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Discuss whether Myt PLC should reintroduce its original high-sugar sodas [10]
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sodas to regain market share, despite its commitment to health-conscious
beverages.
yt PLC is a publicly held multinational company in the non-alcoholic beverage
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industry. Over the years, it has expanded its product range through internal and
external growth, including its acquisition of Lotssa Coffee and Honest Water (HW). In
response to growing consumer health concerns and regulatory pressures, Myt
reformulated its flagship sodas by reducing sugar and caffeine levels, launching
MytLite as a healthier alternative. However, this reformulation has led to a 12%
decline in market share, as long-time customers have switched to competitors that
still offer traditional high-sugar sodas. The key question is whether Myt should
reintroduce its original high-sugar sodas to regain lost customers or remain
committed to its long-term health-conscious repositioning strategy.
Arguments for Reintroducing High-Sugar Sodas
ne of the strongest arguments in favor of reintroducing high-sugar sodas is that it
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could help Myt recover its lost market share and revenue. Since MytLite’s launch, the
company has seen a significant decline in sales, suggesting that many of its loyal
customers preferred the original formula. By bringing back the high-sugar version
alongside MytLite, Myt could appeal to both traditional consumers and
health-conscious buyers, effectively expanding its customer base. This strategy
follows the market segmentation approach, where companies cater to different
consumer preferences rather than adopting a one-size-fits-all approach.
dditionally, reintroducing high-sugar sodas could stabilize Myt’s financial
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performance, which has suffered due to declining soda sales. The company’s stock
price has already fallen by 14%, and shareholders are demanding improvements in
profitability. By reviving its best-selling product in its original form, Myt could
generate immediate revenue and regain investor confidence, reducing the risk of
further stock depreciation. This aligns with short-term profit maximization
strategies, which may be necessary given Myt’s financial challenges.
urthermore, from a competitive standpoint, maintaining a high-sugar product line
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would allow Myt to compete more effectively with rival brands that continue to sell
traditional sodas. Many consumers remain unconcerned about sugar levels,
prioritizing taste and brand loyalty over health considerations. If Myt does not
provide this option, competitors may continue to steal market share, making it
difficult for Myt to retain its position as a leading beverage company.
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Arguments Against Reintroducing High-Sugar Sodas
espite the short-term benefits of reviving high-sugar sodas, doing so could harm
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Myt’s long-term strategic positioning. The company has spent significant time and
resources on rebranding itself as a health-conscious beverage provider, introducing
functional drinks and emphasizing sustainability efforts. If Myt suddenly reverses this
strategy, it may appear inconsistent and unreliable, damaging consumer trust and
brand credibility. In industries where brand image is crucial, such as the food and
beverage sector, a lack of consistency can lead to consumer skepticism.
dditionally, regulatory concerns pose a major risk. Governments around the world
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are introducing stricter health regulations, including sugar taxes, warning labels, and
marketing restrictions on sugary beverages. If Myt reintroduces high-sugar sodas, it
may face higher taxation and advertising restrictions, making it more difficult to
market and sell these products profitably. This is particularly relevant in countries
where public health campaigns against obesity and diabetes are strong, such as the
United Kingdom and parts of the United States.
nother major concern is changing consumer preferences. While some loyal
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customers may want high-sugar sodas back, there is an overall trend toward
healthier lifestyles, particularly among younger generations. If Myt chooses to
prioritize its old products, it may lose relevance in the long run, as future consumers
may gravitate toward competitors that continue to innovate in the functional and
low-sugar beverage segments. Instead of reviving old products, Myt could invest in
improving the taste of MytLite or launching a new mid-sugar alternative that
balances consumer demand with health concerns.
Conclusion
ltimately, whether Myt PLC should reintroduce high-sugar sodas depends on its
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strategic priorities. If its short-term goal is financial recovery, bringing back the
original sodas may be an effective way to recapture market share and stabilize
investor confidence. However, if Myt is committed to long-term brand repositioning
and adapting to future consumer trends, it should avoid reversing its
health-conscious strategy and instead focus on improving the taste of MytLite or
offering alternative product variations.
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compromise strategy could involve reintroducing the original sodas in limited
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markets or as a seasonal product, allowing Myt to assess consumer response before
making a full commitment. This would balance short-term revenue recovery with
long-term brand integrity, ensuring that Myt does not alienate its growing
health-conscious consumer base.
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