The paper “ SodaStream International Limited - Major Problems and Alternative Solutions” is a persuasive example of a case study on marketing. SodaStream international limited is a company that manufactures, distributes, and markets home beverage carbonation systems and an assortment of related products. The company has markets in Western, Eastern and Central Europe, America, Africa, Asia-Pacific, and the Middle East. The company mainly provides its consumers with carbon-dioxide cylinders that they can use to transform ordinary water into carbonated water. Additionally, the company also provides the carbon dioxide refills, flavors for the carbonated water, and re-usable carbonation cans.
The company’ s headquarters is based in Israel. The case study outlines the marketing campaigns that were used by SodaStream to reach its customers while at the same time leveling off its competitors. The ads, in turn, attracted some legal battles as well as rejection by CBS, which is America’ s largest broadcasting network. The marketing strategy that SodaStream used was not well researched and was costly. Secondly, the promotional strategy used did not follow the generally accepted principles in product promotion that is the 7ps of marketing.
The ad whose cost was about $4 million went up in flames due to lack of proper planning and scrutiny prior to presentation for approval by the CBS approval committee (Birnbaum, 2014). Thirdly, the alternative campaign ad: The effect, which was approved by CBS still yet, had some portrayal of the competitors though in an indirect way. SodaStream’ s marketing budget is very high initially it was $75 million and by the year 2012, it rose to $11 billion (Birnbaum, 2014).
As a marketing strategy, it should be cost-effective and balanced with the returns instead of using the dollar made to garner more customers by fighting competitors. DiscussionSummary of Major Problems and Alternative solutionsThe aforementioned problems including costly marketing strategy, poor product promotion mix and legal battles due to the product promotional strategies can be avoided in a variety of ways. First off, concerning the controversial ads, the company should conduct a PESTEL analysis of itself. PESTEL analysis includes the evaluation of the political, economic, social, technological, environmental and legal factors that are likely to affect a business and its strategies (Yuksel, 2012).
It is in a way similar to SWOT analysis where strengths, weaknesses, opportunities, and threats of an organization are evaluated. The political factors include things such as government regulations and laws (Yuksel, 2012). The economic factors deal with the daily operations of the business including interest and exchange rates, inflation, consumers’ disposable income, and the profit margin.