SWOT analysis of RC Cola – SWOT of Royal Crown Cola

Royal Crown Cola is the flagship brand of the Royal Crown Cola Company based out of the USA. The company was the first to bottle cola in the region and is thus an American icon. The company started by a young pharmacist in 1905 when a local Cola company refused to bottle the Cola that he had made.

The Cola which came to be popularly known as RC became one of America’s icons. The company also manufactures other brands of soft drinks in flavor like lemon, orange, and variants of cola along with teas. The company has registered gross sales of USD 6956 million and the closest competitors are Coca-Cola and Pepsi.  The company was acquired by Cadburys in the year 2000 and is currently under its umbrella.

Strengths in the SWOT analysis of RC Cola :

Strengths are defined as what each business best in its gamut of operations which can give it an upper hand over its competitors. The following are the strengths of RC Cola are:

• The history associated with the brand: RC Cola was established during the year 1905 and is seen as the first cola in the USA.
• Signature Taste: The RC Cola brand is known to have a taste that is drastically different from that of other brands like Pepsi and Coca-Cola.
• A host of firsts: The RC Cola brand has a series of firsts to its credit such being the first to use aluminum cans for its drinks, and also developed low calorie and no caffeine sodas for the first time in the region.
• Spirit of innovation: The vision of the company is closely related to innovation and the company has fostered a spirit of innovation right from the very early days of its inception.
• Credible Brands: One of the company’s most popular brands Dr. Pepper scores high on uniqueness in taste, brand relevance, equity, and strengths.
• Fast moving low-calorie drinks: The low-calorie drinks of the business have topped the charts in the years 2013 onwards and has been successful in bringing back lost business.
• Diverse Product Portfolio: The Company has a variety of products such as colas, orange flavored carbonated drinks, sugar-free colas, tonic water, and ginger ale with cranberry and bitter lemon. Their brands under the umbrella RC Refresher has a varied set of tastes to offer such as bitter lemon, cranberry, Tom Collins and ginger ale which are popular in cocktails.

Weaknesses in the SWOT analysis of RC Cola :

Weaknesses are used to refer to areas where the business or the brand needs improvement. Some of the key weaknesses of RC Cola are:

• Low ad spends: In comparison to big brands like Pepsi and Coca-Cola the advertising spends of RC Cola is relatively low and this affects the overall perception of customers about the brand.
• Legal Crises: RC Cola has been continuously under the scanner with many legal issues like copyright and anti-trust issues. Even the competitors try to strangle RC Cola in a number of lawsuits while trying to maintain the lead.
• Capital Issues: The Company was unable to match its string rivals in marketing, manufacturing, and branding for which a huge outlay of capital was needed which the company did not have.
• Poor networks: The distribution channels of the company are not widespread and this has prevented them from expanding their networks into foreign countries.

Opportunities in the SWOT analysis of RC Cola :

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 demand for aerated drinks: Aerated drinks and juices constitute more than 42 % of the per capita fluid consumption today. The CSD segment is expected to grow by 8.2 % annually and this creates huge prospects for growth.
• Growth in per capita income: The growth in per capita income globally has resulted in a growing need for drinks and juices.
• Increased tendency to eat out and growth in fast food culture: Recent shifts in customer habits have created a growing preference for fast food and eating out both of which create a corresponding increase in sales of soft drinks and juices.
• Growing demand in emerging economies: Emerging economies in Asia and Africa are seen as the biggest consumers of soft drinks globally and are turning to be lucrative markets for cola drinks. These markets are largely unexplored and offer huge prospects for soft drinks manufacturers.
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Threats in the SWOT analysis of RC Cola :

Threats are those factors in the environment which can be detrimental to the growth of the business. Some of the threats include:

• Strong and Established competitors: The competitors of RC Cola are the two top brands not just in the soft drinks segment but amongst the leading companies in the world- Coca-Cola and Pepsi. This makes them unbeatable threats for RC Cola.
• A negative image of aerated drinks: The media, as well as healthcare experts, portray colas and other soft drinks as health risks and high in calories. This forms a risk in boosting sales.
• Healthier options: Quite unlike earlier days today many off the shelf brands are available for fresh juices, iced teas, and the milkshake. The presence of these brands eats into the market shares of soft drink companies.