PRELIMINARY:
Your instructor has chosen an industry (and a strategic group of companies within it) for this assignment:
Industry: SOFT DRINK MANUFACTURING (NAICS CODE: 312111)
Product Description: A “Soft Drink” is a carbonated, flavored, non-alcoholic liquid meant for human consumption. Example products produced by this industry include cola (Coca-Cola, Pepsi Cola, Diet Dr. Pepper, store brands, etc.), flavored soft drinks (Orange Crush, Grape Nehi, etc.), root beer (A&W, Barq’s, IBC), ginger ale (Vernor’s, Canada Dry Ginger Ale, Schweppes Ginger Ale, etc.), etc.
Substitute Products: by definition, a substitute is a product produced OUTSIDE this industry but serves the same function as a product produced INSIDE this industry. Primary substitutes for soft drink products include milk, bottled (and tap) water, sparkling water, fruit juices, beer, wine, spirits, coffee, teas, soy and coconut milks, etc. (NOTE: A SUBSTITUTE IS NOT A PRODUCT MANUFACTURED BY A DIFFERENT COMPANY IN THE INDUSTRY).
Strategic Group: Coca-Cola (KO), PepsiCo (PEP), Monster Beverage (MNST), and Keurig/Dr Pepper (KDP).
Note: You MUST use these companies. Refer to them by their ticker symbol (i.e. “KO” for The Coca-Cola Company). Also, for the purposes of this project, just focus on the strategic grouping of companies listed above and pretend they all have a PRIMARY function of manufacturing Soft Drinks (not water, food stuffs, etc.). Ignore the company “Embotelladora Andina” and “American Beverage S.A.” These are international companies that are not in your strategic group.
Note: In this industry, note the following terms and DO NOT CONFUSE THEM:
- Raw material suppliers: These are the companies that supply raw materials that get turned into soft drinks.
- Manufacturers / Producers: These are the companies that purchase raw materials from suppliers and CREATE the soft drink products. These companies include the companies in the strategic group.
- Customers: These are the companies that purchase the soft drinks in bulk from the manufacturers. These would include wholesalers, retailers, etc. (This includes Walmart, gas stations, Publix, etc.).
- Consumers: These are the people who actually drink the soft drinks (i.e. you and me). The consumers buy from the customers. (The consumers are actually the retail or wholeseale organizations who buy from the companies that produce customers, not customers of the manufacturing industry).
Sample Solution