Recently in the past few years the trends which has been observed in the beverage industry is that there has been a slight decline in the market share of the carbonated soft drink industry. There can be numerous factors that can be associated with this sales downturn; some of them that we have identified are given below (Klein, 2008).
- Health conscious Consumers:
This has been the primary reason of declining market share, nowadays the consumers have become more aware about health and as a matter of that they have become more health conscious. With so much technology and information around, consumers are getting educated about the health implications of their consumption choices. This information and awareness is causing a shift in the market share of the industry from regular drinks to diet soft drinks. The reason why consumers are going for diet drinks is because they want to enjoy the drink but at the same time remain healthy. This is the current industry trend and this is the area where the company should put in all their expertise (Keller, 2000).
- Popularity of other drinks:
The second reason that has been identified is the increase in consumption of the pet bottled water, energy drinks and sports drinks. All these functional drinks are experiencing tremendous amount of growth in the recent years as far as consumption is concerned. The demand for such drinks is increasing as consumers are in search for drinks which can physically uplift them (Klein, 2008).
- Short lived brands:
Last but not the least another factor which has impacted on declining market share is the flood of short lived brands. If we talk about Coca Cola only the company released around 84 new brands in the year 2006 most of which have vanished today. The point is that these shortly lived brands like Dr. Pepper; Red Fusion etc created a mess in the marketplace and because of these products the consumers gets distracted from the company’s main product (Datamonitor, 2009).
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