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Saxby Soft Drink Analysis

Promotion Analysis

The company has used the internet well especially through the interesting design of the website.Saxby soft drinks have increased their promotions and have started to give out more gifts in their promotions (The History of Saxbys, 2012). They have used internet to ensure that they reach out to more people especially the youth. Among the most important captures that have been made is the issue of coupons, special offers as well as low price sales, in what the company terms as ‘amazing deals’. Apart from the use of their website, they have relied on the internet use where they ask the customer to enter their email address to communicate on issues regarding the company and their products (The History of Saxbys, 2012). This way, they are able to reach out to people regarding the promo codes that customers could use to win prizes. This could be an effective way of promoting themselves since internet use is increasing every day. However, they need to intensify their promotions in other region such as Africa. This could only be done through other media such as television since there is still low internet use.

Competitor Analysis

Different companies use different ways to communicate to their customers about their promotions. While others use the products where the details regarding the promotion are written on the products, others use the digital means to reach out to their customers (Sergio, 1999). A good example is Coca-cola in Australia. To promote their products, Lift, Fanta and Sprite in July 2012, they fed brightly looking photos of their three products on their website. They then elaborate clearly that every purchase of certain special market packaging units of any of the three brands would be awarded with a $ 5 cash card. They also give their customers a chance to win EFTPOs if any of them bought a packet written ‘Diet Coke’ or ‘Coke zero.’ The above promotions were held earlier in 2012. Currently, Coca-cola has another ongoing promotion where one is supposed to send their details to 197 234 56 for a chance to win (Sergio, 1999).

With the few facts, the company faces a stiff competition for their soft drinks. Coca-cola is a renowned company with a large market base. This makes them more likeable and their products are likely to get preference in the market. Though Saxby Soft Drink Company is much older than Coca-cola, having been established in 1864, it was based in Australia which inhibited its growth in popularity. This is because Coca-cola is present in over 200 countries in the world, thus making it an almost invincible force in the soft drink industry. Saxby soft drinks positioning in Australia reduced its expansion since it had few visitors as compared to the US where Coca-cola was based. Therefore, the competition between the two countries has been on the rise since the current use of digital technology in marketing has enhanced the operations of Saxby soft drink, thus becoming a stronger competitor in the market of soft drinks. The use of internet through their interesting website has increased their prospects in the market. However, Saxby soft drink will take some time since there are other companies chasing after them such as Schweppes, Pepsi among others. To ensure that they have retained their higher market share, Coca-cola has used advertisements for their properties at the highest levels (Sergio, 1999). Their adverts are all over the world sports competitions such as the soccer men world cup which is watched by millions of people. They have also sponsored popular sporting soccer leagues such as the English premier league (Giebelhaus, 2008). With these targets of large numbers of people, the company is able to retain its customers.

Situation Analysis

The company is endowed with uniqueness since its formation in the 19th century. Its founder was an ambitious man who became among the first entrepreneurs in Australia during the early days. Therefore, the company gained an unrivalled popularity in Australia which up to date remains its major strength. Its reputation in the Australian Market has remained on a high since then and till recently, when other international companies set into Australia, it enjoyed the larger market.

The customer response towards Saxby soft Drinks has been overwhelming. However, it is notable that their main market has been Australia and New Zealand alone (The History of Saxbys, 2012). Little expansion in other regions and continents has been seen for over the century that the company has been in existence. The competitors have therefore seen the opportunity to suppress its growth and are in the recent past ventured into the Saxby main market stronghold. This has bolted the company to start thorough marketing as their competitors are threatening to conquer their market.

One of the shortcomings that Saxby Soft Drinks experience today is their little exposure through the internet, as compared to their competitors (Giebelhaus, 2008). Though they have an interesting website, they have posted little information that would help them expand their market base. They have concentrated more on keeping their old market than venturing into new regions. Their products are appreciable to most of the people who have tasted them, but their lack of more expansion may result to poor performance with the young generation who might be influenced by the many adverts that other companies are placing on the media. This could mean that Saxby could lose their home market to the competitors in the process (Giebelhaus, 2008). Despite being among the best companies that are applauded for their proper corporate social responsibility with regard to taxation and employee treatment in Australia, they would heavily suffer if their market segment was invaded strongly by companies such as Coca-cola and Pepsi who enjoy a large capital base that enables them to market aggressively in their old strongholds as well as in new regions that they wish to venture (Giebelhaus, 2008).

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