Coca-Cola - Current Market Conditions Competitive Analysis

Current Market Conditions Competitive Analysis

In today’s market it is important to understand the competition within the market for a successful rollout of a new product. In this paper team B will perform a competitive market analysis to determine the potential success of a new product. Team B has selected Coca-Cola and the new stevia sweetened Coke product.

Coca-Cola began in 1886 by an Atlanta pharmacist named Dr. John S. Pemberton who created a flavored syrup and was mixed with carbonated water. ("Coca-Cola History", 2014). As of May 2014 Coca-Cola has earned $46.25 Billion and is the number one selling soda brand in the world. Stevia is a natural zero-calorie sweetener that is becoming more popular among food consumers. In the past Coca-Cola has experimented with stevia in the international market and is soon to make a release on the United States.

The soft drink market is a competitive industry and there are numerous firms looking to gain market share. Supply and demand are always working to reach an equilibrium point in the competitive market. In the soft drink market there are two largest companies are Coca-Cola and PepsiCo. These two companies have built brand loyalty with fast food chains around the world to serve their products.

The main effect for demand for this product is the consumer thoughts about the stevia sweetened products. As of today, the western part of the world has not had long history and the facts about nutritional and health facts are not fully known. Once more research shows that stevia is a healthier alternative to cane sugar it will make the demand to rise. On the other hand if the sweetener shows negative effects it will quickly drive down the demand.

The supply for stevia sweetened soft drinks will largely depend on the harvesting of the Stevia plant, which is primarily grown in South Africa. If global demand rises unexpectedly it could create a supply shortage