Strategy of Jones Soda - Essay Example

The company is focusing on dealing with customers and always responds to demand changes. Jones Soda created a “trend for passion” not only among drinkers but also among shareholders, employees, and directors. The current strategy is to expand the company’s share nationally within the next few years. Jones Soda is developing markets and distributing alternative and new beverages like diet soda, energy drinks, soda, and spring water. That is why the business strategy is to significantly increase the sale sales using expanding product distribution in existing and new markets. The strategy also involves stimulating customers and increasing their uptake of the unique products. The strategic goal aims as expanding nationally and internationally wide like, for example, the Coca-Cola Company. The company wants to become one of the best soda companies. Therefore the company has to promote its products nationwide and then worldwide. The strategic map is focusing on the younger generation considering that alternative beverages depend mostly on the image. The important factor will be creating new brands and products. In other words, the company aims at introducing flavors each year (Underwood, 2005).

Business and financial position. The business and financial position of the company is rather stable and prosperous. The products are sold to distributors, customers, and retailers for cash and on credit terms. The credit terms are established according to industry practices requiring payment within thirty days after delivery took place. The company recognizes “revenue upon receipt by its distributors and customers of its products, by written sales terms, net of provisions for discounts and allowances”. It is necessary to note that there is no return policy. At the end of 2002, the revenue from sales of Jones brands constituted 92% of total revenue. Gross profit was about $8,500,000 for 2002. The increase in gross profit depended on the increase in sales volume. It is reported that in 2004 the increase in gross profit was triple. Jones Soda’s revenues are increasing due to implementing new direct retain accounts (About Jones Soda).

Competitive advantage. It is common knowledge the most serious competitors are Coca-Cola and Pepsi which are distributed worldwide. Coca-Cola is a soft drink leader and the largest foreign investor. Coca-Cola appeared in the USA and quickly became famous around the world. Nowadays coca-cola produces more than 300 trade brands in more than 200 countries throughout the world.  Pepsi is the second most famous soft drink. But it is necessary to say that Jones Sods is trying to become nationwide and offer advantages to its customers. For example, the company created the idea which allows customers to send their photos and soda will be put on their labels for personal collection. Jones Soda incorporated interesting marketing initiatives in its strategy. The promoters of the drink became Jones Pro Riders, Jones Emerging Riders, Bucky Lasek, and Benji Weatherley. The aim was to make Jones Soda a “cool” drink. The Jones RV traveled throughout the country and handed a soda to people in the streets. Recently the company invented a new “cool” strategy – the musical website where musicians can upload and sell their musical pieces. It is seen that the company is developing and creating rather interesting advantages for customers (Soda for Summer).

Jones Soda is known to be outrageous for its crazy drinks, but its competency can’t be ignored, because the company is one of the most talked about. It gained lots of free publicity. Jones soda is famous for its prosperous marketing strategies and is developing very quickly.