SodaStream (www.sodastream.com) is the worlds leading manufacturer and distributor of sparkling water makers, which enable consumers to

Question:

SodaStream (www.sodastream.com) is the world’s leading manufacturer and distributor of sparkling water makers, which enable consumers to easily transform ordinary tap water into sparkling water and flavoured sparkling water in seconds. By making ordinary water more exciting and fun to drink, SodaStream helps consumers drink more water.
Sparkling water makers offer a highly differentiated and innovative solution to consumers of bottled and canned carbonated soft drinks. The products promote health and wellness, and they are environmentally friendly and cost-effective.

History
SodaStream machines became popular during the 1970s and 1980s, starting out in the UK, and later spreading to other countries, including Australia, New Zealand and Germany. SodaStream machines are associated with nostalgia for that period. Their slogan, ‘Get busy with the fizzy’, started as an advertising jingle in 1979 and proved so popular that they added it to their logo. The slogan was initially dropped in 1996 after 17 years but was reinstated in 2010 along with a new marketing campaign in the UK.
Originally the company operated as a subsidiary of W & A Gilbey Ltd. In 1985, after various changes of ownership, SodaStream became a wholly owned subsidiary of Cadbury Schweppes, although it operated as an autonomous business within the group.
In 1998, SodaStream was bought by Soda-Club, an Israeli company founded in 1991 by Peter Wiseburgh, who from 1978 to 1991 had been Israel’s exclusive distributor for SodaStream, creating the world’s largest home carbonation systems supplier. In 2003, Soda-
Club closed the SodaStream factory in the UK, moving the company’s gas cylinder refilling and refurbishment department to Germany. Under the ownership of Soda-Club, the brand has been relaunched in many markets, with new machines and new flavours available in 41 countries. In 2012, SodaStream teamed with Yves Béhar to introduce SodaStream Source, a line of soda machines designed with a special emphasis on sustainability.
SodaStream went public on the NASDAQ stock exchange (New York) in November 2010. SodaStream is currently headquartered in Lod, Israel and has 13 production plants; its principal manufacturing facility is located on the West Bank, creating controversy and a boycott campaign – see later.
In August 2018 it was announced that SodaStream had been aquired by US-based drinks, food and snacks giant PepsiCo for US$3.2 billion in cash.

The product The SodaStream machine offers significant benefits to consumers when compared to traditional soda cans: customizability, cost savings and health benefits.
SodaStream empowers consumers to make soda the way they want it: from customizing the level of carbonation in the beverage to choosing the amount of syrup flavouring. By purchasing a starter kit, the consumer gets the SodaStream soda maker, a full CO2
cylinder and three flavourings, all for a price of less than US$100. Ongoing operating costs include refilling CO2 canisters (US$15 per 60 litres CO2 refill) and purchasing new flavourings. Customers usually pay between US$6 and US$10 for a 500-ml bottle which would normally produce 12 litres of flavoured sparkling water. Partnerships from large brands such as Ocean Spray, Kool-Aid and Welch’s offer consumers a large selection of different flavours (concentrates) to choose from. SodaStream can only carbonate water, one litre at a time, in the supplied bottle – the concentrates are added after carbonated water is removed from the machine. This poses a limitation if one wishes to carbonate wine or fresh fruit juices.
SodaStream is almost 30 per cent cheaper on a per litre basis than traditional soda. For carbonated water, purchasing a SodaStream machine will save a user almost 70 per cent per litre.
Despite these cost-savings, SodaStream’s main advantage over traditional canned soda is clear: SodaStream cola has a third of the sugar, carbs and calories of traditional Coca-Cola and Pepsi. Soda consumption is arguably one of the main causes of high obesity rates in many first-world countries, and consumers have responded by drinking less soda. SodaStream soda is made only with cane sugar, and contains none of the highly stigmatized high-fructose corn syrup associated with intense weight gain. The relative healthiness of SodaStream products serves as a clear point of differentiation for the company moving forward, and should be even more compelling in the future as consumers continue to seek healthier alternatives to canned soda......

Questions
As a consultant in International Marketing for SodaStream you are tasked with delivering a report answering the following questions:
1. Discuss and evaluate SodaStream’s key competitive advantages in the home carbonated beverage market.
2. Was it a good idea for SodaStream (Daniel Birnbaum)
to choose Scarlett Johansson as the Global Brand Ambassador?
3. Evaluate the importance of political factors in SodaStream’s selection of new markets.
4. Do you think that Scarlett Johansson made the right decision in leaving Oxfam?
5. Discuss and evaluate the screening criteria that you would use for SodaStream’s IMS (international market selection). Please end up with a ranking list of the three most attractive countries. You are allowed to suggest countries where SodaStream is already active, but where you think it can achieve higher sales.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Global Marketing

ISBN: 9781292251806

8th Edition

Authors: Svend Hollensen

Question Posted: