SOFT DRINK

SREEKANTH K G

GOVT. ENGG. COLLEGE , THRISSUR

DEFINITION

Soft drinks are non-alcoholic, carbonated beverages containing flavourings, sweeteners and other ingredients. The term was originated to distinguish the flavoured drinks from hard liquor or spirits.

TYPES OF SOFT DRINKS

1.Carbonated Soft Drinks: Contain carbon dioxide. e.g.: Pepsi, Coke, Fanta etc. 2.Non Carbonated Soft Drinks: don’t contain carbon dioxide. e.g.: frooty, slice etc.

CONSTITUENTS

Carbonated water(more than 90%)

Sugar or an artificial sweetener

Natural or artificial flavorings

Acids to reduce pH(citric acid)

Emulsions (act as clouding agents)

Anti-oxidants such as BHA and ascorbic acid

REASONS WHY PEOPLE CONSUME SOFT DRINKS

Taste Availability Convenience. Promotion and Advertising Soda Habit It is Cheap Thirst Instant recuperation from exhaustion Caffeine Addiction

MANUFACTURING PROCESS

Most soft drinks are made at local bottling and canning companies. Companies grant licenses to bottlers to mix the soft drinks in strict accordance to their secret formulas and their required manufacturing procedures.

Manufacturing process includes

Clarifying the water

Filtering, sterilizing and de-chlorinating the water

Mixing the ingredients

Carbonating the beverage

Filling and packaging

CLARIFYING THE WATER

Coagulation involves mixing a gelatinous precipitate, or floc (ferric sulphate or aluminum sulphate), into the water.

The floc absorbs suspended particles, making them larger and more easily trapped by filters.

During the clarification process, alkalinity must be adjusted with an addition of lime to reach the desired pH level.

FILTERING, STERILIZING, AND DE-CHLORINATING THE WATER

The clarified water is poured through a sand filter to remove fine particles of floc.

Sterilization is necessary to destroy bacteria and organic compounds that might spoil the water's taste or color. The water is pumped into a storage tank and is dosed with a small amount of free chlorine.

Next, an activated carbon filter de-chlorinates the water and removes residual organic matter, much like the sand filter.

MIXING THE INGREDIENTS

The dissolved sugar and flavor concentrates are pumped into the dosing station in a predetermined sequence according to their compatibility. The ingredients are conveyed into batch tanks where they are carefully mixed. The syrup may be sterilized while in the tanks, using ultraviolet radiation or flash pasteurization, which involves quickly heating and cooling the mixture. Fruit based syrups generally must be pasteurized.

The water and syrup are carefully combined by sophisticated machines, called proportioners, which regulate the flow rates and ratios of the liquids.

CARBONATING THE BEVERAGE

Carbonation refers to the dissolution of carbon dioxide in the beverage. It is done to make the drink effervescent. It is generally added to the finished product.

The temperature of the liquid must be carefully controlled since carbon dioxide solubility increases as the liquid temperature decreases.

The beverage is slightly over-pressured with carbon dioxide to facilitate the movement into storage tanks and ultimately to the filler machine

FILLING AND PACKAGING

The finished product is transferred into bottles or cans at extremely high flow rates. The containers are immediately sealed with pressure-resistant closures, either tinplate or steel crowns with corrugated edges, twist offs, or pull tabs.

BOTTLE MANUFACTURING

.PET (polyethylene terephthalate )beverage bottles are made using a process known as stretch blow molding (also called orientation blow molding).

First, PET pellets are injection molded—heated and put into a mold—into a thin walled tube of plastic, called a parison. The parison is then cooled and cut to the proper length.

Next, the parison tube is re-heated and placed into another mold, which is shaped like a soda bottle, complete with screwtop. A mandrel is slid into the parison. Highly pressurized air then shoots through the mandrel and fills the parison, pressing it against the inside walls of the mold. The pressure of the air stretches the plastic both radially and axially. The entire procedure must be done quickly, and the plastic must be pressed firmly against the wall, or the bottle will come out misshapen. In order to give the bottom of the bottle its proper concave shape—so that it can stand upright—a separate bottom piece is attached to the mold during the blowing process

After cooling the mold (with water ,liquid carbon dioxide, pressurized moist air), the bottle is removed from the mold.

Trimming operation must be done wherever the plastic is leaked through the cracks of the mold.

Some soft drink producers make their own bottles, but usually finished bottles are sent from specialty manufacturers to soft drink companies in trucks. Plastic is cheap to transport because it is light. Accessories such as lids and labels are manufactured separately.

MANUFACTURING OF ALUMINIUM CANS

Cutting the blank: . The first step in the actual manufacture of the can is to cut the sheet into a circle, called a blank, that will form the bottom and sides of the can. After the circular blank is cut, it is "drawn" or pulled up to form a cup

Redrawing the cup: A sleeve holds the cup precisely in place, and a punch lowered swiftly into the cup to redraw it. The punch then pushes the cup against three rings called ironing rings, which stretch and thin the cup walls.

Trimming the ears: The drawing and ironing process leaves the can slightly wavy at the top. These small ripples in the metal are called "ears.

Cleaning and decorating: After the ears are trimmed, the can is cleaned and then imprinted with its label. After the can is decorated, it is squeezed in slightly at the top to a make a neck, and the neck is given an out-ward flange at the very top edge, which will be folded over once the lid is added.

Making the lid: The lid is considerably stronger and thicker than the walls. The center of the lid is stretched upward slightly and drawn by a machine to form a rivet. The pull tab, a separate piece of metal, is inserted under the rivet and secured by it. Then the lid is scored so that when the tab is pulled by the consumer, the metal will detach easily and leave the proper opening.

Filling and seaming: After the neck is formed, the can is ready to be filled. The can is held tightly against the seat of a filling machine and the beverage is poured in. The lid is added. The upper flange formed is then bent around the lid and seamed shut.

Because soft drinks are generally cooled during the manufacturing process, they must be brought to room temperature before labelling to prevent condensation from ruining the labels. This is usually achieved by spraying the containers with warm water and drying them. Labels are then affixed to bottles. Cans are generally pre-printed with product information before the filling stage.

Finally, containers are packed into cartons or trays which are then shipped in larger pallets or crates to distributors.

MARKETING STRATEGIES OF SOFT DRINK MANUFACTURERS

According to Thomson and Strickland “ a company’s strategy consists of the combination of the competitive moves and business approaches that managers employ to please customers, compete successfully and to achieve organizational goals. Some strategies employed are:

Advertisements

Collaboration with international restaurant chains.

Introducing special offers.

Sponsoring sports tournaments

TYPES OF ADVERTISING

Print(magazines, flyers)

Outdoor, billboards

Broadcast(tv channels, youtube, facebook etc.)

COLLABORATION WITH RESTAURANT CHAINS

Soft drink companies tend to collaborate with international restaurant chains like KFC, Dominos, Mc Donald’s etc.

Along with their food products soft drinks are sold as a pack which benefits both the brands.

INTRODUCING SPECIAL OFFERS

Soft drink companies occasionally introduce special offers like free recharge coupon codes, scratch and win offer.

Sometimes 10-15% off on the MRP or 100-150 ml extra is also provided to boost the sales. Eg. Coca cola has recently reduced the price of its 2.25 lt party pack by rs10.

SPONSORING SPORTS TOURNAMENTS

Leading soft drink brands often sponsor sports tournaments including FIFA worldcup, ICC CWC, IPL, Olympics etc. This enables them to showcase the range of drinks and sell it in a large scale.

Coca-cola is one amongst FIFA’s major partners which also includes adidas, hy.undai, sony, visa etc

PepsiCo has bagged the title sponsorship rights of IPL for five years(2013-2017) for $71.77 million.

PRICING STRATEGY

Price should be set according to the product demand

Price should be that which gives maximum revenue to the company

Should not be too high or too low compared to the competitor’s price

These strategies target the retailers.

Retailers are offered trade schemes like certain number of bottles free per case, display schemes, target schemes & other benefit like installation of refrigeration facilities.

Softdrink makers try to make their products available wherever people tend to gather like railways stations , bus stops, near large offices & movie halls.

TRADE PROMOTION STRATEGIES

BRAND REVIEW

The Coca-Cola company and PepsiCo have been dominating the soft drink market ever since its introduction in the nineteenth century.

In 2013 carbonated soft drinks had a market size of $337.8 billion out of which 70% was held by coke and pepsi collectively.

Comparing the arch-rivals, coke and pepsi it is evident that coke has managed to get the better of pepsi worldwide save in Pakisthan where pepsi has outsold coke.

COST COMPARISON

Soft drink Quantity Price (RS)

Coca-Cola 2.25l 70

Coca-Cola 750ml 35

Pepsi 650ml 35

7up 1l 55

Sprite(coke) 750ml 35

Mirinda (pepsi) 650ml 35

Thums up(coke) 750ml 35

LOCAL COMPETITORS

Local soda manufacturers who mainly focus on manufacturing soft drinks in glass bottles rule the rural market.

They were never a threat to the MNC’s like Coke and Pepsi and don’t seem to be in the future because of the growing awareness of quality and brand value. They are successful in their own domain.

CONCLUSION

When the competition is between coke and pepsi, Coke always dominates due to the following factors

it is cheaper

Tastier(it’s the sweetness that is prevalent in coke whereas pepsi is more bitter)

Brand value (most valuable brand in 2011)

THANK YOU