Marketing Analysis and Strategy: Soft Drink Manufacturing Industry

SOFT DRINK MANUFACTURING INDUSTRY
Module code: MARK3015
Module title: Marketing Analysis & Strategy
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Table of Contents 1.0      Executive Summary. 3 2.0 Introduction. 4 3.0 Industry Analysis. 4 3.1 Players in the Industry. 4 3.1.1 Coca-Cola. 4 3.1.2 PepsiCo. 5 3.1.3 Cadbury Schweppes. 5 3.1.4 Keurig Dr. Pepper 6 3.1.5 Monster Beverage Corporation. 6 3.2 Consumer Trends and Motivations. 6 3.3 External Factors. 7 3.3.1 Disruptions due to COVID-19. 7 3.3.2 Inflation. 8 3.3.3 Changes in the Regulatory Environment 9 3.3.4 Concerns about Data Privacy. 10 3.4 Current and Future Consumer Trends. 11 3.4.1 Health and Wellness. 11 3.4.2 Sustainability. 12 3.4.3 Experiential Marketing. 13 4.0 References. 15 1 Executive Summary
The soft drink manufacturing industry involves the production and distribution of non-alcoholic, carbonated, and non-carbonated, flavoured beverages. These beverages are often sweetened with sugar or artificial sweeteners and may also contain other ingredients such as caffeine, vitamins, or herbs. The soft drink industry is a global industry with a wide range of players, including large multinational corporations and smaller regional or national companies. Coca-Cola, PepsiCo, Cadbury Schweppes, Keurig Dr. Pepper, and Monster Beverage Corporation are all major players in the soft drink manufacturing industry.
An analysis of the industry reveals four main external factors that companies in the industry have to address to maintain profitability. Notably, the resurgence of the COVID-19 pandemic in China raises concerns that companies will have to experience uncertainties associated with the pandemic. Inflationary pressures have introduced significant challenges in the pricing strategies applied by major players in the industry. Also, the companies have to continually respond to changes in the regulatory environment of the jurisdictions in which the companies operate. Data and information security are also major concerns for the major players in the industry.
Three emerging consumer trends are likely to have a significant influence on the actions of the players in the industry. First, companies have to respond to the increasing demand for healthy beverage alternatives. Second, companies are expected to take measures that show their commitment to environmental stewardship. Third, experiential marketing is emerging as an important marketing approach for players in the industry.
2.0 Introduction
The soft drink manufacturing industry covers companies that are primarily involved in the manufacture of beverages. Beverages are a class of liquid food that is usually taken as a source of hydration or energy. Notably, the beverages are mainly manufactured using edible acids, flavours, and sweeteners and are usually served at differing temperatures depending on the consumer’s preference (Zhang 2019). Some of the major players in the soft drink manufacturing industry include Coca-Cola, Cadbury Schweppes, and PepsiCo, among others. The industry was valued at USD 416.19 billion as of 2021. In the present report, an analysis of the industry is presented.
3.0 Industry Analysis
3.1 Players in the Industry
Coca-Cola, PepsiCo, Cadbury Schweppes, Keurig Dr. Pepper, and Monster Beverage Corporation are all major players in the soft drink manufacturing industry. Here is a brief overview of how each company differentiates its offerings and achieves a competitive advantage
3.1.1 Coca-Cola
Coca-Cola is one of the most recognized brands in the world, and it differentiates itself in several ways. Notably, Coca-Cola is one of the most recognized and iconic brands in the world, and it has invested heavily in marketing and advertising to build brand awareness and loyalty. The heavy investment in promotion has enabled the company to build strong brand equity and recognition. Also, Coca-Cola has an extensive distribution network that spans more than 200 countries, which helps the company reach a wide range of customers and maintain a strong presence in the market (Zhang 2019). The company remains a major player in the industry by maintaining a diversified product line. Coca-Cola offers a wide range of beverages, including carbonated and non-carbonated options, which allows it to appeal to a diverse group of consumers and capture a larger share of the market. In addition, Coca-Cola has a strong track record of introducing new products and flavours, which helps the company stay relevant and meet changing consumer preferences. In recent years, Coca-Cola has made a significant effort to reduce its environmental impact and improve its sustainability practices. Innovation has helped the company appeal to consumers who are concerned about the impact of the products they purchase.
