1.0.

Introduction

Fanta is one of the popular cold drinks after the success of Coca-Cola. Fanta was introduced
in 1940 and is regarded to be one of the 2 nd oldest brands after Coca-Cola Company and the
brand has the second largest value outside the US market. Fanta Orange has one of the
leading flavours and is available in the market which reveals that the fruit is grown
everywhere which shows that there is increase in its number of consumers which are more
than 130 million worldwide and this makes Fanta to be one of the great fruity taste appeal.
The reason for Fanta to be loved by masses is that the ingredients have carbonated water in
high content and also there is high level of fructose corn syrup and citric acid as well as
sodium benzoate along with addition of natural flavours (Assy et al, 2008). The product is
famous globally due to its ingredients which reflect the genetically engineered crop
technology.

2.0. Discussion

2.1. SWOT Analysis

Organizations can only be successful in market when they are able to identify its strengths,
weakness, opportunities and threats. The SWOT analysis in workplace is one of the aspects
that help soft drinks to evaluate the business environment and for Fanta to find its position in
the global market.

a) Strength

The strength of Fanta lies in the aspect that it is a low priced brand and has innovation in
terms of the new flavours that have been introduced by Fanta. The drink is popular in
different online channels such as YouTube and also the brand of Coca-Cola group gives
Fanta a unique position in the changing business market. The strength of Fanta lies within the
company and its popularity to handle the brand image. The image of Fanta is globally
identified worldwide and the promotional approach by Fanta is that there is popularity status
which makes the brand to have famous taste that is accepted by masses. The customers of
Coca Cola show the same loyalty to Fanta and the revenues are 20% generated more due to
the loyalty of customers. Fanta has the ability to sell their items worldwide which is one of
the major strengths exhibited by the brand (Gallay et al, 2002).
b) Weakness

Fanta shows few weaknesses as the range of Fanta is small which a major issue is and also
the sales had impacted long back during the World War crises and in third quarter of 2012,
there has been a gradual drop of weakness till it wants to achieve the next levels. The
weakness of Fanta also lies in the aspect that shows people with different image for Fanta.
The product is popular but not as much as Coke and Sprite which is a major weakness and an
issue faced by Fanta. Moreover, there is increase in health related issues for Fanta which
makes increase in health concern for Fanta due to excessive sugar.

c) Opportunities

Globalization has opened many opportunities for Fanta which makes another successful
opportunity in the business. There are situations when brand should continue to exploit and
also the advertisements approach can be used similar to Cola and Pepsi which will grow the
sales level for Fanta to 90% and eventually increase the gap between the competitors. Fanta
has leverage over being successful brand of Coca-Cola which brings more brand recognition
for Fanta. Internet and social networks excess use makes major development options for
Fanta as a brand to grow with globalized business environment (Vivekananthan, 2010).

d) Threats

The success of Coca Cola has brought in major threat in market for Fanta and this is one of
the major threats which Fanta has to deal with. The attitude change among people as they are
being more conscious regarding their health avoids them to spend money on soft drinks like
Fanta which leads to sales drop for Fanta and in future there can be immense loss in profit
level of Fanta if the drinks popularity falls due to health reasons. The habit of drinking by
consumers can have loss for Fanta and reduce its popularity level which has been seen in
several European nations such as US and UK where people are becoming quite concerned
about health and fitness (Godwill et al, 2015).

2.2. PESTLE Analysis

The PESTLE analysis in organizations basically is concerned with studying the external
environment which can have a major impact over the success and growth of business. In this
regard, PESTLE analysis of Fanta which provides the following results:
1. Political Factors

The political factors which impact on Fanta are that it has been one of the aspects that make
Food and Drug Administration (FDA) to manage the manufacturing procedure of these items.
Fanta is one of the brands which follows the government standards and focuses on the
Occupational Safety and Health Act and local, foreign environmental regulations and state.
The changes in laws and taxation also impacted Fanta as the new laws interpretations and
foreign authorities as well as regulations show that pricing policy brought in major changes in
pricing policy. The developing markets impact Fanta on economic as well as political
situations which require managing the business as the local bottlers have increase the
production of amenities and distribution channels.

2. Economic Factors

The recession level in 2001 in US government that impact the aggressive action in order to
turn the tables around and manage the economy of 2002. Fanta uses the policies such as low
interest rate which shows economic pressure to be more on Fanta. For example, in 2001 and
2002 in order to make Fanta successful there should be loans used in research and
development segment to handle the new products to capitalize on the strong bond and
develop 2002 economy. The Coca-Cola impact impacts the similar opportunity for financial
terms growth in business.

