Environmental Opportunities
Environmental Opportunities
This market is a somewhat stable and emergent market whereby there are many competitors in the market who all try to be distinctive; this is a sign that they are making good use of the trends and developments in the market. In other markets there are the threats of potential entrants, as well as existing ones. Nevertheless, small potential entrants aren’t much of a threat compared to huge companies. The main reason is because of the economies of scale that are an advantage to bigger companies, who can afford to preserve lower prices in the market to outlast these new competitors.
The orange soft drinks market does not offer “bargaining power of customers” as the relatively low price of the product and the small quantities that consumers purchase. The Crush soft drinks market is considered profitable even with two strong competitors in the market as multiple competitors can be distinctive and unique in their own ways in order to bring benefits to the customers. The entry of competitors that produce soft drinks means that Crush should join this trend to achieve their market share and to address a wider range of customers in terms of health benefits besides the thirst quenching benefits. The changing customer needs, unsatisfied customer groups and the change in the technology are available for Cadbury and Crush to take advantage of. There is some research required in order to take advantage of these changes however. So, research and development departments should watch the customer’s needs and demands. Add value to their drinks like making them isotonic drinks, reduced sugar drinks (less sugar) or even as a vitamin enhanced drink. Cadbury could also come out with new orange flavoured drinks in smaller bottles also can attract customers who just wish to quench their thirst.
Distinctive Competency
In the major global soft drink market industry, the marketing department had noticed that Sunkist sales were increasing in the market place due to features of the product creating a niche market for “Don’t just quench it, Crush it’, and believed Crush should respond quickly. They suggested that a brand must be unique and different enough from the competitors. Various trends can be identified on the soft drink market:
Increase of number of competitors that chose to focus on health benefits.
Combination of health benefits diet (Reduced sugar content) soft drinks.
New flavour drinks with added benefits (less sugar/more protein/vitamins/isotonic)
Smaller bottles which are convenient to carry.
In the orange flavoured drink market, there are many competitors such as Sunkist, Mandarin orange slice, Minute Maid Orange and other store brands.