Detailed market analysis
The strengths for my product Coca Cola is that it is virtually the best brand in the world, therefore it has least worries form competition, and the product will be advertised All over the world. The other strength is that teenagers will consume the drink, and would expect the drink to keep them going. This drink would be cheaper and easier to access as it would be replacement for tea and coffee. Weaknesses The weaknesses for coca cola zero product could be that it may need to establish it as a new product by its brand name in order to make it well known.
The other weaknesses could be by adding less sugar on the product as there is concern about too much sugar in soft drinks. Opportunities The opportunity for launching Coca cola products is that it may be introduced under their own brand name. The coca cola company may decide to release a new product such as coke zero in a new market, such as the health club and in leisure centres as it may have less sugar in the drink. Threats The threats for the product could be that it may be high in fat, as people are more aware of their weight, this may lead to a loss in sales of the product therefore I will be adding carbohydrate on the drink.
Although Coca Cola is the ‘world best brand’, if other competitors such as Pepsi decide to launch a similar product and succeed then this could affect the Coca Cola market heavily and lead to a failure of the product. PEST analysis Political The political aspects towards my product are also important as business decisions are influenced by political decisions. For e. g. although in recent years many people have been encouraged to become self-employed, there has been a feeling among many of these people that they are over-regulated. Influences include changes in the tax structure, privatisation and trade unions etc.
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Social The social influence is regarding the people’s taste, interest and lifestyle and the effect that it may have on the product because people are more concerned about healthy living, therefore it may have a negative effect on the product because they have a lot of sugar in their soft drinks. As will changes in cultural values and social trends, such as family size and social behaviour. Factors may include the consumer lifestyle changes; as if the consumer decides to drink drinks with high fat etc, then the coca cola product will face huge problems.
Further more if the product contained animal fat or such, then this will put off potential buyers as they may be vegetarian or it may be against their religion. If consumers or any other organisations are unhappy the product Coca cola in anyway, they can either set up or join a pressure group. Protection pressure groups may be set up to fight a specific issue, such as the closure of a plant or the increased traffic on a road as a result local business. Promotion pressure groups are usually more formal and would be set up to fight highly organised campaigns across a range of issues.
Technological In making goods and services, organisations must become of new materials as well as developments in manufacturing and business purposes. At the same time, organisations to look at the nature of products and, in particular, they’re cost effectiveness, as well as their performance in relation to the competition. The Boston Matrix The Boston matrix is a useful tool to understand product/services portfolio in multi product firms, the Boston matrix classifies products on the: o Expected growth rate, measured by expected growth in sales revenue
o Market share relative to rival products The most appropriate marketing strategies based on the Boston matrix are those, which aim to keep a balanced portfolio of goods or services ensuring that there is enough cash – generating products to match the cash-using ones. All of the sections in the Boston Matrix represent where a business’s products are in the market and how they are doing. Most of Coca-Cola products would be in the star section because they are in a high growth market with a high share of that market and they generate a high amount of income.
Stars need to be in a balance by not having problem child, dog, or cash cows. The funds generated by the Cash Cows are used to turn problem children into Stars, which may eventually become Cash Cows. Some of the Problem Children will become Dogs, and this means that a larger contribution from the successful products will be needed, to compensate for the failures. Here I have looked in to each section and placed it in the matrix. This is does for every product in the range in order to plot the products of their rivals to give relative market share.
Therefore coca cola product fits into star section in the Boston matrix because it is a existing product which has a high market share and is doing very well in the market. One example of this is ‘Red Bull’ this is because it hasn’t been on the market for too long and is still selling well. Problem Children- These are products with a low share of a high growth market. They consume resources and generate little in return. They absorb most money as you attempt to increase market share.
Therefore this may relate to Coca cola as such their soft drink Fanta because it needs a lot of money in order to increase the market share by investing in advertising and on promoting the product. Cash Cows- These are products with a high share of a slow growth market. Cash Cows generate more and more than is invested in them. One example of this is Coca-Cola classic, this is because the product has been out for a long time and is still selling well and is one of their best selling products after all the years its been out.