecture en ligne
avec notre liseuse dédiée !Contenu vérifié
par notre comité de lecture