Competitors of the business and competitive pressures facing the business
Coca-Cola is the leader in the beverage business by forty-three percent. Coca-Colas main competitors include: PepsiCo, Schweppes, Nudie Foods Australia, Kirks, Bundaberg, Golden Circle, Saxbys and Heinz, just to name a few. All of these competitors lie within the beverage industry and compete against one and other.
As a business there are always many pressures that you face, the three main pressures that Coca-Cola Amital faces is: competition in Australian supermarkets, price pressures from major competitors including PepsiCo and lastly labels owned by supermarket chains.
Competition in Australian supermarkets, where Woolworths and Coles units have an 80 per cent market share, weighed on profits, the company and will continue to challenge Coca-Cola Amital due to the power the supermarkets uphold. Terry Davis the group managing director said in a statement published to the Sydney Morning Herald: ‘‘While the Australian non-grocery business continues to perform well, the trading conditions in the grocery channel continue to be challenging,’’ This proves the struggle Coca-Cola Amital has competing with the greedy personalities of the leading supermarkets and can lead to less profit, higher process steering consumers away from the products.
Discounting by competitors had also forced Coca-Cola to reduce its prices, and retailers were also reducing their levels of stock. Coca-Cola Amatil (CCA) says its earnings have been hit by a price war with Pepsi and fewer soft drinks sales in supermarkets. Managing director Terry Davis says low consumer confidence had affected the number of sales of its soft drinks in supermarkets, particularly in lower socioeconomic areas. CCA had mainly been forced to drop its prices due to the heavy discounting of its competitor Pepsi and to ensure its rival's new product Pepsi Next did not gain traction in the Australian market. However, he said he did not believe Pepsi's prices were sustainable in the long term.” We believe that Pepsi is losing money at the pricing they're at today," states Terry Davis.
Lastly financial pressure due to competition from imported goods by labels owned by supermarket chains. Competing with home brand products developed by the markets Supermarkets ie Black and Gold, home brand and smartby.
"My personal view is that, ultimately, Australian consumers will need to vocally encourage the major Australian retailers to lift their support for domestically-grown and produced brands instead of supporting imported private label products, or consumers will face the very real proposition of seeing less and less Australian-grown produce on retailer shelves," Mr Terry Davies said in an interview with: news.com.au. Not only is private supermarket label ruining the Australian economy but is also striping money from companies, causing sales to decrease steadily.
Coca-Cola is the leader in the beverage business by forty-three percent. Coca-Colas main competitors include: PepsiCo, Schweppes, Nudie Foods Australia, Kirks, Bundaberg, Golden Circle, Saxbys and Heinz, just to name a few. All of these competitors lie within the beverage industry and compete against one and other.
As a business there are always many pressures that you face, the three main pressures that Coca-Cola Amital faces is: competition in Australian supermarkets, price pressures from major competitors including PepsiCo and lastly labels owned by supermarket chains.
Competition in Australian supermarkets, where Woolworths and Coles units have an 80 per cent market share, weighed on profits, the company and will continue to challenge Coca-Cola Amital due to the power the supermarkets uphold. Terry Davis the group managing director said in a statement published to the Sydney Morning Herald: ‘‘While the Australian non-grocery business continues to perform well, the trading conditions in the grocery channel continue to be challenging,’’ This proves the struggle Coca-Cola Amital has competing with the greedy personalities of the leading supermarkets and can lead to less profit, higher process steering consumers away from the products.
Discounting by competitors had also forced Coca-Cola to reduce its prices, and retailers were also reducing their levels of stock. Coca-Cola Amatil (CCA) says its earnings have been hit by a price war with Pepsi and fewer soft drinks sales in supermarkets. Managing director Terry Davis says low consumer confidence had affected the number of sales of its soft drinks in supermarkets, particularly in lower socioeconomic areas. CCA had mainly been forced to drop its prices due to the heavy discounting of its competitor Pepsi and to ensure its rival's new product Pepsi Next did not gain traction in the Australian market. However, he said he did not believe Pepsi's prices were sustainable in the long term.” We believe that Pepsi is losing money at the pricing they're at today," states Terry Davis.
Lastly financial pressure due to competition from imported goods by labels owned by supermarket chains. Competing with home brand products developed by the markets Supermarkets ie Black and Gold, home brand and smartby.
"My personal view is that, ultimately, Australian consumers will need to vocally encourage the major Australian retailers to lift their support for domestically-grown and produced brands instead of supporting imported private label products, or consumers will face the very real proposition of seeing less and less Australian-grown produce on retailer shelves," Mr Terry Davies said in an interview with: news.com.au. Not only is private supermarket label ruining the Australian economy but is also striping money from companies, causing sales to decrease steadily.