Why, Historically, Has The Soft Drink History Been So Profitable?
Q) Why, historically, has the soft drink history been so profitable?
The soft drink industry is profitable as these drinks can be easily produced and that to with very less cost, so they followed a low cost strategy and by doing so they were able to earn huge profit margins and more quantity means more profit. They were also huge dealers for food chains like KFC, MCD etc and several other gas stations.
Q) Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? In my view concentrated products are more profitable then the bottle products or bottle business is because of the reason that high quality material is used in it. The concentrated products are considered to have less superior material as compared to the bottled one, which means that there is less quantity mixed with water which gives nearly the similar taste but still you can easily differentiate. A lot of restaurants promote the fountain pops or concentrated products and bottled have high quality material and less mixture. …show more content…
Coke and Pepsi are two big players in the market. The competition in the market has been such in which one company goes ahead with some new product and other company adopts a proactive approach and it comes up with something new that no one takes the advantage, Because of the customer base and the market share they affect the profit of the
The soft drink industry is profitable as these drinks can be easily produced and that to with very less cost, so they followed a low cost strategy and by doing so they were able to earn huge profit margins and more quantity means more profit. They were also huge dealers for food chains like KFC, MCD etc and several other gas stations.
Q) Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? In my view concentrated products are more profitable then the bottle products or bottle business is because of the reason that high quality material is used in it. The concentrated products are considered to have less superior material as compared to the bottled one, which means that there is less quantity mixed with water which gives nearly the similar taste but still you can easily differentiate. A lot of restaurants promote the fountain pops or concentrated products and bottled have high quality material and less mixture. …show more content…
Coke and Pepsi are two big players in the market. The competition in the market has been such in which one company goes ahead with some new product and other company adopts a proactive approach and it comes up with something new that no one takes the advantage, Because of the customer base and the market share they affect the profit of the