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Case Analysis of Tea Breeze Beverage

CASE ANALYSIS: PEPSICOLA FOUNTAIN BEVERAGE DIVISIONTEA BREEZE [Harvard Business School, 9589060, Rev. 11/89]

The internal environmental analysis is concerned with strengths and weaknesses associated with the company. The significant strengths and weaknesses are discussed in this section.

The PepsiCola Company, a whollyowned subsidiary of PepsiCo, Inc., is one of the two major competitors in the soft drink beverage industry. From this position of strength, the company is in a strong position to launch a new product such as TeaBreeze.

The company, however, has a somewhat convoluted distribution system, which may constitute a weakness in the marketing of TeaBreeze. The Fountain Beverage Division of the company will be responsible for the selling of the TeaBreeze product; however, the Bottle and Can Division of the company will be responsible for the distribution of the product. If the objectives of the two divisions do not coincide with respect to TeaBreeze, the potential to successfully market the product may be impaired. Additionally, many of the bottling plants that will accomplish the actual distribution are independentlyowned, and may not be receptive to distributing TeaBreeze.

The external environmental analysis is concerned with opportunities and threats associated with the company's external

environment. The significant opportunities and threats are discussed in this section.

The soft drink beverage industry is dominated by two giantsthe CocaCola Company, with an industry market share of 41.1 percent, and Pepsico, Inc., with an industry market share of 30.7 percent. All of the other producers of soft drink beverages have a combined market share28.2 percentwhich is lower than that of the number two firm in the industry.

CocaCola's major advantage over Pepsico is in the fountain businessfastfood restaurants and other fountain outlets, where CocaCola bran...

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Case Analysis of Tea Breeze Beverage. (1969, December 31). In LotsofEssays.com. Retrieved 04:56, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1691560.html