SOFT DRINK INDUSTRY OF PAKISTAN:

Introduction:
A soft drink typically contains carbonated water, a sweetener, and a natural or artificial
flavoring.The sweetener may be a sugar, high-fructose corn syrup, fruit juice, a sugar
substitute, or some combination of these. In 1874 a U.S store combined two popular
products to make the first known ice-cream soda. The first cola drink appeared in 1881. The
worth of Pakistan soft drinks industry worth is USD 2100 million (2.1 billion). The market
leader are Coca-Cola and Pepsi.
Economic:
Soft drink consumption has a market share of 46.8% within the beverages industry.
Pakistan produced 5,550,474 tons of sugar in July-May FY2013-14 compared to 5,057,740
tons a year earlier. Cost of raw materials can be a factor if the economy for certain materials
is weak. All factories of the firms must abide by government and ISO standards and
regulations. If any of these laws change, companies must change their operations and
procedures to avoid being fined or even worse, shut down
Social:
Carbonated beverages are quite popular across society, especially among the youth.
According to a survey conducted by Iris Communication it was found that 65% of males and
66% of females prefer other beverages over tea in Pakistan, whereas 53% of youngsters
(16-22 years old) and 67% of adults (22 & above) prefer tea over other beverages. Dieting
has become a very marketable, popular trend which forces the soft drink industry to create
new products that meet consumer preferences.
SCENARIOES:
First Scenario:
Due to dependence of soft drinks on sugar and chemical it can be effected duce the
legislation change on sugar and chemical industry in Pakistan
Second Scenario:
If the customer become health conscious than sale of the carbonated drinks decrease or sift
to alternative of soft drink
ALTERNATIVE PLAN OF SCENARIOS:
For First Scenario:
Make alternative to sugar and chemicals or minimize the dependence on other industry.
For second scenario:
Make product which do not affect the customers health at least give some benefit.

PORTER FIVE FORCES:

 Competitors: (High Pressure)
 Pepsi
 Red Bull
 Diet Coke / Diet Pepsi
  Fanta
 Sprite
 Mountain dew
 Coca Cola

 Substitutes: (Medium to High Pressure)

 Iced Tea
 Sparkling Water with Fruit
 Iced Coffee
 Water
 Coconut Water

 New Entrant: (Medium Pressure)

 Sugar cane
 Taj soda water
 Juice pack industry
 7 seas beverages
 A & A Enterprise
 Mehran Bottlers
 Continental Beverage

 Power of Buyer: (Low Pressure)

 Direct delivery:
Used their own transportation
 Indirect delivery:
Like Pepsi give its product to KFC, Pizza hut and other distributor

 Power of Suppliers: (Low Pressure)

The suppliers of the soft drink companies are few in number instead of it they can not
affect the soft drink producer because they have strong hold on the market due to their
good will and market share.