Herbal Cuppa SWOT Analysis

Running Head: COMPANY SWOT 1

Course:

Instructor: COMPANY SWOT 2

Herbal Cuppa SWOT Analysis

The purpose of Herbal Cuppa is provisioning of the benefits of the non alcoholic herbal tea which helps in building up the immune system and provides great refreshment to the drinkers. The Mission of Herbal Cuppa is to serve the customers with the herb tea to energize their body and mind. The Vision of Herbal Cuppa is to provide optimum taste that the consumers cherish all their life. The non-alcoholic beverage provides great energy. The non- sweetened drink, aids in better health and also reduces fat from the body. It is an innovative product and the management is looking forward to promote the drink to the target audience.

The taste of Herbal Cuppa is unique and is distinct from the competition prevailing in the market.

Non-alcoholic Beverage Industry Trends

The non alcoholic beverage industry has a great potential. The market size is close to

$900 million. It is expected to grow. With the tendency of the industry that caters to the sport drinks along with the drinks having the sweetener and the addition of carbonated water to the soft drinks. The carbonated soft drink market for North America has a share of more than

20% (Statista, 2015). Coca Cola has garnered the maximum share along with the employment of the different strategies by the competitors to sustain in the market and bring about the innovative products. The projection of the growth of the sales linked to the global beverage market is positive.

Company Strategic Position

The branding for the drink has to be strategized to provide an enriching experience to the consumers and turning them into happy customers. The slogan and the logo for Herbal Cuppa have to be attractive and should connect with the consumers from an emotional perspective.

The brand has to be interactive and communicate with the consumers. The customers are well aware of the offering and understand well with what is it that we have to offer. The various COMPANY SWOT 3 strategies that would be employed as a part of product branding should be linked to the various factors like the attributes in form of quality and performance the brand is offering.

The benefits linked to the use of the drink and the manner in which the drink relates to the value of the organization is a consideration. The brand would also reflect the culture.

Company Distribution Channels

The preference of the customer for the drink is based on the research conducted with the aid of different tools and the preference is judged. The location advantage for Herbal

Cuppa is to serve the target market without much of complications involved. Greater public relations and the efforts on sampling too as part of the marketing and the distribution strategy holds great opportunity for the brand going ahead. The management team associated with the brand has proved entrepreneurial success and the business model adopted by them is innovative. The existing competitors in the market have greater cost attached due to the indirect marketing channels adopted by them for the distribution of the product and this also involves a greater involvement of the intermediaries. The other channels linked to the distribution for Herbal Cuppa include tie ups with the supermarkets and gain the awareness of the brand with such tie ups.

Risk Analysis

Herbal Cuppa has the risk attached to the rise in the use of raw materials which would affect the currently low priced strategy which h would work well. The expansion to other countries and exploring the new markets is also linked to the economic, social and legal conditions prevalent in the target markets. The cost involved in the logistics and the distribution to the distributors is likely to go up with the fuel prices escalating. The company would have to invest a lot in terms of the resources and the capabilities it has. COMPANY SWOT 4

SWOT Analysis

Strength: The brand has been taking the required steps to reflect the image that is strong enough and with the consistency and the global presence of the brand, the levels of growth expectancy are high. The brand has garnered the consumer loyalty. There is a long- term growth plan associated with the policies adopted by Herbal Cuppa.

Weaknesses: The limitation of the portfolio linked to product is a weakness and the rise in the competition in the market with the offerings of the variants in the category, which what Herbal Cuppa is offering. The patent rights are missing for the brand which brings about consequences led by the imitation of the brand's recipe.

Opportunity: There is greater scope for the brand to expand and explore the neighboring markets and the geographical expansion to the suitable markets with the growing demand for the product it is offering. The market share is on the rise for the brand and there lies great market for it to expand and grow thereby increasing its share more worldwide.

Threat: The brands in the competition pose a great challenge to the brand. The challenge of the fierce competition in the market is difficult to resist. The marketing cost for the brand is high and this is attributed with the fact of growing requirement to market in the countries it is slowly expanding. COMPANY SWOT 5

Reference

Statista (2015). Statistics and facts on non-alcoholic beverages and soft drinks. Retrieved from: http://www.statista.com/topics/1662/non-alcoholic-beverages-and-soft-drinks-in-the-us/