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Pop Shoppe (B)
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Reference: IVEY-9B11A025-E
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Year: 2010
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Number of pages: 6
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Geographic Setting: Canada
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Publication Date: Jul 26, 2011
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Source: Ivey Business School (Canada)
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Type of Document: Case
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Industry Setting: Manufacturing;
Description
This case, a supplement to Pop Shoppe (A), deals with the entrepreneur’s decision point in 2010 on whether to enter the U.S. carbonated soft drinks market.
Learning Objective
This case builds from the (A) case, which focused on the Pop Shoppe’s entry into the Canadian market. The (B) case highlights important distinctions between two seemingly similar markets in an attempt to demonstrate that success is not always easy to replicate. An overview of the U.S. carbonated soft drinks market suggests some general similarities and important differences between the Canadian and U.S. markets. Although major industry dynamics such as production and distribution, size and number of large national competitors, and prevalence of private-label brands are the same as in Canada, the U.S. premium carbonated soft drinks segment is exponentially more crowded. The case sets up the strategic decision of whether or not to enter the U.S. market, and how such an expansion could be pursued.