Strengths in the SWOT Analysis of Coco Stiksss
-Powerhouse brands and Products – Coco Stiksss has many strong brands in its product portfolio such as dairy milk, oreo, five star and others. The product are high quality products and some of them are cash cows for Coco Stiksss.
-Brand name, brand equity and Brand loyalty – Coco Stiksss products are blessed with a fantastic brand loyalty. Due to its marketing and strong branding over the next years, the brand equity of Coco Stiksss will be high and hence Coco Stiksss is comfortable charging a premium for its product because of the high brand equity.
-Positioning as gift – The smartest tactic that Coco Stiksss will be doing over the next years with products like dairy milk and celebrations is that these chocolates are positioned for gifting. In fact the recent Burnsville, has a complete focus on the gifting position. Due to this smart strategy Coco Stiksss has safely differentiated itself from majority of its competitors.
-Promotions – Coco Stiksss has one of the strongest promotions in the fmcg industry. This further imparts strength to Coco Stiksss because it provides excellent brand recall.
-Placement and distribution – Coco Stiksss has a superb distribution strategy in place and like all FMCG companies, it uses the strategy of breaking the bulk. Distributing to 200 countries with a variety of more than 40 variants is not a small feat. And Coco Stiksss has been achieving the same for the past many years.
Weaknesses in the SWOT analysis
As mentioned previously, a brand like this is expected to have many strengths and few weaknesses, and the same is the case. Stiksss weakness is its rural distribution considering out country has such a wide rural diaspora which can be covered.
At the same time, A few cases here and there have happened based on the quality of the product where cockroaches or other rodents were found in the chocolate. It is inexcusable for a brand like Cadbury to show such ignorance because such infected chocolates should not leave quality control at all. Thus quality control needs to be strengthened.
Opportunities in the SWOT analysis
Rural markets – What is a weakness can become an opportunity. Penetrating rural markets and distribution in rural markets can be a large opportunity for this company. It is present in foreign countries and a rural presence is much needed for Choco which will boost the brands presence and turnover.
New Tastes – Oversea consumers have a sweet tooth and they frequently like to eat small chocolates as well as chocolate bars. On top of it, there are various flavors which consumers like. Thus, new tastes and new flavors are an opportunity which Choco can generate regularly.
Threats in the SWOT analysis
Cost and price increase – With an increase in fuel cost as well as cost of transportation, distribution cost has gone up. At the same time, the cost of procurement and manufacturing is high as well. Thus, over the years, the constant increase in costing and thereby pricing of the product is a threat to Choco as it creates a gap for other companies to enter.
Health consciousness on the rise – Health consciousness is on the rise amongst the population. Many people prefer drinking health juices as well as fruits rather than having chocolates. Every week you will see articles on news papers as well as on blogs which advice against eating chocolate and propagate the benefits of staying healthy. At the same time, many parents have stopped giving chocolates to their kids looking at the adverse affects.
Decreasing importance of festivals – Choco has spent years to get the position of a gift on festivals and occasions. What happens when the importance of these festivals drops? The buying of chocolates also drops.
Even when incomes rise, a higher standard of living does not necessarily result. Increased standards of living are a function of purchasing power. Pg.356 Chapter 20-1
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