Sierra Mist operates in a competitive market segment characterized by the following aspects. Firstly, based on the size of the market this soft drink covers broad consumer market. It has been estimated that supermarkets and general merchandisers represent 48% of consumer selling point. Given that supermarkets and merchandising shops are the biggest selling point for the soft drinks and beverages, hence, the significant market for Sierra Mist. However, the competition in the segment is stiff because of availability of other similar products, such as 7-Up, Sprite and Sun Drop. On the other hand, food services and drinking places have taken 20% of the soft drinks market. It has also been estimated that soft drinks export amounts to 1 % of the product market, hence being the least. In terms of growth, the market segment of this product is expected to grow once they start selling the soft drink to the syrup flavors manufacturing companies.

Profitability of the product was expected to increase by a margin of 4.5 % by 2010. It has also been projected that since Coca-Cola and Pepsi dominate the soft drink manufacturing sector, they will experience exponential growth in the respective market segment. The emerging trend in this market segment is that there is some aspect of product branding to boost its appearance by modification of shape, color and design to attract the consumers. Product promotion is also done via Twitter and Instagram. The producers believe that targeting a particular youth groups will aid in building the brand loyalty for the product.

It is obvious that Sierra Mist faces a stiff competition from other products like Sprite. However, the particular market focus for the Sierra Mist is seen to target specific age group. Regarding demographic segmentation for Sierra Mist, the company aims to sell its product by using the social networks such as Twitter and Instagram targeting the specific age groups of 18 years and above characterized by high usage of social sites.

This material was analyzed by Stanley Pearse who works at https://top-papers.com/