Tropical Soft Drinks Inc

Case Analysis – Tropical Delight Soft Drinks

Executive Summary:

This case report will provide a current analysis of Mr. Parmar’s company, Tropical Delight Soft Drinks (TDS), whether or not expansion should be considered, and evaluate the potential expansion opportunities in order to gain a larger share of the market and increase his sales.

The three alternatives given by the consultant are to (a) expand to other cities in Canada such as Toronto; (b) expand within Vancouver by attracting other consumers; (c) expand to other parts of British Columbia. Mr. Parmar has also considered to himself a fourth option; to continue selling in Greater Vancouver and attempt to grow his share in that area.

In this case, the choice we are recommending to Mr. Parmar is to continue expansion within Vancouver to extend his market reach. We feel that this will provide a boost to the sales numbers by increasing the promotion in the city and gaining a bigger share of the market.

Problem Statement:

Tropical Soft Drinks has a small share of the market in the Greater Vancouver area. Although sales are increasing at a steady pace, Mr. Parmar would like to review his options to boost sales and attract more consumers. The company has a limited line of three flavours of soft drink; two of which are relatively unknown in Canada.

Situation Analysis:

SWOT:

Strengths:

• Dollar and unit sales are steadily increasing

• TDS offers a relatively healthy product containing 30% real fruit juice

• Already entered and established themselves in the soft drink market

Weaknesses:

• Small company

• Young company, lower product awareness (Only in business for 3 years, Est. 1999)

• 2/3 product flavours could be unknown to a large portion of their market

• Limited product line, only 3 flavours

• Has small debt to family

• Small distribution network, in only one supermarket, with...