In order to specify our product – Club Mate beverage drink – we tried to identify the internal (Strengths and Weaknesses of the drink) and external (Opportunities and Threats that industry provides) factors, that are listed in SWOT-matrix below:
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STRENGTHS
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OPPORTUNITIES
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WEAKNESSES
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THREATS
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1. Healthy image
Club-Mate became well known in the Berlin's club scene during the 90’s as an alternative to un- healthy energy drinks. Club-Mate does not contain any traces of synthetic Taurine. Club-Mate is made from Mate - an old South American jungle plant, which is known for its positive effect for a body.
2. Non-alcoholic nature
3. Sleep-suppression
Club-Mate tastes like a soft drink, but not as a sweet. It features a unique combination of caffeine and tannins. It stimulates but doesn't make people feel fidgety.
4. Original package
The package of the drink is very eye-catching: glass bottle with a traditional vintage label. Due to the affection among young people to vintage unusual things, this package is seen by us as a strong feature of Club-Mate.
5. Tea as a main ingredient
In Russia tea is regarded as a very popular drink. The Club-Mate beverage is made from a premium class mate tea, there is one full teaspoon of yerba-mate tea in every single bottle of Club- Mate.
6. Environmentally-friendly
Club Mate has taken several policy measures to reduce carbon emissions, such as the usage of renewable energy for its production, for example, uses returnable glass bottles .
Weaknesses
1. Relatively high price comparing to other beverages
Compared to other soft beverage drinks, which are presented in Saint Petersburg market, the price of Club Mate will be quite high. If average price of Coca-Cola, Lipton Ice Tea, Red Bull and Pepsi 0,5 l are about 35-40 rubles per bottle, the price of Club-Mate 0,5 l is 80 rubles per bottle, which is about twice more expensive.
2. Limited product base
Club-Mate is presented in four variations, but in Russia for the first periond it will be sold only in one. This could be considered as a weak point of the product, comparing to many other bev- erages in Saint Petersburg shops, which are made with different flavours to meet different con- sumers tastes, trends and expectations.
3. Low brand-recognition
Club-Mate is new to Saint Petersburg market, so for consumers, who tend to by products with bright advertisements and to which they really trust, will be hard to shift to and to make a first buying of a new product.
Threats
1. High distribution costs
According to lots of european studies, distribution costs for importing in Russia are increasing. However, situation may change due to developing Russian infrastructure systems.
2. Changing attitudes: coffee/juice/alcohol drinks are more preferable
There are more and more coffehouses open in Saint Petersburg, and many young people tend to have coffee or coffee drinks “to go” or to stay active. Furthermore, many drinks based on fresh juices are becoming to enter beverage market of Saint Petersburg, and it could be substitute products for those, who prefer healthy products.
3. Ageing population
According to the research of Demoscope, the population of Saint Petersburg is aging and aver- age age is about 33-37 years . That is a threat for our product, because it could affect the demand of it in the future due to the fact that elderly people are tend to have more natural and expensive drinks.
4. Amount of competitors will increase
Saint Petersburg is a very popular place for different foreign products and its market is always open for something new. Considering the fact, that soft-beverage market is not saturated yet, the threat of new rivals is becoming extremely serious.
Club-Mate is presented in four variations, but in Russia for the first periond it will be sold only in one. This could be considered as a weak point of the product, comparing to many other bev- erages in Saint Petersburg shops, which are made with different flavours to meet different con- sumers tastes, trends and expectations.
3. Low brand-recognition
Club-Mate is new to Saint Petersburg market, so for consumers, who tend to by products with bright advertisements and to which they really trust, will be hard to shift to and to make a first buying of a new product.
Opportunities
1. Increasing health concerns
See Social Factors in PEST analysis, «Healthy eating».
2. Knowledgeable & Europeanized young population (Western tendencies are eagerly adopted by youngsters)
See Social Factors in PEST analysis, «Changing lifestyles – copying of the European tendencies».
3. Alcohol-restricting laws
See Political Factors in PEST analysis, «Prohibition of selling alcoholic products after 23 pm and prohibition of drinking in public places (Anti-alcohol legal regulations)».
4. Development of Nightlife in Saint Petersburg
The number of night clubs, bars and pubs, as well as big open spaces for the night parties in Saint-Petersburg is rapidly increasing.
5. Trust in German products’ quality
Russian people tend to trust in products from Europe, especially from Germany due to its well-
known quality control systems and carefully selective raw materials.1. Increasing health concerns
See Social Factors in PEST analysis, «Healthy eating».
2. Knowledgeable & Europeanized young population (Western tendencies are eagerly adopted by youngsters)
See Social Factors in PEST analysis, «Changing lifestyles – copying of the European tendencies».
3. Alcohol-restricting laws
See Political Factors in PEST analysis, «Prohibition of selling alcoholic products after 23 pm and prohibition of drinking in public places (Anti-alcohol legal regulations)».
4. Development of Nightlife in Saint Petersburg
The number of night clubs, bars and pubs, as well as big open spaces for the night parties in Saint-Petersburg is rapidly increasing.
5. Trust in German products’ quality
6. Popularity of mate tea and tea in general
Tea is part of Russian culture. According to a 2005 study , some 82% of Russians consume tea daily. Tea is a source of various minerals and nutrients that help supplement the Russian diet, and is used in Russia as a source of low cost nutrition.
7. Society tend to be more ecologically aware
There are numerous environmental issues in Russia. Many of the issues have been attributed to
policies during the Soviet Union, a time when officials felt that pollution control was an unnec-
essary hindrance to economic development and industrialization. As a result, 40% of Russia's
territory began demonstrating symptoms of significant ecological stress by the 1990s, largely
due to a diverse number of environmental issues, including deforestation, energy irresponsibility, pollution, and nuclear waste . Tea is part of Russian culture. According to a 2005 study , some 82% of Russians consume tea daily. Tea is a source of various minerals and nutrients that help supplement the Russian diet, and is used in Russia as a source of low cost nutrition.
7. Society tend to be more ecologically aware
Threats
1. High distribution costs
According to lots of european studies, distribution costs for importing in Russia are increasing. However, situation may change due to developing Russian infrastructure systems.
2. Changing attitudes: coffee/juice/alcohol drinks are more preferable
There are more and more coffehouses open in Saint Petersburg, and many young people tend to have coffee or coffee drinks “to go” or to stay active. Furthermore, many drinks based on fresh juices are becoming to enter beverage market of Saint Petersburg, and it could be substitute products for those, who prefer healthy products.
3. Ageing population
According to the research of Demoscope, the population of Saint Petersburg is aging and aver- age age is about 33-37 years . That is a threat for our product, because it could affect the demand of it in the future due to the fact that elderly people are tend to have more natural and expensive drinks.
4. Amount of competitors will increase
Saint Petersburg is a very popular place for different foreign products and its market is always open for something new. Considering the fact, that soft-beverage market is not saturated yet, the threat of new rivals is becoming extremely serious.
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