Monday, May 24, 2010

The Industry Situation of the 70's


During the late 1960's, soft drinks were well on their way to becoming America's #1 beverage choice. Carbonated drinks had been trailing at #2 since 1967 behind coffee, but were quickly growing as a favorable beverage choice. Milk was the #3 drink of choice while beer, tea, juices, and distilled spirits followed.

There was a dip in soft drink sales for a few years after the ban of cyclamate in 1969. Cyclamate was the common sweetening agent used in soft drinks. Because of the ban on cyclamate, Pepsi-Cola launched Pepsi-Light using saccharin as their sweetener but quickly fizzled out as high fructose corn syrup was introduced in 1974. The introduction of high fructose corn syrup came at a time when sugar prices were incredibly high, making HFCS the best alternative as a sweetener.

Like many industries during the 1970's, the soft drink industry was also hurt by the economic depression. Private label soft drinks made a small peak of sales in 1972 but slowly drifted downward after that. Larger national brands used value-packaging in returnable containers as well as other packaging innovations to help boost sales.


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Coca Cola slogans of the 1970's

1970 It’s the real thing
1971 I’d like to buy the world a Coke
1975 Look up America
1976 Coke adds life
1979 Have a Coke and a Smile

Coca Cola Target Market

The company's beverages are generally for all consumers. However, there are some brands, which target specific consumers.

For example, Coca-Cola's diet soft drinks are targeted at consumers who are older in age, between the years of 25 and 39. PowerAde sports water target those who are fit, healthy and do sport. Winnie the Pooh sipper cap Juice Drink target children between the ages 5-12.

This type of market approach refers to market segmentation.

The Coca-Cola Company when advertising, has a primary target market of those who are 13-24, and a secondary market of 10-39.