Final Report

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Cott Corporation

1)	Discuss target market and its segments.

Cott Corporation (Corp.) targets black label business customers; clientele that purchase cheaper substitutes to popular non- alcoholic brand named beverages. Cott’s business segments have recently included ready-to-drink teas, sparkling and flavoured waters, sports and energy drinks, juice drinks and smoothies.

2)	Explain how their products/services benefit customers and society.

Cott’s products and services benefit customers by supplying high-quality private label beverages at low cost. Customers with limited budgets can save money and still enjoy the taste of their favourite drinks. Cott primarily benefits consumers by offering alternatives to more expensive products such as Pepsi or Cola and as a result benefits society by supplying an abundance of jobs.

3)	Discuss how the company determines what products and services to provide, how it sets prices, how it decides where the product/services are placed, and how it promotes them.

Perhaps the most vital operation in the beverage industry is keeping up with social trends. Cott spends millions of dollars each year, utilizing market research to adapt and determine what products and services to provide as well as discontinue. As of late, beverage consumers have steered away from carbonated soft drinks and entered a healthier oriented era of teas, juices and flavoured waters. In response to the increased demand of healthier beverages Cott has launched product campaigns: So Clear Sparkling Water, Orient Emporium Tea, and Juiceful. (Cott, Corp., 2009)

Its product prices are determined by a process known as competitive pricing. Since Cott isn’t a market leader like Coke or Pepsi, it must price below competition pricing. With a lower profit margin Cott requires high sales levels and must constantly monitor competitor prices to maintain it targeted clientele. Cott’s main concern with maintaining lower prices has been its variable costs. “Cott remains highly dependent on commodity costs, particularly high-fructose corn syrup and aluminum, and sharp drops in the price of some of its raw materials this year have driven recent gross-margin improvements.” (Milstead, 2009)

Internationally, Cott distributes through Royal Crown International which deals with over sixty countries world wide. In both the U.S. and Canada, Cott customers include many of their country’s largest local and national grocery, convenience, wholesale and drugstore chains. In fact Wal-Mart’s sales of Cott’s product line Sam’s Choice accounts for 40% of Cott’s gross sales. (Feldman, 2004) Recently, Cott has established its own vending branch based in St. Louis, Missouri. Cott Vending which is a subsidiary of Cott Beverages Inc. has proven immensely successful; contributing higher profit margins and actively promoting Cott at a low cost. Cott Vending operates at minimal cost and liability because it is customer leased and only provides a service agreement. Therefore the customer is responsible for loading product and collecting money as well as reporting any technical malfunctions to Cott’s service providers. (Cott, 2009) Cott’s product promotion efforts are little if none. Since Cott offers black label beverages at lowest possible cost; it refrains from excess spending in advertising to lower overhead. Its efforts primarily consist of in store advertising such as flyers and its home website.

Subsidiary: A company whose voting stock is more than 50% controlled by another company, usually referred to as the parent company.

Cott, Corp. (2009). Waters. Retrieved on November 22, 2009 from http://www.cott.com/products/waters

David Milstead. (21 November). Can Cott put the pop back in its sales? The Globe and Mail, B.3. Retrieved November 25, 2009, from Canadian Newsstand Core. (ID: 1905264551).

Feldman, A. (2004). Riding the Wal-Mart wave. Money, 33(2), 46. Retrieved from Business Source Complete database.

Cott, Corp. (2009). Vending. Retrieved on November 23, 2009 From http://www.cott.com/customers/vending/en

Why you should work for Cott

Cott offers a variety of rewards and benefits to attract the most competent and experienced work force. It offers a competitive salary and opportunity for job promotion as well as a comprehensive benefits package that varies by country. In North America, benefits include medical, dental, vision and prescription drug coverage; life and disability insurance; retirement savings plans; tuition reimbursement and scholarship programs; as well as employee assistance program. (Cott, 2009)

Cott, Corp. (2009). Rewards and Benefits. Retrieved on November 22, 2009 from http://www.cott.com/career/rewards.