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Crush

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Submitted By babylove327
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Crush-

1) INDUSRTY ANALYSIS: STRUCTURE
INDUSTRY ECONOMICS
BRAND CATEGORY
BUYER (CONSUMER) BEHAVIOR-

I. structure
3 TYPES OF PRODUCTION/ participants- concentrate producers, bottlers and retail outlets

40 concentrate producers who make the flavors of the syrup. Responsible for national consumer advertisement, national promotions , & marketing research.

100 bottlers who sell to retailers- in store displays, campaigning. Merchandising and sales. Key success factor, without them the concentrate producers cant get their product to the supermarkets. Owned by either the producers which is verticle integration or franchises.

Retailer outlets- supermarket, fountain, convenience stores, small retail outlets (independent Grocery store)

II. industry economics
Concentrate producers should sell more regular because they have higher sales with regular over diet. Cost them less to produce as well.

III. Brand & category

Over 900 registered brands in the market. Top 10 brands make up 71.4% market share all sold by coke, Pepsi, dr. pepper, and none of them sell orange drinks.

Growth share matrix- current product, current market (market penetration such as arm and hammer) & new product, current market (new product development) if you have current product in a different market you have new market expansion and new product new market then that is market diversification.

Soft drink category- diet vs. regular, & flavors (lemon lime etc.)

IV. Porters 5 forces

Barriers to entry - high
Substitute products- high
Seller power-low because rivalry is very intense, substitute products are high and product life cycle is mature so the only way to grow is to steal from other competitors
Buyers power- high

V. BUYERS BEHAVIOR- sold regionally not nationally because so many consumers have preference and soft drinks are also

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