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PEST Analysis

1) The soft drinks industry in India faces several regulatory challenges from the FSSAI relating to ingredients in energy drinks and waste management. 2) Economic factors like demonetization had short term negative impacts on the industry, though non-carbonated drinks are growing at 5% annually led by mango, apple, and orange. 3) Younger consumers are more influenced by marketing factors like celebrity endorsements compared to older health-conscious consumers, though social media allows brands to engage directly with all generations.

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Akash Agrawal
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551 views8 pages

PEST Analysis

1) The soft drinks industry in India faces several regulatory challenges from the FSSAI relating to ingredients in energy drinks and waste management. 2) Economic factors like demonetization had short term negative impacts on the industry, though non-carbonated drinks are growing at 5% annually led by mango, apple, and orange. 3) Younger consumers are more influenced by marketing factors like celebrity endorsements compared to older health-conscious consumers, though social media allows brands to engage directly with all generations.

Uploaded by

Akash Agrawal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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PEST Analysis:

Political:
1) Energy drinks is facing a challenging year due to FSSAI regulations. The

stringent checks by FSSAI are increasing in numbers. PaperBoats Energy


drink Tzinga which was a big success in the market competing Red Bull
and other energy drinks was withdrawn from market by FSSAI. Also, few
days back FSSAI ordered the recall of Monster energy drink after finding
that it contained a combination of caffeine and ginseng, which, it is felt in
some circles, are best not used together.
- (Soft drinks in India 2016 report by euromonitor)
2) Waste management is a critical process must be taken care of in a
responsible and legal manner.
3) The Finance Minister has proposed to levy an additional duty of excise at
five per cent on aerated waters containing added sugar seen as a negative
decision for the industry.
Economic:
1) Due to Demonetization, the soft drinks industry experienced many shocks
and forecast to settle down in some months.
2) The industry is growing at CAGR of 5% in volume with Mango, Apple and
Orange dominating market share with more than 50% in the noncarbonated drinks segment.
-(nielsen-featured-Insights-whats-bubbling-up-in-indias-softdrink-market)
Socio-Cultural:
1) Age is important criteria for consumption of soft drinks but due to the
Nostalgic feeling associated with Paperboat brand no age limit can be
associated to consume the products of Paperboat.
2) The older generation is more health conscious and tends to consider
nutritional factors between products (diet or zero-calorie options)
3) The younger generation leans towards products that are fun, new, and hip
4) Celebrity endorsements, attractive commercials, and sweepstakes become
more important to the younger generation in their product decision.
5) Social media outlets (i.e. Facebook, Twitter, Instagram) keep consumers
directly connected to the brand
6) Firms are able to obtain valuable information and suggestions from
consumers about potential or current new products
-(Soft drinks SAR industry analysis)
Technological:
1) Unique design building and high producing capability are qualities of
Paperboat and technology has helped it to nurture.

2) High cost of technology can be a barrier to a new entrant but Paperboat


has surpassed this hurdle.
3) Advances in technology to optimize and utilise efficiently the supply chain
are a blessing to the industry.

Market Analysis:
1) Indian Soft drinks industry is Rs5.29 trillion.
2) Current CAGR 15% by value.
3) Coke and PepsiCo covers 90% of market.
(Soft drink makers feeling the heat as
growth slows by Mint)
4) Sales of non-carbonated drinks are on rise due to the health-conscious
intent of customers.
5) The perception of consuming healthier is changing the industry trends and
people are buying products with higher nutritional value.
6) Juice segment is growing at a rate of 30% annually.
7) Market is predominantly urban (75%)
8) The consumption of aerated beverages has increased from 3 servings per
person per annum in 1993 to 14 servings in 2013.
(nielsen-featured-Insights-whats-bubbling-up-in-indiassoft-drink-market)
Paperboat Market share:

The above table shows competitors of Paperboat in the market, their fruit
content and the variants the brand delivers in the fruit juice segment.

The above table shows the different segments in the Soft drinks industry and the
players competing under each category.
Dabur Real is the market leader in juice segment which is followed by Tropicana
from PepsiCo.
-(How Hector Beverages' Paper Boat is making waves in a cluttered soft drinks market by Economic Times)

The above table shows the competitor Brands of Paperboat and their respective
market share in the soft drinks segment.

The above figure shows number of soft drinks launched in 3 years from 2013
which are big competitors for Paperboat as Paperboat started in the same period.

The above figure shows the seasonality associated with the consumption of soft
drinks in India. It also shows the growth rate of each segment annually.

Perceptual Map:

The above perceptual maps divide the competing brands in the fruit juice
segment according to fruit content and nostalgic feeling where Paperboat tops
the chart.

PORTER ANALYSIS FOR PAPERBOAT

PORTERPOTENTIAL
ANALYSIS OF
MOTHER DAIRY
ENTRANTS
There is a huge Market Potential in the Juice sector in
India, so there is a large possibility of new products
from existing companies in the sector and from new
companies.
So, one could say that the threat of Potential Entrants
is very high.

SUPPLIERS
1. There are a lot of
options for
Paperboat when
it comes to
bottling
equipment
suppliers and
secondary
packaging
suppliers. So,
these suppliers
have medium
bargaining power.
2. As the basic
premix of the
drink is provided
by only one
supplier, the
bargaining power
of this supplier is
high.

BUYERS
INDUSTRY RIVALRY

Minute Maid
Real
Tropicana
Maaza
Slice
Frooti
Nimbooz

Del Monte

1. Retailers and
Departmental stores.
2. Corporate.
3. As there are a lot of
soft drinks and a
huge demand for
them coupled with
the low difference in
prices means that
the bargaining
power of the buyers
is medium.

SUBSTITUTES

Other Beverages such as Aerated drinks.


Unorganized Sectors Juices.
As todays consumers want variety in the soft drink space, the
threat of substitutes is high.

References:
http://www.paperboatdrinks.com/
http://tarunguptaspeaks.blogspot.in/2014/10/indianbeverage-industry-market.html
https://sites.google.com/site/softdrinkindustrysaranalysi
s/porter-s-five-forces

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