16 Diet Cokes reign as the nations No 2 soda brand is over

16. Diet Coke\'s reign as the nation\'s No. 2 soda brand is over -- and it did not last long. Pepsi, which fell to No. 3 (market challenger) in 2010, has reclaimed the second slot behind regular Coke; according to 2014 U.S. carbonated soft drink market share data recently released by trade publication, Beverage Digest. Both Pepsi and Diet Coke lost volume in 2014. But as consumers moved away from artificial sweeteners, Diet Coke fared much worse, falling 6.6%. Pepsi lost only 1.8%. That gave Pepsi an 8.8% share, compared with 8.5% for Diet Coke. Just as telling is the fact that No.1 Coke (market leader) actually squeezed out 0.1% volume growth last year, marking its first growth year since 2000, according to Beverage Digest. Brand Coke controls a dominating 17.6% share of the soda category. The rankings are evidence of how changing consumer tastes can alter brand fortunes in a short amount of time. Which macro-environmental factor explains the decline in demand for soda? Explain.

Solution

Change in cultural tastes and preferences is the macro environmental factor that lead of decline in demand for soda. People\'s tastes moved away from artificial sweetness. You can see this by seeing the increase in sales of diet coke after coke zero sugar was launched. Earlier many customers did not know coke zero didn\'t have sugars.