Market Opportunities for Soft Drink Companies Essay

Companies in the soft drink manufacturing industry are facing intense competition from the domestic and foreign brands,resulting in rising promotional costs and sinking profit margins. The consumers are going for real â€Å"value† for their money ,choosing drinks with better health value. Acurrent ban on sales of carbonates shows in the trend analysis given below:- {draw:frame} COMPANY GROWTH RATE Our company has shown a declining growth rate due to change in value perception and behavioural differences of consumers due to governmental bans all over the country. A public clarification would help us change the consumer perception. We need to make our core value based products to be fresh and relevant. We also need to sharpen our focus in this industry for maximum effect. {draw:frame} The trends of our own product offerings in the market are shown in the graph as below. Here we can notice a declining trend. {draw:frame} This declining trend can also be seen as a loss of our market segment to healthier drink options like fuit juices and water . It is quite evident in the graph given below:- {draw:frame} High sales volume in the water drinking segment and health juice segment shows that customer want better value and there perception is based on the changes in the microenvironment brought about by our competitors. There is a possibility of high â€Å"customer churn† in the future as our company’s sales decline. A 5 percent reduction in the customer defection rate can increase profits by 25 percent to 85 percent. According to the expectancy value model we ned to look into altering the beliefs about our brand which is effected by physical risk perceptions. Here we are seeing intense segment rivalry in our eange of products. Also there is lower entry barrier. The companies point of view needs to be visible on active information search. A customer’s decision to be loyal or defect from buying our products depends upon the large number of small encounters of the company which should lead to memorable customer experience.