MK 390 Advertising & Sales Promotion
April 13, 2013
SodaStream is the largest manufacturer and distributor of home carbonation products officially invented in 1903 by Guy Gilbey in the world (www.sodastream.com, n.d.).The company’s long history and its experiences are reason why company is one of the largest beverage companies in the world selling in 43 countries and more than 55, 000 retail stores all around the world. With its revenue growth of 25% (436.3 million USD) and net income in 2012 of 43.9 million USD and more than 600 million liters of carbonated beverages providing to households has the company to do something right. Is it really the product itself that makes the company so profitable or is it a mix of right used marketing and advertising tools and mediums that attracts many consumers? We will look at this in this analysis.
Firstly, lets look in shortcut what the company actually offers and why their products are so special that their attract customers and make them buy it. The price range of its products differs depending on what extra features does customer require. The cheapest SodaStream maker it is possible to buy from 59 Euros up to 199 which is the most expensive one (www.sodastream.sk, n.d.) Every time, one gets out of Syrup it is possible to buy for 7,5 Euros. You can and possible have to after some time buy additional bottles, SodaCaps and Carbonators as long as they have certain lifetime as well. People from company’s marketing department point out in their campaigns on benefits that these products offer; to those belong that consumers do not have to carry heavy bottles from shelves and shops to home, save space, save money in comparison when buying pre-packed beverages, and last but not least are eco friendly. Also they demonstrate that their products encourage healthy lifestyle (using less sugar and carbs in their syrup compared to traditional fizzy drinks of competitors). All of these benefits represent actually the message that company wants to deliver through its campaigns.
Marketing department of the company has recently in year 2012 added to their target group restaurants, offices, hotel as well as resort segment (www.sodastream.com, n.d.). Their target group before consisted predominantly out of hypermarkets, supermarkets and different kinds of stores such as electrical, home and special dealers. The company is also selling online and through catalogues. To their biggest partners belong clients such as Harrods, Carrefour, Tesco, Costco, Macy’s and many others. The goal of their trade advertising was to get as much big chain of stores as possible and encourage wholesalers, retailers and different distributors to promote and sell SodaStream products to their customers; and thus to reach as many customers as possible aged from younger generation to elderly people. According to a survey published on their official website, the biggest portion of their sales went to households and families with children. Company put an equal emphasis on advertising and sales promotion. The right mix of consumer-oriented promotion when company offers free samples, rebates and coupons for its customers in retail stores together with trade oriented sales promotion (through special deals with wholesalers, retailers, etc.) ensured SodaStream company a good reputation between both sides.
Lets look what types of media and what appeal in them does the company uses for boosting its sales and for promoting its products. The most common as well as most expensive medium used is still television. SodaStream realize that the need for demonstration is for their product most essential. They spent a lot of money for their TV commercials, especially on national TV stations running mostly during prime time from 7 to 10:30 pm at least 8-10 times during this period every day except weekends...