Strategic marketing plan


CRITICAL SUCCESS FACTORS (CSFS)



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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.


SUMMARY OF OPPORTUNITIES AND THREATS


Jess to amend according to Maree notes

Virgin Cola exits in a highly competitive market, not only against direct competitors such as Pepsi Co., Coca-Cola Amatil and Asahi but also against their competitors brand extensions and their substitutes such as bottled water, sports drinks and juices.

The carbonated soft drink market is hostile with the three big players occupying XX% of the overall market share.

Social trends prompted by obesity concerns also add the ‘health factor’ aspect opening another competitive platform for carbonated soft drink product offerings to meet consumer expectations and attain their market share.

Virgin Cola faces many opportunities and threats as both a brand and a product offering in the day-to-day competitive consumer environment.

OPPORTUNITY








HIGH

LOW

HIGH

OPPORTUNITY:

  • To take advantage of the health conscious social trend and expand product line into low calorie or healthier substitute SFD goods (Retail world, AC Nielsen Special report, 19th July 2010, p.20).

  • Strengthen geographical reach with international expansion (if they aren’t launching internationally) – growth could provide long-term growth opportunities.

* To produce mimic brand extensions like Virgin Cherry Cola and Virgin Vanilla Cola for a competitive price.

LOW

OPPORTUNITY:

Take advantage of GFC and rocky economic conditions with the use of coupons and discount vouchers.
*Branching into the ‘organic’ sector in response to heath trends.


* Horizontal axis = significance of opportunity, Vertical axis = probability of occurrence

THREAT
HIGH

LOW

HIGH

COMPETITORS:

ASAHI GROUP HOLDINGS (Schweppes Aus), PepsiCo, Coca-Cola – High competitive environment against already established companies, who already offer line extensions appealing to social trends. Coke has a strong international brand presence.



THREAT:

Majority of consumers curbing their household expenditure (saving on gas, electricity, TA meals and new clothes), need to make CSD as a market offering be perceived as a necessity rather then a luxury or specialty good.

LOW

THREAT:

Sluggish growth performance in the grocery channel overall in AUS.

MINOR COMPETITORS:


  • Bickford's (includes juices, sodas, teas, sparkling water with fruit flavor, energy drinks, bottled water)

  • Bundaberg (includes diet varieties, flavored CSD includes lemon lime bitters and ginger beer)

  • Cascade (includes fruit juices, ginger beer, flavored CSD including sparkling apple juice and sparkling blackcurrant)

  • Golden Circle Company (includes fruit juices, cordials and CSD)

  • Kirks (line of sodas marketed by Coca-Cola Amatil)

  • LA Ice Cola (includes cola available in four varieties including sugar free and diet variety)

  • Leed (includes carbonated lemonade)

  • Lido (includes lemonade)

* Problematic distribution channels as retailers ma not want to take the risk of carrying a new product





*Alcoholic substitutes in the beverage industry, this threat is scaled reasonably low as alcoholic beverages are un-attainable for consumers under the age of 18 and for those of the legal drinking age contributing factors such as RBT and social standards

*Horizontal axis = significance of threat, Vertical axis = probability of threat



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