3.1.2 PepsiCo
PepsiCo differentiates itself through its diverse product line, which includes a variety of carbonated and non-carbonated beverages, as well as snack foods. PepsiCo has also focused on sustainability and ethical practices and has made efforts to reduce its environmental footprint and support various social causes. To a large extent, PepsiCo applies strategies that are almost similar to those of Coca-Cola to gain a competitive edge in the market (Zhang 2019).
3.1.3 Cadbury Schweppes
Cadbury Schweppes is a British multinational confectionery and beverage company, and it differentiates itself through its wide range of confectionery products, as well as its portfolio of soft drinks, which includes popular brands such as 7UP, Snapple, and Dr. Pepper (Adachi 2020). In addition to its strong record of successful marketing campaigns, the company has leveraged partnerships and sponsorships to increase brand visibility and build brand awareness.
3.1.4 Keurig Dr. Pepper
Keurig Dr. Pepper is a leading manufacturer of coffee and other beverages, and it differentiates itself through its innovative single-serve coffee brewing systems, which allow customers to easily make a fresh cup of coffee at home or in the office. In addition, the company has an extensive distribution network that spans more than 50 countries, which helps the company reach a wide range of customers and maintain a strong presence in the market. To expand its offering and market, the company enters into strategic partnerships with other players as well as acquires profitable beverage makers (Adachi 2020).
3.1.5 Monster Beverage Corporation
Monster Beverage Corporation is a leading producer of energy drinks, and it differentiates itself through its extensive product line, which includes a variety of energy drinks and other beverages. Monster Beverage Corporation has also focused on partnerships and sponsorships to build its brand and increase its visibility (Adachi 2020). Notably, the company significantly directs its efforts towards cost control, which allows it to offer its products at competitive prices and maintain a certain level of profitability.
3.2 Consumer Trends and Motivations
Several consumer trends and motivations in the soft drink industry have served to inform the actions of major companies in the industry. The ability to remain competitive in the industry has served to offer major players a competitive advantage in the market. First, health and wellness have emerged as a major trend informing decision-making in the industry. To this end, consumers are increasingly looking for healthier beverage options, such as low-sugar or sugar-free options, as well as options that offer functional benefits, such as hydration or energy. Second, consumers are increasingly becoming increasingly interested in the extent to which a company offers sustainable products and behaves ethically. Consumers are becoming more aware of the environmental and social impact of the products they purchase, and they are increasingly seeking out products that are sustainably produced and ethically sourced. As a consequence, major companies have taken significant steps to increase the extent to which they offer sustainable and ethically produced products.
Third, the customer in the industry is increasingly turning towards the purchase of personalized and customized products. Consumers are looking for products that align with their values and lifestyle choices, and they are seeking out products that offer personalized and customized options, such as customizable packaging or flavours. To meet their needs, most players in the industry offer a diverse product line.
3.3 External Factors
3.3.1 Disruptions due to COVID-19
The current resurgence of the pandemic in China underscores the uncertainty associated with the disease. Notably, the industry was one of the most affected by the pandemic. Many countries implemented lockdowns and other measures to contain the spread of the virus, which disrupted supply chains and caused a decrease in demand for non-essential products like soft drinks. Some companies had to temporarily close their manufacturing facilities or reduce production due to shortages of raw materials or labour. There was also a shift in consumer preferences towards healthier and more functional beverages, as people became more concerned about their immune systems and overall health during the pandemic. As a result, the soft drink industry experienced a decline in sales and profitability. However, the industry has been gradually recovering as countries have lifted restrictions and economic activity has resumed.
The resurgence of the pandemic in China means that most players will continue experiencing supply chain disruptions. As one of the major suppliers of beverage containers, the resurgence of COVID-19 in China means that the supply and packaging costs are likely to balloon. Also, the disruptions in the supply chains introduce the likelihood that the company may fail to deliver its...