To maximize their effectiveness, color cases should be printed in color.This case showcases key decisions in promoting the re-launch of Brisk, a ready-to-drink iced tea by Pepsi-Lipton. The decisions are: creative, media and metrics selection. It also deals with budget allocation to traditional (Super Bowl, television) and new (viral ads and social) media.
Swot Analysis of "Pepsi-Lipton Brisk" written by Thales S. Teixeira, Alison Caverly includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Brisk Lipton facing as an external strategic factors. Some of the topics covered in Pepsi-Lipton Brisk case study are - Strategic Management Strategies, Customers, Decision making, Social responsibility and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Pepsi-Lipton Brisk casestudy better are - – there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, wage bills are increasing, challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models,
geopolitical disruptions, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Pepsi-Lipton Brisk
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Pepsi-Lipton Brisk case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Brisk Lipton, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Brisk Lipton operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Pepsi-Lipton Brisk can be done for the following purposes –
1. Strategic planning using facts provided in Pepsi-Lipton Brisk case study
2. Improving business portfolio management of Brisk Lipton
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Brisk Lipton
Strengths Pepsi-Lipton Brisk | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Brisk Lipton in Pepsi-Lipton Brisk Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Brisk Lipton in the sector have low bargaining power. Pepsi-Lipton Brisk has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Brisk Lipton to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Brisk Lipton has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Pepsi-Lipton Brisk Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Learning organization
- Brisk Lipton is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Brisk Lipton is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Pepsi-Lipton Brisk Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Brisk Lipton has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Brisk Lipton to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Brisk Lipton is present in almost all the verticals within the industry. This has provided firm in Pepsi-Lipton Brisk case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Sustainable margins compare to other players in Sales & Marketing industry
– Pepsi-Lipton Brisk firm has clearly differentiated products in the market place. This has enabled Brisk Lipton to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Brisk Lipton to invest into research and development (R&D) and innovation.
Innovation driven organization
– Brisk Lipton is one of the most innovative firm in sector. Manager in Pepsi-Lipton Brisk Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Brisk Lipton in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Brisk Lipton
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Brisk Lipton does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Sales & Marketing field
– Brisk Lipton is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Brisk Lipton in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Brisk Lipton is one of the leading recruiters in the industry. Managers in the Pepsi-Lipton Brisk are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Brisk Lipton is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Thales S. Teixeira, Alison Caverly can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Weaknesses Pepsi-Lipton Brisk | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pepsi-Lipton Brisk are -
Aligning sales with marketing
– It come across in the case study Pepsi-Lipton Brisk that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Pepsi-Lipton Brisk can leverage the sales team experience to cultivate customer relationships as Brisk Lipton is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Pepsi-Lipton Brisk, it seems that the employees of Brisk Lipton don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Interest costs
– Compare to the competition, Brisk Lipton has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Need for greater diversity
– Brisk Lipton has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Products dominated business model
– Even though Brisk Lipton has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Pepsi-Lipton Brisk should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Brisk Lipton has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Brisk Lipton supply chain. Even after few cautionary changes mentioned in the HBR case study - Pepsi-Lipton Brisk, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Brisk Lipton vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Brisk Lipton has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Brisk Lipton even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High operating costs
– Compare to the competitors, firm in the HBR case study Pepsi-Lipton Brisk has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Brisk Lipton 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Brisk Lipton needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Increasing silos among functional specialists
– The organizational structure of Brisk Lipton is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Brisk Lipton needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Brisk Lipton to focus more on services rather than just following the product oriented approach.
Opportunities Pepsi-Lipton Brisk | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Pepsi-Lipton Brisk are -
Buying journey improvements
– Brisk Lipton can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Pepsi-Lipton Brisk suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Brisk Lipton can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Brisk Lipton can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Brisk Lipton is facing challenges because of the dominance of functional experts in the organization. Pepsi-Lipton Brisk case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Creating value in data economy
– The success of analytics program of Brisk Lipton has opened avenues for new revenue streams for the organization in the industry. This can help Brisk Lipton to build a more holistic ecosystem as suggested in the Pepsi-Lipton Brisk case study. Brisk Lipton can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Brisk Lipton to increase its market reach. Brisk Lipton will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Brisk Lipton can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Pepsi-Lipton Brisk, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Brisk Lipton in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for Brisk Lipton to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Loyalty marketing
– Brisk Lipton has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Brisk Lipton can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Brisk Lipton can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Brisk Lipton can use these opportunities to build new business models that can help the communities that Brisk Lipton operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Brisk Lipton to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Brisk Lipton to hire the very best people irrespective of their geographical location.
Threats Pepsi-Lipton Brisk External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Pepsi-Lipton Brisk are -
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
High dependence on third party suppliers
– Brisk Lipton high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Stagnating economy with rate increase
– Brisk Lipton can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Increasing wage structure of Brisk Lipton
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Brisk Lipton.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Brisk Lipton with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Brisk Lipton is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Brisk Lipton can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Brisk Lipton.
Regulatory challenges
– Brisk Lipton needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Brisk Lipton will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Brisk Lipton in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Technology acceleration in Forth Industrial Revolution
– Brisk Lipton has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Brisk Lipton needs to keep up with the evolution of technology in the Sales & Marketing sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Weighted SWOT Analysis of Pepsi-Lipton Brisk Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Pepsi-Lipton Brisk needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Pepsi-Lipton Brisk is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Pepsi-Lipton Brisk is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Pepsi-Lipton Brisk is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Brisk Lipton needs to make to build a sustainable competitive advantage.