AdmiralCrownSeaLion17
Answer the following question based on the below informatio:- 1….
Answer the following question based on the below informatio:-
1. Identify 10 Strengths, opportunities, Threats and Weakness for each. Swot analysis.
Case Study:-
Coca-Cola Company and Dr Pepper Snapple are Coke’s two primary competitors, but other rival firms include Nestlé SA, Groupe Danone, Suntory Beverage & Food Limited (“Suntory”), and Monster Beverage Corporation. Unlike Coke, PepsiCo derives most of its revenues and growth from its snack food business rather than its beverages. Danone competes to a lesser degree with Coke. The number-three soft drink producer, Dr Pepper Snapple, produces and markets non-alcoholic beverages in the United States, Canada, Mexico, and the Caribbean. Exhibit 7 reveals the top 10 beverages sold in the United States. Note that Coke, inclusive of Coke Zero, Diet Coke, and other brands, lead among the top 10, but PepsiCo has four brands in the top 10.
Coca-Cola Company (KO)
Headquartered in Atlanta, Georgia, Coca-Cola Company (Coke) is the world’s largest producer and distributor of beverages, marketing over 500 nonalcoholic brands in more than 200 countries. Coke has 21 billion-dollar brands, 19 of which are available in lower- and no-sugar options. Four of the top five beverages sold globally are Coca-Cola, Diet Coke, Fanta, and Sprite. Other Coke products include AdeS soy-based beverages, Ayataka green tea, Dasani waters, Del Valle juices and nectars, Fanta, Georgia coffee, Gold Peak teas and coffees, Honest Tea, Minute Maid juices, Powerade sports drinks, Simply juices, Glaceau Smartwater, Sprite, and Zico coconut water. However, the company’s revenues for 2017 declined 15 percent so rumblings are spreading within the firm.
Coke brands sold mostly outside the United States include Ayataka green tea in Japan, I LOHAS water in Japan, Ice Dew water in China, FUZE TEA outside the United States, Minute Maid Pulpy in Asia Pacific, Georgia coffee in Japan, and Del Valle in Latin America. Five large independent bottling companies supply Coke with 39 percent of their bottling needs. The largest independent bottler is Coca-Cola FEMSA who supplies central Mexico and countries in Latin and South America.
Company revenues have declined every year for nearly a decade. Coke’s net income also declined. Since 2005, sales of diet soda, in general, have dropped every year, a combined 34 percent. Although Diet Coke is the weakest link in the company’s whole soda lineup, the brand is still the third-best selling carbonated drink in the United States.
Even environmentalists are complaining, saying Coke produces 110 million plastic bottles annually that end up in landfills and oceans. To combat this complaint, the company launched in 2018 its “World Without Waste” initiative. Coke needs a good strategic plan since its customer base is eroding and its shareholders want sustained 5 percent annual growth in revenues and profitsnot declines every year.
Dr Pepper Snapple Group, Inc. (DPS)
Headquartered in Plano, Texas, DPS manufactures nonalcoholic beverages in the United States, Canada, Caribbean, and Mexico. It also markets ready-to-drink teas, juices, juice drinks, water, and mixers. The company offers brands such as: 7UP, A&W, Bai, Crush, Canada Dry, Schweppes, Sunkist, Squirt, Hawaiian Punch, and RC Cola. DPS manufactures and sells Mott’s applesauce. DPS’s revenues increased slightly from $6.2 billion in 2014 to $6.3 billion in 2015, to $6.4 billion in 2016, to $6.7 in 2017. DPS’s net income also has increased slightly every year. DPS recently acquired Bai Brands for about $1.7 billion. DPS currently has about 8.5 percent of the U.S. nonalcoholic beverage market, according to Euromonitor International. DPS owns 7 of the top 10 non-cola soft drinks on the market. Third quarter (Q3) 2017 results showed DPS’s carbonated soft drinks decreasing 1 percent while its non-carbonated beverages increased 6 percent. Q3 showed flat sales in the United States and Canada, but sales in Mexico and the Caribbean increased 2 percent. Also for Q3, the DPS brand named Clamato grew 7 percent and Mott’s applesauce sales grew 5 percent, but Snapple sales declined 5 percent.
