Soft Drinks Market Analysis

This assignment delves into the analysis of the soft drinks market. Students are expected to examine current trends within the industry, identify key challenges faced by companies operating in this sector, and explore potential opportunities for growth and expansion. The analysis should encompass various aspects such as consumer preferences, competitive landscape, marketing strategies employed by leading brands, and the increasing focus on sustainability within the beverage industry.

Running head: INTRODUCTION TO MANAGEMENT
Introduction to management
Name of the student
Name of the university
Author note

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Executive summary
The aim of this report is to discuss about the corporate strategies being initiated by Coca cola
Amatil. External operating environment for them had been evaluated along with their
organizational culture and leadership roles. It is being concluded that they have implemented
effective corporate strategies in order to expand their market share in the existing as well as in
the new markets. Coca Cola Amatil have taken a holistic approach in implementing their
corporate strategies, which is helping them in targeting the market more effectively. It is being
expected that overcoming the identified challenges will help them in targeting and penetrating
the existing market more effectively.

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Table of Contents
Introduction......................................................................................................................................3
Current corporate strategies of Coca cola Amatil............................................................................3
Criticism with the past strategies.....................................................................................................6
External environment analysis of Coca cola Amatil.......................................................................8
PESTLE analysis.........................................................................................................................8
SWOT analysis..........................................................................................................................10
Organizational culture and leadership roles in Coca cola Amatil.................................................11
Conclusion.....................................................................................................................................12
Reference.......................................................................................................................................13

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Introduction
In the present business scenario, contemporary business organizations have to consider
various aspects in order to survive in current market situation. Thus, they have to initiate
different strategies in order to effectively drive their internal management as well as overcoming
the external challenges (Litov, Moreton and Zenger 2012). The more effective will be the
corporate strategies of the organizations, the more will be the competitive advantages for them in
the market.
Coca cola Amatil is the largest bottlers for the Coca cola in the world. Currently they are
operating in Asia Pacific regions and have their market presence in Australia, New Zealand,
Indonesia, Papua New Guinea, Fiji and Samoa. With the brand value of Coca cola and corporate
strategies of Amatil, Coca cola Amatil is going strong and enjoying the status of market leader in
the market.
This report will discuss about the corporate strategies being initiated by Coca cola amatil
in the market along with comparison with their past strategies. Criticisms generated by their past
strategies will also be discussed here in this report. External operating environment for them will
be evaluated along with their organizational culture and leadership roles.
Current corporate strategies of Coca cola Amatil
Coca cola Amatil is driven by innovation. Thus, they are able to cope up with the change
in taste and preference pattern of the customers by introducing different products in the market.
They concentrates more on the product innovation and with the help of that, they are periodically
introducing products based on the current market trend (Eesley, Hsu and Roberts 2014). For

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instance, with the growing negativity around the artificially sweetened beverages, Coca cola
Amatil introduced Coca cola life with having natural sweeteners. This new product has become a
leading volume selling item for them. Thus, initiation of innovation strategy is helping them in
driving their market share.
Growth strategy is also be implemented by Coca cola Amatil in order to increase their
market share. To determine the growth strategy of them, ansoff matrix will be used.
Figure: 1 Ansoff matrix
According to the ansoff matrix, there are four market strategies which should be
implemented in order to gain the market share. The first strategy is market development which is
being implemented to target and enter new market with the existing product. In the case of Coca
cola Amatil, they have first started their journey from Australia and gradually they entered the

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other countries in the Asia Pacific regions and currently they have their presence in six countries.
In all the countries, Coca cola Amatil is selling similar products. Thus, with their portfolio of
exiusting products line, they have successfully developed new markets. The next strategy in this
matrix is the market penetration (Shaw 2012). Coca cola Amatil has initiated policies such as
introduction of products in various sizes and in various flavours which in turn increasing the
customer conveniyence. Moreover, various offers and events is promoting their market
penetration activities. It is helping the organization in further penetrate in the existing market
with the existing product portfolio.
The next strategy in ansoff matrix is product diversification (Kumar, Gaur and Pattnaik
2012). Coca cola Amatil first strated as the non alchoholic beverages bottlers and gradually they
are now catering to the new customer segments with having fruit juices and alchoholic
beverages. Thus, it is helping them in diversifying in the market and catering to more number of
customers. The last aspect in this matrix is the product development (Barczak and Kahn 2012).
Coca cola Amatil have introduced various variants of their existing products to cater to different
taste and preferance pattern of the customers. Moreover, they are introducing more variants
which is further enhancing their product line in the existing market. Thus, evaluation of the
growth strategies of Coca cola Amatil with the help of ansoff matrix helped to identify the
strategie and initiative sbeing implemented by them in order to enhnace their market growth rate.
Strategic partnership strategy is also being implemted by Coca cola Amatil in order to
enhance the effectiveness of their business activities (Wheelen and Hunger 2017). The most
prominent being the partnership between the Amatil Pty. Ltd and Coca cola. This partnership is
proved to be a successful venture for the both the organizations in the Asia pacific regions. In the
recent years, Coca cola Amatil went in partnership with SABMiller to market premium beers in

