Many major companies raised their prices when commodity costs surged inbut those increases in and led to a predictable drop in consumption.
Entering the soft drinks industry in india Entering the soft drinks industry in india 6 June Carbon India is an enormous and diverse country with a population of over 1 billion people, making it difficult to make any generalisations about what Indians like and want from a soft drink Background to Business in Entering the soft drinks industry in, From this, India is an attractive marketplace with many opportunities for a soft drinks manufacturer to want to expand in to.
Conversely, the diversity of the population in India must be stressed as it is such a large country, with a huge divide between rich and poor. Also with regards to human resources, the MNC could benefit from the profusion of low-cost labour in India Maan, M et al,meaning the MNC could move its manufacturing to India to reduce its operating costs whilst targeting the young population with their soft drink product.
When assessing the physical resources in India, the MNC needs to consider the poor infrastructure in the country and how rural some of the areas are. However, south India would be a much more promising area to invest in to and the MNC would have better business opportunities here.
If the MNC were to invest in India, concentrating on one area to ensure they reach the correct target audience, Southern India would be ideal to bring out a range of waters and juices to attract the young, health-conscious population there.
The research from Euromonitor states that Indians have moved away from carbonated drinks due to the rising health awareness, and have started to purchase more water and fruit and vegetable juices. By adapting to the local environment, the MNC could gain a competitive advantage as an international brand as they would appear to take in to account the local surroundings of their brand and they are more likely to be successful as they would be selling a product that the local Indians would want.
The MNC should internationalise to respond to the megatrend of competitors, which is a deterministic force, and then compete through adaptation of their product to suit the local surroundings in India. The strategy the MNC should consider after analysing the demand conditions is to consider both price and value together.
They should differentiate themselves from other soft drink suppliers by offering a strong brand that young Indians are conscious of Soft Drinks in India, but also an acceptable price.
Also by offering benefits of a brand and a health-conscious drink that is in high demand at the moment, they can concentrate on focussing on that one area of India where they could possibly dominate the market in a smaller area.
Firm Strategy, Structure and Rivalry With regards to structure of firms, the MNC will have to consider how different India is in terms of how they do business compared to Europe.
In India, the majority of organisations have a strong hierarchical structure, with one authoritarian leader at the top World Business Culture, When investing in to the Indian market it is recommended to approach business in the same hierarchical structure that India have as it is indisputably acknowledged.
If they were to enter the market dealing with business in a more democratic, flat manner, how Europe would normally deal with business, they are unlikely to thrive. In terms of rivalry, there appears to be a lot of competition from other brands of soft drinks.
Bisleri holds the largest amount of market share with After this, Coca Cola and Pepsi with all their sub-brands hold high shares in the market in India.
If the MNC were to invest in to the Indian market, the strategy they would have to take would be to introduce a new soft drink that promotes sustainable benefits of being a healthy, branded, bottled soft drink that is different from the standard carbonates that the international, well-known brands offer.
By differentiating their product and adapting it to the local environment in India, the MNC will gain competitive advantage. Related and Supporting Industries Soft drinks are sweetened with sugar Beverage Health, and India is the second largest producer of this commodity in the world Sugar: Supply and Demand, This would be a benefit to the MNC as a main ingredient to soft drinks is readily available and will be cheaper rather than importing it from other countries.
Plastic is also heavily involved when packaging soft drinks, through a third party factory. Luckily for the MNC, India has had a high development of their machinery which can create high-quality plastic products, including bottles Indian Plastic Portal: By having plastic bottlers locally available, the MNC will have an advantage on being able to easily be supplied the service; however the price at which they purchase the plastic bottles for their soft drink product could be expensive due to the competition of other, more established brands such as Coca Cola.
Role of Chance The role of chance could invalidate the advantages of investing in the market in India at any time. Chance events that could affect the MNC introducing a new soft drink in India could include: Also factors such as soaring prices in sugar or limited water supply could dramatically affect the manufacture and production of soft drinks.
Role of Government Currently, India is considered at a low-cost option for organisations to invest in to with its strong domestic market, high savings rates and positive demographic trend World Business Culture: The MNC must take in to account and assess all the different policies and laws for foreign markets to invest to ensure they can operate their business properly.the soft drink industry works, outlining the steps involved in producing, distributing, and marketing soft drinks and exploring how the industry has responded to recent efforts to impose taxes on sugar-sweetened beverages.
Market research on the soft drink industry. Our reports feature a wealth of standardised and cross-comparable statistics including total market sizes, market .
The soft drink industry in India has been growing rapidly since and in generated a profit of $3. 8 billion and although the market is set to decelerate, by he market value will be $5. 9 billion (Soft Drinks Industry Profile: India, ). industry analysis of soft drinks industry 1. industry analysis on soft drinks industry hema sankar mba- a batch roll no 1 2.
soft drinks industry analysis 2 sl no company name brands &products 1. pepsico 7up, aquafina, duke, lehar, mirinda, mountaindew, nimbooz, pepsi, slice, tropicana 2. The Soft Drink Industry is primarily engaged in manufacturing non-alcoholic, carbonated beverages, mineral waters and concentrates and syrups for the manufacture of carbonated beverages.
Soft drink industry is very profitable, mainly for the concentrate producers than the bottler’s. The purpose of this report is to analyze the carbonated soft drinks industry and PepsiCo strategy.
First the report starts with analyzing the industry by focusing on PepsiCo's market share in the market.