3. Social Factors

The social factors that affect the sales level of Fanta include the major development among
people in the US and also there are growing concerns among people regarding the following
of healthy lifestyles. This shows that the customers have strong influence over the sales of
non-alcoholic beverage sectors for many customers who switch the bottles with the diet colas
and Coca-Cola Light which makes Fanta also to focus on launching such products. For
example, the customers who Fanta targets are from all ages yet the customers in US from age
37-55 have been concerned more about nutrition (Esterl, 2013). This makes Fanta to be only
best for the population that is baby boomers and they tend to act as senior members as far as
the impact over life expectancy is concerned and increase in demand for healthier drinks is
something which impacts the sales of Fanta.
4. Technology Factors

The impact of technology for Fanta lies majorly on the efficiency level for the performance
of the company which is expected to include the situations such as the use of social media
advertising, television, web and also the evolving channels that impact on the sales level. The
packaging design for Fanta have introduced the plastic bottles and cans where there is
increase in sales level so that this creates an ease for exposure and disposal. The advanced
technology use for Fanta has successfully been introduced in such a way that production level
also shows increase sharply over few years. For example, the new campaigns which show
Fanta’s promotion in streets have made it largest soft drinks factory in Wakefield (Bucher et
al, 2015).

5. Environmental Factors

The changes in climatic conditions have impact on sales of Fanta as many people prefer to
consume soft drinks during winter. For example, there is increase in customers when weather
is hot wand this makes the sales level to increase especially in hotter countries like Dubai,
Oman and Gulf regions which have more sales of Fanta in summers. The weather conditions
affect the concentration of sales of cold drinks in different countries (Sharma, 2012).

6. Legal Factors

The legal factors have regarded to follow the regulations as per the country and sales of Fanta
include the tax payment system in UK to pay tax in the country. This is the situation when
Fanta shows increase in packaging the systems and also there is huge impact of Fanta on
customers which have impact on the market. Fanta comes in variety of flavours which makes
the product to have distinct position in the market. The legal factors also state that the
flavours of Fanta which are sold in UK will be not found in other countries which the basic
decision is making strategy used by Fanta Company.

2.3. Market Analysis

The market analysis of Fanta shows that the fresh strategy launched by Fanta which follows
‘Be More Fanta’ trend and this is an addition made to the ‘Selfie campaigns’ and this works
as the current marketing trend show Fanta to target more teenagers so that they can cope up
with the changing business scenario and this is one of the emphasizing segment which act as
reminder for the player of teenager. The brand Fanta shows that there is figure of US $3.979
billion which shows the massive budget growth to bring in competitive edge to offer new
product market strategy (T1 2016 MPK732 Marketing Management (Cluster B), 2017).

2.4. Ansoff’s Matrix

a. Market Penetration

The market penetration strategy in Fanta is used to increase the market share in existing
industries which is done by increasing the sales more for establishment of product. The
findings of customers and typically this is one of the marketing strength for Fanta and the
company penetrates the sales on annual basis by building connection between advertisement
and boosting the sales level in festive period.

b) Product Development

Fanta focuses on product development approach especially in new market where the new
products show that they are able to meet the requirements of customers to outperform the
competitors in market. This makes Fanta to focus more on development of its product line
and introduce new flavours and not stay limited to the original orange flavour as the additions
in new flavours for Fanta is the approach which builds closely and has offered new
opportunity in market. There are launch of Diet Fanta flavours which are additional
promotion for Fanta (Deliens et al, 2015).

c) Market Development

The developing market reveals that Fanta should focus on its brand name and image which
will help in identification of services that will help to get distinguishing competition as far as
goods and services are concerned. Fanta needs to observe the changing demand in market for
companies and submit the registration forms in such a way that there will be multiple details
provided which will help Fanta to have a new image in business market (Wolburg, 2003).
The culture followed by Fanta is winning culture that inspires the modern world and attitude
of customers. Fanta intends to become market leader and there is need to have excellent
brand and quality which should focus on setting the brand to reach the masses.
d) Product Diversification

The approach of product diversification has assisted Fanta to gain success in market and the
company in order to analyse the changing market trends. Fanta should focus more on
observing the existing marketing trends and Fanta is associated with spreading joy and
happiness in territories so the touch of orange colour and flavour utilization is something
which helps Fanta to get diversification of the product. There are different merchandises
provided by Fanta for customers by its diversification strategy which eventually has changes
the brand image by exploiting through this strategy.

2.5. STP Analysis of Fanta

Segmentation approach of Fanta shows that it is selected by people belonging from age 15-
25 years and also for 40 plus. The gender which is targeted by Fanta includes both male and
female and the income segment served is low level by which returnable glass bottles are one
of the selective options. People are aware of being brand conscious and this makes the drinks
to not only pay attention to the high percentage education needs but the company has focus
on the changing trend which show that Fanta does not face hesitation in conveying its
message.

Fanta has high percentage of world recognized brand and people will face no hesitation in
selecting such drinks. Fanta shows that there are safety concerns which require consumer
needs and there is need to have ability to design market segment and the population sources
reveal that Fanta has created to bring in healthier change and to satisfy the needs of
consumers. Fanta is purchased by people belonging from different classes which are the
major segmentation of the product (Liu et al, 2013).