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New Zealand and Australia. It is helping them in catering to the market of premium spirits. Coca
cola Amatil also went in partnership with Beam Suntory in distribution in New Zealand. With
the help of this partnership, Coca cola Amatil will be responsible to market and manufacture the
products of Beam Suntory in the market of New zealand. This partnership helped Coca cola
Amatil in being the largest beverage distributor in New zealand.
Thus, accortding to the vision statement of Coca cola Amatil, they aim to provide
diversified product portfolio to their customer’s arm’s reach. Accordingly, they are introducing
more products in the market and opting for strategic partnership with other organizations in order
to increase the market presence. In addition, they also aims to provide enhanced and unmatched
value to their customers. Accordingly, they are effectively identifying the trend and requirement
of the customers and introducing products in the market.
Criticism with the past strategies
One of the key strategies that had been failed for Coca cola Amatil in the recent past is
inability to identify the market trend. Due to this reason, Coca cola Amatil continued to offers
sweetened beverages in the market where the customers are slowly shifted for the naturally
sweetened products and fruit juices (Greeenwood et al. 2014). Thus, they lost their partial market
share to the competitors due to inability in determining the market trend. Various campaigners
and customers are of the opinion that with the continuation of offering the sweetened beverages
in the market, Coca cola Amatil is actually pushing the customers in having these unhealthy
beverages. Thus, these criticisms results in reducing the effectiveness of their marketing
activities in the Australian regions along with reduction in the sales chart of them (Heffernan
2017).

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These issues prompted Coca cola Amatil in further identifying the market trend along
with determining the requirement of the customers. Accordingly, they have introduced products
from the global portfolio of Coca cola such as Diet Coke and Coke Zero. These products are
being marketed as healthier option to the regular ones along with low sugar content and low
kilojoules (Rath 2012). Coca cola Amatil also introduced Coca cola life based on the market
research being done on the Australian customers. Thus, these criticisms enabled them in
effectively determining the market requirement and offering healthier options to the customers.
Another criticism faced by Coca cola Amatil in their business activities is their tie up
with the Landcare Australia. Coca cola Amatil came in a partnership with Landcare Australia in
offsetting the carbon footprint of the former by planting trees (ABC News 2017). However,
issues are being generated from the very beginning due to the fact Coca cola Amatil being a
bottling organization is responsible for depleting the water level (Amienyo et al. 2013). Thus,
employees from Landcare Australia objected to this partnership, which ruined the entire
objective of this partnership. The main objective of Coca cola Amatil behind this project is to
create and initiate the social responsibilities, which are being affected due to this criticism.
This issue prompted Coca cola Amatil in initiating of more environment friendly schemes
in order to regain the lost goodwill and reputation. They have designed their operational facilities
in more effective manner in order to make them the most water efficient beverage bottling plant
in the world (Green Jr et al. 2012). Thus, in the other way, this criticism helped them in
transforming in to more environment friendly organization.

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External environment analysis of Coca cola Amatil
PESTLE analysis
 Political: The political environment in the Asia pacific regions is stable and business
friendly. Moreover, the effective geopolitical relationship and trade agreements among
the countries in Asia pacific regions is further enhancing the performance of Coca cola
Amatil in these regions (Petri and Plummer 2012). However, with the increase in their
market area, the prime challenges to be faced by them are to adhere with different
political scenarios in different countries.
 Economical: The economy of the countries in the South Asian regions is developed or
developing. Thus, the market potential for Coca cola Amatil is favorable; however, the
recent global economic crisis dented the economic potential of them (Castells, Caraca
and Cardoso 2012). Due to the fact that, the market of Coca cola Amatil is much
diversified and more of low cost products, thus the economic slowdown have less
impact on their business activities.
 Social: The social sector was the opportunity for them a few years ago but in the recent
years, social aspect is posing more challenges for Coca cola Amatil. This is due to the
fact that, Coca cola was being attached with the lifestyle of the people in this region,
which was one of the key competitive advantages for Coca-cola Amatil. However, in
the recent years, more customers are opting for healthier options and are avoiding
carbonated and artificially sweetened beverages and thus, the market share of Coca cola
Amatil is gradually decreasing (Kleiman and Popkin 2012). Thus, the increasing social
negativity towards the carbonated soft drinks is adversely affecting the market potential

