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SWOT analysis for Coca-Cola
SWOT analysis for Coca-Cola
SWOT analysis for a new beverage
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Table of Content
INTRODUCTION 2
SWOT ANALYSIS OF LUCOZADE 3
MARKETING OBJECTIVES 5
CONSTRAINTS 7
BIBLIOGRAPHY 8
Introduction
Lucozade has successfully built a positive image by showing itself as an energy drink provider. Our packaging is eye catching and is value for money to our customers. Lucozade has successfully built an image presenting itself as a drink full of energy and is appealing to people who do physical sports. To build this image Lucozade used well known sports celebrities and celebrities such as Michael Owen and Lara Croft to promote Lucozade (Lucozade, 2010). This has increased market share of Lucozade products. In addition this allowed Lucozade to be seen as a drink for active people. In other words the underlying message to customers is that if they want to be successful in sports or remain active in life they need to drink Lucozade.
On request from managing director this report will examine the strengths and weaknesses of Lucozade soft drinks using SWOT analysis and than set marketing objectives to counter the growing market competition from rival competitors. The report will also highlight any constraints in
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For example, manufacturing, marketing, and distribution of food products may be altered as a result of state, federal or local dictates. In addition the government is expected to cut down on public services to save funds in order to bring the economy out of recession. The Chancellor George Osborne has declared already that there will be job losses from public sector. This may result in less sales of soft drink such as Lucozade as unemployment has direct impact on
Through this evidence, Gatorade is the most essential drink on the planet when it comes to revitalizing and replenishing the body. This is why top athletes in professional sports endorse and use this produce. The commercial for Gatorade ask “Is it in you?” Gatorade and other numerous sports drinks have become a very important part of today’s sports market, and it seems to be with good reason. Research has confirmed that for the most part, the claims made by companies such as Gatorade about the effectiveness of their sports drinks are true. Gatorade is a useful sports drink.
The small drink that promises big energy and alertness without have jitters plays a role in most teenage and adult lives. This 5- Hour Energy’s audience is multitasking, working professionals. The market demand has increased a tremendous amount since the product had hit the store shelves in the year 2004.
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’...
As stated in the case, “the market for energy drinks was growing; between 2010 and 2012, the market for energy drinks had grown by 40%. It was estimated to be $8.5 billion in the United States in 2013 [and] forecasts projected that figure to reach $13.5 billion by 2018” (pg 5). However, much of this market’s revenue -- 85% in fact -- is dominated by five major brands, while the remaining 15% is split between approximately 30 regional and national companies. (pg. 5). With this saturated market, it might not be best for Crescent Pure to enter as a completely new product to the industry, as there is the possibility that it will be squeezed out of the profit shares by more established brands -- especially if it is not properly secure in its identity. In addition, while the market for energy drinks appeared to be growing at an exponential rate compared to the market for sports drinks -- which increased only 9% in five years and would be at approximately 60% of the rate for energy drinks in 2017 (pg 6) -- the consumers appeared to be wary of partaking in the market for several reasons, which would potentially harm the reach of Crescent Pure. These concerns included rising news reports discussing the safety of energy drinks (pg. 5). Taking into consideration the data provided in the case that concerns reasonings of why consumers choose specific drinks over others, there
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten brands sold. Colas are the dominant flavor in the U.S carbonated soft drink industry; however, popularity for flavored soft drinks has grown in recent years. The changing demographics of the U.S population have been an important factor in the growing popularity of these flavored soft drinks. The possible impact of this factor will be addressed later in the case.
What is a SWOT analysis? This concept involves assisting businesses to identify their strengths, weaknesses, opportunities and threats. It is often used to analyze an organization and its environment. Businesses find the analysis useful in assisting them to improve their business, establish goals and objectives.
The low-calorie, high-intensity sweetener market has been dominated by one major player, NutraSweet, with annual sales of $711M and about 80% market share (the total market in 1986 was $884M annual sales). NutraSweet, a monopolist in the industry, was able to charge premium prices and successfully capture the majority of the pie. Also, the market was expected to grow 15% annually, with a 70% projected sales growth in Europe and Canada. However, since NutraSweet’s original patents were due to expire soon (Europe/Canada market patent expires in 1987 and US in 1992), a new entrant was threatening to enter the lucrative low-calorie sweetener market – HSC.
