Published by MBA Skool Team, Last Updated: February 27, 2021
PESTLE Analysis of Kinley analyses the brand on its business tactics. Kinley PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.
PESTLE analysis is a framework which is imperative for companies such as Kinley, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.
The political factors in the Kinley PESTLE Analysis can be explained as follows:
Kinley, a water brand from Coca Cola, has a wide global reach. The government plays an important role when it comes to the quality of product which is manufacturing bottles of water brand Kinley in terms of regulation. There are various factors which the company has to keep eye on and must follow such as the pricing policies, new tax laws, change in the tax rates, modified or new environmental laws and government fines when the company fails to meet the standard laws while manufacturing the bottles. Political factors increased the competition for non-alcoholic nature of product by giving the entrance easily in the market through which it faced new competitive products and strategies which distribute the market share among various new and existing competitors in the local as well as global market, this also squeezed customer mind set. It depends on how the government supports the strategic alliance to make a difference in the success and failure of business.
Image: company website
Below are the economic factors in the PESTLE Analysis of Kinley:
Increasing health concerns and unavailability of clean water increased the demand for Kinley water bottles.
In India the brand captures the major share of market because of their Kinley lightweight Programme with the aim of reducing the raw material i.e., PET (poly ethylene terephthalate). Company uses another economical factor which reduces the weight, PET and invented the more stable packaging by using a nitro fill process. The water bottles are available at an affordable price with a safe life of 12 months and distributed in many countries for their safe and purity factor. It can diversify into two categories: packaged water and carbonate water with various variants like bitter lemon, club soda, ginger ale and tonic. The sale of Kinley has hit a roadblock due to COVID-19 as sales in offices, hotels, canteens and travel remain restricted across the countries but it increased in the upcoming future.
Following are the social factors impacting Kinley PESTLE Analysis:
Many social factors affect the business of FMCG products. Coca cola started rebranding exercise of Kinley with the aim of increasing companies share in the organized water bottles in the market. This new campaign re-affirms and strengthens the bond with the customer and also the new Kinley bottle has made it easy to hold with transparent labels through which customers can easily see the price, life of water, authenticity of water by scanning the barcode and many important factors. Now the brand is available globally with 500ml, 1 liter 7 big jars as well. All the new innovations and strategies made up by considering the society as well as customer needs. Kinley’s shows the purity and safety, the main concern of this campaign is the customers health.
The technological factors in the PESTLE Analysis of Kinley are mentioned below:
The right mix of advertising, marketing and promotional programs cannot be ignored as internet and television are considered as new technology to enhance the knowledge of customers as well as bring notice and attraction towards the product as Kinley gives assurance of clean and safe drinking water which stands for trust and truth. The water goes through rigorous and intensive 10 step processes of purification before it reaches in the market for final consumption. This process involves disinfection, filtration, carbon & 10 micron polishing purification, reverse osmosis, UV treatment, mineral dosing and ozone filtration. This purification process also removes trace components like carbonate, bicarbonate, sodium, magnesium etc. Coca cola India started a new application through which customers can order their Kinley water jars directly to their salesforce.
This helps by harnessing the power of technology to get consumer insights.
Following are the legal factors in the Kinley PESTLE Analysis:
Several legal factors must be considered for any beverage company. According to the FSSAI, packaged water bottles must add 10mg of calcium and 20mg of magnesium per liter which are considered as vital ingredients for health. The NGT (National Green Tribunal) asked FSSAI to explore the possibility of making provision regarding adding few minerals in the packaged water because all essential minerals are removed in the process of filtration which helps in improving the health. Kinley have always focused on these factors very properly due to which it enjoys a very good reputation in the industry.
In the Kinley PESTLE Analysis, the environmental elements affecting its business are as below:
Day by day the concern for the environment is growing as every country has introduced fines for environmental un-friendly practices. Companies who review their packaging strategies and manufacturing can survive in the market.
Coca cola packaged their Kinley water bottles in detail and scrutinized to meet even the toughest packaging standard. Its suppliers must require a quality system to comply with the safety, environmental and quality standards and also coca cola make efforts to create more sustainable packaging to contribute its overall goal of reducing the CO2 emission associated with ‘drink in your hand’. Coca Cola now pledged to use at least 50% recycled material in its packaging by 2030 and they also collaborate with many NGOs around the world to improve the collection.
To conclude, the above Kinley PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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