Question 1
Using Nick Caporellas Viewpoint, the decrease of LaCroix’s fortunes in the sparkling water market is due to failure to maintain the initial spark and address the evolving customer preferences. Lacroix established popularity in the American market due to offering diversity in flavors that resonated in a good way with its consumers. The Company underwent a challenging situation when it became subject to competition from various organizations that offer similar products, like European stalwarts and San Pellegrino, as they addressed the growing customers’ preferences for sparkling water, unlike Lacroix.
The major weakness lies in LaCroix’s inability to sustain the initial innovation and uniqueness set up when it established the organization. When the brand was established, it achieved unexpected success, which set the bar so high, but the firm could not address the evolving customer needs, which made the competitors outshine LaCroix (Wyatt, 2020). The Company should have tried to strategize on introducing new flavors, which led to a sales decline.
Question 2
LaCroix has evolved from a Company with a significant market share and enjoyed great customer inclination to a Company struggling to get customers for its products due to a lack of strategy in addressing and maintaining its differentiating factor. When the Company was established, it offered exceptional flavors. Its competitors could emulate and produce similar products that surpassed what LaCroix was producing. The inability of LaCroix to address the evolving customers’ preferences by introducing new flavors made the competitors outsmart LaCroix.
LaCroix’s initial success made the organization to become complacent. Competitive Companies like San Pellegrino and Perrier penetrated the sparkling water market in Europe, which was a disadvantage to LaCroix. LaCroix’s lack of a strategy on mechanisms to edge out its competitors was a significant challenge. The Company needed to establish new mechanisms to meet the evolving customer preferences when its competitors introduced new flavors.
Question 3
LaCroix needs to strategize on how to reclaim its momentum. The Company needs to revolutionize the innovation strategy in the sparkling water market. Understanding the evolving customers ‘ preferences and introducing flavors that align with the customer’s needs is paramount. LaCroix’s initial success was due to offering unique products that captured customers ‘ preferences. The Company should dedicate resources to doing research on the new sparkling water consumers market preferences so that it can introduce new flavours which are meet the customers preferences.
The Company should innovate new strategic marketing techniques which will assist in connecting with its audience. It is crucial to market the quality products which are being produced by the Company, the strategy is vital in promoting customers trust and positive perception about LaCroix and attract new customers.
LaCroix can search for collaborations, which is vital in bringing new phases for the benefit of the Company; the partnership will bring resurgence and assist in creating new life for LaCroix, hence creating a positive turnaround for the Company. LaCroix needs to be conversant with dynamic customer trends and offer brands that are in preference with the customer’s requirements.
The Company requires a unique strategy like innovation, marketing, collaboration and meeting the changing customer preferences which will be crucial for resurgence.
Application Questions
Question 1
LaCroix need to establish mechanisms which will make it gain resurgence in sparkling water customer preferences. The Company needs to target product differentiation and establish innovation mechanisms. Research is core in determining the new flavors to be introduced and uplifting LaCroix’s market appeal, which will attract new customers. This strategy will meet customers evolving preferences and outshine the competitors.
Marketing plays is pertinent as it portrays a good positive image regarding the Company to its customers. Marketing strategy also attracts new customers as they become aware about the quality products being produced by the Company. Customers are made aware about new products which have been introduced and the Company’s strategy on maintaining quality and observing health benefits in regard to the products produced by the Company.
It is essential for LaCroix to meet the current customers preferences as it will create a”fit” for the organization. Collaboration with organizations which share similar objectives as LaCroix is an advantage in pursuing new market regions.
The Company needs to carry out research and understand the customer’s preferences, LaCroix will be able to introduce new brands which align with customer needs. Product innovation and marketing are crucial in penetrating the sparkling water market and outshining its competitors.
Question 2
Due to LaCroix decline in sales in sparkling water industry, the Company needs to undergo a strategic management transformation to restructure its brand and gain competitive advantage
Step 1 Mission and vision establishment
LaCroix should restructure its mission and values. The Company should draft clear new objectives which are inspiring to offer guidance to the organization. The restructuring should clearly define the Company’s commitment to maintaining quality, being innovative, and satisfying customer requirements
Step 2 Current reality
LaCroix needs to do a research on current market dynamics so as to establish customer preferences and keep up pace with its competitors (Huang, 2022). The Company needs to figure out factors which led to decline in sales and establish the opportunities and threats which affect the firm.
Step 3
LaCroix should establish new business and functional approaches that align with the organization objectives. The Company should implement product innovation, restructure marketing approach and emphasize on its brand quality products. It is good for the Company to seek collaborations that will strengthen the Company’s market value.
Step 4
laCroix needs a strategic implementation which should be done in precision. Implementing the introduction of new products, a new marketing approach, and identifying strategic partnerships require keen planning so that they can bring a positive impact to the Company.
