Carbonated drink presentation

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CARBONATED DRINK INDUSTRY IN INDIA Group member: M.Asad Ghazali Ikram ullah Kakar Farrukh Kazimi Kiran Rehman

Transcript of Carbonated drink presentation

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CARBONATED DRINK INDUSTRY IN INDIA

Group member:M.Asad Ghazali

Ikram ullah KakarFarrukh KazimiKiran Rehman

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INTRODUCTION Industry Highlights:

Global Soft Drink Industry – $310Billion(2015 Expected) Indian Beverage Industry – $230 Million of the $65Billion Food

Industry Current Growth Rate: 15% & Expected Rate: 16-17%

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TARGET MARKETGENDER YOUTH (male & female)

AGE   All 18 + MAN AND WOMAN (mainly youth)

SOCIAL ECONOMIC CLASS Middle class Lower middle class 

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MARKET SHARE

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FIVE FORCES MODEL OF COMPETION

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Threat of New Entrants/ Entry BarriersFactors HUF

AMUFA

Neutral MFA HFA comment

Economies of scaleCapital require redAccess to distribution channelsExpected retaliationDifferentiationBrand LoyaltyExperience CurveGovt. Action

small

Low

Ample

LowLow

Low

InsignificantLow

2.5

3

3

3

3

4

4

4

large

High

Restricted

High High

High

Significanthigh

3.3125

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Threat Of Substitute Product

Factors HUFA

MUFA N MFA HFA Comment

Threat of Obsolescence of Industry’s productAggressiveness of substitute products in promotionSwitching CostPerceived price/ value

Hi

Hi

Low

Hi

2

3

3

3

Low

Low

High

Low

2.75

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Power of SupplierFactors HUF

AMUFA N MFA HFA commen

t# of important SuppliersSwitching cost

Availability of substitutesThreat of forward integrationImportance of Buyer industry to supplier’s profitQuantity purchased by the industry of supplier’s product Suppliers product an important input to the buyer’s business

Few

High

low High

small

low

Highly Important

12

3

3

3

3

3

Many

Low

high Low

large

High

Less important

2.571

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Power Of BuyerFactors HUFA MUFA N MFA HFA Comment

Number of Important buyersThreat of Backward integrationProduct suppliedSwitching cost% of buyer’s costProfit earned by buyerImportance to final quality of buyers Pr.

Few

High

Commodity

lowHigh

Low

High

2

2

2

2.5

3

4

4

Many

Low

Specialty

highLow

High

low

2.785

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Competitive RivalryFactors HU

FAMUFA

Neutral

MFA HFA

Comment

Composition of CompetitorsMkt. Growth rateScope of competitionFixed storage CostCapacity Increase

Degree of differentiation

Strategic Stake

Equal Size SlowGlobal

High

Large

Commodity

High

2

2

2

2

2.53

3

Unequal SizeHighDomesticLow

Small

High

Low

2.3575

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Exit Barriers

Exit BarriersFactors HUA MUA Neutr

alMA HA Comments

Specialized AssetsFixed Cost of ExitStrategic interrelationshipGovernment Barriers

Hi

Hi

Hi

Hi

12

3

4

LOW

Low

Low

Low

2.5

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Overall Industry attractiveness

Factors Unfavorable

Neutral Favorable

Entry BarriersExit BarriersRivalry among existing firmsPower of buyersPower of SuppliersThreat of substitutes

2.3575

2.571

2.53.3125

2.785

2.75

=2.682

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conclusion