General Environment FActors Affecting the Softdrink Industry

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General Environmental Analysis of the Softdrink Industry

Technological Environment. Revolutionary developments in machineries brought by technological advancements and discoveries have provided companies with enhancements in its operations, which when adopted and utilized effectively, may bring progress. Here, companies are able to produce more outputs than they have before, increasing its productivity and keeping up with the increasing demand of the market. Discoveries in additives would also provide industry players an answer to cope up with the markets changing taste and preferences with them now being able to produce sugarless sweeteners and caffeine-free products. Moreover, prospects of a self-freezing can, a smart vending machine, and faster fountain dispensers have spurred developments in the distribution of industry products.

Demographics. Age and ethnicity are two main characteristics that affect consumer preference for soft drinks and alternative beverages. Analysts, such as Marcia Mogelonsky, the author of Who's Buying Food and Drink, note that soft drink companies that take note of and respond to the age and ethnic trends will do well.

She pointed out that for many senior citizens, price is more of an issue than it is for baby boomers. They're not poor, but they can't buy in bulk anymore either. In addition, it has been observed that with age, health concerns become more of a factor when choosing a beverage. However, she adds that a health concern is not going to pull people away from a certain product it's going to make them choose a modified version of that product if it's available. In contrast to older consumers, younger consumers--particularly teens and those in their twenties--have less attention spans for products and are more likely to prefer products that seems to be fun and different.

Social and Cultural Environment. Socio-cultural changes in the environment presents industry players with predicaments that should...