SWOT Analysis for Coca-Cola Product - Case Study Example

INTRODUCTION OF NEW PRODUCT IN SPAIN: NON-CARBONATED COKE SOFT DRINK By Student’s Name Code + Course Name Professor’s Name University Cite, State Date PESTEL Analysis: Spain Political Environment First, in the year ending 2010, the country’s Prime Minister launched multi-parties anti-crisis initiative commissions that were aimed at improving the current political instabilities within the country by way of promoting a consensus between the different parties. The agreement was meant to cool-off the rather higher political temperatures created by these parties in relation to the ongoing recession within the country as a whole (Data Monitor, 2010). Second, the Spain government agencies and departments have always tried to improve the efficiency of its immediate public administration functions across all of its workable ministries (Data Monitor, 2010). This is meant to aid with easier operations of activities related to both public and private sectors (Data Monitor, 2010). Economic Environment First, in the year starting 2010, the Spain government took to the issuance of loans and other grants to mostly small businesses for purpose of ensuring that there was ascertainment of its rather stumbling economy (Data Monitor, 2010). Subsequently, the country’s Economic Ministry also formulated a substantive number of measures that included the development of a commission that was to evaluate the country’s immediate energy strategies for the next 25 years coming (Data Monitor, 2010). Second, recently the country’s government approved a distinctive fiscal stimulus package in order to promote investment activities within the country especially in areas of construction (Data Monitor, 2010). This approval also embarked on public-private participation model that was aimed at triggering crucial newer investment platforms for the private sector. Social Environment First, in regards to the country’s immediate healthcare needs for its population, it can be said that it is adequately provided by public sector, however; with the recession great initiatives have been developed in order to catapult the involvement of the private sector into the health sector of the country (Data Monitor, 2010). Second, in modern-day Spain, the labor market is shifting its operations from a system of temporary to permanent agreements. This is meant to avail long-term income predictability to employees from the already available employers (Data Monitor, 2010). Third, the country’s youth population is perceived to be one involved in creation of great social media networks that is meant for communication and entertainment purposes (Data Monitor, 2010). Technological Environment First, the country does not enjoy substantive rights in regards to the number of patents received. The number of the patents received keeps getting lower and lower due to the fact that the country is losing this aspect to neighboring established countries like Germany and France (Data Monitor, 2010). Second, the country’s immediate bio-technological market keeps on improving. This is depicted by a 6.1 per cent increase of revenues by $7.6 billion in 2008 (Data Monitor, 2010). Third, the country’s immediate interconnectivity increased in the period between 2006 and 2012 in order to match up with the global requirements (Data Monitor, 2010). The internet connectivity is meant to link most people and business across the country and at a fair cost. For instance, the whole of Madrid is covered with public-accessed internet connectivity (Data Monitor, 2010). Legal Environment First, the country’s law allows for foreign investments of up to 100 per cent of equity funds while also, the aspect of capital movements within the different section of the operations of a foreign business are notably liberal in nature (Data Monitor, 2010). Second, the immediate agencies concerned with the country’s competition aspect has been strengthened and also, expanded in order to increase its enforcement prowess (Data Monitor, 2010). Environmental Landscape First, it is important to comprehend that the Spain’s environmental policies are formulated in relation to European Union set guidelines (Data Monitor, 2010). Second, the country’s energy agencies are now concerned with the reduction of energy dependence by way of promoting renewable energy by the year 2010 (Data Monitor, 2010). Realization Strategies It is important to comprehend that the product under scrutiny is non-carbonated drinks. Therefore, in order to put the product into the market it will be safe to formulate strategies needed for ensuring that all activities of product introduction are met (Barney, 1991). First, it will be safe to produce budgets and also, decide on the pricing strategies meant to reflect on the market. Budgets should be customized to meet the specific requirements of the product in Spain while effective pricing strategy should be adopted in order to ascertain the constant flow of loyal customers into purchasing the product. Mentoring strategies should also be developed to ensure element of feedback is received at the most effective time for action (Barney, 1991). Feedback from customers should be made a priority and a communication department should be developed to assist with providing solution to the different queries that might arise from the customer regarding the product (Gary, 2013). It is also important to note that feedback from customers sometimes help in providing insights into how the newly introduced product can be improved to meet specific market requirements (Gary, 2013). SWOT Analysis for Coke Product Strengths First, the product enjoys a great deal of loyal customers already throughout the globe. Coca-Cola enjoys a great deal of popularity across the globe due to its rather positive public image and ethical decision-making prowess in the production field. Second, there already exists a marketing platform for the product. The newly introduced product can reach great number of customers through the existing marketing platforms developed by the firm long time ago. Third, there are ready skilled personnel for the production of the product. Coca-Cola employs the best personnel for its manufacturing processes and therefore, production of non-carbonated coke soft drinks will enjoy this feature greatly. Weaknesses; First, there are already other similar products in the market that are being offered at slightly cheaper prices. Pepsi is Coca-Cola most notable competitor and therefore, its relatively cheaper products might cause a hitch to the sales of the product in Spain. Second, there is the risk of not attracting more customers given that already customers are conversant with what they need. Opportunities; First, recent stabilization efforts of the country’s economic framework like the transformation of temporal employees to permanent ones assures increased level of disposable income hence higher purchasing powers. This will likely help in promoting product sales hence assure of its future survival. Second, the country’s ever-changing lifestyles have seen the encouragement of consumption of non-carbonated soft-drinks. This will likely increase customers hence revenue-base for the firm. Threats; First, there is the risk of probable economic downturn given that Spain is just recovering for a hard-hit recession period. In case of economic downturn, the purchasing power for consumers would be reduced hence affecting the production sales altogether. Second, the current ineffective and poorly regulated market sets a base for poor competition from local production houses. This is likely to affect the production sales of the product altogether. Identification of Strength and Opportunity for the Product Coupled with the fact that Coke product is going to be manufactured with the largest soft-drink manufacturer in the world; Coca-Cola Co, and also, the fact that its marketing campaign is going to rely on the already established marketing platform of the company makes it much easier for the firm to post reliable profits (Khurana and Rosenthal, 1998). Notwithstanding, most of the country’s population is shifting to healthy eating behaviors hence this opportunity will also attract possible substantial number of customers to purchasing the product (Khurana and Rosenthal, 1998). Target Market The most formidable target market for this product; non-carbonated coke soft drink is the adult middle-income population, which is more conversant and sensitive to their healthy lifestyles. This group of people also is able to purchase the product to ensure that their health needs are all in check (Mulcaster, 2009). For the above reasons, the non-carbonated coke drinks will vehemently fit into Spain markets. With vigorous product campaigns and also, extensive incorporation of the correct marketing mixes then, the product will post substantive levels of sales in the future (Wong and Tong, 2012). References List Barney, J. 1991. “Firm resources and sustainable competitive advantage”, Journal of Management, vol. 17, no. 1 Data Monitor. 2010. Country analysis report: Spain in depth PESTLE analysis. Retrieved from http://prendasinteligentes.wikispaces.com/file/view/spain+environment.pdf Gary, P. K. 2013. Marketing an introduction, 11th ed. Harlow, England: Pearson. Khurana, A & Rosenthal, S.R. 1998. Towards holistic front ends in new product development. Journal of Product Innovation Management, vol.15, no.1: 57–75. Mulcaster, W.R. 2009. Three strategic frameworks, Business Strategy Series, vol.10, no. 1; 68 – 75 Wong, S.K.S. and Tong, C. 2012. The influence of market orientation on new product success, European Journal of Innovation Management, vol. 15, no. 1; 99 - 121 Read More