Step 5
LaCroix should carry out an assessment to evaluate the success of the implemented strategies. The Company needs to continuously monitor the performance metrics, evaluate customer feedback and identify the dynamic customer preferences to maintain relevancy in sparkling water industry.
Question 3
Strengths
LaCroix initially established unexpected popularity by offering innovative flavors and established a strong market presence in sparkling water(Teoli et al., 2019). The Company enjoys the privilege of loyal customer base and offering products which are health conscious.
Weaknesses
The Company failed to be innovative and allowed its competitors to outshine them through offering products which are meeting customers new preferences unlike LaCroix. The Company’s marketing strategy also failed to establish new approaches to make the Company remain relevant.
Opportunities
The market offers an opportunity to establish healthy products and LaCroix can capitalize on producing healthy beverages which are preferred by customers and maintain a strong market presence. Introducing new flavors translates to attracting new customers.
Threats
The presence of competitors like San Pellegrino and Perrier makes LaCroix to be vulnerable in maintaining a strong market presence in sparkling water. The customers’ needs are dynamic, and meeting the new preferences is a challenge.
Question 4
Value
LaCroix had initially established a great market share by offering exceptional flavors which resonated well with its customers and contributed to unexpected popularity (Ariwibowo et al., 2021). As time progressed, the competitors matched LaCroix product’s quality, leading to a decline in its sales.
Rarity
LaCroix’s initial success was due to the production of rare flavors, but as time progressed, competitors were able to catch up with LaCroix’s product quality.
Imitability
A challenge LaCroix is facing is that Competitors are able to imitate LaCroix products. The imitation and production of similar products like LaCroix makes the Company lose differentiation factor.
Organization
LaCroix initial network and marketing implementation played a crucial role to make the organization establish popularity. The Company needs to strategize on mechanisms which will offer a solution to current challenges
Recommendations
LaCroix needs to seek mechanisms that can bring resurgence to the Company in the sparkling water market by offering products that are rare. The Company needs to invest in carrying out research launching new flavors, and restructuring its brand image by establishing unique distribution channels that can expand its market reach. The Company needs to address the dynamic market changes in sparkling water.
Question 5
Currently, LaCroix is facing a transformation from an established market share to a defensive strategy. The Company should revitalize its market position and edge out its competitors through meeting the evolving customer’s preferences. LaCroix should introduce new flavours , transform the company brand image and enhance operational efficiency.
LaCoix’s defensive mechanism is due to the fact that the Company needs to protect its giant market share in sparkling water as its competitors are outshining the Company. LaCroix’s defensive mechanisms are capitalizing on current strengths, getting a remedy for its weaknesses, and addressing the threats the Company is facing.
Question 6
Among Michael Porter’s Strategies, LaCroix implemented a differentiation strategy. The Company was able to unexpected popularity through introduction of unique flavors that were exceptional in comparison to its competitors. As time progressed, its competitors were able to imitate LaCroix products, which led to a decline in LaCroix sales, and the Company was unable to maintain its differentiation factor
LaCroix should adress the declining market share by implementing a focus strategy which will lead to regaining competitive advantage. The focus strategy will assist in identifying a specific market segment and offer exceptional service and products. The strategy will assist the Company to regain market share in sparkling water.
Question 7
Value Creation Process
LaCroix should restructure its value proposition through allocating resources for carrying out research which will assist to introduce new flavors which are preferred by customers. Searching for partnerships with companies that share similar objectives is crucial, and LaCroix needs to to offer quality products to maintain a unique selling proposition.
Customer Relationship Process
It is paramount for laCroix to maintain exceptional customer ties. The Company needs to restructure its marketing approach so as to expand customer reach (Harper, 2023). It is also good to value customer feedback and engage customers through social media platforms.
Innovation process
The Company should be innovative and introduce new flavors which resonate with the dynamic market preferences in sparkling water. LaCroinx should offer exceptional products which are ahead of its competitors so as to gain market advantage.
References
Wyatt, C. (2020). The Case Against LaCroix: Moving Beyond the Ingredient List in” Natural” Litigation. U. Cin. L. Rev., 89, 231.
Huang, F. (2022). Research on the Investment Value of PepsiCo Based on Multiples Valuation. Strategic analysis, 31.
Shaban, H. (2019). CEO of LaCroix maker blames weak financials on’injustice’. The Washington Post.
Harper, A. R. (2023). Hard Seltzers in Europe: A Sparkling Opportunity? An Analysis of the Market Potential for Hard Seltzers in Europe.
Ariwibowo, P., Saputro, F. B., & Haryanto, H. (2021). Analysis of Strength & Weakness, Using the Concept of Resource-Based View with the VRIO Framework in Sharia Cooperatives. Jurnal Manajemen Strategi dan Aplikasi Bisnis, 4(1), 279-294.
Teoli, D., Sanvictores, T., & An, J. (2019). SWOT analysis.
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