7 Up is a popular brand of aerated drinks that is lemon flavored and is currently owned by Pepsico.The drink which is positioned as crisp, clear and refreshing is positioned as a drink for the youth. 7 Up was launched as a brand of lime soda in the year 1929, but it got its brand name in the year 1936.
Though the most popular flavor continues to be the lemon one 7 Up is also available in variants like cherry and lemon-lime soda. There are also the diet versions of each type in the market. There are numerous stories about how the drink got its brand name and there have also been a lot of popular advertising campaigns associated with the drink over the years.
The drink was a result of a number of attempts of the formulator which failed following which he had to sell the formula to a business after which it became a raging success in the market.
Strengths in the SWOT analysis of 7 Up
Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. The following are the strengths of 7 Up are:
- First non-cola drink: Till Coca-Cola came up with Sprite, 7 Up was coined as the first and only non-cola drink in the market. At a time when there was a lot of protests against the dangers of consuming cola-based drinks because they had caffeine and other harmful substances, this became the reason for the success of 7Up.
- Taste: Pepsico claims that 7 Up has the taste of natural lemons. The strong lemony and fresh flavor of 7Up has helped in increasing its popularity. The fact that it is no caffeinated has also helped the brand in gaining a higher market share
- Iconic branding: 7 Up has grown in popularity amongst the youth across the globe primarily because of the usage of stimuli that appeal to that generation. The usage of young celebrities and sportspersons, the innovative and peppy jingles and the intelligent use of the colors green and yellow that are indicative of lemon has all helps in turning 7 Up into an iconic brand.
- Strong Association with Pepsi: Pepsico is one of the world’s leading brands in the aerated drinks category and enjoys high goodwill amongst all customers globally. The association of 7 Up with Pepsi has given it a multinational image and this has also helped it beat local competition effectively.
Weaknesses in the SWOT analysis of 7 Up
Weaknesses are used to refer to areas where the business or the brand needs improvement. Some of the key weaknesses of 7 Up :
- Internal Substitutes: Pepsico has Mirinda and Pepsi, both internal brands which eat into the market share of 7 Up.
- Regulatory Scrutiny: Both Pepsico and Coca-Cola have been under the scanner for a lot of ethical issuesThis regulatory scrutiny are putting a lot of pressure on the company in terms of compliance. There are also allegations that fresh water sources are being polluted by their factories which is creating sustainability issues as well.
- Lower ad spends: The focus of Pepsico has always been their flagship Cola products and their advertising has also been more driven towards the brand Pepsi since it is also their company name. This has affected the branding of their non-cola products like 7 UP.
- Ownership tussles: While 7 Up world over is owned by Pepsico in the US the brand is owned by Dr. Pepper Snapple Group. This is creating a lot of challenges for Pepsi in the world’s most lucrative market for soft drinks and it is also creating a negative impact on the global market share of 7 Up.
Opportunities in the SWOT analysis of 7 Up
Opportunities refer to those avenues in the environment that surrounds the business on which it can capitalize to increase its returns. Some of the opportunities include :
- Growing preference for aerated drinks amongst children: Children love sodas and lime soda is a preferred drink in comparison to cola-based drinks primarily because it is fresher and sweeter.
- Tie-ups with restaurants and fast food chains: Companies like Coca-Cola and Pepsi have included fast food outlets, restaurants, and bakeries in their distribution channel which has ensured that the drinks are an addition to most meals. This has increased their market presence.
Threats in the SWOT analysis of 7 UP
Threats are those factors in the environment which can be detrimental to the growth of the business. Some of the threats include:
- A threat of substitutes: People have started to be wary of the health hazards of aerated drinks and also the sugar content and calories in them and have started to migrate to healthier drinks like fruit juices.