Pestle Water scarcity · Single use plastics (Academy,

Pestle

Political
·      
Sugar Tax
·      
Exporting incentives

Economical
·      
Disposable Income
·      
Cost of Production

Social
·      
Social Media
·      
Health Craze
·      
rebranding

Technology
·      
New Advertising
·      
New Production Methods

Legal
·      
Market guidelines
·      
False advertisement issues

Environmental
·      
Water scarcity
·      
Single use plastics

(Academy, 2018).

 

POLITICAL

The
recent Irish budget revealed there will be a sugar tax introduced which may
increase the price of sugary drinks in the industry and may mean consumers are
aware of the sugar content in things they consume. Drinks with over 8g of sugar
per 100ml will face a 30c tax per litre and drinks with 5-8g will face a 20c
tax per litre. A study found that the Vit Hit Lean & Green product had 6.5g of sugar per 500ml
bottle so the sugar tax will have no direct impact on Vit Hit. However, it may
affect the industry as sugary drinks will be taxed, it may be favorable for Vit
Hit. “Minister
Paschal Donohue’s new sugar tax may have taken the fizz from many drinks-makers
but at least one Irish manufacturer is celebrating.” (Independent.ie. 2018).

 Consumers will see that their products are low
sugar and may decide that they will buy these products as they seem
healthier.  Low sugar drinks may also
seem cheaper as producers won’t have extra tax levied on them and won’t need to
raise prices.

 

-incentives to export

Economic

Economic issues effect the industry as
when people have less disposable income and they may prefer cheaper drinks or
natural water as it is more affordable. However, on the other hand if the
economy is doing well then people have more income and may decide to consume
less inferior goods and ‘splurge’ on the higher quality, more luxury branded
product such as Vit Hit.

With economic issues the costs of
production will also be affected as it will cost more to produce the same
amount. As production costs rise, producers will increase the prices they
charge to compensate themselves for these higher production costs which causes
cost-push inflation. The inflation makes the products less affordable and
discourages the consumption of such goods.

 

Social

Today’s
society is very health orientated, people are interested in knowing about what
they’re putting in their bodies. Branded health drinks are more popular than
unhealthy carbonated drinks. Although Lavin knew he had a winning product, the Irish
market had not yet caught up

with his idea, as society was not as
health conscious as it is today( Blair-White et al
2017). The rebranding of the product most definitely had a
positive impact on sales for Vit Hit as it put the brand back in viewers eyes
and sparked interest among consumers to buy and try these new healthier
alternatives. In today’s society many people live busy life styles so
nutritious energy drinks help people with hectic lives get through the day. Vit
Hit are very active on social media. They have a website, and blog as well as
an Instagram, Twitter and Facebook which all frequently upload things. Social
media has a had a huge impact on the growth of the company as people will see
‘brand ambassadors’ or celebrities consuming products in the industry or
encouraging healthy eating and will follow suit.

 

(Instagram.com. 2018)                                                (Twitter.com. 2018)

Tech

Healthy eating trends are spread across
social media platforms, many of which are relatively new technologies. Social
networks have impacted the food and drinks industry as people have swapped from
sugary, unhealthy products to more healthy goods in the industry. Advertising
has never been easier, at the click of a button millions of people are exposed
to new products and information. The advancement in production methods and
machinery has broadened the horizon for large scale production and allows firms
to produce more in less time and for less money.

Medical research improvements have an
indirect effect on the industry. As more research is done on the benefits of
healthy produce peoples’ views on the commodities they consume change and they
may be encouraged consumers to consume healthier products in the industry

 

Legal

In
the food and beverage industry there are many regulations which are legal
limitations within the industry. Different international markets may have
different food and drink laws that effect the ingredients that can be in
products on the markets. For example, L-carnitine is a substance in Vit Hit but
entering the US market involved “reformulating it to
remove L-carnitine, which is not permitted in liquid products in the US” (
Blair-White
et al 2017). For companies
in the industry that claim to be ‘health drinks’ this may not be true, energy
drinks and sports drinks are portrayed to make it seem like they will make you
healthier and this is not the case as many of these drinks contain lots of
sugar and are high calorie and this can lead to legal disputes as it can be
viewed as false advertisement.

ENVIORONMENTAL 

Vit Hit products come in
bottles and cans, both are which are environmentally friendly in the sense that
they are recyclable, however, Vit Hit bottles may be seen as single use
plastics, which in recent ties have become a problem for the environment. A
possible solution for this might be to install Vit Hit dispensers in super
markets so as to allow consumers to reuse their Vit Hit bottles and along with
this they could produce more durable bottles that will last longer than a
plastic bottle like a canister type bottle and to give a discounted price as an
incentive for consumers to reduce the amount of single use plastics they use. A
climate change study revealed that fresh water is becoming scarcer. Many drink
products contain water and the scarcity of fresh water will increase the cost
of production for companies as the resource will cost more.