Slurpee is a carbonated beverage that comes in flavors like mango cola and raspberry. It can also be frozen, giving shoppers a range of options. The brands are available at 7-Eleven locations. The core demographic is young adults aged eighteen to twenty-four.
External and internal factors influence the corporate climate. Managers also perform situational analyses in order to forecast changes in the external and internal environments (Tallman, Luo, and Buckley 2017). It assists them in comprehending the firm’s capabilities, the client, and the operating environment (Kelley and Jugenheimer 2014, p. 19). The techniques used include SWOT analysis that is used to refer to strength, weakness, opportunities, and threats of the organization.
Strengths
Technology
Slurpee uses technology to add value and increase customer satisfaction. They also advertise the product online, and the sites include Facebook and Instagram. They have managed to create more sales through using digital media.
Customer Loyalty
Most of the clients are young, and the rate of influence is high they, therefore stick to the product. Clients have different tastes, and preference Slurpee has a variety of flavours that suit the needs of the customers.
Fantastic Strategies in Marketing
Slurpee uses visual communication as part of promoting the products. Creativity and innovation are essential when advertising the product (Longenecker et al. 2013, p. 31). Many people are amazed by what they see rather than hear.
Weakness
Competition
Slurpee operates in an industry that is saturated with similar products and substitutes. The competition is immense from companies such as Pepsi, and most have a significant market share compared to Slurpee (Kennedy 1995, p. 54).
Absence in Healthy Beverages
Market trends influence the consumption patterns. Research indicates an increase in the number of people who are cautious about the products they consume (Lau, Yam, and Tang 2011, p. 275). The increase in obesity and lifestyle-related diseases may affect the consumption patterns as people switch to a healthy alternative.
Opportunity
New Markets
Some areas that are still untapped and Slurpee can use it as an opportunity to expand the operations.
Threats
Economic Factors
Inflation causes the price of products to rise. An increase in the raw material used in production will increase in the final cost of the product. It will decrease the sales hence, therefore, affecting the growth of the business.
Demographics
The majority of the people consuming the products are young, a shift in demographics to an ageing population may decrease the sales.
Problem they are seeking to Address
Competition
The market for soft drinks is highly saturated (Lopez and Fantuzzi 2012, p. 2860). Other options are available in the market. If they switch to other brands, it will decrease the sales.
Cheap Substitutes
Soft drinks are luxuries, and therefore the existence of other options is a threat to the firm (Scarborough 2014, p. 62). Price competition affects smaller industries as those that have experienced growth can sell the product at a cheaper rate compared to those new in the market.
Change in Taste and Preference
Many fast-food restaurants are selling cheaper soft drinks. People prefer one stop shop, and therefore a change in preference caused by factors such as competition from small firms will decrease the sales (Serafimova and Jakovlev 2015, p. 44).
Consumer Expectations
The majority of young people are hard to impress. They switch from one brand to another seeking the best product in the market (Rai and Rai 2010, p. 12). They do not understand the uniqueness of the product. It is, therefore, difficult to satisfy such an audience.
Research Recommendation
Target Demographics of the Consumer
The target group of the product Slurpee is young people in the age bracket of eighteen to twenty-four. They are heavily influenced by the quality of the product. I would recommend the following options to improve the current product.
Research and Development
Business does not operate in isolation. There are competitors in the market and also customers that have unique needs. Continuous research is crucial as it improves the quality of the product (Kimelberg and Williams 2013, p. 97). The developers get ideas that they can use to enhance and improve the taste of the product. It will attract new customers and also retain the existing ones.
Diversification
The Company should produce other products to tap a large market. For those who do not consume soft drinks, they should have other options. It will reduce the level of competition from similar firms (Dartington 2010, p. 37). Customers will be loyal as they will have a variety of choices.
Conduct Promotions
Promotions play a crucial role in informing the people about the product. It reminds the users about the unique benefits (Hawkes 2016, p. 1). Publicity also improves the public image of the company. It can maintain customers and attract others.
Increase Production
The Company needs to tap other markets that are not saturated. In the case of intense competition in the local area of production, they can ship the products to other locations (Campbell and Craig 2016, p. 55). It will maintain sales and increase revenue that is crucial for the maintenance of the operations of the business (Heenetigala 2010, p. 3).
Consumer Focus Group
The purpose of the group is to collect diverse ideas that will help in the campaign for 7 Eleven with the product Slurpee the factors considered relevant include
Demographics
Age
The majority of the consumers of the product are young. Age, therefore, contributes to growth of the brand in the market
Gender
It does not affect the consumption patterns. Both male and female are heavy consumers of the drinks.
Income
The drinks cost one dollar. The price is affordable to even those in the lower-income bracket. An increase or decrease of revenue, therefore, does not increase or decrease the demand.
Education
It refers to the level of knowledge people have. Those who know about the implications of taking carbonated drinks have reduced the intake. The sales may decrease in the future if they do not introduce a choice of healthy options (Heizer, Render, and Munson 2017, p. 26).
Geographic
The drinks are sold at the 7-eleven outlet. People who live in remote areas may not have access to the product. They may switch to other options that are available.
Psychographics
The attitude towards a brand determines the purchase rate. There are those who will buy a product from the opinion of others because they think it is superior compared to other products (Binkley and Golub 2010, p. 67). The lifestyle influences the consumption patterns. Outgoing people will purchase more soft drinks compared to those who are conservative.
Behavioural
Used to indicate the usage rate of the product. A majority of the people buy the product in the afternoon. Those who consume at home take the drink anytime of the day.
Conclusion
SWOT analysis helps individuals to understand the product and performance in the market. It helps one to identify a problem, and it is easy to come up with a recommendation to address the same. It is crucial to use a focus group to get diverse opinions from people (Arens, Weigold, and Arens 2009, p. 10). The information can be used to reflect on areas that need improvement.
References
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