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Outline Crush. Problem Statement: Sub-Problems: Situational Analysis-External
Environment (Uncontrollable) Legal/Political o Price ...
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Submitted by kikstar5 on November 14, 2005
Category: Business
Words: 1788 | Pages: 8
Views: 322
Popularity Rank: 27,328
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Problem Statement:
Sub-Problems:
Situational Analysis-External Environment (Uncontrollable)
Legal/Political
o Price ceilings and price floors
o The Clayton Act
o Franchise restrictions, acquisition limits, and distribution laws/restrictions
o Possibility of being held responsible for increase in health related ailments such as diabetes
o Territorial restrictions within franchised bottlers
Social/Cultural (Institutional/Buyer Behavior)
o Americans consume, on average, 46.7 gallons of carbonated soft drinks
o Estimated retail sales for 1989 were $43 billion
o Distinction of being the world’s first soft drink maker
o Cadbury Schweppes is the world’s third largest soft drink maker behind Coca-Cola and PepsiCo.
o Consumers favored cola flavored soft drinks to any other flavor (65.7%)
o Diet soft drinks were a growing industry accounting for 31% of industry sales in 1989
o In top 10 soft drinks in US for 1989 none were orange flavored and all were marketed by Coca-Cola, PepsiCo or Dr. Pepper/7Up
o Soft drink buying is somewhat seasonal, consumption is higher in summer months
o Typical purchaser of soft drinks is a married woman with children under 18yo living at home in supermarkets
o Consumers respond favorably to price promotions, in-store displays, and other point of sale promotions.
o A brand is locked out of 60% of sales in supermarkets if it can’t get end-aisle displays
o Consumption of soft drink varied by region with highest consumption in East South Central states of KY, TN, AL, Miss. (54.9 gallons)
o Consumption of diet beverages was more pronounced among consumers over 25yo
o Teens and younger consumers were heavier consumers of regular soft drinks
o Product is in between introductory and growth stages of PLC
o Consumer is price elastic...
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