Strategically the Czech Republic soft drinks market for Coca Cola is an immense opportunity for expansion the main competitors Kofola and Pepsi are all in the same position and the first company to make bold moves will become the market leader if they approach the market with the right combination what consumers want. At the moment Coca Cola is in the maturity stage of the product life cycle and the final stage is the decline stage where supposedly sales begin fall off and decline dramatically.
After analysis of the SWOT and PEST in the Czech Republic the opportunities outweigh the threats and there is potential for Coca Cola to increase their market share with the following strategic guidelines. 1) Product development- With the increasing demand for healthy soft drinks Coca Cola could conduct more R&D and fine tune consumer demand and develop new products to fill this demand instead of focusing and relying on their stable brands such as Coca Cola “original”.
High profit is available in the bottled water market where Coca Cola can reduce costs and source quality water from different parts of the Czech Republic. Allocating more resources to product development will maximize Coca Cola’s market share in the long term while running with the general consumer trends . The SWOT analysis indicated that there in no more market share to gain and strategically we turn weaknesses into strengths and introducing a health/energy drink will find a strong market for Coca Cola. 2) Its no secret that international corporations tailor products and marketing techniques to local markets.
And in Coca Cola’s case in the Czech Republic there should be more of an emphasis on this strategy to make more Czechs drink Coca Cola products. A typical example is a Kofola television advertisement using a typical Czech scene on a lake where a typically Czech scene was played out and this type of marketing is sorely lacking in the Czech market. There are still strong differences between markets opposing the belief that consumer culture is extensively homogenous. 3) Increasing sponsorship within the Czech Republic is another strategic guideline where a strong presence and loyalty can be maintained.
This is especially the case within government institutions and events. This can build an association to a solid and respected force in peoples lives and improve brand loyalty. Sporting events is a good example as well as hospitals and environmental causes. 4) Increasing R&D to properly understand consumer behavior and the Czech culture will give Coca Cola an advantage over local competitors as the availability of R&D resources in the Czech Republic is abundant and the cost benefits out weigh the initial investment in the long term.
5) Using technology platforms to gain a strategic advantage especially when the Czech Republic has high concentrations of IT resources in the form human capital and infrastructure . Using social networking platforms to base marketing campaigns can be a cost effective way to gain market share and consolidate into a unique sector.
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