Strategic marketing plan


POLTICAL AND LEGAL FORCES



Download 0.51 Mb.
Page5/17
Date20.10.2016
Size0.51 Mb.
#5359
1   2   3   4   5   6   7   8   9   ...   17




POLTICAL AND LEGAL FORCES

The impact that political and legal forces have on the carbonated soft drink market basically relate purely to the labelling and ingredient content in the products.




Scenario:

  1. Labelling laws change forcing companies to recall products and relabel, costing large amounts of money

  2. Drought affects Australia increasing water usage costs even higher than they already are.



Implications:

Virgin Cola does not have the money to spend on relabelling or changing the label of their soft drinks, therefore labelling must abide by the conditions of the ACCC to prevent any issues.




OPPORTUNITIES

RATING*

THREATS

RATING*

The ACCC requires by law that labelling give sugar and kilojoule content. 15








Regulations by the government are costly to abide by. Water usage costs are high after drought.





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.






TECHNOLOGICAL FORCES

Technological forces have a high impact on the carbonated beverage market in Australia, continuing technological advancements allow the supply chain of competitors to become faster and faster. The development of things such as recyclable bottles and new and improved vending machines also adds another dimension to the carbonated soft drink market.


Scenario:


  1. Advanced technology allows companies’ to develop 100% recyclable bottles and cans making them available to all companies’



Implications:

The continual advancement in technological forces will effect potential new entrants. New entrants are looking for a point of differentiation and technological advancements may be this point.





OPPORTUNITIES

THREATS

New and improved ingredients can be used in Virgin Cola, ingredients that are cheaper can be found and worked with.





Coke have been researching and planning to develop the new “PlantBottle” which is aiming at being 100% recyclable. 16

This technological advancement by Coke is a threat to other soft drink market holders

Technological advancements can result in more efficient supply chain management


Technology impacts this industry less which means less capital investment




NATURAL ENVIRONMENT FORCES


Primary inputs for soft drinks manufacturers include concentrates, a range of natural and synthetic sweeteners such as corn syrup and refined sugar (sucrose), aspartame, and similar ingredients17.


Scenario:


  1. Drought

  2. Natural disasters decreasing efficiency of raw material supply, supply chain efficiency


Implications:

Companies must take into account the unpredictablility of natural disasters which heavily effect the production of natural and raw materials.



OPPORTUNITIES

THREATS

“In the 12 months to 30 June 2010, Australia's population increased by 377,100 people, reaching 22,342,000. The annual growth rate for the year ended 30 June 2010 (1.7%) was lower than that recorded for the year ended 30 June 2009 (2.2%).” 18



Due to Australias unpredictable weather, water availability in the last decade has been scarce, this creates rising costs for water usage which will affect the cost of raw materials to create the product.


Download 0.51 Mb.

Share with your friends:
1   2   3   4   5   6   7   8   9   ...   17



The database is protected by copyright ©ininet.org 2024
send message
    Main page
supply chain
global financial crisis
later stages
birth rate