SWOT and PEST Analysis for Bottled Water.

SWOT and PEST

Analysis for Bottled Water

To develop an appropriate marketing strategy would involve creating a link between the external environment and the key internal factors of bottled water.

SWOT analysis is the focus upon the strengths, weaknesses, opportunities and threats facing a business internally and externally. To enable a SWOT analysis to be carried out, research into bottled water companies current and future positions need to completed. This would result in building upon its strengths, minimise its weaknesses, seized its opportunities and cancel out the threats.

STRENGTHS

River Rock produce water which sold as part of coca cola. Coca cola are probably the most popular company which produce soft drink. Due to this I would consider river rock as a large established business, mainly because of its connections with coca cola. A water company such as river rock would now be getting good trade, as coca cola are a world wide organisation, companies such as river rock will benefit from having the backing of an established name like coca cola. This is a good foothold for earning a Good reputation, this is vital, and companies having a good reputation should have better custom. As part of coca cola, river rock would be renound for a reliable and efficient service as coca cola have been around since 1886, in this time selling soft drinks coca cola would have gained many different experiences in selling their product, they would also know what way to sell their product so that the best results are obtained. A wide portfolio of products with various flavours gives more of a choice, the consumer feels in control and not restricted in the flavour they wish to choose. Healthy drinking water is a lot healthier for teeth than fizzy drinks, therefore water companies can claim this whilst selling, flavoured water as the same taste as a fizzy drink accept it wont rot your teeth. Last but not least water companies have a large target market to operate in, everyone can drink water, from the rich and famous to a local Joe Bloggs.

OPPORTUNITIES

Sponsorship for sporting events, being seen to advertise could increase support for the product, as well as this diversify into a different market could be effective, being able to adapt to various markets is useful as it broadens the market. Expanding nationally is vital also; despite the obvious fact of more money available is also will create larger market. Promotion using large marketing strategies should boost sales; a nation wide campaign would help promote the product further.

THREATS

There are lots of different companies on the market now. This results in more competition. Soft drink companies, ...

This is a preview of the whole essay

OPPORTUNITIES

THREATS

There are lots of different companies on the market now. This results in more competition. Soft drink companies, e.g. Coca Cola can compete to take the market majority, which could lead to pricing wars. This is bad for a company as they could lose out on profit.

WEAKNESSES

Unmotivated staff in the work place could result in less work being done therefore less water being sent out. Also, big demands for a particular product may cause problems, if the stock is low or on available the company may lose out on sales.

PEST is split into four categories, political, economic, social and technological influences, which are all external factors. A PEST analysis identifies what external factors are going to effect bottled water companies in the coming months and years.

POLITICAL – business decisions which are influenced by political and legal decisions.

Political decisions can affect bottled water companies for the good and the bad, because if taxes increase, therefore consumer’s decrease and sales of stock decrease. However if taxes decrease the likelihood is consumers will buy more. Laws can also change bottled water companies income because if a law was brought out, that you could only work 9.00am – 5.00pm, factory hours would be cut, resulting in less water being bottled and people would have less disposable income to spend on pleasurable items e.g. chocolate.If the government continue to not lower petrol taxes, it could result in another petrol crisis, which has a knock on effect to tourists from reaching the water companies, it stops the distribution chain, and stops factory workers from getting to their work place, putting a halt on production.

ECONOMIC – influenced by domestic economic policies and world economic trends.

The interest rates can affect companies because if the interest rates were high then water companies would not want to borrow as much money for expansion. Also if consumers had loans they would again have less disposable income to buy luxury items. If the minimum wage were brought down, this would mean more money for bottled water companies but would also result in low sales from the consumers. The government can also raise taxes, which would bring a stand still to the sales of water.

SOCIAL – close analysis of society

If water factories do not control their pollution levels or have big buildings destroying the landscape with noise and traffic congestion, then the local residents would complain to their local council resulting to possible incentives for bringing in jobs for the community being stopped. On the other hand local residents with small businesses near to water factories would benefit due to the money being brought in by tourists.

TECHNOLOGICAL – developments in manufacturing and business processes.

Cost of machinery, it would be expensive running machinery to package and make bottles to put the water in. This part of the production must be fast. New machinery would help speed up the process, the world is constantly updating, bigger and faster machines are also available, and this could increase the amount of packaging and bottles made. Maintenance is needed in the event of a breakdown; it must be sorted quickly and efficiently. Training for advancing IT, this is useful as it will help with processing big orders, and will allow you to know what stock is available. Also transport used enormously in getting the products delivered. However this is expensive as bottled water is a nation wide success, therefore transport is need over all the British isles.