Written Test

Sales of Soft Drinks – Pakistan Market
Interpretation
Over the course of 6 years – time line, the marke t representation according to provided data have achieved a smooth and rigorous growth during the years. The presented CAGR essentially smoothes out the progress of sales of soft drinks over a period of time, providing a clearer picture of product annual return. Consequently, the CAGR figure may give the impression that the sales have produced a stable and inclining return. An in-depth analysis of different categories of soft drinks during the period, that are Carbonates sales produced not a smooth raise but instead after some time gave a r i g o r o u s i n c l i n e , w h i c h i s v e r y m u c h s i m i l a r t o B o t t l e d Wa t e r s ale ma rke t, onl y th e differe n ce oc cu rs i s pri or produ c t re tu rn or growth inclined double in pace respected to its previous record; still they are not in comparison to Carbonate drinks. Whereas th e marke t re cord for fun c ti on al dri n k s an d j ui ce s h ave ke pt a smooth incline over the years. Th e c au se for th e m arke t posi ti ve growth towa rds soft drin k s can be estimated to multiple reasons falling into increasing popu l ati on tre n ds tow ards s oft dri n k s i n take s su ch a s we ath e r p e rc e p t i o n s , Pa k i s t a n c l i m a t e f a c e t h ro u g h t h e y e a r w a rm a n d humid weather conditions which causes dehydration and increase in thirst. Although this condition is considered to be continues as liquid is 75% of human body part but during the time line due to the increasing society awareness towards ma rke te d produ cts h ave pu t forw arde d a l arge i mpact on the growth of soft drinks sale. Invention of energy drinks and their i n t a k e s h a v e b e c o m e a f a s h i o n t r e n d a n d l i f e n e c e s s i t y. M a r k e t competition between soft drinks brands such as Coca Cola and Pe p s i h a v e p re s e n t e d v a r i o u s c o m m e rc i a l p ro f i t a b l e s c h e me s n o t only to increase the sale of growth but to stand in competition. Soft dri n k s are n ot on l y con si de re d a li qu i d in take bu t a l ife standard necessity between friends, colleagues and family affai rs, whi ch maj o r con ce rn in g party i s marke ti ng fie l d, advertisements. Holidays and particular religious events such as E i d ’ s a n d Fa s t i n g m o n t h t r i g g e r s i n c r e a s e i n t h e i r p r i c e s a n d sales. These increases in sale revenue are independent of season or weather conditions. The events may fall is warm weather increases their sales but in other seasons such as wi n te r the s ale s doe s n ot ge t affe cte d bu t kee p a ste ady ou tli n e .

Written Test

During the next coming year’s i-e for 2009-2014, estimation for their incline or decline can be presented with a steady figure. S o f t d r i n k i n d u s t r y i n Pa k i s t a n m a y e x p e r i e n c e i n c re a s e o f s a l e growth by 30.5% [1]. A major reason can be estimated for their increasing favorable approach by new generation and their increasing trends. Sudden changes can not be predicted as it’s a normal part of life but although bottled water prices may get affected due to the difference between the functional drink and j u i c e s p r i c e w i t h c o m p a r i s o n t o b o t t l e d w a t e r. The price and consumption of soft drinks stand in an equal c o m p a r i s o n t h ro ug h Pa ki s t a n di f f ere n t re g i o n s a n d c i t i e s , p r i c e s and popularity of soft drinks falls in an equal pan scale through o u t Pa k i s t a n . S o m e r u r a l a re a s i n Pa k i s t a n m a y h a v e e x p e r i e n c e d reduce prices for soft drinks in parallel to posse areas where the pri ce s may h ike - in cre ase bu t th e popul a ri ty an d con su mpti on d o e s n o t l e a v e i t s l e ve l . Pa ki s t a n i s n o t ne w t o s o ft d ri n k industry, but even though before the popular branded products f ro m C o c a c o l a , Pe p s i a n d Re d B u l l e t c t h e i n d u s t r y w a s c a p t u re d by local products such as Tiger, Golden and Shahzan etc. Soft drinks industry may experience a smooth increase in their annual growth rate by coming time span.

References [ 1 ] : http://www.allbusiness.com/services/business-services/4547097-1.html

Note: This is an estimat e report; analysis can be subject ed to prone and does not have any conflict to any mentioned brand or provided data.

Report By : Anum Ali

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