What factors influence demand for Coke?

What factors influence demand for Coke?

Taste and preferences: Taste and preferences affect the shifts in demand curve. In the recent past there has been a product introduced in the market with the name zero sugar, which has tend to increase the demand of coca cola.

Who is the target market for soft drinks?

Demographic segmentation is divided into three parts: Youth (10-19), Young Adult (20-24), Adult (25-35). Youth consists the majority of consumers and the type of coke is not necessarily important. Young Adult and Adults prefer diet coke more. Psychographic segmentation is about the lifestyle of the customers.

What are the characteristics of soft drinks?

A soft drink (see § Terminology for other names) is a drink that usually contains water (often carbonated), a sweetener, and a natural and/or artificial flavoring. The sweetener may be a sugar, high-fructose corn syrup, fruit juice, a sugar substitute (in the case of diet drinks), or some combination of these.

Is the demand for soda elastic or inelastic?

For example, according to Ayers and Collinge, the demand for soda (Coca-Cola or Mountain Dew) is very elastic. This means that a small variation in price could produce a large change in the demand, which comes from the competition that exists in the soda market.

What could be the determinants of demand for Pepsi?

Changing consumer preferences: If the consumer preference is for Pepsi, the brand enjoys high popularity and demand. However, consumer preference can also change owing to certain factors. Most common factors that affect consumers’ preference are lifestyle factors, health factors and economic factors.

What type of demand elasticity is Coca Cola?

Coca Cola products are considered to have an elastic demand because quantity demanded for its products often change when prices change.

How do you promote soft drinks?

Introduce a new beverage product, such as cold brew coffee, with a discounted special price for the first month (or other appropriate time frame). Get employees and/or customers involved in a new beverage launch with a naming contest promoted via social media and in-store point-of-sale.

How do you market a drink?

Press

1. 10 Marketing Strategies For the Beverage Industry.
2. Product Packaging.
3. Brand Positioning.
4. Make the Most Of Your Unique Selling Point.
5. Social Media Marketing.
6. Blogging.
7. Email Marketing.
8. Seasonal Deals and Special Offers.

What are the main components of soft drinks?

Ingredients. Soft drinks typically contain water, sweetener (8 12%, w/v), carbon dioxide (0.3 0.6% w/v), acidulants (0.05 0.3% w/v), flavorings (0.1 0.5% w/v), colorings (0 70 ppm), chemical preservatives (lawful limits), antioxidants (<100 ppm), and/or foaming agents (e.g., saponins up to 200 mg/mL).

What do soft drinks such as colas contain significant quantities?

caffeine
Notes: Soft drinks such as colas contain significant quantities of caffeine.

Is the demand for soft drinks elastic?

The price-elasticity of all the eight categories is elastic. The price-elasticity of soft drinks is −1.37 implying that a 10% increase in price would be followed by a decrease of 13.7% in the amount consumed, which shows an elastic demand. The most extreme case is plain water, with a price-elasticity of −3.20.

Why is demand for sugary drinks inelastic?

If the price of one branded sugary drink increases, all other things equal, consumers have a number of other brands of sugary drinks they could easily switch to. Therefore the price elasticity of demand for a particular brand of sugary drink at any given price will greater than for sugary drinks as a whole.

What are the challenges facing the soft drink industry?

In the midst of the rapidly growing soft drink demand, the industry on the whole is encountering new opportunities and challenges. Changing consumer demands and preferences require new ways of maintaining current customers and attracting new ones.

How do soft drink manufacturers maintain profit margins?

While many of these factors are out of the control of the soft drink manufacturers, these companies must understand and adapt to these factors to maintain their profit margins. As with most goods, demand for soft drinks moves according to price. The higher the price, the lower the demand and vice versa.

What are consumer preferences in soft drink industry?

Consumer Preferences. Consumer preferences can change due to a wide range of reasons, including the average age of the consumer population, changes in societal trends, seasonal cycles or economic fluctuations. The success of any soft drink manufacturer hinges on that company’s capability to anticipate these consumer tendencies and plan accordingly.

Why do soft drinks go up in price?

Price Changes. As with most goods, demand for soft drinks moves according to price. The higher the price, the lower the demand and vice versa. When soft drink companies face higher prices for their ingredients, such as sugar, high-fructose corn syrup or flavoring agents, they may choose to raise their prices to maintain their profit margins.