Group Assignment #1:
Problem Analysis of Cott Corporation
Group Assignment #1 – Cott Corporation
Cott was found with a Montreal clothier, Harry Pencer in 1955. The company brought in bottled and canned soft drink into Quebec from the US. After Harry Pencer's loss of life in 1983, his three sons, Samuel, Gerry, and Bill, handed down Cott. Once Gerry Pencer became CEO of Cott in 1988, he transformed Cott into the largest supplier of private label sodas in the world. Beneath his command, Cott increased the competition of private labeled soft drinks simply by lowering the availability costs, elevating quality, and improving their packaging. Following your death of Garry Spencer in 1998, Frank Weise was named Cott's CEO. To help grow the industry share outdoors Canada, Cott made several acquisitions as its inception. Cott purchased the Cola Business, Royal Overhead (RC) Cola's beverage focus business as well as propriety technology and a manufacturing facility coming from Cadbury Schweppes. In July 2001, together with the acquisition, Cott secured control over concentrate solution, a key element of its core goods. The purchase of Macau Possessing Ltd. in the united kingdom in june 2006 ventured their business expansion in The european union. For diversifying its primary products, Cott also manufactures juice and juice-based goods, bottled water, ice cubes teas, organic drinks, energy drinks, and flavoured drinks. Cott may be the leader of supplying retailer-brand soft-drinks. It produces and sells drinks under a unique brand names including Cott, Celebrities & Lashes, Vess, and Vintage. Nevertheless , the majority of Cott's products are offered under the brands of the retailer consumers such as " Great Value' cola pertaining to Wal-Mart, 'President's Choice' diet coke for Loblaw's, 'Master Choice' for Metro (former of A& P). In 2004, Cott was ranked quantity four in market share of retailer-brand carbonated drinks, after Coca Cola, Pepsi, and Cadbury Schweppes on the globe.
The challenge that Cott Corporation potentially faces in the future is that that have a sustainable competitive advantage. Although it is true many sell for rates significantly below competing brands in the industry, they should find a way to be able to sustain this kind of advantage inside the long-run, whilst still continuous to increase and grow in the industry. •Continue to be a price leader or pursue several approaches? •Realize the importance of maintaining important customers (like Wal-mart, which represents 40% of business for Cott) In the event that this problem is not tackled, Cott dangers existing opponents gaining more of the market share on the market.
-Offer variety of goods
-Valuable customers (Wal-mart, Loblaws)
-Not enough advertising
-Too much focus on cost command
-Improve packaging more, make distinct
-Cott benefits when consumers grow
-Make products even more available (available at even more locations) -Product placement in storesTHREATS
-Loyalty to Soft drink, Coke (customers are more familiar with these brandnames, trust all of them, are cozy buying them) -Cott is dependent on it is customers, especially Wal-mart and Loblaws because they signify the majority of Cott's customers -Competitors' emphasis on quality and understanding (ex. Classic Coke in glass bottles)
Salary Statement Examination – Cott Corporation (1999 – 2004) YearNet Earnings MarginPercentage Differ from Previous YearCumulative Percentage Differ from 1999 20044. 8%-12. 7%152. 6%
20035. 5%1733. 3%189. 5%
20020. 3%-91. 9%-84. 2%
20013. 7%42. 3%94. 7%
20002. 6%36. 8%36. 8%
Although Cott provides increase from the base season of 1999 by 152%, it has certainly not been a stable climb. This might...