The big news in 2018 in the beverage industry is that Keurig Green Mountain, the maker of Keurig K-Cup coffee machines, acquired Dr Pepper Snapple in 2018. Keurig is privately owned by JAB Holdings, one of Europe’s largest investment firms; JAB also owns Peet’s Coffee, Panera Bread, and Krispy Kreme doughnuts. JAB is a privately held fund that manages the money of the Reimann family, one of Germany’s wealthiest families. This acquisition, pending approval in Q2 2018, is aimed directly at both Coca-Cola and Starbucks Corp. This acquisition puts Keurig in the global soda business and strengthens its coffee business. Euromonitor reports that sales of ready-to-drink coffees increased more than 17 percent in 2017. JAB’s partner in Keurig is Mondelez International that holds roughly 24 percent of the stock JAB, but that percentage dropped to about 14 percent when the Dr Pepper acquisition was finalized. Keurig’s revenue for 2017 was about $4.1 billion and its market share in the coffee-pod industry has declined from 40 percent in 2013 to approximately 23 percent in 2017.
Groupe Danone
Headquartered in Paris, France, Groupe Danone is the number-one producer of yogurt in the world, the number-two bottled water, and baby nutrition manufacturer, number-one in manufacturing fresh dairy products, and the European leader in medical nutrition. Danone’s primary brand in bottled water is Evian. Danone sells flavored waters and focuses on health-conscious consumers. One brand is Levite, a big success in Mexico. Danone continues to add new drinks in different markets, such as Taillefine Fiz in France, which is a zero-calorie soda that has achieved a number-2 ranking in the French low-calorie segment. Danone is present in over 130 markets and generated sales of 21.9 billion in 2016, with more than half of that revenue coming from emerging countries. Fresh dairy products represent about 50 percent of Danone’s total sales, early life nutrition 22 percent, water 21 percent, and medical nutrition 7 percent.
Monster Beverage Company (MNST)
Headquartered in Corona, California, Monster Beverage develops, markets, sells, and distributes energy drink beverages, sodas and/or concentrates for energy drink beverages, under brand names such as Monster Energy, Monster Rehab, Monster Energy Extra Strength Nitrous Technology, Java Monster, Muscle Monster, Mega Monster Energy, Punch Monster, Juice Monster, Ubermonster, BU, Mutant Super Soda, Nalu, NOS, Burn, Mother, Ultra, Play and Power Play, Gladiator, Relentless, Samurai, BPM, and Full Throttle. Coca-Cola owns 16.7 percent of the Monster Beverage, which it purchased in 2015 for approximately $2.15 billion. In October 2017, Coca-Cola transferred ownership of all of its worldwide energy businesses including NOS, Full Throttle, and nine smaller brands to Monster Beverage Company. At the same time, Monster transferred all of its non-energy drink businesses to Coca-Cola, including Hansen’s natural sodas, Peace Tea, Hubert’s Lemonade, and Hansen’s juice products. Monster Beverage’s sales for Q3 2017 that ended September 30, 2017 increased 11.5 percent to $2.6 billion from $2.3 billion versus the prior year. Net income for Q3 was $619.4 million, compared with $539.7 million the prior year. Net sales for Monster’s Strategic Brands segment, which includes the various energy drink brands acquired from Coke, increased 6.2 percent to $76.6 million for that Q3, up from $72.1 million the prior year. Monster’s sales to customers outside the United States increased 36.3 percent to $260.1 million in that Q3, up from $190.8 million in the prior year period. Net income for Q3 increased 14.1 percent to $218.7 million from $191.6 million in the prior year period.
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Introduction: PepsiCo, Inc.–2018 Industry-Wide Soft Drink Market Diet soft drinks and mixers 24% Sugary
carbonated soft drinks 52% Energy and sports drinks 24% Source: Based on a variety of sources.
