Soda Stream Takes On Coke and Pepsi

Case Solution

Weaknesses

The target segment is a big problem for the company. Currently, it is targeting only women in its marketing strategy. In addition to this, the competitors of Soda Stream are spending a huge amount in their marketing activities as the present age is of media and by spending more in the market its competitors are getting more market share as compared to Soda Stream.

Soda Stream is an Israel based company and its majoremployment practices in Israel arecreating certain controversies which could harm the company’s image to a great extent. Targeting UK and European market for a long time and recent entry into the US market and all around the globe createdbig difference between Soda Stream and existing large competitors thathave significant market share of the carbonated soft drinks.

Soda Stream is present in the carbonated soft drink market formore the 100 years but according to the age of the company; the market share is low as compared to the other companies of same age.Inaddition to this, in recent years Soda Stream has been unable to achieve its targets related to the terminal growth of 2% and annual growth of 10% which is not a good sign for the company.

Opportunities

In last few years, there has beena significant increase in demand of carbonated soft drinks and US market has capitalization of40 billion dollars in the carbonated soft drink market. Soda Stream has only 11% percent of this market and its market share is low as compared to Coke, Pepsi and other soft drinks companies.

Soda Stream has significant loyal customers and market share in UK and European markets. Also, Soda Stream has good public image by producing low carbonated soft drinks and consider as an environment friendly and cost effective. Therefore, by using efficient marketing strategies and proper segmentation, Soda Stream can acquire significant market of the carbonated soft drink industry.

As the demand of the carbonated soft drink has been increasingcontinuously, therefore Soda Stream can enhance its manufacturing facilities in order to take the advantage of increased demand of soft drinks. Soda Stream is producing low carbonated soft drinks as compared to its competitors like Coke and Pepsi, therefore by increasing awareness among the users of soft drinks and realizing them that Soda Stream is an environmental friendly organization, which is producing low waste as compared to Coke and Pepsi, it can increase its revenue significantly by increasing its demand and sale.

Threats

The current marketing strategy of the Soda Stream is involved in targeting only a single segment of women. On the other hand, its competitors are targeting each segment through their marketing strategies and spending more than its revenue on marketing activities. Focusing on a single segment could create serious problems for the company.

The USmarket is saturated and there are large competitors are present in the market with number of product range while Soda is operating only in carbonated drinks. Its competitors are acting smartly and making acquisitions in order to increase their market share which could also create problems for the company.

Market Segmentation

Soda Stream is operating more than 60000 stores all around the globe. The company is penetrating into the saturated US market and the US carbonated soft drink market is huge with the capitalization of $40 billion dollars.Therefore,by dividing this huge market into segments and then by formulating efficient marketing strategies for each segment, Soda Stream could acquire greater number of market share than existing share.

Geographic Segmentation

The marketing team of Soda Stream could use the criteria of geographic segmentation like cities and neighborhoods in order to identify the demand of each city of the US and could formulate its marketing strategy with respect to each city in order to acquire more number of users.

Demographic Segmentation

Currently, the marketing team of the company is targeting only women, which does not prove beneficial for the company and it is unable to achieve its target growth. Therefore, the marketing team could use the demographic criteria of segmentation which could help the company in order to identify the mostly users of its products are of which age group, their gender and occupation. This criterion of the segmentation will help the company by identifying the age group of themain users of Soda Stream and their gender and it will also help the company by identifying that which group of people and which gender are less interested in Soda Stream products. Therefore, by identifying its core users and the users who are not interested in Soda Stream’s products, the marketing company could formulate its marketing strategy more efficiently and acquire greater number of users………..

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