identification- jessica jones analysis –scott shields financials – kyle holloway ...
TRANSCRIPT
Alternative Beverage
Industry
Kyle HollowayJessica JonesScott Shields
Devin Stewart
Outline of Presentation
Identification- Jessica Jones Analysis –Scott Shields Financials – Kyle Holloway Concerns/Recommendations – Devin
Stewart
Alternative Beverage Industry The alternative beverage industry
saw rapid growth in the mid-2000s Competition is based on
differentiation The largest sellers of alternative
beverages:Coca-Cola, PepsiCo., Red Bull GmbH,
and Monster Beverage Corporation
Current State of the Industry
Hit hard by the recent economic recession. The alternative beverage industry is
projected to grow at a rate of 5.88% on average.
Global companies are combatting the decline of soft drinks sales through alternative beverages.
Expansion and the Focus
Companies expanded the alternative beverage market through:Blue ocean strategiesExploiting international marketsCapitalizing on consumer trends
Innovation and Consumer Trends
An important factor for success in the alternative beverage industry is innovation.
Success based on capitalizing on consumer trends.
Beverage Industry Market Share (2009)
48.20%
29.20%
12.40%
4.00%
3.10%
1.60% 1.20%
0.30%
Carbonated soft drinks
Bottled Water
Fruit Beverages
Sports Drinks
Ready-to-Drink Tea
Flavored or Enhanced Water
Energy Drinks
Ready-to-Drink Coffee
Competitive Forces and Pressures The strongest
competitive force is rivalry among competing sellers.
The weakest force is competitive pressures from buyer bargaining power.
Energy Drink Industry by Market Share (2012)
Red Bull, 39.80%
Monster, Monster Energy, and Java Monster, 29.90%
Rockstar and Rockstar Recovery; 9.20%
Nos; 3.50%
Amp; 2.10% Full Throttle; 1.40%
Sports Drink Market Share (2012)
Gatorade Perform- 50%
Gatorade- 10.6%
Gatorade G2- 10.3%
Gatorade Cool Blue- 1.4%
Gatorade Frost- 1.4%
G2- 1.2%
Powerade Ion4- 16.2%
Powerade Zero- 4.5%
Powerade- 1.0%
Powerade Zero Ion4- .80%
Profit Margin
2012 2011 20100
5
10
15
20
25
30
35
40
45
Pepsi
Coca-Cola
Monster
Return on Equity
2012 2011 20100
10
20
30
40
50
60
Pepsi
Coca-Cola
Monster
Financial Structure
2012 2011 20100
0.2
0.4
0.6
0.8
1
1.2
1.4
Pepsi
Coca-Cola
Monster
*Based off Debt-to-Equity ratio
Liquidity
2012 2011 20100
1
2
3
4
5
6
Pepsi
Coca-Cola
Monster
*Based off Current Ratio
Inventory Turnover
2012 2011 20100
1
2
3
4
5
6
7
8
9
10
Pepsi
Coca-Cola
Monster
Earnings Per Share
2012 2011 2010 $-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
Pepsi
Coca-Cola
Monster
Concerns…
Legal factors
Changing consumer demand
Rival firms
Distribution/suppliers
Innovation
Discretionary Income
Recommendations…
Distribution/Suppliers
Strategic Alliances
Supply Chain
Management
Recommendations…
Innovation
Invest in R&D
Invest in Marketing
Recommendations…
Discretionary
Income
Increase price
competition
Product
Diversification
Thank you for your attention
Are there any questions…