The United Kingdom Beverage Market
INTRODUCTION
Armstrong Corporation is a food products manufacturing company, with products which include ready-to-eat cereals, frozen pies, snack items and carbonated beverages. Funky-Cola is the flagship brand of the carbonated beverage division. Our company has decided to introduce
Funky-Cola to the United Kingdom beverage market. In this paper, the market potential and opportunities of the country would be investigated in order to affirm our decision to enter into the UK market. Funky-Cola has been doing very well in our Malaysian market. Our company’s sales in the year 2003 amounted to over RM2 billion, with
Funky-Cola contributing 25% of the overall revenues. Because of this strong performance,
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Since the beginning of its operation, Armstrong Corporation strives to be the pioneer provider for new or latent needs of
Malaysians. Our products, from ready-to-eat cereals to frozen pies, as well as our flagship brand Funky-Cola have been very well received by our local consumers. Funky-Cola was the highlight of our company’s performance by contributing 25% of overall revenues. Our company introduced Funky-Cola as a tasty and fun drink that brings out the funkiness in each and everyone. With the various flavours adapted to local favourites, Funky-Cola appealed to the young and old alike.
Our company constantly seeks market opportunities to develop new products. Our aim is to always be the first to recognize the needs and wants of people. Our strategy is just as simple as being aware of customers’ changing taste and learning from there through our Customer
Care-line.
For the past three years, our company’s performance has been encouragingly improving. Sales have been increasing every year and reached a new milestone of RM2 billion last year. Our company also consists of very capable employees who are loyal towards the goal achievement of the company. Our employees have the capabilities and managerial expertise to venture out into the foreign market.
External Factors
PEST environment
a) Economy
The economy of UK is very stable, with low inflation, low unemployment, low interest rates and has a GDP growth rate of 3.0% per annum (2004). UK is a
Every company will compete for customers by satisfying their expectation constantly. But the best company will go beyond the expectations by delivering additional benefits, which they would have never imagined. The company Sprite was originally created by “The Coca-Cola Company” in 1961. During their long years of operation they have managed to become one of the most popular soft drink manufacturers in the world. But due to the amount of competitors in the market “Sprite” like any other company must stay relevant in the market in order to keep their customers satisfied at all costs. This is why “Sprite” decided to introduce a
The expansion of a new product line is an important growth strategy for a business that wants to increase their market share and revenue opportunities. Hamptonson is a midsized company that currently produces goods in the health food industry and will soon introduce a new line of health beverages on the market. Their decision is based on research and studies completed over time in the market and data obtained from various customer sources. Adding new products will enable Hamptonson to offer more to their existing customers and attract new customers who are unsatisfied with the limited options on the current market
Cool & Cool Soft Drinks Company is a start-up business which has made a good profit by selling its products to one particular locality. This is mainly due to the quality and the individuality of the product and can’t deny the fact that there is a
In today’s world, nearly everybody consumes a beverage every day of which, most of what we consume, is either a soft drink or hot beverages in the form of tea or coffee. The beverage business has in the modern world emerged as the top prayer with worlds renowned companies such as Coca Cola and PepsiCo being the leaders. In our study, we will focus on the history and mission statement of the PepsiCo Company.
PepsiCo Inc. is one of the leading brands in the world's food and beverage industry. It operates globally with a strong customer base and a wide array of products. This paper analyzes the general business environment for this leading food and beverage brand in order to assess what strategies it has been pursuing to operate in this challenging and complex environment. The analysis of internal and external environment has also been done in a view to figure out the biggest strengths, weaknesses, opportunities, and threats for the company. The final section gives an overview of the company's resources, capabilities, core competencies, and value chain which can help it to achieve a competitive advantage in its industry.
