Come-back of Dr Pepper on the Russian market, страница 2

Per cent of consumers and market size

90% of the population consumes soft drinks, where the share of sparkling drinks is about 40%. In 2004 the market size of soft drinks without taking into consideration still drinks was 2,5 billion liters and has a growth rate is positive and about 5-7% per year.

The Rosstat and BusinesStat forecasted the share of soft drink consumers  in 2010-2014 years (% of the population):  






Mineral &







Soft drinks





                                                                              Table 1

Here we can see the growth of share of population in Russia consuming soft drinks, but it is insignificant. On the other hand the top-management of The Coca Cola Company in Russia pointed to the fact that there is a great potential of the market because the rate of consumption of carbonated soft drinks per head in Europe is much more than in Russia.

Target audience

Indicating a target audience of future advertizing campaign is also very important point of analysis of the customers. As a rule the companies which have financial opportunities to create an advertizing on TV, street advertizing and other promotion choose young people from 10 to 30-35. It is caused by the trend to a healthy way of life and feeding and the majority of adult people refuse drinking carbonated soft drinks to water or cold tea, but most of the youth still love it and prefer not to think about consequences of consumption. The level of income of our audience is middle and upper-middle.

Analyzing the given information we can conclude, that the numerical increase of consumers is not expected may be even decrease, but on the other hand the share of consumption of carbonated soft-drinks is rather big and it is not going to fall.   

Competitor analysis

Russian market of soft drinks is estimated as a pretty competitive. In spite of two everlastingly fighting giants – The Coca Cola Company and Pepsi Cola, which captured in sum 51,4% of market size and 72% of the value of the market of carbonated soft drinks, there are lots of local producers of carbonated soft drinks which quality is worth, the price is lower, but which have their loyal consumers such as “Ochakovo”, “MegaPak”, “Ost-Aqua”, “Slimkompaniya”, “Borodino” – occupy a 30% market share. The quality and price of Dr Pepper are comparable with Coca Cola’s and Pepsi’s, so they are the direct competitors and their market share is a cherry pie for us.

Competitive disadvantages of Dr Pepper:

·  Level of distribution. The distribution of the leaders is on the highest level, their products are everywhere: in hyper- and supermarkets, in small shops, all HoReCa segment is already divided between them. But Dr Pepper will have to spend a lot of time to gain the satisfactory level of sales.

·  Best brand-awareness of competitors. The two giants are not only very powerful and resistant to crisis, their brands are between the most expensive in the world (Coca Cola – the 5th place and Pepsi – is 51st). Of course Dr Pepper isn’t there, so it will have to spend a lot of money to increase its brand awareness to become top-mind in Russia, even if some people knows it and like.