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of Coca cola Amatil. However, with the introduction of the new healthier products by
them, it is being expected that they can regain the lost market share.
 Technological: The technology being used in the business scenario is fast changing and
effective adapting the technological change will help the organization in effective
marketing management. Coca cola Amatil is the frontrunner in initiating new
technologies in their business activities (Ashurst 2016). However, with the initiation of
more sophisticated technologies by the competitors can pose challenges for Coca cola
Amatil if not being effectively countered. Coca cola Amatil have initiated technologies
in reducing their cost and time involved in the process of production. In the recent time,
initiation of green technologies has promoted them in promoting technologies to reduce
the environmental implications.
 Legal: Rules and legislations are going to be more stringent in future for the soft drink
industry. With the increasing awareness about the ill benefit of the carbonated drinks
and several symptoms of the ill effect, stricter laws are being introduced in Australia
and other regions (Mytton, Clarke and Rayner 2012). Thus, it will have negative impact
on the sales of Coca cola Amatil. Legislations reading the quality should also be
adhered by them. One of the key challenges being faced by them is to comply with
varied legislations in different countries.
 Environmental: Environment is given the most preference by the contemporary
business organizations. More and more legislations are being introduced by the
government of different countries for the corporate regarding the environment. Thus, it
will be a difficult task for Coca cola Amatil to look after all the environmental
implications from their operational facilities. Looking after the environment is a

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determining factor to enhance the goodwill and reputation of the organization.
Accordingly, Coca cola Amatil have initiated various activities related to the
environment.
SWOT analysis
 Strengths: The key strength for Coca cola Amatil is the brand value of Coca cola.
The brand equity of Coca cola is huge and enormous, which will be very
beneficial for attracting more customers (Stahl et al. 2012). Moreover, the
experience that they have gathered in operating in the Asia Pacific region is
strength for them because it will help them to counter any challenges in the
market effectively. The high level of market penetration of them will help to push
their new products in the market.
 Weaknesses: Negativity in the market around the carbonated soft drinks may have
adverse effect on the sales potential of Coca cola Amatil. Less penetration in the
fruit juice market will restrict their potential in the region. Environmental issues
generating from their business activities will further dent their goodwill and
reputation in the market. However, they have diversified in different products but
all the products of them are in the same product line. On the other hand, Pepsi is
having market presence in other sector such as snacks also. Thus, Coca cola
Amatil depends on single product line.
 Opportunities: The brand value of Coca cola will also act as opportunity because
it will help them in targeting and penetrating in new markets. Increasing the
global presence is also an opportunity for Coca cola Amatil. This is due to the
reason that, Amatil have gained experience and competitiveness in bottling

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industry and it can help them in entering in new markets. Coca cola Amatil is
gradually foraying in the market of fruit juice and drinking water and this market
have huge opportunities in future.
 Threats: Introduction of stringent legislations will pose threats for their business
activities. Emergence of more competitors in the market along with various
private level brands is eating up the market share of Coca cola Amatil. Water is
one of the key raw materials for Coca cola Amatil and environmental issues are
creating threat in sourcing of water. This is due to the reason that the water level
is gradually diminishing.
Organizational culture and leadership roles in Coca cola Amatil
The organizational culture in Coca cola Amatil is being maintained effectively in order to
provide healthy and productive working environment for the employees (Alvesson 2012).
Diversity of the workforce is being maintained in the organization. According to the concept of
them, diversified workforce will help to cater to different customers segments and the mutual
understanding will be increased. The employees are being motivated in generating innovative
ideas in their organization (Lazaroiu 2015). Moreover, employee engagement is being given
maximum preferences. This is due to the fact that, according to Coca cola Amatil, if the
employees can be kept motivated and engaged then it will help in driving the internal
management more effectively. Thus, the effective maintenance of the organizational culture is
helping them in gaining competitive advantages in the market.
Alison Watkins, the CEO of Coca cola Amatil follows transformational style of
leadership, which can be noticed by their organizational activities. The leadership roles in the

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organization are more concentrated in maintaining the gender equality and employee motivation.
Employees are being given opportunities in enhancing their own leadership skills (Coca cola
journey 2017). One of the key characteristics of the leadership roles in the organization is
providing freedom to every employee, which in turn help them to motivate the employees in
engaging in the organization. According to CEO of Coca cola Amatil, employees should be
inspired rather than criticizing them. Moreover, the employees are being encouraged to enjoy
their workplace and perform something beyond their profession.
Conclusion
Having analyzed the corporate strategies being initiated by Coca cola Amatil, it can be
concluded that they have implemented effective corporate strategies in order to expand their
market share in the existing as well as in the new markets. Coca Cola Amatil have taken a
holistic approach in implementing their corporate strategies, which is helping them in targeting
the market more effectively. External and internal environment analysis is being done in order to
identify the key opportunities and challenges for them. Organizational culture and leadership
roles are effective and employee oriented. Thus, overcoming the identified challenges will help
them in targeting and penetrating the existing market more effectively.

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