In 1989 Cadbury Schwepps, PLC was one of the world’s largest multinational firms. Worldwide beverage sales were at 60%, with Cadbury Schwepps, the maker of Crush Orange, being 3rd largest behind Coke and Pepsi. This status occurred through strategic focus on the brand and a broad expansion of products including club sodas, seltzer and ginger ale. The positioning of crush in from 1987-1989 was geared toward a market of teens, age 13-29. This comes from the results listed in Exhibit 13. The market share for this time period was 14% in 1987 and saw a decline in 1989 to 8%. The entrance of competitor’s products, Mandarin Orange Slice and Minute Maid Orange would be the cause of this decline, with Coke and Pepsi Co entering the market. According to Exhibit 6, in 1989 Crush would lead the case volume sales for regular soft drinks at 71.3%, however they were behind Mandarin Orange Slice and Minute Maid Orange in the diet category. To boost positioning my recommendation would be to focus on the three major industry structures, concentrate producers, bottlers and retail outlets. The Orange Crush product should be geared to families. According to the case study, the majority of supermarket sales were married women with teen age children. That being established, producing an
Coca-Cola has been a complex part of world culture for a very long time. The product’s image is loaded with over-romanticizing, and this is an image many people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of Coca-Cola’s greatest strengths. “Enjoyed more than 685 million times a day around the world Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment” (Allen, 1995).
The modern business environment is a highly competitive and dynamic place where organizations have to constantly adopt and adapt to the changing nature in order to foster growth and success. One of the core areas where the heart of business success lies is the marketing function. The process through which a company’s offerings are promoted and introduced to potential consumers impacts on many aspects of the business (Hill, & Langan, 2014). Therefore, to ensure proper growth and profitability, it is imperative that businesses foster successful marketing. The constantly changing business environment means that successful marketing is dependent on regular company and product analysis to recognize shortcomings and explore opportunities. Company and product analysis provide a solid platform through which an organization can discover the strength of its market position. The purpose of this paper is to provide concise analysis of Coca-Cola and its products.
Product is the most important element in marketing mix. Marketers should fully understand consumer demand and after that, products can be designed with the proper quality to satisfy their expectations in present and future. (CIM, 2015, p.5) Whenever companies launch a new product, marketers should do market research at first. Besides, they should track customers’ needs and preferences regularly by a system, such as online communities and apps. The product strategy of McDonald’s strictly followed these principles. There are a variety of food and drinks in the menu of McDonald’s, which can meet customers’ different demand, all of which developed after intensive market research of customers’ preferences.( McDonald’s , 2008) Moreover, in order to meet the
Sections 1 2 3 4 5 6 7 Project Team Our understanding of PepsiCo Market / Industry analysis Financial analysis Portfolio analysis Recommendations Q&A
As a private retail company, Healthy Potion has few external stakeholders and it means that the owner has the perfect control of all stores. In addition, the business has obtained a brand name, which has a large amount of recurring customers from the significantly increasing sales, and it helps to improve the customers’ power and loyalty (Guthrie 2008). However, there are several weaknesses existing in the business. The production of the beverages requires the importation of some special concentrate from China and that means there are high delivery costs and import duty costs.. Nevertheless, the single-product business model lacks diversity and can hardly satisfy customers’ expectation in products and have sustainable growth in the future. Healthy Potion is a business that produces unique healthy non-alcohol beverages, and it is a relatively new business in the beverage industry. That means the business has a tight budget and limited financial resources, such as funding, sources of income and investment opportunities (Australian Beverage Council 2013). The business also faces with opportunities as well as threats. Healthy Potion keeps in firm connection with Chinese suppliers and it can bring benefits to getting increasing reputation and competitive advantages in the international financial
This global profile focuses on the industry trends in soft drinks. All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2012). 2012 figures are based on part-year estimates. All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. SOFT DRINKS OFF-TRADE RTD VOLUME 534.8 billion litres
The motto of our company is to make sure that customers are getting best products at most competitive prices. Besides, our financial strength, commitment to quality and geographical diversity has strengthened our partnership between employees, customers
Threat of new entrants: The soft drink industry is highly competitive. The barrier to entry is relatively low for a new comer with a single beverage but the established players like Coca-Cola and China, who with their experience have achieved economies of scale. Huge capital investments are required to create a brand awareness among the consumers, though the process of bottling, distribution and storage could be outsourced. The
McDonalds and Starbucks are two domestic companies that are very successful. Both have emerged first as leaders in their respective markets domestically, and because of that success have been able to grow and expanded into countries all over the world. This paper will examine these two companies from a global perspective in order to evaluate their marketing strategies, with a particular emphasis on how successful they have been in foreign markets. The paper will focus on how each company has applied the four P’s of price, product, place and promotion in their marketing mix, detailing how they are used gain an advantage in their respective markets. Finally, the paper will evaluate the success of these organizations in developing niches in their markets as compared to their competition.