SWOT ANALYSIS
Strength
Signature Taste: The RC Cola brand is known to have a taste that is drastically
different from that of other brands like Pepsi and Coca-Cola.
Spirit of innovation: The vision of the company is closely related to innovation
and the company has fostered a spirit of innovation right from the very early days
of its inception.
Credible Brands: One of the company’s most popular brands Dr. Pepper scores
high on uniqueness in taste, brand relevance, equity, and strengths.
Fast moving low-calorie drinks: The low-calorie drinks of the business have
topped the charts in the years 2013 onwards and has been successful in bringing
back lost business.
Diverse Product Portfolio: The Company has a variety of products such as colas,
orange flavored carbonated drinks, sugar-free colas, tonic water, and ginger ale
with cranberry and bitter lemon. Their brands under the umbrella RC Refresher has
a varied set of tastes to offer such as bitter lemon, cranberry, Tom Collins and
ginger ale which are popular in cocktails.
Price
Very low price to its competitor
Weakness
Low ad spends: In comparison to big brands like Pepsi and Coca-Cola the advertising
spends of RC Cola is relatively low and this affects the overall perception of customers
about the brand.
Legal Crises: RC Cola has been continuously under the scanner with many legal issues
like copyright and anti-trust issues. Even the competitors try to strangle RC Cola in a
number of lawsuits while trying to maintain the lead.
Capital Issues: The Company was unable to match its string rivals in marketing,
manufacturing, and branding for which a huge outlay of capital was needed which the
company did not have.
Poor networks: The distribution channels of the company are not widespread and this
has prevented them from expanding their networks into foreign countries.
oppertunities
Growth in per capita income: The growth in per capita income globally has resulted
in a growing need for drinks and juices.
Increased tendency to eat out and growth in fast food culture: Recent shifts in
customer habits have created a growing preference for fast food and eating out both of
which create a corresponding increase in sales of soft drinks and juices.
Growing demand in emerging economies: Emerging economies in Asia and Africa
are seen as the biggest consumers of soft drinks globally and are turning to be lucrative
markets for cola drinks. These markets are largely unexplored and offer huge prospects
for soft drinks manufacturers.
Threats
Strong and Established competitors: The competitors of RC Cola are the two top
brands not just in the soft drinks segment but amongst the leading companies in the
world- Coca-Cola and Pepsi. This makes them unbeatable threats for RC Cola.
A negative image of aerated drinks: The media, as well as healthcare experts, portray
colas and other soft drinks as health risks and high in calories. This forms a risk in
boosting sales.
Healthier options: Quite unlike earlier days today many off the shelf brands are
available for fresh juices, iced teas, and the milkshake. The presence of these brands eats
into the market shares of soft drink companies.
PEST ANALYSIS
Political
1. Changes in laws and regulations—changes in accounting standards, taxation
requirements (tax rate changes, modified tax law interpretations, entrance of new tax
laws), and environmental laws either in domestic or foreign authorities.
2. Changes in non-alcoholic business era—competitive product and pricing policy
pressures and ability to maintain or earn share of sales in worldwide market compared to
rivals.
3. Political conditions, specifically in international markets—civil conflict,
governmental changes, and restrictions concerning the ability to relocate capital across
borders.
4. Ability to penetrate emerging and developing markets—this also relies on economic
and political conditions, such as civil conflict and governmental changes, as well as RC
COLA ability to form effectively strategic business alliances with local bottlers, and to
enhance their production amenities, distribution networks, sales equipment, and
technology.
5. Economic Analysis
It could be seen that “economical variables” highly affects tha
cola’s resolution. Economic factors are those factor that
effect the production of any industry. So, Rc cola is not out of
questions. If the economic condition of the country is not
strong and rc cola increase its price, then the impact would
be highly negative . inflation is also not good for any country’s
production point of view. It also effects negatively over
production of rc cola
Sociological
Sociological analyzes the ways in which changes in society affect the organization such as
changing life style attitude of the market. Since many are reaching in older age in life
they are becoming more concerns with increase their longevity . this will continue to
afeect the non alcoholic beverage industry by increasing the demand for the healthier
range of beverage as the demand of carbonated soft drink decrease the revenue of rc
cola also decline
Technological
Technological Force refers to analysis where the introduction and the emerging
technological techniques are values . this create opportunities for new product and
product improvement in term of marketing and production. As the technology
advances new product are introduces into the market.
