1. Why was it important for Coke to reposition the brand away from being a "diet" brand and towards a mainstream "aspirational" perception? Pepsi Max, Coke Zero’s biggest competitor, was heavily discounted and as a result Coke Zero was up to 58% more expensive. Considering that 75% of cola is sold on price promotions, Coke Zero needed something to justify the price premium to be able to successfully compete. Coke Zero’s communication strategy was taste-led in a category which was already suffering from the stigma of perceived bad taste.
Currently, Gatorade prices vary, but the standard 250ml sports drinks price varies from $1.29 to $1.59, which is lower than its main competitor PowerAde which varies from $1.79 to $1.99. The PowerAde brand that used to try to gain market share by unveiling wacky flavors that Gatorade hadn't tried, brought to us ION4 in 2009, telling the public that this drink had calcium, magnesium and B vitamins that Gatorade
They can do somehow a better job in making sound investments and control the marketing with their products. I see that there were some challenges from some years especially when PepsiCo and Coco-Cola were at a war to compete each other with their businesses. Coca-Cola and PepsiCo are a few years apart, but both of them are well known and have such popularity with people drinking their sodas. Coca-Cola has been trying to surpass PepsiCo in their annual sales; however, from review, PepsiCo somehow has the highest number in their annual sales than Coca-Cola. PepsiCo has shown the best current ratio and is able to pay off their debts, which Coca-Cola does not have that and is struggling to pay off their debts.
However, you are probably making this unreasonable decision almost every day. In fact, bottled water can cost up to 10,000 times more per gallon than tap water. Since 1970, the plastic water bottle industry continues to grow tremendously. The plastic water
Threats encumber an organization from realizing its objectives. The main risk facing Bolthouse Farm is the fierce competition from other local juice stores. With the increasing advent of bars, people prefer these smoothies, which are customized according to their preference. The impact poses a significant threat to Bolthouse farms since their smoothies are standardized. In 2011, bars/cafes grew by 4% in terms of current value to reach sales of 4.7 billion dollars of which 15% is revenue from smoothies sold in Canada bars.
Threat of new entrants: Since bottled beverage market is huge specifically in the United States, it would be challenging for a new company to start up fresh since the products and services they have to offer may not be much different than what’s already available in the market. Since brand differentiation will be low, it will result as the threat of new entrants being low. Bargaining power of suppliers: The bargaining power of suppliers will be significantly low because there are about “50 manufacturers in the United States” (Gamble, 258). The suppliers don’t have much power since there is a wide range of available suppliers with whom any of big four companies can start business with. Bargaining power of buyers: Customers will also have a low bargaining power since water is an essential need of survival however they do have the option of choosing between different type of beverages; water, soda or energy drinks like Gatorade, protein shakes etc.
The first stage is the introduction stage; this stage is the most expensive to businesses because it is the launch of the new product. The product is new to the market, therefore the sales are low. Coca-cola expects this to happen as it does with all new products. Coca-cola is a family, well trusted brand that has been around for many generations. Merging the coca-cola product with an alcoholic beverage is brand new to the company and will require many different advertisements and promotions to get this product in the public eye.
While PepsiCo have diversified into healthier products and snack food business, Coca Cola have fell in marketing investments (advertising and marketing research) to maintain short term profit. As PepsiCo initiated the acquisition of Tropicana for $3.3Billion in 1998 (New York Times,1998)3, it have set itself up as the largest producer of branded juices for the health conscious in the USA. Subsequent acquisitions of Quaker Oats, Gatorade, Lay’s and Aquafina have also contributed positioned PepsiCo as the world’s 4th largest Food & Beverage (F&B) company with sales of US$22,000Million. The reluctance to diversify was evident when Coca-Cola decided against acquiring South Beach Beverage Company after negotiating for two years while Pepsi made an offer and in weeks acquired the SoBe brand New Age juice company, which gave Pepsi access to a market completely bypassed by soda
Unit 3 Assignment 2 Task 1a Carrying out a swot analysis for Tesco Strengths • The strengths for would be: • It is a powerful brand • It has a reputation for value for money and a wide range of products all in one store. • It is the UK’s largest supermarket with over 26% Market share • They are able to increase there market share • Cheaper then most supermarkets Weaknesses would be: • Tesco is not be able to provide a better service in books then Whsmith as they are more specialist in this region • Tesco controls its own massive empire which could lead to some weaknesses as due to the huge span of control from bureaucracy • They do not specialise and focus on one particular market like other companies, which can have a negative affect • They have competitors such as Morrison’s Opportunities would be: • They could expand more • Provide cheaper prices then Asda • Having special offers • Having lots of variety • Merging or forming a strategic alliance with another organisation would be a great way to improve their services Threats would be: • Other supermarkets would provide similar products • Some company’s would sell cheaper products then Tesco • They have competitors such as Asda • They have a growing public concern and annoyance that Tesco is threatening the smaller retailer Political • The price of petrol changing • There is growing concern that Tesco is getting too big • The organisation is driving out the competition • An increase in unemployment due to a downward turn in the world economic • Trading policies • Employment Law Economical • Impact on sales of the credit crunch • Exchange rates • Inflation • Interest Rates Social • An increase in immigration from Eastern Europe resulting in a demand for new goods • Changes in fashion • Lifestyle changes • Branding • Health and welfare
Explain. Answer: The strategically relevant components of the global and U.S. beverage industry macro-environment are: Global beverage companies such as Coca Cola and PepsiCo have relied on alternative beverages to sustain in volume growth in mature markets where consumers were reducing their consumption of carbonated soft drinks. Coca-Cola, PepsiCo, and other beverage companies have made various attempts at increasing the size of the market for alternative beverages by extending existing product lines and developing altogether new products internationally. The primary concern of most producers of alternative beverages was how to best improve their competitive standing in the market place. The global beverage industry was projected to grow from $1.58 trillion in 2009 to nearly $1.78 trillion in 2014.