26 Jul WHAT IS THE FOUR-FIRM CONCENTRATION RATIO IN THE U.S. SODA MARKET?
To that Show more RC Cola like the Brady Bunch and push-up bras is attempting a 90s comeback. . . . To that end the company is spending $15 million on a new advertising campaignthe largest in RCs historydesigned to cast the blue-collar drink of the Midwest and South as the hip alternative to corporate colas as it refers to market leaders Coke and Pepsi. Accompanying the ad blitz are new products including a sour-tasting Windex-colored Nehi and a long-neck brew called RC Draft formulated specifically for younger palates. This company spent no money on advertising during the 1980s and we lost an entire generation of cola drinkers who grew up in that decade said John Carson Royal Crowns chief executive. . . . Anybody in the soft drink business trying to compete with Pepsi and Coke has an uphill battlethey have huge amounts of marketing muscle financial resources experience and bottling agreements said John Sicher co-editor of Beverage Digest an industry publication. But RCs new tactics are smart. They are tossing out a bunch of beverages targeted toward younger drinkers. Against Coke and Pepsi guerrilla warfare is the only thing that might work. Instructions: Enter your responses rounded to one decimal place. (a) What is the four-firm concentration ratio in the U.S. soda market? (b) What is the maximum value of the Herfindahl-Hirshman Index in the U.S. soda market? Show less
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