A SWOT analysis is simple exercise that could be implemented on multiple subjects including an individual or a whole corporation. The SWOT analysis is an operational tool for managing change, defining strategic direction and setting realistic goals and objectives according to Simoneaux and Stroud (2011). Discovering new opportunities and manage and eliminate threats that are present in the company and the surrounding market. SWOT is a valuable technique that leads to a better understanding of the strengths, weaknesses, opportunities and treats both internally and externally. The strengths and weakness are to be considered internal factors and opportunities and threats to be e...
Instead of just sponsoring professional athletes to show the benefits of Gatorade to everyday athletes, Gatorade used the popularity and power of the pros to depict a different, broader social message. Along with spectacular technical aspects and varying settings, Gatorade was able to prove to all people that victory in anything or any place comes from initial defeat and was able to ignite the self-drive that all of humanity contains but struggles to find. This strong emotion that is felt in just 67 seconds changes the perception of Gatorade and all it stands for. By directing their message at such a wide audience, they were able to change its reputation and prove that Gatorade products are not just for athletes, but for everyone. With “The Secret to Victory,” Gatorade has inspired and instilled a new sense of motivation in viewers but has also successfully and ingeniously created a much larger consumer
Companies utilize different marketing strategies to appeal to their target audience. The methods they use to market their products usually reflects the target audience’s preferences or needs. Gatorade was invented at the University of Florida in 1965 by a team of researchers. They discovered nutrients were not being replenished when the school’s football team competed and formulated a solution to the problem. Today Gatorade primarily targets athletic or physically active individuals, especially professional athletes. Over time, Gatorade has become one of the most popular and leading sports drink companies in the world. Many people recognize what Gatorade is and what they do to help individuals who need the extra replenishment so they can continue
The term energy drinks refers to beverages that contain caffeine in combination with other ingredients such as guarana and other vitamins and minerals. In other words, energy drinks can be defined as a soft drink containing a high percentage of sugar, caffeine, or another stimulant, typically consumed during or after sporting activity or as a way of overcoming tiredness. Energy drinks are highly sweetened, caffeinated beverages that are packaged in brightly colored, slim line containers. They are sold virtually everywhere. At first, energy drinks were sold as a medicinal tonic drink and they have some benefits if person take it in limit. There are various negative effects of energy
According to Andy McDonald, an eight gold medal X Games award winner, Red Bull is the go to energy booster drink when there is a need for a boost. In the 2007 advertisement, Andy stated that, “Red Bull gives me the energy I need to make it to the top”. Visually and all around this advertisement is quite appealing. It using celebrity advertisement, well placed images as well as words, and it 's shows how athletes needs a boost of energy here and there just like others, but do they think about the possible effects.
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
However, a sales performance review in the year 2015 of new soft drinks introduced by Coca cola established that in Mount Kenya region, only 15% had succeeded, 55% were performing poorly, 17.5% had failed completely, while another 12.5% exhibited abnormally high artificial growth.(MKBL,2015) Despite the introduction of new products by the Company, its market share in the soft drinks market dropped from a high of 98% in year 2013, to a low of 93% in 2015 in Mount Kenya region, which included Nyahururu town. (Ac Nielsen, 2016). There have been complaints by customers on the products attributes, pricing, distribution and the execution of promotional activities. Still, there is scanty and inconclusive empirical data that would explain this trend of Coca cola products within Nyahururu town. A study by Migwi (2012) researched on Mount Kenya Bottlers response strategies to changes in external environment. However this research did not study the effects of marketing mix variables of new Coca cola soft drink products on sales performance as it was out of scope. This study therefore, aimed at filling this knowledge gap by examining the effects of marketing mix variables of new Coca cola soft drink products on the company’s sales performance in Nyahururu town. It aimed at providing insights towards the application and integration of the marketing mix variables by marketing managers so as to achieve the envisaged goals. By gaining insights into how sales performance is affected by the marketing mix variables, the company is going to design and integrate the marketing mix better, therefore improving sales performance in terms of market share, growth and ultimately,