mercredi 7 novembre 2012

Structure of the market & competition


As you have noticed, we were talking last time about the market. But what exactly in included in this market? What are the stakes, the issues? And by what is the market characterized?


Carbonates

1.    Coke Classic, Coca-Cola Company
2.    Pepsi-Cola, PepsiCo
3.    Diet Coke, Coca-Cola Company











There are two kind of products not appearing here, with more or less power because of their price or of the social relevance it represents:
Private Labels
And….LOCAL BRANDS.

Americas represent over 54% of the world market. 
Coca-Cola is the market’s top company, accounting for over 42% of the overall market. 
Carbonates represent 40% of the global soft drink industry.

Sports & energy drinks

1.   Monster Beverage Co
2.   RedBull
3.   Rock Star


The global functional drinks market, which includes sports drinks, energy drinks, and nutraceutical drinks Energy drinks lead the market segment with a near 58% stake. 
Americas represent more than 38% of the global functional drinks market. PepsiCo is the number one company in this category generating more than 24% of overall market volume

Sports drinks comprise a well-established market with steady consumption, where energy drinks is a fast-growing segment. 
Energy drinks are becoming increasingly popular as consumers show greater awareness toward issues related to health. This trend is particularly important in developped economics. 

Bottled water

1.    Aquafina,  PepsiCo
2.    Dasani, Coca-Cola Company
3.    Poland Spring, Nestle


It represents 27% market expansion in five years, bringing market volume to almost 183 billion liters, 20% more than in 2010. 
Unflavored water still represents 65% of the bottled water market. 

Market drivers include greater health awareness, higher consumer spending, larger population and lifestyle trends (natural components for example). Marketing and product differentiation are key with companies focusing on product innovation, and packaging in terms of weight and brand image.

Fruit Juice

1.    Minute Maid, Coca-Cola Company
2.    Tropicana Pure Premium, PepsiCo
3.    Ocean Spray, Ocean Spray


The global juice market, which encompasses fruit and vegetable juice, nectars, and fruit is lead by 100% fruit juice with over 30% market share
According to Global Industry Analysts, the global fruit and vegetable juice market will exceed 64 billion liters by 2015. 



Indirect competition

For drinks producers, competition is not only direct but comes also from subsidiary products. It is for this reason that firms must also pay attention to the strongest competitors, especially :
Glaxo SmithKline 
Tchibo
Sunny Delight
Innocent Drinks  
Folgers
Starbucks


A worldwide domination?


You can find some brand's product all over the world as you can fin them in only one country. Indeed, companies adapt their offer to the country, to the culture. Because people's need and companies's communication are different from a country to another, there can be an impact on the brand and its business model. Thus, in a globalized context, how do brands exist all over the world? Is there an exception of successful brands all over the world?
That's for sure, the worldwide cola market is dominaed by two major figures and brands, even icons: Coca Cola And Pepsi.


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