Economic Social Cultural Technology 5 PEST Analysis

Economic social cultural technology 5 pest analysis

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Political/legal/regulatory Economic Social/ Cultural Technology 0 5 PEST Analysis Global Soft Drink Industry One of the biggest hits to the industry under the social and cultural factor, is the speculated link between obesity and soft-drink consumption. In the United States, about one-third of the population is considered obese, and there are some studies supporting the possibility that soft-drink consumption contributes to that problem. Also, dieting has become a big fad in the United States, and because of this, bottled water is becoming a much more popular choice. For the past several years, diet sodas have been the go-to for calorie counting Americans, but it is estimated that by 2017, the amount of bottled water consumed in the United States could actually surpass that of soda. Although companies like Coca-Cola and Pepsi have always been able to land celebrity endorsements, that just isn’t enough to get the new generation of diet- crazed American’s to buy. The use of technology through social media allows consumers to be connected directly to the brand like never before. With this new relationship, firms are able to obtain valuable information, surveys, and suggestions straight from the consumers regarding new or current products. Another huge benefit of social media is such low advertising costs with such a large market reach. Some more benefits of technology within the industry is the improvement of operations and marketing. High product volume requires an increase in automation in manufacturing. Through technology, employees are able to do more work more productively, cutting down on costs of labor.
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Upon assessing all of the factors that go into a PEST analysis, it would appear that the long term profitability of the soft-drink industry is in trouble if it cannot adjust to the changing times of the diet craze, and fully recover the market shares after the recession in 2008. Once again, because of the increased popularity in diet sodas, and even more recently, bottled water, the soft drink industry needs to adjust to meet the needs of the more calorie-conscious consumer. Competitor Analysis Competitor Analysis Coca-Cola Company PepsiCo, Inc. Dr. Pepper Snapple Group, Inc. Target Markets Ages 12+ Parents Caregivers Ages 12+ Teenagers Young adults Ages 12+ Millennial generation Positioning ‘One Brand’ Strategy Connecting consumers Younger generations with advertisements causing consumers to associate PepsiCo products with fun. “One of a kind” campaign. Millennial generation through presenting Dr. Pepper as the drink for unique individuals. Product 3300+ products Most diverse in beverage industry Variety of products that include snacks, sports drinks, carbonated beverages and other things. Strictly a beverage company Emphasis on flavor of products Price Sub brands have different pricing strategies Low cost, competitive pricing Snacks and sports drinks competitively priced with other brands Low cost competitive pricing for other beverages Low cost competitive pricing in the beverage industry Place Products sold globally Convenient locations Primarily retailers like supermarkets and convenience stores.
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  • Spring '11
  • MarkYoung
  • Soft drink, soft drinks

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