The global market for soft drinks and beverages is dominated by Coca-Cola Company and PepsiCo Inc., with Keurig Dr Pepper as a significant competitor. These companies specialize in sales of carbonated drinks or soda and other drinks such as bottled water, sports drinks, and fruit juices. Traditionally, most of their revenues have come from soda, which comes in a regular variety and a diet variety.

In February of 2013, Coca-Cola found itself in a bit of trouble. Its chief executive Muhtar Kent acknowledged some problems and promised recovery from the previous year's missed targets and said things would normalize by the end of the year.

However, when the end of 2013 came about, Mr Kent delivered an assessment showing that Coke is finding it hard to solve fewer soda drinkers in the U.S., China, Brazil and elsewhere.

Coca-Cola said it would cut more costs. Its goal was to save $300 crore annually by 2019, with $200 crore by 2017. The earlier plan was to save $100 crore through productivity gains by 2016. It also said it would streamline its global supply chain.

Mr Kent said that Coke's problem was because of low consumer spending and some macroeconomic factors worldwide. The MNC is making fewer sales in other markets, and that is reducing its overseas earnings. He now sees this as a new reality.

Aside from cost-cutting, the company needs to sell more of its trademark cola and other famous brands, including Minute Maid fruit juices, Powerade sports drinks and Dasani water.

Coke has had difficulty trying to sell soda, responsible for more than 70% of company sales, but health-conscious consumers have avoided it. Now Americans have also started avoiding diet soda containing artificial sweeteners like aspartame.

But then it is not only sodas that are facing problems. Other drinks also faced similar problems. Coke said consumers drank less fruit juice, and higher costs for oranges in North America played a role. Sports drink volumes also fell.

The CEO noted Coke is also moving to charge more for its products and sell them in smaller packaging, which should boost revenue and profits.

Question Evaluation Scheme Exceeds expectation (4 -5) Meets Expectation Does not meet (3-4) expectation (below 3) Identifies the right market type - Only identifies the Unable to identify the oligopoly - and justifies the right type of market - correct market type, answer with good reasoning oligopoly - and refers and or does not offer including more than two features to at least 1 - 2 any reasoning for such as few competitors (3 major features. identification of the in this case), high barriers to correct market type entry, ability to price products, and product differentiation etc. Lists at least two from low List at least one Inability to list any income, changing taste and consumer-side issue consumer side issues preference due to health consciousness (move away from carbonated drinks) as well as not liking diet soda 3 Lists at least two from low Lists at least one Inability to list any productivity of workers, high production - side production side issue. costs, global supply chain issues issue. and high input costs in the form of orange prices Lists at least two from the Lists at least one Unable to list article, including cost cutting, from the article. anything from the more selling of trademark article. brands, and charging more for other products and packages differently. Students may also mention advertising, and launching new product lines