Case Analysis of Tea Breeze Beverage

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

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a channel uncoupling will not lead to an overall increase in total channel profits, the uncoupling should not occur. Analysis of Problem With respect to consumer satisfaction and the TeaBreeze product, the PepsiCola Company test marketed the product in the western states. The western states are not among the heaviest consumers of iced tea, and the consumers in the western states, for the most part, prefer to buy unsweetened iced tea which they then sweeten to individual tastes. The TeaBreeze product test marketed in the western states was a presweetened beverage. The company's market research found that both consumers who prefer to buy their iced tea unsweetened and who are not heavy drinkers of iced tea are more apt to be critical of a presweetened iced tea beverage. That the presweetened TeaBreeze product was successfully test marketed in the western states is an indication that the product formulation is a good one. The southeastern states are the home of the heaviest iced tea consumption in the United States on a per capita basis. The company's market research indicated that heavy consumers of iced tea, as well as those accustomed to purchasing presweetened iced tea, tend to be less critical of product formulation
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Some common words found in the essay are:
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Approximate Word count = 3366
Approximate Pages = 13 (250 words per page)