Gyms, health foods stores, health supplement stores (GNC, ASN) There are unmet needs in the product category total natural, low carb and low sugar ingredients free of artificial sweeteners. Description: Jerome: please complete (refer to project guideline). Implications: Jerome: please complete (refer to project guideline).
*
OPPORTUNITIES | RATING* | THREATS | RATING* |
|
|
|
|
The rating is based on a double-digit 5-point scale for the degree of significance and for probability of occurrence. The first number/5 represents the degree of significance rating out of 5, 5= extremely significant and 1 = not very significant. The second number/5 represents the probability of occurrence, 5= extremely likely and 1 = low probability.
SUPPLY
Some bottlers are independent, while others are owned by the big-name manufacturers described usually as 'partners' and 'customers'. The bottlers are licensed to convert purchased raw materials into packaged soft drinks with the manufacturers' branding, and distribute the ready for sale commodities to buyers within a particular sales territory. Although the majority of bottlers are free to make their own business decisions, the close ties between manufacturers and bottlers’ means that food & beverage retailers are arguably the more significant buyers from the point of view of market players51.
Industry level supply is important to strategic marketing planning. Shortage or excess can have industry wide effect in supplies of raw materials, for example crop failures, diseases labour disputes. In order for manufactures and distributes to maintain competitive advantage they need to ensure supply of their raw materials and also maintain excess.
Soft drink Industry has a very intense competitive rivalry, a slight increase of in capacity of supplies can trigger price wars, hence reduction in profitability.
Porters competitive forces identifies areas that could potential affect supply at the industry level and marketing planners need to be aware of the following:
Description: Jerome: please complete (refer to project guideline). Implications: Jerome: please complete (refer to project guideline).
*
OPPORTUNITIES | RATING* | THREATS | RATING* | |
|
Competitor dominance in the supply chain
|
|
The rating is based on a double-digit 5-point scale for the degree of significance and for probability of occurrence. The first number/5 represents the degree of significance rating out of 5, 5= extremely significant and 1 = not very significant. The second number/5 represents the probability of occurrence, 5= extremely likely and 1 = low probability.
CRITICAL SUCCESS FACTORS (CSFS)
Would you mind checking these Maree? Thank you
For successful operation in the Australian CSD industry, the following factors are critical for success:
-
PRODUCT ATTRIBUTES INCLUDING A POPULAR BRAND, WITH CONSISTENT QUALITY AND PACKAGING
Consumers have greater influencing power than that of suppliers or buyers, ultimately dictating market share. Therefore, a brand wishing to compete in this industry must resonate among consumers, by delivering on their desires and at competitive prices. Furthermore, consumers are strongly and often influenced by brand so a favourable brand is critical in this competitive market. As the product category is relatively homogenous it is product packaging that differentiates brands. (Hannah/Jess: please comment of the strength and value of the virgin brand and cross reference with your section)
-
RESOURCES INCLUDING DISTRIBUTION CAPABILITIES AND ACCESS TO INPUTS
Due to the high capital required for entry to such a market it is imperative that companies wishing to compete in such an industry have prior knowledge or affiliations organisations with not only experience with the distribution channels for beverages in Australia, but relationships with retailers, distributors and bottlers. Furthermore, it is critical that new entrants have access to the raw materials required for production as these are limited in Australia (Hannah: do you reference water restrictions in your section? Please add here once you do)
-
COMPETENCIES INCLUDE PRODUCT & PACKAGING INNOVATION, SUPPLY CHAIN EFFICIENCY AND DISTRIBUTION MANAGEMENT
As industry decline is predicted, those wishing to compete must be innovative with product offerings and packaging as to appeal to the evolving consumer trends, which are causing market decline. Additionally, successful companies in this industry are extremely efficient in the extremely complex and costly supply chains. To secure a strong and sustainable competitive position in the market, new entrants must have a wide distribution reach, be able to be secure favourable space on retailer shelves and be in available in convenient locations thus deeming distribution management a critical factor of success.
Share with your friends: |