SWOT Analysis Of Red Cola
Introduction and Company Analysis
Witnessing Redbull’s success in the American market in 1997, Coca Cola saw the opportunity to capitalize on its operational expertise in bottled drinks and enter the energy drink market. Previous ventures in the market by competitors, such as Pespico’s Josta introduced in 1995 in the US market, had all failed. Redbull paved the way to changing consumer habits surrounding soft drinks, thereby allowing large beverage companies to create and sell their own. Burn was introduced in 2001, and is now available in over 80 countries, achieving $700 Million in sales in 2013.
As part of the Coca Cola group, Burn was able to benefit largely from its parent company. On one hand, as a bottled drink, Burn has the advantage of benefitting from Coca Cola’s enormous economies of scale and of scope, to achieve cost savings in its production process. Furthermore, it benefits from Coca Cola’s operation expertise, which surely helped them set up operating quickly and efficiently. The following SWOT analysis will give us a …show more content…
One option it has is to rework the formula in such a way that it just meets the stricter regulations. However, seeing as the price is high, we would advise Burn to differentiate itself from its competitors by developing a new completely healthy energy drink. This will allow Burn to gain a good brand image, to charge a higher price for its product, and create brand loyalty with its customers
High-regulation, low-price: In this situation, we would recommend Burn to change their formula so that it just meets to minimum requirements of new regulations. Creating a new product as mentioned in the previous scenario is quite expensive, and if the price of the new product is low, then it getting a return on the investment would take quite a long-time. Changing the formula slightly is inexpensive product development
Witnessing Redbull’s success in the American market in 1997, Coca Cola saw the opportunity to capitalize on its operational expertise in bottled drinks and enter the energy drink market. Previous ventures in the market by competitors, such as Pespico’s Josta introduced in 1995 in the US market, had all failed. Redbull paved the way to changing consumer habits surrounding soft drinks, thereby allowing large beverage companies to create and sell their own. Burn was introduced in 2001, and is now available in over 80 countries, achieving $700 Million in sales in 2013.
As part of the Coca Cola group, Burn was able to benefit largely from its parent company. On one hand, as a bottled drink, Burn has the advantage of benefitting from Coca Cola’s enormous economies of scale and of scope, to achieve cost savings in its production process. Furthermore, it benefits from Coca Cola’s operation expertise, which surely helped them set up operating quickly and efficiently. The following SWOT analysis will give us a …show more content…
One option it has is to rework the formula in such a way that it just meets the stricter regulations. However, seeing as the price is high, we would advise Burn to differentiate itself from its competitors by developing a new completely healthy energy drink. This will allow Burn to gain a good brand image, to charge a higher price for its product, and create brand loyalty with its customers
High-regulation, low-price: In this situation, we would recommend Burn to change their formula so that it just meets to minimum requirements of new regulations. Creating a new product as mentioned in the previous scenario is quite expensive, and if the price of the new product is low, then it getting a return on the investment would take quite a long-time. Changing the formula slightly is inexpensive product development