MARKET

ATTRACTIVENESS
ANALYSIS
PMKBJ23-1 Group #2

Richa Sahil
Arnav Shivam
Nikita Pranav
Abhishek Chaitanya
Competitive Rivalry
High & Intense

The bottlers are mainly dominated by two major players,

Coca-Cola and Pepsi, who have a duopoly in the CSD market
and a strong presence in the non-CSD market.
The competitors operate in a mature and saturated market
with low growth and profitability.
The bottlers compete on price, quality, innovation,
distribution, and marketing to gain mark.
Threat of substitution
High & Growing

Customers shifting away non-CSDs offering more functional

benefits, like hydration, nutrition, and energy (bottled water,
sports drinks, energy drinks, ready-to-drink teas, juices, coffee,
milk, and alcoholic beverages)
Substitutes have higher growth rates than CSDs, stealing more
market share
Lower barriers to entry and lower dependence on bottlers than
CSDs
Threat of new entrants
Low & Unlikely

Large-scale production & distribution facilities, and strong

relationships with retailers and customers required
Mandatory compliance with various environmental and health
regulations increasing operating costs & liabilities
Legal &contractual constraints from their concentrate producers,
granting them exclusive territories and franchise rights
Strict quality standards and performance requirements imposed
Buyer Bargaining Power
High & Strong
High & Strong

Customers are all retailers (supermarkets, convenience stores,

mass merchandisers, fountain operators, and vending machines)
Large number of choices among different brands, flavors,
packages, and prices of CSDs
Price-sensitive and demand discounts/rebates/promotional
support from bottlers
Can exert pressure on the bottlers by switching to alternatives/
channels/ developing their own private labels
Supplier Bargain Power Supplier Po
Low & Weak Low &
High & Strong

Multiple raw materials supply sources (aluminum cans, plastic

bottles, sweeteners, water)
Due to their large volume purchases - easy to switch suppliers &
negotiate lower prices
Self-sufficiency via backward integration capabilities (producing
their own bottles/cans)
 Market Analysis - Market Attractiveness

Medium Strong
Business Position

Bu Weak

Low Medium High

Market attractiveness
Bu