Weaknesses
1. Limited range; no diet alternatives
In this time of changing social attitudes towards health, it is a huge weakness to not offer diet alternatives such as Coca-Cola Amatil has done with Sprite Zero and Diet Sprite.
2. Poor product placement means less availability
Frucor does not have deals with many fast food restaurants (frequented by the target market) in the same way Coca-Cola Amatil does (with McDonalds and Burger King) which hinders its product availability and sales potential.
3. No longer New Zealand owned
The “buy New Zealand made” attitude can damage Frucor sales now it is owned by Suntory; patriots are more likely to purchase local alternatives such as Six-Barrel Soda (a Wellington owned and operated company).
4. Branding confusion
As a soft-drink marketed as an energy drink, it is
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Their consumer decisions are strongly influenced by this desire. They tend to be competitive, individualist and ambitious people who are seeking more out of their life. Having other people look up to them and consider them successful is important to the Something Better Segment, so they are very concerned about image - wearing the right clothes, driving the right car, living in the right area etc. The key issue with this segment is that everything is a comparative. The group only has something better when it is compared to something or someone else. As a consequence they tend to be concerned about what other people are doing” (Levine, 1997). This means the Mountain Dew brand has to be better; more environmentally friendly, healthier, and, more convenient. These are This is in close link with the Look at Me’s who are also vastly concerned with image, and an easy segment to expand the target market into for this reason. Mountain Dew can offer value to this
Pepsi needed a strong regional partner. Pepsi had been falling behind to Coke in Mexican market. However, changes in the regulatory environment had cut Coke’...
To begin with the carbonated soft drink Industry is a profitable industry as its products such as Pepsi or Cola sell extensively across the globe. The industry relies heavily on its concentrate producers and bottlers to reach out to its market. This is further analyzed through Porter’s five competitive forces;
While contenders, for example, PepsiCo offer a scope of items that incorporates refreshments and snacks, Coca-Cola has stayed immovable as a pioneer in drink brands. Coca-Cola's rivals, then again, need to isolate their consideration between an extensive variety of item sorts.0020
Both concentrate producers (CP) and bottlers are profitable. These two parts of the industry are extremely interdependent, sharing costs in procurement, production, marketing and distribution. Many of their functions overlap; for instance, CPs do some bottling, and bottlers conduct many promotional activities. The industry is already vertically integrated to some extent. They also deal with similar suppliers and buyers. Entry into the industry would involve developing operations in either or both disciplines. Beverage substitutes would threaten both CPs and their associated bottlers. Because of operational overlap and similarities in their market environment, we can include both CPs and bottlers in our definition of the soft drink industry. In 1993, CPs earned 29% pretax profits on their sales, while bottlers earned 9% profits on their sales, for a total industry profitability of 14% (Exhibit 1). This industry as a whole generates positive economic profits.
Red Bull is the highest selling brand making it a marketing leader with over 40% of the market share. Red Bull uses every means of marketing to reach their target groups. Their marketing is mainly based on the “3 pillars of Red Bull; Sampling, Advertising, And Sponsoring”. This means that next to normal advertisements, they drive around in Red Bull –modified cars handing out cans of red bull and sponsor big extreme sports events and competitions. In this way Red Bull is not just promoting their energy drink but is also selling a lifestyle, seemingly people are willing to be a part of this Red Bull extreme sports lifestyle.
There is much strength for the energy drink industry, and the biggest one is marketing strategies. This is a critical success factor, in the sense that energy drinks have a specific target group that each business focuses on. This from “company-to-customers” mindset creates a lot of space for loyal customers and a strong brand name in which customers value the energy drink. Because this industry focuses on a specific target group, most products and business, such as Red Bull, are cost efficient and put a lot of effort into creating the perfect brand known to public.
... part from that, the threat of substitutes. With so many firms in the quick service drink industry, low switching costs, similar products, and healthier options, the threat of substitutes is very high. When there is one product successful, it also leads to the creation of other products that can perform the same functions as the product of the same industry.
This competitive advantage has been rendered sustainable as other players have found it difficult to catch up with the company's competitive strategy. In spite of this clear advantage, it was noted that the company faces some challenges being the world leader in soft drink distribution. The canning and bottling of the product which is done in many countries have now fallen into the hands of independent companies, thus it becomes hard for a given company to control the quality of the packaging
First, Royal FC is fully owned by member dairy farmers, who are independent entrepreneurs from the Netherlands, Germany and Belgium (FrieslandCampina n.d.). Naturally, the company has best knowledge of the tastes and preferences of the European market. Second, the liability of outsidership increases costs for doing business in the distant regions as the transaction costs are higher for countries outside the home region (Peng & Meyer 2016). Moreover, the CSR practices tend to be more expensive outside Europe, and investment in politically unstable areas are avoided (needs source). Third, over 90% of adults in East Asia are lactose intolerant. The intolerance is also common in West Africa, which is a reason why FC does not target these markets as much (Genetics Home Reference 2010). Overall, FC has the intention on continuing the worldwide growth in the future. They already took steps and aligned their current strategy to reach the status of a global firm in the future. Therefore, it is likely it will become a global company in the medium to long
... it’s a buyer’s market, therefore instead on focus on push advertising and trying to compile prospective customers to buy their product, Pepsi is trying to make Pepsi a part of the consumers life so, whether consciously or unconsciously, if a customer goes out to buy soda the first thing that comes to his/her mind, is Pepsi. I find this especially intriguing, because as an aspiring entrepreneur I hope to one day market my products with the same if not better technics as Pepsi.
Brand Image / Loyalty: Coke and Pepsi have a long history of heavy advertising and this has earned them huge amount of...
The 10 major products of the soft drink industry are produced by Pepsi and Coca-Cola in America. According, to a news post on NBC from research from 2010, of no surprise number one is Coca-Cola. Most Americans prefer Coke products over Pepsi. Number two is Diet Coke. Many people look to drink Diet Coke because it is the “healthier” version of the loved Coca-Cola. Number three is Pepsi. Next is also by PepsiCo which is Mountain Dew at number four. Dr.Pepper is number five and this is very surprising because I don’t see many people drinking it as much as all the other drinks. Sprite is number six in the ten major products. Number seven is Diet Pepsi with Diet Mountain Dew being number eight. I don’t remember seeing many stores selling Diet Mountain
1975 heralded the Pepsi Challenge', a landmark marketing strategy, which convinced millions of consumers that the taste of Pepsi was superior to Coke. Simultaneously, Pepsi Light, with a distinctive lemon taste, was introduced as an alternative to traditional diet colas. In 1983 Coke launched aspartame/saccharin blend Diet Coke. In response in 1989 Pepsi-Cola introduced an exciting new flavor, Wild Cherry Pepsi. Thus Diet Pepsi's 'The Other Challenge' campaign was based around a 54-46% lead over Diet Coke in independently researched taste tests in Australia. It was only in 1996 that Pepsi unveiled a revolutionary 'blue' look worldwide 'to transform the image and attitude' of one of the world's best-known brands. 'Pepsi Blue represents a quantum leap into the future and redefines how the Cola Wars will be fought and won in the 21st Century.'
in this segment are often brand conscious and enjoy the latest fads and trends. They...
Learning from Others Coca-Cola has been able to learn not just from their own blunders but from other beverage companies they’ve acquired for either product expansion or for resources they have that could help