We represent a Canadian firm specializing in marketing Cola beverages solely in Canada. We wish to extend our sales and therefore launch our products on the French market. For this, we will analyze the characteristics (threats and opportunities) of the French market using the hexagon sector.
The cola market is dominated by two major players that have a virtual monopoly of the market (Pepsi, Coca Cola). These are located on the French market for many years and are known to all consumers of soft drinks. From a business perspective, these two competitors have already proven themselves and have a budget communication and promotion colossal, which represents a major barrier for new entrants.
Tags: colas in France, soft drinks, coca cola, pepsi
[...] The threat is important. Coca Cola has become almost a regular purchase at parties or other events and there is no substitute in the minds of consumers by cons, a new entrant won't have the reputation of Coca Cola, substitute products pose a significant threat. State power Prohibition of monopoly Bargaining power of suppliers Suppliers of our products will be mainly producers of Cola (essential element of the drink), manufacturers of packaging (cans, bottles, etc . Their bargaining power will be variable depending on raw material costs and changes in demand. [...]
[...] Nowadays the development of fair trade and organic products allows the arrival of new Cola beverages, but this market is still in its infancy. The act of engaging in this market is very risky because of the 'big names' of Cola. Bargaining power of customers and distribution Since we are new entrant in the French market, customers and distributors will have a strong bargaining power because we are not indispensable and their new product is not to please the customers. They also take a risk in linear referencing to us. Threat of substitutes The substitution products include all-Cola sodas. [...]
[...] These are located on the French market for many years and known to all consumers of soft drinks. From a business perspective, these two competitors have already proven themselves and have a budget with colossal communication and promotion, which represents a major barrier for new entrants. Producers wishing to enter the market benefit from the skills and knowledge but the hardest part for them is to make themselves known and their budget is much lower than the market leaders. Many brands have tried to find a place among the giants, but there have been plenty. [...]
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