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SOFT DRINKS

Bobby Eka Putra

Griselda Ellora

Jessica Feliciana

Lou Nian Qin

Rocky Simon Hia

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Current Situation

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 sixmonths.

The growth of middle class consumers expected to rise by 9 percent thisyear. Currently, the number of consumers of Coca-Cola reached 131million.

Soft drink industry predict an increase in the consumption of beverages asmuch as 14 billion liters, or grew 40% during the 2014 World Cup

performances (Growth Stage)

(Source: World panel survey Indonesian Institute)

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Market Size

The soft drink industry has been dominated3 Companies

1. Coca Cola : 42%

2. Pepsi : 32%

3. Cadbury Schweppes : 15%

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Competition

Competition is increasingly fierce among the big competitors. Theleaders in the industry are Coca Cola, Pepsi and Cadbury Schweppes

Coca Cola, the market leader has over 350 different brands in over ahundred and eighty countries. Their most popular brands are Coke,

Diet Coke, Fanta, Sprite, Coke Zero and many more

Pepsi, the second largest and Coca-Colas biggest competitor also hasan array of soft drinks in its name. The most popular are Pepsi, DietPepsi, Mountain Dew, Mirinda, Pepsi One and many more

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Product Life Cycle

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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.

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Maturity Stage

At the maturity stage, growth is flatit does not increase or

decrease. New consumers replace those who leave to

purchase a competing product. Brand equity is at its highest

at this point. Companies manage mature products through

continued advertising. This advertising keeps the brand in thepublic eye and reminds consumers of the advantages this

product has over the competition.

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Result of Maturity

By the time a product reaches maturity, the

manufacturer has long since paid for all the major costs

of production and product development. Because a

mature product has established an effective distribution

method, the costs of sales and distribution are low. As a

result, products at the maturity stage usually make large

profits. Businesses can use income generated by their

mature products, often called cash cows, to develop and

fund new products

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THE END