Carbonated Beverages

CARBONATED BEVERAGE INDUSTRY CASE ANALYSIS Team 4 Marketing Management/MGT-704 19 November, 2011 CARBONATED BEVERAGE INDUSRTY CASE ANAYLSIS Hypothetical Market Structure provides four different categories an industry can be classified. Each category identifies a specific role a target market is classified. The carbonated beverage industry is no different. It has four target markets and they are classified as market leader, market challenger, market follower and market nichers (Kotler & Keller, 2009, p. 301).

The market leader is usually one company that “has the largest market share… and usually leads the other [companies] in price changes, new-product introductions, distribution coverage and promotional intensity” (Kotler & Keller, 2009, p. 301). The market challenger “sets high aspirations” to market their resources to meet or exceed the market leader (Kotler & Keller, 2009, p. 308). The market follower’s strategy is “product imitation” of the market leader (Kotler & Keller, 2009 p. 310). The market nichers are different from the market leader, the market challenger and the market follower.

The market niches are leaders in small markets that the other three marketers are not interested in developing specific products for. The Hypothetical Market Structure for the carbonated beverage industry is the Coca-Cola Company is the market leader. PepsiCo Inc. is the market challenger. Dr, Pepper Snapple Group (distributer of RC Cola) is the market follower and a market nicher is the Jones Soda Co (Beverageworld, n. d. ). The carbonated beverage industry is very competitive. The Coca-Cola Company is the carbonated beverage market leader and PepsiCo Inc. s the market challenger striving to increase its market share by creating a comparable but yet slight different products in which customers feel is better and have more value. The competition between market leader and challenge is severe. Both companies’ prices are very competitive and comparable, they offer carbonated beverage products that include cola based drinks, they distribute to similar markets and both have extensive marketing campaigns for their own products, as well as, campaigning against each other. It is these reasons we see the most dynamics of competition between the market leader and the market challenger.

The Dr. Pepper Snapple Group (distributer of RC Cola) is the market follower to Coca-Cola Company and PepsiCo. Inc. This is shown by how the pricing of Dr. Pepper Snapple Group is the same or less than the Coca-Cola Company and PepsiCo Inc. The advertising campaign is minor and new products are not being developed the same as compared to the market leader and market challenger The Jones Soda Co. is a market nicher. It “incorporated unique marketing initiatives in its strategy” and was “recognized and awarded for its unique packaging that features constantly changing labels” (Jones Soda Co. n. d. ). It does not compete against the other three markets because it creates a customized product for a small niche group and not the masses. Therefore, while the Coca-Cola Company is the market leader, PepsiCo Inc. is the market challenger, the Dr, Pepper Snapple Group is the market follower and Jones Soda Co is a market nicher there is a lot of opportunity for all the different types of carbonated beverage industries and combining the right target market to a product is the key to market success.

References: Beverageworld. (October 2011). Citing Websites. Worldwide 100. Retrieved November 16, 2011, from http://www. beverageworld. com/userfiles/documents/BB_Top_100. pdf. Jones Soda Corporation. (n. d. ). Citing Websites. About Jones Soda. Retrieved November 16, 2011, from http://www. jonessoda. com/company/about-us. Kotler, P. , & Keller, K. L. (2009). Marketing Management 13th Edition (Pearson Education, Inc. Upper Saddle River, New Jersey, 07458) 301-312.

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