Question

Question, Can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-CSDs?

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Although the demand for soft drinks has not seen a big spike in demand like in previous decades, Coke and Pepsi are still very profitable. The two brands have billions of loyal customers and are household names in most homes. The industry has also seen no new threats which continue to give Coke and Pepsi the profits they desire in a maturing industry. The demand may not be what it once was but the two companies are smart enough to go after different markets in hopes of gaining new customers.Health conscientious minded individuals will seek an alternative to soft drinks and that's why Pepsi and Coke have invested heavily in water, juices, vitamin water and other drinks that provide health benefits. Not everyone's taste palate is the same and therefore each company provides a wide range of products to satisfy every type of customer. It is essential to find niches and go after them at full speed. It is also important to expand internationally and gain market share in all areas even previously untouched ones. The two companies are ever expanding and their marketing has to do the same and also diversify. For instance marketing, a cola product to the New England region is much different than marketing a cola product to China. The two companies must be aware and do research in order to fully capture the consumer's attention. The non-CSD industry is an also a multi-billion dollar industry with room for astronomical growth in the coming years. The soft drink industry is a sustainable and a long-lasting one but companies need to put in the time, money and effort to fully maintain dominance and profits. Demand may not be as high for CSD but there has much growth for bottled water, tea, juices, etc.

Answer 1