Strategy in marketing is very important factors, in Corporation. Especially, marketing in soft drink industry an important matter. Coca-cola and pepsi-Cola, have created significant brand loyalty and made it very difficult for new competitors to enter the industry and take market share away from these two big company. When new competitors do try to enter, company faced with expenditure in advertising.
New company is struggle to solve the problem, "brand loyalty". However, this method will be solve the matter? I don't think so. Actually,Consumers have a preference for the products of established companies. So a established company create "brand loyalty" through continuous advertising of it's brand name. Thus they reduce the threat of entry by potential competitors.
"Intensity of rivalry among establishe firms" ◀-▶ "Risk of entry by potential competitors"
(Advertisement is important part of established firms)
New company spent almost nothing on advertising. Because of economics of scale. In this reason, New company have to concentrate on "Win-Win strategy". Wal-mart is one of the most extraordinary success strories in business market. New company asked Wall-mart for their existence. For instance,New company(eg,cott company) deal with a private-label(PL) products.May be, Wal-mart proved to be the perfect distribution channel for new company.
References:
Grammar Start - Hackers academia,David Cho,2004.
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