Questions
Q1. The quick growth in the soft drink industry such as the Pepsi and Coca Cola involve the high profit limits and the pricing of its premiums as distinguished to other beverage drinks; hence, making this a strategic element of the globe and the U.S. market for beverages. Different categories require different types of beverages; hence, dividing the global market into various categories of products like the sports drinks, energy drink, and the relaxation drinks. The United States took a drinking data, and found that sports drinks were the most consumed beverage, followed by drinks that were in vitamins.
It was found that many consumers are focusing on the way to reduce their rate of consuming beverages that has carbon. It was discovered that the volume of the beverages. The least consumed beverages, according to the data were the alternative beverage sales were largely determined by the demand it had from different groups of people such as the children. The children preferred taking juice while the adults preferred taking energy drinks. Those who participated in vigorous activities such as sports mostly consumed the drinks that were rich in vitamins. As opposed to how people used to take drinks that were rich in carbon; the alternative beverage drinks produced different types of products that give customers the choice to have different types of preference and for the suitable activities.
Q 2. The alternative beverages are facing a competition from the major beverages on the basis differentiating between the fruit juices or the traditional drinks because innovation is a key component in creating competition, in the global market. Some examples of the alternative beverages include the sports drinks, drinks that boost the energy, fruit juices and drinks that are rich in vitamins. The branding, loyalty of these beverages depends on the properties, ingredients, and test of the drinks. The alternative beverages should cope with the competition through advertisements, the nutritional properties of the drinks, the brand name, packaging, and the flavors added to the drinks.
It is easy for companies such as Coca Cola and PepsiCo to produce alternative beverages since the companies hold a big share of the market making them to easily dominate the alternative beverage channels; hence, making it stronger for the firm that is ready to produce different types of beverages. Even though the weakest competitive force is the bargaining power of the buyers when alternative beverages are introduced to the market, companies tend to sell them at high prices. However, the consumers are willing to pay for them, and this encourages the companies to sell them at high prices for the consumers are willing to pay. This makes it hard for companies that have not established to enter into the market for the established companies have large numbers of already established customers.
Q 3. Customers have gained awareness about the health benefits and effects of drinks, and this has made them reduce their consumption of alternative beverages. This has led to a decline in the demand level. The consumers’ have also become money conscious, and they are spending less money on the drinks, thus, making the market be matured and reducing the scope of market growth. The change in production techniques has also affected the long-term rate of market growth and the consolidation of products by companies is a major driving forces of the alternative beverages.
Q 4. Companies are competing for the scope of the brand portfolio and the geographical distribution as shown by the group mapping of the sport drinks, energy giving drinks, and the drinks rich in vitamins. This indicates that companies that have big portfolios are enjoying a good market for their products. Moreover, companies that do not have multiple products in the market and those companies that seem to operate regionally are holding the least market in the beverage industry.
They should produce beverages with an appealing taste, and that is unique to the customers.
The alternative beverages should establish an image in their branding through advertisement and creating the product awareness.