Target marketing for Fanta makes use of advertisement which is closely related with
advertisement and selected marketing plan defined several segment such as demographics,
psychographic or use of Fanta in market. Fanta applies demographic marketing approach
which helps to achieve the success for brand and the youth is advertised in such a way that
Fanta should value the business and customers and to work well with large international
chains. Customers of Fanta intend to look forward towards cost reduction in order to improve
sales level for better quality of product choice (Dincer et al, 2002).
Fanta provides customers with the ability to target specific customers. For customers who
prefer diet cold drinks Fanta is the best option for consumers between age of 25-39 years old
and this makes Fanta to be one of the major drinks and the advertising strategy helps to target
primary market especially the age of 13-34 years.

Positioning Strategy of Fanta that comprises of distribution channel and the promotion
approach as Strawberry Fizz is one of the famous available drinks in market. There are
changes in supermarket which are to independent retailers who convince the stores and to
convince the market members. The product sold by Fanta shows major distribution in 1.25 l
bottles, 250 ml cans and also the mini packs 8x200 ml which is the positioning strategy used
by Fanta. The retailers of Fanta show that they are able to pick up one particular brand and
the promotion has focus on engaging the advertising technique such as the wireless approach
to target social networking approach. The teenagers are targeted by the use of social media
marketing such as Facebook and Instagram or YouTube influence the campaigns.

2.6. Marketing Mix for Fanta

Fanta being a subsidiary of Coca-Cola brand is associated to be a brand that has close
association with beverage industry. It has many flavours and is created as a new product in
market which has tingling bubbled and tempting taste along with colours that are vibrant
which makes the drink to be loved by people from all ages.

a) Product

As a product Fanta is a well reputed brand of soft drinks which has around ninety flavours
and most of them match well with the regions of particular origin. The common flavour loved
by masses is orange flavour which is one of the brands that successfully sells goods in glass
bottle cans and is present in several sizes. The product is sold all over the world and it is
available in glass bottles, cans of different sizes and pet bottles.

The product basically is known as sparkling drink and is refreshingly bright with no addition
of caffeine but has 100% natural flavours (Bendig et al, 2012). Fanta is regarded to introduce
the innovative range of new flavours and this has revealed the addition of new flavours in
order to compete with the other rivals in market. The recent addition of Fanta Zero in the
league which has no calories is designed basically for health-conscious people and the
essential flavours present in consumer market are apple, grapefruit, berry, cherry, mango,
peach, strawberry, orange etc.

b) Place

Fanta is the second product launched by Coca-Cola and it has customer base which is spread
in majority of countries worldwide while the brand uses penetration policy and the products
are available in countries such as Canada, Argentina, Spain, Japan, Greece, New Zealand,
Portugal, Mexico, Iran, Nepal and Germany (Copeland et al, 2007).

Fanta was launched in United States and this happened in 1960 and also in the year 1993
which happened in India. There is excellent distribution of Fanta in different countries. There
is intense distribution marketing network used by Fanta and the wholesalers, retailers as well
as consumer market provides easy accessibility to restaurants and grocery stores in market.
Fanta shows that there is convenience for the supermarket and hypermarket while there are
different cafes which have popular eatery and makes Fanta to deal with products which are in
market.

c) Price

Fanta is one of the drinks which are well-liked and there are different soft drinks present in
market and Fanta has used competitive pricing policy for their product. There is competitive
pricing policy used by Fanta which makes competitors in order to evaluate the competitive
pricing policy. There is wide range of price for Fanta and increase in sales volume shows that
Fanta needs to follow the economic pricing policy which successfully helps to penetrate in
rival market and the daily low pricing system has implemented affordable and reasonable
pricing of consumers for Fanta (Larsen, 2001).

d) Promotion

Fanta uses unique branding technique and is one of the famous brands in handling the
commercial launch. The brand is launched by several commercials and Fanta model is loved
in female groups as ‘The Fantanas’ and this is regarded to promote the individual flavour of
brand. Fanta is projected to be one of the religions which specifically us used in happy times
as highlighted in advertisements while friends and family in advertisements have revealed
that there is positive image built by Fanta commercials and it is aired by electronic media
such as television and radio.
Fanta is one of the brand variants and also there are situations when billboards, newspapers
and magazines are used as promotional tools for promoting the brand. Social media is one of
the sources to promote one of the sources for successful management that promotes online by
use of YouTube, Facebook and Twitter which includes the way Fanta is promoted for
personal use and the brand is endorsed by celebrities and it uses famous product selling with
celebrity endorsement.

3.0. Conclusion

The marketing analysis of Fanta reveals that there are tremendous strengths and opportunities
followed by the brand and also the competitors have been producing creativity in order to
handle the health difficulties faced by the masses. Fanta is one of the brands which is able to
give competition over similar products in market while the threats face by Fanta show there is
immense competition in the current market. Fanta only faces problem for being shadow of
Coca Cola Company but the productivity level can be increased if the organization handles
the difficult situations with ease and focus more on setting team work in companies and
complete in specified time period.

In conclusion, the use of PESTEL and SWOT analysis for Fanta has proven to be one of the
essential business strategies which help companies to know about their market position. Fanta
shall be effective over handling the work situation and handle the weaknesses which arise in
decision making for the organization. This shows that Fanta should overcome its weakness so
that it will have better impression among customers.

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