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SOFT DRINKS

Bobby Eka Putra
Griselda Ellora
Jessica Feliciana
Lou Nian Qin
Rocky Simon Hia

Introduction
• Coca-Cola was first introduced in Indonesia around 1927
• In 1971, along with the gain of new capital and business
partners Coca Cola established the first modern bottling
company in Indonesia named PT. The Jaya Beverages Bottling
company.
• In 2000, three new Coca-Cola company in Indonesia was
established:
1. PT. Coca-Cola Bottling Indonesia (CCBI)
2. PT. Coca-Cola Amatil Indonesia (CCAI) and
3. PT. Coca-Cola Distribution Indonesia (CCDI).

Current Situation
• Coca-Cola made a profit of $2.71Billion last year in the first six months,
Pepsi did as well,taking into consideration of its size compared to Coca-
Cola by bringing home an estimated $1.27 Billion just in the first six
months.

• The growth of middle class consumers expected to rise by 9 percent this
year. Currently, the number of consumers of Coca-Cola reached 131
million.

• Soft drink industry predict an increase in the consumption of beverages as
much as 14 billion liters, or grew 40% during the 2014 World Cup
performances (Growth Stage)


(Source: World panel survey Indonesian Institute)

Market Size
• The soft drink industry has been dominated
3 Companies

1. Coca Cola : 42%
2. Pepsi : 32%
3. Cadbury Schweppes : 15%

Competition

• Competition is increasingly fierce among the big competitors. The
leaders in the industry are Coca Cola, Pepsi and Cadbury Schweppes

• Coca Cola, the market leader has over 350 different brands in over a
hundred and eighty countries. Their most popular brands are Coke,
Diet Coke, Fanta, Sprite, Coke Zero and many more

• Pepsi, the second largest and Coca-Cola’s biggest competitor also has
an array of soft drinks in its name. The most popular are Pepsi, Diet
Pepsi, Mountain Dew, Mirinda, Pepsi One and many more
Product Life Cycle
Stage in Life Cycle
The life cycle of popular soft drinks like Pepsi,
Coke, Sprite, etc. is in the maturity stage, the
popularity of these products is still strong,
however; there is an increasing trend towards
healthier soft drinks.

Maturity Stage
• At the maturity stage, growth is flat—it does not increase or
decrease. New consumers replace those who leave to
purchase a competing product. Brand equity is at its highest
at this point. Companies manage mature products through
continued advertising. This advertising keeps the brand in the
public eye and reminds consumers of the advantages this
product has over the competition.



Result of Maturity
• By the time a product reaches maturity, the
manufacturer has long since paid for all the major costs
of production and product development. Because a
mature product has established an effective distribution
method, the costs of sales and distribution are low. As a
result, products at the maturity stage usually make large
profits. Businesses can use income generated by their
mature products, often called cash cows, to develop and
fund new products

Reasons for the Maturity Stage
 Recently, there has been a growing demand for
alternatives to sugar-heavy soft drinks. “Regular” soft
drinks today contain high fructose corn syrup, and have
been blamed for contributing to various diseases
 A study from Harvard shows that soft drinks may be
responsible for the doubling of obesity in children over
the last 15 years
• As the soda pop fight rages on companies are
increasingly relying on new products like non
carbonated beverages like Fruit punch, Lemonade, Iced
tea, etc. to take them to the next level.

THE END