Soda pop is consumed daily all over the world. It is a popular drink among widespread generations. People of all ages drink soda pop in several different varieties. There is a great competition between the makers of soda pop, and some very large companies dominate the industry. Soda pop has existed for over a century, and it is a cultural icon. Since it is such a big industry, it has a great effect on the world economy. A world without soda pop is a world that many people would not like to live in.
A soft drink is generally a drink without or little alcohol. Instead, it can be carbonated and consumed at colder or room temperatures. Soda pop, soda, or pop are categorized as a soft drink. They are usually high in sugar, unless they are sweetened with non- caloric sweeteners or are diet sodas. "Soft drinks are made either by mixing dry ingredients and/or fresh ingredients (e.g. lemons, oranges, etc.) with water. Production of soft drinks can be done at factories or at home" (History). However, it is more common for the consumer to purchase the drink from a retailer.
[...] It is considered a less expensive drink that is sweet and tasty. It does however have substitutes. Depending on the person, soda can be replaced by beverages such as water, dairy products, non-carbonated beverages etc. Since soda is a beverage, any other type of drink that is not carbonated can be considered a substitute. According to the Carbonated Soft Drink Market US Report, water is the largest substitute of soda pop. Water can be free or purchased bottled, and it does not contain chemicals. [...]
[...] PepsiCo is the next top competitor with soft drink sales grossing $18 billion for the two beverage subsidiaries, PepsiCo Beverages North America and PepsiCo International. PepsiCo's soft drink product line includes Pepsi, Mountain Dew, and Slice which make up more than one quarter of its sales. Cadbury Schweppes had soft drink sales of billion with a product line consisting of soft drinks such as A&W Root Beer, Canada Dry, and Dr. Pepper (Deichert). These three companies hold a majority of the control of the market. [...]
[...] In order to maximize profit, these companies have created a global business model that gives branches in other countries more executive power. Several international managers are appointed and deal with the problems locally, sometimes without confirmation from headquarters. This eliminates miscommunication and is more time efficient. The soda industry is regulated domestically by each country. The governmental regulation varies from country to country. Regulation revolves around issues such as product ingredients, excess disposal, bottling, and distribution. The quantity of the ingredients is a big part of regulation. [...]
[...] University of California-Berkeley. [...]
[...] Similarly, the red and blue yin and yang symbol of Pepsi is just as common. The companies with more control over the market advertise more. They hold the power and wealth to advertise in several fields, including sponsoring events and people. They also recruit celebrities and artists for television commercials that appeal to the consumer. In the CSD market, there is both direct and indirect price discrimination. simplest form of extracting customer surplus is charging customers with different prices based on their location and purchasing power” (UT-Austin). [...]
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