IMD947: SodaStream International Case Study Analysis and Discussion

This case study examines SodaStream International, a company known for its home carbonation products, and its approach to ethical business practices and marketing. The analysis focuses on the company's ethical advertising, its CEO Daniel Birnbaum's social activism, and the company's contributions to environmental sustainability through reusable bottles. The study highlights SodaStream's marketing strategies, including the controversial Super Bowl commercial and its impact on brand image. It also explores the company's ethical values, such as providing healthier and lower-priced alternatives to traditional soda, and its engagement in social issues. The case study provides suggestions for the company to further enhance its revenue by improving customer experience and maintaining its ethical approach. The analysis also includes references to relevant academic sources to support the findings.

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integrated business enterprise
Student’s Details-
JULY 28, 2019

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Question 1
SodaStream International is a famous manufacturing company of Israel that sells carbonated
products. The company uses a pressurized cylinder to add carbon dioxide to make carbonated
drinks and is also engaged in making healthier drinks after making collaborations with soda club
(Morton, 2015). The company had used ethical ways in gaining the market share and also the
development of SodaStream brand. Ethical values are defined as the choices that one makes to be
in right direction. Respect, honesty, responsibility and compassion are considered as some of the
ethical values that makes the choices to be right and good. Similarly, ethical values play an
important role in the development of SodaStream brand.
SodaStream have used ethical advertising messages in which they demonstrated that the
consumers can create carbonated soda at home which is healthy instead of the carrying the heavy
bottles of packed beverages. All of the concentrates and flavors of the company were containing
of very less sugar which created their drinks a healthier alternative for the consumers. The
company had made an ethical contribution towards the environment as well. SodaStream had
used reusable plastic bottles and cans which were specially designed and proved to be an
environment friendly step and also led to the sales of the company (Brooke, 2017). The company
successfully gained large customers through their advertising messages which showed the ethical
patterns of the company. Thousands of plastic bottles and cans are thrown away by the people
which can harm the environment and the same can be reduced by using SodaStream. This proved
to be an ethical action for the development of SodaStream brand. The company had provided
lower priced soda to the customers and have also availed carbonation machine through the
customers can make their own beverages at home at a very cheaper rate. Therefore, the company
had used ethical values in the production of the carbonated soda and has also used reused plastic
bottles which have benefitted the customers and have also contributed towards the environment
sustainability (Osland & Luo, 2019).
Question 2
Daniel Birnbaum who was the Chief Executive Officer of SodaStream had successfully grown
the public profile of the company and the CEO had collaborated with top members of Israeli
government and also international NGO in order to take a part in social justice. Birnbaum had

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enhanced the company’s public profile and had made efforts to get maximum consumers through
lower priced soda which was healthy too. Social activism refers to altering the policies and
practices of company in order to have an influence of the society (Briscoe, 2016). Birnbaum
believed in social activism and had an impressive marketing strategy of providing carbonated
soda in reused cans and bottles which gave the benefit to environment. While doing the
advertising, they addressed social message of avoiding the plastic bottles that could harm the
environment and focused on providing the carbonated soda at the consumer’s doorstep instead of
using the heavy packed beverages (Serafino & Matlack, 2018). Birnbaum had established
behavioral principles for the company by creativity, optimism, initiative and transparency of the
business. SodaStream had emphasized on convenience through their products and created a
personalized experience for the consumers by providing them an opportunity to produce
beverages at their homes by making use of carbonated machines. CEO had a socialistic approach
towards the customers and the society as well. Birnbaum ensured health and environmental
sustainability through spreading the awareness of minimizing the plastic bottles. These activities
had helped the company to grow in a massive pace and doubled the revenue in recent years.
In the article Businessweek, social activism of Birnbaum was portrayed in a positive way.
Although, CEO knew that some would find the company inevitable and would question the
motives and criticize him. Birnbaum had already recognized the confrontations and believed that
it was difficult to predict. He also believed that even if his business had moral principles and
followed the social issues, there would always been criticism by the opponents (O'Connor-
Delosrios, et al., 2016). Thus, it can be said that Birnbaum had undoubtedly raised the public
profile of the company and offered a public platform. The CEO had to face confrontations and
criticism from the rivalries but Birnbaum proved to be a social activist and had a socialistic
approach in the marketing and the production of the carbonated soda. He already knew that he
would face such oppositions regardless of his significant contribution towards the society. The
company had ethical values towards the customers by facilitating them with lower prices and had
an ongoing engagement with social activism (Ray, 2016).
Further, undoubtedly Birnbaum had used ethical approach to serve the customers by his healthy
and tasty beverages. He would be suggested to add some more features to the product and create
a healthy experience for the customers. In this way, the company can gain more revenue by

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selling more along with being a social activist. If the customers are getting various features then
they will not switch the brand and will stick to SodaStream due to their personalized services.
SodaStream can double the revenue by investing more on home carbonation machines which
became popular in Europe. Since the company struggled in expanding the business in new
markets, the company would be more profitable if it understands the needs and behaviors of the
customers. The company is suggested to use their own marketing strategy rather than mentioning
the rival firms. The company had used a commercial for Super Bowl and hired Scarlett
Johansson for the ad. The actress took the name of Pepsi and Coke created huge controversies
and the network broadcasting refused to air the advertisement. This practice was unethical and
thus may have serious consequences on the brand image of the company. Therefore, the
company can come up with their own marketing messages which have a convincing social
message and do not harm the reputation of the rival firms which is unethical and seems to
destroy the goodwill of the company in long run.

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References
Briscoe, F., 2016. Social Activism in and Around Organizations. The Academy of Management
Annals, 10(1), pp. 671-727.
Brooke, Z., 2017. Water Wars.(SodaStream International Ltd.'s environmentalist marketing
strategy). Marketing News, 51(7), p. 24.
Morton, A., 2015. Product Launch - SodaStream International's SodaStream Naturals. [Online]
Available at: https://www.just-drinks.com/
[Accessed 29 July 2019].
O'Connor-Delosrios, D. K. et al., 2016. The strategic use of "The Face of Apartheid": Examining
Mondoweiss blog activists' claims-making and protest activities over the Scarlett Johansson and
SodaStream controversy. [Online]
Available at: https://www.proquest.com/products-services/dissertations/
[Accessed 29 July 2019].
Osland, A. & Luo, L., 2019. Environmental sustainability, sugar consumption, and sodastream.
s.l.:SAGE Publications: SAGE Business Cases Originals.
Ray, J., 2016. HACKING YOUR SODASTREAM WITH A PAINTBALL CANISTER CAN SAVE
YOU PILES OF MONEY. [Online]
Available at: https://www.wired.com/2016/03/sodamod/
[Accessed 29 July 2019].
Serafino, P. & Matlack, C., 2018. SodaStream Comeback and How It Got Busy With the Fizzy
Again. [Online]
Available at: https://www.bloomberg.com/news/articles/2018-08-20/sodastream-s-sale-to-
pepsico-caps-turnaround-under-ceo-birnbaum
[Accessed 29 July 2019].