Vimto Business Report

Vimto Business ReportVimtoBusiness ReportTable of ContentEXECUTIVE synopsis.31. CURRENT securities industry POSITION.41.1 Brand1.2 Target Market Analysis2. MARKET OVERVIEW5-62.1 PEST2.2 Current vexation trends3. TOWS ANALYSIS7-83.1 keystone Issues3.2 Key Opportunities4. STRATEGY 8-94.1 Brand Development Strategy4.2 Pricing Strategy4.3 Advertising Strategy4.4 Distribution Strategy5. SUMMARY 96. REFERENCES10Executive outlineThis report is written to present an abstract of the trade environment of Vimto with the aim of providing strategic input on how to improve their chances of success.Vimto is in the soft drinks business and is owned by Nichols plc. Vimto grew 4.3% and since its the core brand of the group, significant attention has to be allocated to assure its continued success.Reading this report give highlight what strategies, obstacles, trends, threats and marketing/ conversation tools are needed to make sure this product become successful. The report contains a market analysis, different recommendations and an outline on the future potentials for the products.CURRENT MARKET POSITION1.1 BrandNichols is the UK based comp some(prenominal) that is engaged in producing soft drinks and other beverages. The company distributes its products to the retail, wholesale, vending, catering, licensed, and leisure industries. The company has operations in the UK, Middle East, china and Africa.The companys brand portfolio includes Vimto, which is sold in over 65. The company offers still and carbonates drinks. The company offers soft drinks on dispense market. (MarketLine, 2013)1.2. Target Market AnalysisSupermarkets / hypermarkets form the guide distribution channel in the United Kingdom carbonated soft drinks market, accounting for a 35.2% share of the total markets volume.On-trade accounts for a further 25.9% of the market.Figure 1 United Kingdom carbonated soft drinks market distribution % share, by volume, 2012(source MarketLine)MARKET OVERVIEWPESTLEPolit icalPolitical factors impact on the way business operates. The statutory minimum wage affects all businesses, as do consumer and health and safety laws.The political decision as to whether or not the UK signs up to hold up the Single European Currency is having an impact on UK businesses, which includes Vimto.EconomicalAll businesses are affected by economical factors nationally and globally. Interest rate policies and fiscal policies will have to be set accordingly. Within the UK the climate of the economy dictates how consumer may behave within society. Whether an economy is in a boom, recession or recovery will also affect consumer confidence and behaviour. This has an impact on most businesses including Vimto. An economy which is in a recession is characterized by high unemployment, and paltry confidence. Because of high unemployment spending is depression confidence about job security is also low. Consumers will be more inclined to reduce their spending because of their low r evenues. This leads businesses to try to reduce their operation cost to save money. The market is seeing a growth so we can assume that the impact on Vimto will be currently minimal. (Marketline, 2013)SocialThe sociable factors affecting Vimto include the demographic changes, cultural aspect and consumers habits. These factors affect customer needs and the size of potential markets.Vimto macrocosm sweet and fruity will appeal to the younger demographic. It has also introduced energy drink in its portfolio that will entice sporty and diet aware people. (Just-drinks, 2013) proficientTechnological factors are vital for competitive advantage, and are a major driver of change and efficiency. With the advent of well-disposed media allowing for a wide range of consumer to be targeted, it simply cannot be neglected anymore and those who invest in that area will have a significant advantage. (Brand Republic, 2009)Laws regulationEnvironmentalLike any other drinks brand, Vimto experiences m any environmental threats to both production and brand awareness. They have to ensure that their packaging and brand is not affecting the environment or they could draw a backlash from consumers and activisits. (Loulla-Mae Eleftheriou-Smith, 2011)Current business trendsThe performance of the market is forecast to accelerate, with an anticipated CAGR of 4.4% for the five-year period 2012 2017, which is expected to drive the market to a value of $16,063.6m by the end of 2017. Comparatively, the French and German markets will grow with CAGRs of 1% and 1.6% respectively, over the same period, to reach respective values of $4,827.6m and $11,274.2m in 2017. (MarketLine, 2013)TOWS ANALYSISFigure 2. TOWS analysis table.4.1 Key issuesFrom the TOWS, the important issues to consider