Orange Schweppes Business Strategy

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Orange Schweppes Business Strategy

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Thèmes abordés

Business strategy, Orange Schweppes, Schweppes, boissons non alcoolisées, soft drinks, étude de marchés des soft drinks, forces de Porter, analyse Pestel, benchmarking, Orangina

Lecture
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Résumé du document

The French market of non alcoholic refreshing beverages has less been affected by the economic crisis. In 2009, the market generated in France a turnover of 3 billion Euros (an increase by 3.87% in value). This sector is strongly supported by store brands whose sales have increased by 8.59% in value with a turnover of 0.88 billion Euros (33% of the turnover of the sector of non alco- holic refreshing beverages).

Soft drinks' sales (45.3% of the market share of this sector) are rising by 5.5% in vo- lume. Concerning juices (33.4%), we can notice an increase by 1.2% in volume, and 5.6% in value while water sales move back sharply (-15.3% in volume, -12.9% in value). The soft drinks segment record a good growth thanks to the dynamism of colas (+3.7% in volume, +3.4% in value), of fruit drinks (+11% in volume, +16,4% in value) and especially of energy drinks (+151% in volume, +244% in value).

The leader of the market is Coca Cola followed by Pepsi Cola. Orangina-Schweppes is in third position which is why the company has asked us, Bain and Company, for some ad- vice. In order to propose the best strategy for the firm, we divided our analysis into three parts. After a presentation of our client, we are going to analyze the macro and microenvironment in order to evaluate the external context. We will then proceed by an analysis of the internal environment which will finally lead us to making some accurate recommendations.

Sommaire

Presentation
1. Orangina-Schweppes
2. Bain et company
External environment
1. Macro-environment
2. Industry / sector / task
3. Competitors / market
4. Opportunities et threats
Internal environment
1. Strategic capabilities : ressources et competences
2. Cost efficiency
3. Value chain
4. Value network
5. SCA
6. Marketing mix
7. Innovation
8. Knowledge management and sustaining competitive advantage
9. Benchmarking
10. Strenghts et weaknesses
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Extraits

[...] The diversification is already more than complete (product lines), opening new markets seems to be a significant strategic choice. Despite a very competitive environment, with the presence of Coca-Cola and Pepsi-Co, the group has established itself. We will conclude with the following sentence that illustrates the future of Orangina-Schweppes, and that is what we wish: A solid basis for a strong and sustainable growth. REFERENCES INTERNET Orangina Schweppes website Available [Online]: http://www.oranginaschweppes.com/ And http://www.oranginaschweppes.fr/ LL, Boissons sans alcool : Orangina accueille Rastaman et Aristo dans sa gamme cocktails Janvier 2010, Available [Online] : http://www.rayon-boissons.com/Boissons-sans-alcool-et-Eaux/Boissons-sans-alcoolOrangina-accueille-Rastaman-et-Aristo-dans-sa-gamme-cocktails B. [...]

[...] The constant innovation pushes companies to innovate. The French market for refreshing beverages is the 3rd one in Europe, it represent the 1st one in France. The government encourages companies to raise their performance. RELATED AND SPONSORING INDUSTRIES Local supporting industries are competitive, so firms enjoy more cost effective and innovate inputs. Some suppliers are strong global competitors, thus this effect is strengthened. Public support in infrastructure, good transport links, special industrial sites, skilled workforce and employment, well developed transport and telecommunications FIRM STRATEGY, STRUCTURE, AND RIVALRY The firm has several global competitors such as Coca Cola, Pepsi, or Nestlé and also national competitors. [...]

[...] The soft drinks segment record a good growth thanks to the dynamism of colas in volume, + in value), of fruit drinks in volume, in value) and especially of energy drinks in volume, +244% in value). The leader of the market is Coca Cola followed by Pepsi Cola. Orangina-Schweppes is in third position which is why the company has asked us, Bain and Company, for some advice. In order to propose the best strategy for the firm, we divided our analysis into three parts. [...]

[...] Orangina-Schweppes follows the market's trend by lining up its prices with its competitors. Schweppes Indian Tonic 1,5 l Vittel 6 x 1,5 l Suze 1 l Tropicana PJ orange sans pulpe 1 l Perrier 6 x 1 l Desperados 3 x 33 cl Champomy pomme 75 cl Orangina jaune 1,5 l Contrex 6 x 1,5 l Kriter brut 75 cl Oasis orange 2 l PLACE The Food network: This network represents 70% of Orangina Schweppes' sales, nearly 362 million liters sold in 2009. [...]

[...] Or, more than points of sale. The Out Of Food network: This network is responsible for distributing the beverages to Cafés, restaurant, Hostels etc. This network represents 30% of sales, or 155 million liters sold in 2009. The role of the Out Of Food network consists in insuring the presence and the visibility of the brands, in a network of point of sales: cafés, restaurants, sandwich shop, gas stations, distributors, slot machines (See chart in Appendix Place 4P'S) Supply Chain Factory Plant Group's factories Cash and carry Direct clients (wholesalers) Indirect Customers Retailers (VAE, CHR ) Customer Brewers 7. [...]

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