1. The Soda Industry Brought to You By: Heather Terry Bernie Melchor
Gerard Yparraguirre
Poyeh Hadjian
Anthony Kimani
Nicholas Mucks

2. Introduction Natural Mineral Water and Carbonation
The first modern sodas
The ABA
Economic Effects

3. Dominant Economic Forces
1. Market Size
2. Competition
3. Stage in Life Cycle
4. Number of Companies in the Industry
5. Industry Profitability

4. Dominant Economic Forces
Market Size
The soft drink industry has been dominated 3 Companies
Coca Cola : 44%
Pepsi : 31%
Cadbury Schweppes: 15%
Cott: 3.1%
Hansen: 0.3%

5. Dominant Economic Forces
Competition
Competition is increasingly fierce among the big competitors. The leaders in the industry are Coca Cola, Pepsi and Cadbury Schweppes
Coca Cola, the market leader has over 350 different brands in over a hundred and eighty countries. Their most popular brands are Coke, Diet Coke, Fanta, Sprite, Coke Zero and many more
Pepsi, the second largest and Coca-Cola’s biggest competitor also has an array of soft drinks in its name. The most popular are Pepsi, Diet Pepsi, Mountain Dew, Mirinda, Pepsi One and many more

6. Dominant Economic Forces
Stage in Life Cycle
The life cycle of popular soft drinks like Pepsi, Coke, Sprite, etc. is in the maturity stage, the popularity of these products is still strong, however; there is an increasing trend towards healthier soft drinks.

7. Dominant Economic Forces
Reasons For the Maturity Stage
Recently, there has been a growing demand for alternatives to sugar-heavy soft drinks. “Regular” soft drinks today contain high fructose corn syrup, and have been blamed for contributing to various diseases
A study from Harvard shows that soft drinks may be responsible for the doubling of obesity in children over the last 15 years
As the soda pop fight rages on companies are increasingly relying on new products like non carbonated beverages like Fruit punch, Lemonade, Iced tea, etc. to take them to the next level.

8. Dominant Economic Forces
Industry Profitability
The soft drink industry will remain profitable as long as companies like
Coca-Cola and Pepsi continue to develop new products to remain
competitive, improve technology (especially in production) to reduce cost
per unit
According to People’s Daily Newsletter; Coca-Cola made a profit
of $2.71Billion last year in the first six months, Pepsi did as well,
taking into consideration of its size compared to Coca-Cola by
bringing home an estimated $1.27 Billion just in the first six
months.

9. Six Forces Analysis I Threat of New Entrants Economies of Scale
Product Differentiation
Capital Requirements
Access to Distribution Channels

10. Six Forces Analysis II Rivalry Among Existing Firms
Number
Rate of Industry Growth
Product Characteristics
Threat of Substitute Products

11. Six Forces Analysis III
Bargaining Power of Buyers
Bargaining Power of Suppliers
Relative Power of Other Stakeholders

12. Competitive Position of Major Companies and Competitor Analysis
Brief overview of some major companies in the soda industry

13. Competitive Position of Major Companies
In terms of 2005 US Market Share

14. Competitive Position of Major Companies (cont’d)
Top 3 Companies: Coca-Cola Co., PepsiCo., and Cadbury Schweppes = 89.1% of U.S. Market Share
Redbull energy drink sales surging during
Brand recognition
Exclusive Contracts

15. Competitor Analysis
Brief description of Coca-Cola Co., PepsiCo., Cadbury Schweppes., Cott Corp., and Hansen Natural
What sets a company apart from the top competitor, Coca-Cola.,

16. Industry Trends Less Soda, more Alternatives
Increase in bottled Water Consumption
Energy and Sports Drinks
Portable Packaging

17. TRENDS: Less Soda, more Alternatives
Increased sales in alternative beverages caused drop in carbonated beverages.

18. TRENDS: Simply Water, Simply Delicious
1990’s water sales: $5.7 billion
2004’s water sales: $9.2 billion
16% annual growth rate
Projected to be top selling drink by 2010

19. TRENDS: Energy and Sports Drinks
Marketed to teenagers & young adults image and brand loyalty is everything
Over 10 billion liters sold in 2005
Pepsi’s Gatorade dominates Sports Drinks
Red Bull holds 70% of Energy Drink
Energy Drinks estimated to grow 30% by end of 2006

20. TRENDS: Portable Packaging
PET bottles are small and easy to store
Companies fill end of registers with portable 8oz bottles to entice sales.
Companies increased sales with PET bottles by selling their portability and light weight qualities.

21. Key Success Factors Marketing Innovation Globalization
Targeting younger generation
Market monopoly
Innovation
Able to adapt to trend changes and customer needs
Globalization
U.S. market is saturated with soft drinks.
Ability to be successful in global market.

22. Industry Prospects and Overall Attractiveness
Factors Making the Industry Attractive
Mature market; stable and good investment
Expanding product lines allow for growth
Factors Making the Industry Unattractive
Industry is oversaturated
Future Prospects of the Industry
Changing consumer tastes will change products

23. Conclusions
Past
Present
Future