The soft drinks market is considered as one of the most volatile consumer products market in the world. Entities such as Coca Cola and PepsiCo rely largely on their foothold and experience in the market for success. As the marketing manager of the Coca Cola Company, an endeavor to enhance the competitive nature of the entity, would amount to solidifying and increase the gains over the years through aggressive marketing strategies such as new product development (Wilmshurst, and Mackay 17). New product development achieves a variety of benefits such as entry into new markets and extending the sources of revenue for the entity. Coca Cola currently has over 300 brands that provide the entity with over $48.02 billion in annual revenues
- The entity has one of the most recognized brands around the world
- The entity through more than 300 product brands has the largest market share of the beverages market, estimated to be more than 45%.
- The entity has a high level of customer loyalty even amidst the presence of numerous players and products in the market.
- It has extensive resources that provide it with resources to fund aggressive marketing campaigns
- Carbonated drinks are usually termed by consumers as unhealthy, which leads to decreased likelihood for consumption.
- It has low diversification of products given the central focus on beverages.
- There is a high demand for healthy beverages as an alternative to carbonated drinks.
- The growth of developing countries around the world provides new markets for its products.
- The decline in consumption of carbonated drinks as a result of growing concerns over consumer health threatens the entity’s profitability
- Decline in water sources in the near future threatens the operations of the entity
- Emergence of new entities in the market threatens the profitability and existence of the entity in the soft drinks market.
Increasing competition in the soft drinks market, innovation, technology, and environmental challenges provide some of the elements that may influence market success of the organization in the soft drinks market (Hoffman 23).
Politics has a significant effect on the consumption of products in that governments may impose restrictive measures on foreign entities. Additionally, governments may also enhance the entry of new players in a market to enhance free trade and growth of the economy.
Economic conditions such as the recent financial crisis influence the market activity in terms of consumption of the products. Additionally, it influences the overall success based on economic conditions, of an entity in new markets because of new product development.
This forms one of the most important considerations for new product development and entry into new markets (Czinkota and Kotabe 31). Consumer behavior is largely influenced by social norms, culture and beliefs within a given region, market or country. Consumer concerns on ailments associated with consumption of sugary and carbonated drinks have a negative effect on consumption of beverages such as those developed by Coca Cola.
Technology provides the entity with an opportunity to develop new products at relatively low costs (Adcock, Halborg and Ross 25). Furthermore, technology also provides the entity with avenues for enhanced interactions with customers such as using social media and other online platforms for customer service.
The development of new products may be influenced in part by laws and regulations that influence consumption of beverages. Some beverages are outlawed in certain regions due to religious, cultural and legal concerns. Laws and regulations also influence the success of entry into a new market for an entity given that they may restrict entry of new players or aid foreign direct investments as a means of enhancing competition in local markets.
Environmental considerations such as declining water sources and availability of raw materials also influence the overall success of development of a new product. Additionally, it influences the cost benefit of developing a product based on the environment of production and development of new products.
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