Swot Analysis

1. INTRODUCTION

The difference between success and failure in business is often found in the art and science of marketing. While there is some chance involve, companies can put the odds in their favour by using the principles of marketing. Technically, marketing is the process of developing, pricing, promoting and distributing of goods, services and ideas to satisfy the needs of buyers and sellers. The Chartered Institute of Marketing (CIM) defines marketing as a management function: Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. For marketing to be successful, the needs of the customer and seller have to be met. Kotler and Keller (12e), Marketing Management states that whether exchange actually takes place depends on whether the two parties can agree on terms that will leave them both better off than before. Therefore, to market effectively, the first thing of an organization must do is to identify the needs and wants of its customer.

2. COMPANY PROFILE

F&N Coca-Cola (M) Sdn. Bhd. or FNCC for short main business activity is dealing in soft drinks. Established in the year 1913 in Kuala Lumpur, Malaysia, it has been listed in the main board of the Kuala Lumpur Stock Exchange since 1986 with 23 offices throughout the country. The writer believe that to maintain as a market leader in the soft drinks industry was not a matter of pure luck as some people perceive it but rather on implementing the right strategies and models in achieving it’s organisational goals. Of all the achievements, FNCC too have its weaknesses but it was able to capitalise weaknesses into strength and turned threats into opportunities to sustain long term survival.

3. ANALYSING THE MARKETING ENVIRONMENT

A company or organisation need to analyse its situation regularly in order to be competitive and to survive. It needs to ask questions like “Where are we now”, “Where we want to be”, “How do we get there” and “How do we get there safely”. So, in defining its marketing objectives, the organisation must investigate its current situation very carefully вЂ" both internally and externally through the use of SWOT analysis. “A business unit has to monitor key macroenvironment forces and significant microenvironment actors that affect its ability to earn profits” Kotler and Keller (12e) Marketing Management. As a company that is totally based on its products to grow, survive and generate cash, the top management in my company is constantly reviewing, implementing and correcting its strategic marketing plans against possible future threats in accordance to market movements and changes.

4. SWOT ANALYSIS

In FNCC, the top management are using SWOT analysis in defining its mission and vision. Mission is to generate products that are trusted for generations and can be found at every �corner’ in Malaysia while its vision is to be the dominant world class Total Beverage Company in Malaysia offering a range of dynamic brands (Source: www.fn.com.my). The results of SWOT analysis been use in FNCC, is as follows:

4.1. Strengths

4.1.1 Established brands with longstanding good reputation

Coca-Cola and F&N assorted flavour drinks have been trusted for generations and Coca-Cola alone stands for an internationally recognised brand. First formulated as a �nerve tonic, stimulant and headache remedy’ in 1886 where it is served on a soda fountain, (Source: History of Coca-Cola), it has evolved since to bottling carbonated soft drinks and distributed around the world.

In Malaysia, the brand holds 70 percent share in the cola market segment while F&N holds 80 percent share in the carbonated soft drinks. In the year 2005, Coca-Cola was declared as the best soft drink in Malaysia. It was the 5th consecutive year that Coca-Cola was voted the no. 1 soft drink in the country (Source: www.fn.com.my).

A team of good brand management is also the factor of these brands to be well established. They are the one who are responsible for advertising, organising sales promotions, etc so as the brands will not to be faded in this competitive challenge market.

FNCC’s revenues rose from 3.4 billion in financial year 2005 to 3.7 billion in financial year 2006, an increase of 8 %. Coca-Cola alone contributes 4% on the total amount (Source: F&N Coca-Cola’s 2006 Annual Report). Although our main competitor Pepsi had also rose in its revenue from 1.6 billion in financial year 2005 to 1.8 billion in financial year 2007, (Source: Permanis Sandilands Sdn. Bhd.’s 2006 Annual Report), they are still far behind FNCC.

4.1.2 Experience employees

In FNCC, constant training had been given to upgrade employees’ skills competitively such as in-house creative selling skills, customers’ relation and positive behavioural skills towards both external customers and developing internal staff coordination in establishing a unique core competence in continuous learning to outsmart its competitors. The strong commitment of its human resources has added competitive advantage to its entire value chain, from logistics management, technology development to procurement.

The ability of the top Management and its staff members to adapt to new changes in technology in implementing e-sales and distribution in tackling accounts receivable and in minimising the time of stocks delivery to meet the needs of customer is also one of its strength in its success.

4.1.3 Strong Marketing intelligence

In order to be competitively advantage, FNCC’s marketing and sales people will go out full force in gathering information on the movement of markets. By analysing the movement on the consumer behaviour trends and segmenting and targeting the right markets, we have positioned ourselves as a market leader and created a strong shield against any current and future threats from our main competitors by being able to identify, anticipate and satisfying the wants and needs of consumers through effective marketing intelligence (Porter, 1985).

4.1.4 Product knowledge skills

According to Kotler and Keller (12e), Marketing Management, no company can win if its products and offerings resemble other product and offering. They must