Marketing plan Article Example | Topics and Well Written Essays - 750 words

Marketing plan - Article Example the market share of the carbonated drinks has been declining in the segment, from 29.8 percent in 2002 to 21 percent in 2007 and also 13 percent in 2014. This is because consumers are getting increasingly health conscious and this has restricted, to some degree, the growth of the carbonated soft drinks. In China, the soft drink production industry is highly concentrated. Pepsi-Cola and Coca-Cola alone dictate the market with an approximated joint share of 75.0 percent in 2014. Big businesses with Chinese local brands, like Jianlibao and Future Cola, account for a joint 6.3 percent market share. By 2002, this industry slowly come in a growth phase, and competition among businesses has since intensified. Majority of small enterprises have departed the industry, amalgamated with other firms, or transformed business direction, occasioning higher industry concentration. However, the leading role of Pepsi-Cola and Coca-Cola have been protected in the previous decade. The market shares of these key players within the industry are comparatively stable. Soft drinks, in China, refer to synthetic or natural beverages with not more than 0.5% alcohol content that may occur due to fermentation of the ingredient sugars and the making of flavoring extracts like vanilla extract. Ferrell & Hartline (2011) noted that soft drinks` demand kept growing as the Chinese citizens consumption level amplified in the past 30 years. Aggregate volume and total present value of soft drinks` sales growth in China rebounded in 2013 as opposed to that of 2012. A key reason for this was the 2013`s summer weather that gave this industry a good boost in sales. A lot of sunshine implies that more people buy drinks to enjoy outdoor and majority of impulse buying are seen in such hot climate. Besides this, fresh product development in numerous kinds of soft drinks are expected to drive consumption in 2016. Coca cola will continue to upsurge its penetration into the Chinese with distribution in both the