Market Opportunities for Soft Drink Companies Essay

Companies in the soft drink manufacturing manufacture are facing intense competition from the municipal and foreign brands,resulting in rising promotional costs and sinking profit margins. The consumers are going for real value for their money ,choosing drinks with better health value. Acurrent inhibition on sales of carbonates shows in the trend analysis given below- drawframe COMPANY GROWTH RATE Our company has shown a declining maturement rate due to change in value perception and behavioural differences of consumers due to governmental bans all over the country.A public clarification would second us change the consumer perception. We need to make our core value based products to be fresh and relevant. We also need to sharpen our focus in this industry for maximum effect. drawframe The trends of our own product offerings in the market are shown in the graph as below. Here we can notice a declining trend. drawframe This declining trend can also be seen as a loss of our market subdivision to healthier drink options like fuit juices and water system .It is quite evident in the graph given below- drawframe High sales volume in the water drinking segment and health juice segment shows that customer want better value and there perception is based on the changes in the microenvironment brought about by our competitors. on that point is a possibility of high customer churn in the future as our companys sales decline. A 5 percent reduction in the customer defection rate can increase profits by 25 percent to 85 percent.According to the expectancy value posture we ned to look into altering the beliefs about our brand which is effected by physical risk perceptions. Here we are seeing intense segment rivalry in our eange of products. Also there is lower entry barrier. The companies point of view needs to be visible on active information search. A customers decision to be loyal or defect from buying our products depends upon the large number of small encounters o f the company which should lead to memorable customer experience.