According to "Trends In The Global Beer Markets" (2008), (Consumption patterns). In the countries experiencing the most beer growth there is also evidence that beer has been gaining a larger portion of the overall commercial alcohol market in the area. Beer consumption had an increase of 6% from 2000 to 2010 from 34% of the commercial alcohol market to 40%. The global beer market is expected to continue to grow especially in Asia, Africa and Latin America. Forecasts beyond 2012 predict the fastest growth in China but anticipate growth in Vietnam, Brazil, Ukraine, Nigeria, India and Peru.
■ From 1975 to 1995 both Coke and Pepsi achieve average annual growth of around 10% ■ American’s drank more soda than any other beverage ■ Very large market share. More than 50% after the year 1994 (reached the top to 54% in 1998). ■ Average 10.65% net profit in sales for both Pepsi and Coke. ■ The US soft drink market share of Coca Cola Company and PepsiCo Inc. grew from 53.8 % to 74.8% in the year 1966 to 2004. From this fact we can learn that the soft drink industry is dominated by these 2 firms which holding the market power and a competitive fringe with many smaller firms acting as price takers.
Case: Competition in Energy Drinks [pic] Executive Summary The beverage market is a large market with the worldwide total market share in the billions. It’s a mature sector and includes companies that market nonalcoholic and alcoholic items. Since growth opportunities are limited, many members of the industry endeavor to diversify their offerings to better compete and gain share. While this industry has grown significantly over the years, recently it has experienced market stagnation as new entrants and products enter an already fierce marketplace. The marketing of energy drinks, sport drinks, and vitamin-enhanced beverages targets many segments, so much so that Coke and Pepsi now own or distribute many of the labels vying against their mainstay brands.
Kendle Net Income margin of 5.3 % in 1996 is much higher than 1.6% of the Quintiles which is considered to be the “golden standard” of the industry and more than double more than 2.2% net income margins average. These good financial ratios can be explained by the in-depth control of financial performance of the Company by its owners and Kendle preparation to the IPO process. By 1996, Kandle conducted clinical trials for 12 of the world’s 20 largest pharmaceutical companies. Research is a labor-intensive business and Kendle focuses a lot on maximizing labor utilization on 65 % to 70% utulazation rate to make sure that the profit margins are higher, especially on the operational level. With a qualitative and experienced management team Kendle organized the well-defined organizational structure where all the strategic business units carried profit responsibility.
Sustaining Growth A key issue facing ECP is sustaining its growth. From a turnover of £50,000 in 1978 ECP has shown rapid growth particularly in recent years defying the downward trend of the UK economy. In 2011 alone ECP increased its revenue by 25% whilst adding 12 new branches and over a thousand new employees to the team. This was a direct result of ECP’s heavy investment in people, infrastructure, technology and marketing. The growth was also aided by a shift in the market of service, maintenance and repair work away from manufacturer’s franchised dealer networks to independent repairers who constitute the bulk of ECP’s customer base.
Main factors that contributed to this trend are the increased smoking bans and consumers’ perception of moist smokeless tobacco as less risky than cigarettes for health. In 1997-1998 UST was one of the most profitable US companies with a five-year return on capital of 92.1% that was about 20% higher than the 2nd ranked firm. Financial figures for the 11-year period from 1988 to 1998 show a continuous increase in sales, earnings and cash flow with CAGR of 9%, 11% and 12% respectively (HBR 2001). To have a deeper insight in UST business risks and assessment, SWOT analysis (McGee et al. 2010) is provided below.
Red Bull Gives You Wings One of the fastest growing companies in the world, market dominator in its category,a producer of magazines,TV programs and movies,an innovator, participant and sponsor of many major worldwide events, a company that continues to develop and grow after almost 30 years of excellence, and most importantly -the top energy drink producer in the market – Red Bull.Even though the creator of this massive brand,the Austrian Dietrich Mateschitz,is not very famous, he is one of the most successful entrepreneurs, who laid the foundations of a company worth billions.With his persistence and knowledge he managed to change the landscape of the beverage industry. The success of a company or a brand is dependent on a great number of things.Communication, finance, strategy, contacts, trust, innovation, dynamics etc.should be perfectly balanced in order to achieve something big.But one of the most important concepts needed in this business is marketing- “The achievement of corporate goals through meeting and exceeding needs and expectations better than the competition” (Jobber and Ellis –Chadwick, 2013:5) or “The process of determining consumer demand for a product or service, motivating its sale and distributing it into ultimate consumption at a profit”(Baker, 1971:19) To find out more about Red Bull’s great accomplishments we need to see in more detail the marketing side of the company. Mateschitz did not only introduce a new brand into the market,but a whole new category- the energy drink.The launching of a new product generates much attention and makes it interesting for people to try it.This explains Red Bull’s success in the early years. However,there are certain factors that have a great impact upon the decision-making process.The understanding of how people make their choices is important for the perfect marketing mix.Through a more detailed
Despite this fact, US is the largest consumer of bottled water in the world. Many reasons, like concerns about tap water quality, purity, convenience, and aesthetics are the drivers behind this basic essential being sold at a premium in the form of bottled water. From $60 billion industry in 2006, the global bottled water market valuation has exponentially grown to $99 billion in 2010 and projected to reach a value of $126 billion by 2015 (EPA) (see fig.1). According to the Beverage Marketing Corporation, in 2012, the total volume of bottled water consumed in the United States was 9.67 billion gallons, a 6.2 percent increase and sales increased by 6.7 percent from the 2011 (see fig.2). Safety,
They would have worldwide sales of 4.6 Billion in 110 countries. Beverages would account for 60 percent of company sales and 53 percent of operating income. Also, at the same time Cadbury Beverages, Inc. was the fourth biggest soft drink marketer in US behind Coca-cola, Pepsi, and Dr. Pepper. The would have 3.4% market share in the carbonated soft drink market, where they would also be the market leader in a few soft drink categories. The company would run into a few main problems when in the process of re-launching Crush.
According to Bloomberg Business Week, Coca-Cola remains the best globally recognized brand across all industries for years, while Pepsi’s brand ranked number 25 in the year 2008. Thus, Coca-Cola is able to charge premiums for its syrup concentrates due to its larger market shares and better brand name recognition. In order to compete against Coca-Cola and increase revenue, Pepsi has diversified its businesses as I stated above into other markets such as snacks, chips, and breakfast foods, with its core business focusing on soft drinks. Undoubtedly, the company’s strongest and most identifiable brand is indeed Pepsi but it has a certain advantage over Coca-Cola since it is more diversified. On April 9, 2009, Coca-Cola Company reported cash and cash equivalent to be $6,816,000,000 and on December 26, 2009, Pepsi reported cash and cash equivalent to be $3,943,000,000.