Industry Overview, Beverages - Non Alcoholic Carbonated Drinks.
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Industry Overview Beverages - Non Alcoholic Carbonated Drinks According to AC Nielsen, beverages dominate the list of fastest growing food and beverages categories in the global market place. While water (still and carbonated) was the leading food and beverages product, carbonated beverages experienced 6% of growth rate (2000-2001). Soft drinks consumption worldwide is growing by around 5% a year, according Global Soft drinks 2002. Averagely, the market grew by 5% - 6% per year. The zenith's 2002 global soft drinks report indicates that carbonates are the biggest soft drinks sector with 45% of global volume. Besides that, the report also shows that North America is the largest soft drinks market with a 27% volume share in 2001 and the fastest growing countries were Asia, East Europe and the Middle East. Zenith Research Director, Gary Roethenbaugh commented that the highly populous and rapidly emerging markets, such as China and India, consumption in Asia is projected to overtake that of North America in 2006. The overall sustainable growth of soft drinks in the beverages market provides marketer and manufacturer of non alcoholic carbonated soft drinks tremendous opportunity as well as challenges to realize the full potential of the market. To capitalize on the opportunities of the growing market, successful marketers concentrate effort to learn more about their consumers.
Based on the 4 segments, the fashionable brand conscious consumer and peer pressure consumers clearly sets the example of group influenced purchased decision. The fashionable brand conscious consumers are generally in their twenties, who are universities students or make up the working class, drive fast cars (or would like to), they socialize with friends, go to parties and dance clubs. They are carefree and are freestyle. When they buy Coca-cola, they buy image, they buy fashionable drink that exudes coolness. On the other hand, the peer pressure consumers tend to be the late majority teenagers who purchase Coca-cola because their friends do it or they do not want to appear daggy purchasing a Sarsi or Sprite. They are less likely to request for Sprite or Sarsi instead of a Coca-Cola when purchasing a value meal at McDonalds for fear of dagginess. (www.coke.com) In a group, several individuals may interact to influence the purchase decision. The typical roles of an individual are initiator, influencer, decider, buyer and user. In the case of carbonated beverages, because it is a low involvement product, most of the time its target consumers could play all the roles at the same time. Motivation Most often, we human mislead ourselves when we attempt to explain our behaviour in our desire to act as retinal human beings.
The speed of these changes has created increased pressure on manufacturers and marketers. The challenge for the carbonated drinks marketer is to understand its affect on demand for their products. Everyday, consumers around the world make decision on whether to buy or not to buy a product or brand or opt for that of a competitor. Some are decides when and where to shop. A marketer's advertising, direct marketing, merchandising, packaging and point of sale materials affects all these decisions, as are shoppers' own motivations and feelings about the shopping occasion and experience. Thus, the promotional mix needs to be changed to attract consumers and maintain their loyalty towards their product. Understanding human needs is critical for effective targeting marketing. However, these needs are not always detectable. The underlying motivations that most of the time marketers are not fully aware of helps maximise the potential of the brand if identified. Conclusion Understanding the changing needs of consumers and effective strategic marketing is critical to stay ahead. It is also important to understand brand relationship by exploring core needs of consumers and how consumers relate to the personality of a brand. For both manufacturers and retailers of carbonated beverages, success and failure is often a result of effective utilisation of market information to meet consumer needs and hence drive sales and profit.
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