SWOT analysis of Limca

Limca is a popular brand of lemon flavored aerated drink currently manufactured and sold by Coca-Cola India.The drink which is positioned as crisp, clear and refreshing is targeted towards the youth. The lime flavored drink Limca does not have any fruit juice or fruit content in it but uses artificial flavors primarily.

The drink was owned initially by the Indian company Parle and as part of multiple takeovers initiated by Coca-Cola one amongst the brands that were taken over include Limca as well and thus the brand becomes a part of the product portfolio of Coca-Cola Limited. From the time it was launched in the year 1971, the brand Limca has been a prominent presence in the Cloudy Lemon segment. From the year 1980 Limca has also been publishing the Limca Book of Records which has been structured and designed similar to the Guinness Book of World Records.

Table of Contents

Strengths in the SWOT analysis of Limca

The following are the strengths of Limca are:

First, non-cola drink: Limca was the first non –cole drink to be introduced to the Indian market.While Coca-Cola and Pepsi were positioned for males, Gold Spot for youth, Limca got into a space that was not yet addressed which was women.
Taste: The primary selling point of Limca was its taste.Though the drink did not have the real lemon, customers loved the drink for its refreshing lemony taste.The drink was also positioned as a light party drink that could be consumed by the target audience primarily ladies.
Iconic branding: Limca was one of the earliest brands of aerated drinks to be sold in India. It was the first lemon flavored soda to be sold in India. The brand enjoyed high levels of loyalty and trust amongst Indian customers.
Strong Association with Coca-Cola: CocaCola is one of the world’s top brands in the aerated drinks segment with popular sodas like Coca-Cola, Sprite, Fanta etc and enjoys high trust amongst customers not just in India. The association of Limca with Coca-Cola has not just made it multinational but also ensured that it reaches far and wide in India through the distribution channel of the company.

Weaknesses in the SWOT analysis of Limca

Some of the key weaknesses of Limca are :

Internal Substitutes: Coca-Cola Limited has Sprite and Coca-Cola, both internal brands which are popular brands in India and globally and function in the same market as Limca.
Regulatory Scrutiny: Both Pepsico and Coca-Cola have been under the scanner for a lot of non-compliances. These regulatory pressures are making the company increasingly cautious about the composition of their drinks as well as the manner in which they are manufactured. There are the lot of sustainability and environmental non-compliances because fresh water sources are being polluted by their poor waste disposal practices.
Increased importance for Coca-Cola: The company is known for its cola drink Coca-Cola and the company has always been focused more on the marketing and advertising of Coca-Cola in comparison to other products. In comparison to Limca, the company has always been more biased towards Sprite which has affected the overall visibility of Limca.
Controversies: Limca has been continuously embroiled in a lot of controversies with respect to its composition starting from the year 1988 when the drink was found to have brominated vegetable oil which has serious ill effects on health. Ever since then the brand has had numerous controversies linked to it.

Opportunities in the SWOT analysis of Limca

Some of the opportunities include :

Growing preference for aerated drinks amongst children: Children are the prime target for sodas and lime soda is undoubtedly a hot favorite amongst this group 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 started looking at tie-ups with fast food outlets, restaurants, and bakeries through vending machines. Though the company has not been able to increase their sale significantly through this move it has helped the brand to increase its visibility.

Also Read SWOT Analysis of Mahindra Bolero

Threats in the SWOT analysis of Limca

Some of the threats include:

A threat of substitutes: There are the lot of local players in the market which make cheap substitutes which are either lemon, orange or cola flavored. These drinks though of poor quality still act as cheap substitutes for Limca or Coca-Cola.