A Study on Domestic Soft Drinks Manufacturing Entrepreneurs in Selected Districts of Karnataka

Abstract

MNC players are the majority market share holders in the Indian soft drinks market from 1990’s onwards. Now-a-days trend are changing with the increasing threat from small, local brands and many of them are operating in the regional level and few of them are operating at national level and they are quietly stealing the thunder from the two multinational giants by selling quality products at cheaper price than MNCs, mostly in small towns and rural areas. These 'B-brands' have together captured at least 10 per cent — their highest ever — of the Rs 14,000-crore aerated drinks industry in the country and they are fast taking control of several pockets in the market. Coke and Pepsi spend crores on advertising, these local players are not spending like MNC players on advertisement and on brand ambassador to attract consumers towards their brands but pricing and taste is what is attracting consumers to local soft drinks brands in the market and also low marketing spends as they deal directly with retailers. Competition from local brands has already forced Coca- Cola and PepsiCo to drop prices of colas in 200 ml glass bottles to Rs 10 from Rs 12 in markets. In this background, the present study is taken up to understand the opportunities and challenges faced by the domestic soft drinks manufacturing entrepreneurs in selected districts of Karnataka where local players are operating in the market.