are high costs resulting from using UK labour and not outsourcing. Lack of Internet of coverage and presence as social medias (i.e. Facebook) arent well or not exploited at all.4.2 Key opportunitiesFrom the TOWS , the key opportunities include The energy sector remains the fastest growing kinsfolk in soft drinks at 7% per annum (Nichols, 2014) so mergers with well-known brand (recently with Weightwatchers) are a good option. Wide advertisement of its green position. Use of cyber marketing by using social medias to target a broader range of consumers.STRATEGY4.1 Brand Development schemaThe brand image is already in place. Vimto essential simply supply evidence to the consumers that their brand image is accurate and worthwhile. Vimto provide proof of their quality products and services by advertising that theyre locally produced pursuit a strict CSR code.4.2 Pricing strategyAs the company generated good numbers despite the anticipated reduction, an alteration of the price isnt critical.4.3 Advertising strategyIt should be focused more on the range of exposure through multiple media sources (i.e social medias).4.4 Distribution strategyProgress continues to be made in Nichols broadcast bus iness, with consolidation of the independent distributor base. This also involved the full integration of Festival Soft Drinks Limited, based on the south coast of England, into Nichols Dispense during 2013.4.5 Marketing strategyThe marketing strategy of Vimto will be toIncrease awareness of the brand finding innovative way to use the multimedia tools (i.e. Facebook etc.). material body strategic partnerships to make sure that you will be able to take advantage of their brand recognition and infrastructures.Differentiate themselves from competitors through introduction of new products consumer targeting item type (i.e. sport drinks with flashy PET store to attract sportmen). Continued advertisement of green resolutions adoption and CSR policies.SUMMARYThe target Market could be sometimes hard to reach due to the fact that most of them are not well exposed to the brand compared to the competition such as Coca-Cola. This marketing and progression could be overcome by selecting a wi der range of marketing and communication tools.New products introduced offer a number a choices to consumers and widen its base. Additionally, corporate tariff position makes it look respectable and apealling.The strong market position Vimto has in the global market gives its products a high change of success. Vimto has a well realized market position in the soft drinks industry, which gives it a large scale of new opportunities by the bias of mergers.If the implement of those new ways to attract consumers (i.e social media) is done, it will gives them a competitive advantage.REFERENCESBrand Republic (2009) Vimto digital strategy pulls teens into branded game. acquirable from http//www.brandrepublic.com/news/922925/Vimto-digital-strategy-pulls-teens-branded-game/?HAYILC=RELATED Accessed 04/04/2014Bureau van Dijk (2014) Nichols company report. FAME online. procurable from http//fame2.bvdep.com Accessed 28 February 2014Bureau van Dijk (2014) Nichols company report. OSIRIS online. Available from http//osiris.bvdinfo.com/ Accessed 28 February 2014Facebook (2014) Facebook. Available from http//www.facebook.com Accessed 04/04/2014Just-drinks. (2013) Product Launch UK Nichols Vimto Extreme Energy and Extreme Sport. just-drinks online. Available from http//www.just-drinks.com/news/nichols-vimto-extreme-energy-and-extreme-sport_id110674.aspx Accessed 04/04/2014Loulla-Mae Eleftheriou-Smith (2011) Vimto updates bottle and packaging design. Marketing Magazine online. Available from http//www.marketingmagazine.co.uk, accessed on 04/04/2014MarketLine (2013) MarketLine Industry Profile Carbonated Soft Drinks industry in the United Kingdom. MarketLine Advantage online. Available from http//http//advantage.marketline.com.ezproxy.uwe.ac.uk/ Accessed 28 February 2014MarketLine (2013) Company Profile Nichols plc. MarketLine Advantage online. Available from http//http//advantage.marketline.com.ezproxy.uwe.ac.uk Accessed 28 February 2014Nichols plc (2014) Nichols plc. Avai lable from http//www.nicholsplc.co.uk/ Accessed 04/04/2014Nichols plc (2014) Annual report financial statement 2013 online. . Available from http//www.nicholsplc.co.uk/ Accessed 04/04/2014Vimto (2014) Vimto. Available from http//www.vimto.co.uk/ Accessed 04/04/2014Weight Watchers (2014) Weight Watchers. Available from http//www.weightwatchers.co.uk/ Accessed 04/04/2014Template style inspired byChernova, E. et al (2013) Samsung Smart Fridge Business to Business Marketing Plan. Available from http//www.coursepaper.com/samsung-smart-fridge-business-business-marketing-plan Accessed 04/04/20141