PEST Analysis
P
• Education Secretary Ruth Kelly has announced her intention to ban junk food from
school canteens and vending machines in England by next September.
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• More than a third of the waste paper and plastic collected by British local authorities,
supermarkets and businesses for recycling is being sent 8,000 miles to China without any
knowledge of the environmental or social costs. The government insists that companies
have export licenses but few if any checks are made in British ports. The Environment
Agency admits that it is unable to check what is being exported.
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• Supporters of a pre-9pm watershed ban on junk food advertising are increasing pressure
on the government through the introduction of another private member's bill. The bill,
introduced by Labour MP Nigel Griffiths, is not only aiming to impose a pre-9pm
watershed ban on junk food advertising on TV but is also seeking "significant
restrictions" on non-broadcast marketing.
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E
• The value of the soft drinks market has benefited from growth since the late 80’s.
Between 2001 and 2005 the value has increased 21.2%
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• Carbonates continue to account for more than half the soft drinks market in terms of
value, although their share fell from 60.3% in 2001 to 56.1% in 2005 as consumers
switched to other drinks for health reasons.
14
• Interest rates cut 5.5%
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freeing up disposable income of mortgage owners, potentially in
target market (25-35 years) potential for fast moving consumer goods price increase.
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• Market was worth £9.28bn (est.) in 2005, increase sales seen in hot summers in take-
home sales.
S
• Health Problems concerned with sugar carbonated drinks, linked to child obesity
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and
bad teeth. Children media exposure attacked for problem and advertising restrictions
made as discussed in Political section.
• Channel 4 recently did a large exposé on Coca Cola child labour in El Salvador, could
alter buyer behavior as consumers have a increased interest in the source and
manufacture of products in regards to fair-trade and the environment.
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• Fairtrade and environmentally friendly packaging become increasing concern with
increased awareness of recycling. Consumers have become more inclined to purchase
goods sporting the Fairtrade logo.
• Sporting sponsorship deals provide links made to sport and health. The sponshorship
gives the brand a healthier appeal for consumers. Coca-Cola are a frequent sponsor of the
Olympic games and in the UK sponsor the football leagues. (Coca Cola Championship,
Coca Cola League 1 & 2)
T
• Reseal able coke can soon to be on sale in the UK as reported in the Mirror Oct-21-07
• ‘Sprite Ice’ in testing; when opened a chemical in the drink turns a portion to ice.
19
• Coke Music making a younger demographic more aware of the brand through an
ever increasing digital music market.
• Coca-Cola is launching a new lightweight bottle to reduce the amount of waste plastic.
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Appendix B, Clampdown on School Junk Food direct.gov.uk
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Appendix D, The UK’s new rubbish dump: China, The Guardian
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Appendix G, Second bill seeks ban on junkfood ads, The Guardian
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Appendix E, UK Market for soft drinks by value, Key Note
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Appendix E, UK Market for soft drinks by value, Key Note
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Appendix F, Intrest rates cut 5.5%, The Guardian
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Appendix E, UK Market for soft drinks by value, Key Note
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Appendix H, Fears about childhood obesity, BBC News
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Appendix I, C4 accuses coke on child labour abuse, Marketing Week
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Appendix J, Coke considering ‘Sprite with ice’ Marketing Week
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Appendix K, Coca Cola unveils plans to cut plastic bottle waste, lifestyle.aol.co.uk
Matt Curd Page 5 Marketing Plan