Solo AS

Abstract

German carbonated soft drink market The German carbonated soft drink (CSD) market is a fragmented market. Two of the biggest players hold more than half the total market volume, the third biggest holding under 2 %. Drinking 125,5 liters a year, the German CSD consumers favor fruit flavored carbonates, which is accountable for 53 % of the market. Discounters stand for the highest sales of overall soft drinks (including CSD, energy drinks, bottled water, RDT coffee etc.). Diversification The German CSD market has a high threat from substitutes. Soft drinks ranging from energy drinks to juices stand as valid purchase alternatives. The market is very brand oriented and segmented accordingly. Trends such as the “health and fitness” continue to drive demand and may cause brand migration if not considered. Health and fitness The German population is increasingly involved with “health and fitness” trends linked to food and beverage. Solo should market accordingly. Sugar is the number one concern in regards to CSD, 43 % of our survey respondent’s answer that they were very concerned with the amount of sugar in their CSD. After gaining initial foothold, launching Solo Super - a sugar free alternative - would address that concern and could be a strategic advantage. Cultural similarities The German culture is quite similar to the Norwegian culture; affected by factors such as an aging population, social media and global trends. Establishing business ties in Germany does not necessarily imply great strategic changes in terms of business culture. Norwegian inclination Germans have a positive outlook on Norwegian products in terms of quality and willingness to try. This country-of-origin effect was especially high in the respondents that had already used or consumed a Norwegian product. This could be addressed by directly linking Norway to every product by incorporating a Norwegian flag in the logo.