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“Case on

Sodacious”

Submitted to: Submitted


by:
Dr. Shahida P.
Anudeep
Tps-
B/18065

 INTERNATIONAL DECISION
 PRODUCT READ LINES
 TARGET MARKET SELECTION
INTRODUCTION:
The case describes about how SODACIOUS, a leading beverage manufacturer
which was started by the ‘Warren Goodyear’ who was the current president. The
company was initially a monopoly in the market which was affected by recent
trends in business. Michael Monroe, vice-president did not hope that he will
become the vice-president and the company will go for international or enter into
global business.

HISTORY AND BREIF REVIEW:


Warren got an idea to start this product, when he saw his children
affected/developed allergies for against the ingredients in the regular sodas. So
he developed a beverage which is completely natural, allergy free as well as
refreshing.
He developed products all-natural, caffeine free cool-drink for children and
followed by other drinks for adults also. By this they produced whole-range of
products.
For a long time, they were able to defend its position as the market leader.
Later, large beverage products broke into sodacious market segment, causing
them a loss of market-share.
As new entrants were eating sodacious local-market, they started to look at
new opportunities outside the home-market.
They replaced their sales executives with fewer key account managers to fit
the customer profile. They trimmed the organisation of all “excess fit” making it
like a well-oiled machine.
One day Michael went on vacation to India, he examined the economic and
business situations in India as it is emerging the new economic super-power for
quite a while. This made him to think about market potential in India.
While landing he received a mail in his black-berry from a German company,
inquiring about the possibility of acting as an exclusive distributor for the
Sodacious in German.
When he returned back and went to a meeting with his boss; they discussed
about their decline in the market share and threat from other competitors. In the
meeting they decided to make their products expanded globally in the countries
where they find potential markets. Michael was kept as the in charge of task
force exploring internationalization and asked to deliver the presentation in a
week. After the meeting he went back to his cabin and began to think about the
mail from German company. He came to know that the German company is well
established and was acting as an importer of different brands. The German
market has also a good potential and the market situations are similar to that of
their home country and people in Germany has high buying power. But he
withdrew from the idea as
• Regulatory environment of Germany is unfamiliar to them.
• If all the market situations of Germany are similar to that of their home
country, there exists a possibility that the competitive environment is
also similar and they may be prone to failure.
After withdrawing his ideas from Germany, he thought about India which he
recently visited. On enquiring about the Indian market he came to know that:
• India has a huge middle class segment which is growing at an incredible
pace opening a huge market.
• Less innovative products were involved in the market with few
international players and international products while some of them are
global versions and some of them are localized versions & fresh juices.
He also evaluated the prices of the different products that exist in
the market from the various sources and also from his head quarters which was
difficult to get.
Michael also took suggestions and advices from his wife as his wife is an
expert who worked as marketing executive in consumer goods. After a week, He
presented the data and suggested what SODACIOUS should do.
After presentation Kelly Hedrick thought about going international, the
benefits, threats, how to approach and lot more questions and found that only
Michael has answers to all these questions.

SWOT ANALYSIS OF SODACIOUS COMPANY:

Strengths:
• Brand name
• Deep-rooted in home country.
• Quality of the products
• Safe and innovative products.
• Efficient Value chain.

Weakness:
• Premium range of products (which are costly).
• Decreasing number of skilled workers.

Opportunities:
• Entry into foreign countries like Germany and India from Asia.
• Bringing innovative products accordingly in their countries will increase
their profits.

Threats:
• Entry of new competitors in the local market.
• Copy cat products which attack the firm’s market share.