Written Test

Sales of Soft Drinks – Pakistan Market

Interpretation

Over the c ou rse o f 6 yea rs – t i me l i ne , t he marke t rep resen ta t i on ac co rd i ng to p rov i ded da ta have ach i eved a sm ooth and r i go rous g rowth du r i ng the yea rs . The p resen ted CAG R essen t i a l l y sm oothes ou t the p rog ress o f sa l e s o f so f t d r i nks ove r a pe r i od o f t i me , p rov i d ing a c l ea re r p i c tu re o f p roduc t annua l re tu rn . Consequen t l y , t he CAGR f i gu re may g i ve the i mpress i on tha t the s a le s have p roduced a s tab l e and i n c l i n ing re tu rn . An i n -dep th ana l ys i s o f d i f f e ren t ca tego r i e s o f so f t d r i nks du r i ng the pe r i od , t ha t a re Ca rbona tes sa l e s p roduced no t a smooth ra i se bu t i n s tead a f te r some t i me gave a r i go rous i n c l i ne , wh i ch i s ve ry much s i m i l a r t o Bo t t l ed Wate r s a le ma rke t , on l y the d i f f e rence oc cu rs i s p r i o r p roduc t re tu rn o r g rowth i n c l i ned doub le i n pace re spec ted to i t s p rev i ous reco rd ; s t i l l t hey a re no t i n c ompar i son to Ca rbon a te d r i nks . Whe reas the marke t reco rd f o r f unc t i ona l d r i nks and j u i ces have kep t a sm ooth i n c l i ne ove r the yea rs .

The c ause f o r t he m arke t pos i t i ve g rowth towa rds so f t d r i nks can be es t i mated to mu l t i p l e reas ons f a l l i ng i n to i n c rea s i ng popu l a t i on t rends tow ards s o f t d r i nks i n takes such a s wea the r pe rcep t i ons , Pak i s tan c l i mate f ace th rough the yea r wa rm and humid wea the r c ond i t i ons wh i ch cau ses dehyd ra t i on and i n c rease i n th i r s t . A l though th i s cond i t i on i s cons i de red to be c on t inues as l i qu i d i s 75% o f human body pa r t bu t du r i ng the t i me l i ne due to the i n c reas i ng so c ie ty aw areness t ow ards ma rke ted p roduc t s have pu t f o rw arded a l a rge i mpac t on the g rowth o f so f t d r i nks s a le . I nven t i on o f ene rgy d r i nks and the i r i n takes have bec ome a f ash i on t rend and l i f e necess i t y. Marke t c ompe t i t i on be tween so f t d r i nks b rands such as Coc a Co l a and Peps i have p resen ted va r i ous commerc i a l p ro f i t ab le s chemes no t on l y t o i n c rease the sa l e o f g rowth bu t t o s tand in c ompe t i t i on . So f t d r i nks a re no t on l y cons i de red a l i qu i d i n take bu t a l i f e s t andard necess i t y be tween f r i ends , c o l l eagues and f am i l y a f f a i r s , wh i ch ma j o r con ce rn ing pa r ty i s marke t i ng f i e l d , adve r t i semen ts . Ho l i day s and pa r t i cu l a r re l i g i ous even t s such as E id ’ s and Fas t i ng mon th t r i gge rs i n c rease i n the i r p r i ces and s a le s . These i n c reases i n sa l e revenue a re i ndependen t o f sea son o r wea the r cond i t i ons . The even t s may f a l l i s wa rm weathe r i n c reases the i r sa l e s bu t i n o the r seasons su ch a s w i n te r the s a le s does no t ge t a f fec ted bu t keep a s teady ou t l i ne .

Written Test

Du r ing the nex t comi ng yea r ’ s i - e f o r 2009 -2014 , e s t i mat i on f o r t he i r i n c l i ne o r dec l i ne c an be p resen ted w i th a s teady f i gu re . So f t d r i nk i ndus t ry i n Pak i s tan may expe r i ence i n c rease o f sa l e g rowth by 30 .5% [1 ] . A ma j o r reas on c an be es t i mated f o r the i r i n c reas i ng f avo r ab le app roa ch by new gene ra t i on and the i r i n c reas i ng t rends . Sudden changes can no t be p red i c ted as i t ’ s a no rm a l pa r t o f l i f e bu t a l though bo t t l ed wate r p r i ces may ge t a f f ec ted due to the d i f f e rence be tween the f unc t i ona l d r i nk and j u i ces p r i ce w i th co mpar i son to bo t t l ed wate r.

The p r i ce and c onsumpt i on o f so f t d r i nks s tand in an equa l c ompar i s on th rough Pak i s t an d i f f e ren t reg i ons and c i t i e s , p r i ces and popu l a r i t y o f so f t d r i nks f a l l s i n an equa l pan sca l e th rough ou t Pak i s tan . Some ru ra l a rea s i n Pak i s tan may have expe r i enced reduce p r i ces f o r so f t d r i nks i n pa r a l l e l t o pos se a reas whe re the p r i ces may h i ke - i n c rease bu t the popu l a r i t y and consumpt i on does no t l eave i t s l eve l . Pak i s t an i s no t new to so f t d r i nk i ndus t r y , bu t even though be fo re the popu l a r b randed p roduc t s f rom Coca c o l a , Peps i and Red Bu l l e t c the i ndus t ry was c ap tu red by l oc a l p roduc t s such as T ige r , Go l den and Shahzan e t c . So f t d r i nks i ndus t ry m ay expe r i ence a sm ooth i n c rease i n the i r annua l g rowth ra te by c omi ng t i me span .

References

[ 1 ] : http://www.allbusiness.com/services/business-services/4547097-1.html

Note: Th is is an est imate report ; analys is can be subjected to prone and does not have any conf l ic t to any ment ioned brand or provided data.

Report By : Anum Ali