Crescent Pure has the opportunity to position their beverage in one of two different markets: energy drink or sports drink. With extensive research, Crescent will need to look at the benefits and drawbacks of each option and decide which market to enter. The struggle with this is that Crescent’s drink has many qualities that can make it go either direction. This drink posses 80 milligrams of caffeine which is on the lower side of the energy drinks. The biggest issue with entering the sports drink market is that is more expensive than the other options. To be successful the correct market needs to be assigned to this drink to have appropriate advertising to the target markets and placement within stores to reach the appropriate consumers. Choosing the wrong market have strong, negative effects.
Alternatives
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Our defensive alternative states to step back and reconsider a completely different market as there are already four large competitors that control 85% of the market. Also it wouldn’t be beneficial to Crescent as they don’t have a complete understanding of the market due to the many different factors in each market. Not having accurate knowledge on the specifics in the markets could have major effects. Our offensive alternative suggests to enter the energy drink market. Healthier drink options are on the rise and Crescent only has 80 calories per serving. Crescent also has 80 milligrams of caffeine, the same as a cup of coffee, which give Crescent the “energy effect.” These factors will positively market Crescent in the market and will be appealing to such
Marketing is one of the biggest causes as to why drinking is all around us. Marketing is the achievement of promoting and selling products or services, which also includes ...
From what you can see in the (Datamonitor) after 2006 the energry drinks sold just under 400 million more liters then they did in 2006. The market value for energy drink would continue to increase until 2009 when they starteed to decrease the amount of liters sold in the USA. In 2009 and ...
As stated in the case, “the market for energy drinks was growing; between 2010 and 2012, the market for energy drinks had grown by 40%. It was estimated to be $8.5 billion in the United States in 2013 [and] forecasts projected that figure to reach $13.5 billion by 2018” (pg 5). However, much of this market’s revenue -- 85% in fact -- is dominated by five major brands, while the remaining 15% is split between approximately 30 regional and national companies. (pg. 5). With this saturated market, it might not be best for Crescent Pure to enter as a completely new product to the industry, as there is the possibility that it will be squeezed out of the profit shares by more established brands -- especially if it is not properly secure in its identity. In addition, while the market for energy drinks appeared to be growing at an exponential rate compared to the market for sports drinks -- which increased only 9% in five years and would be at approximately 60% of the rate for energy drinks in 2017 (pg 6) -- the consumers appeared to be wary of partaking in the market for several reasons, which would potentially harm the reach of Crescent Pure. These concerns included rising news reports discussing the safety of energy drinks (pg. 5). Taking into consideration the data provided in the case that concerns reasonings of why consumers choose specific drinks over others, there
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
The Holland Sweetener Company (HSC) is planning to enter the low-calorie, high-intensity sweetener market which is currently dominated by NutraSweet. Below we first analyze our target industry. Next we look at what kind of response should HSC expect from NutraSweet upon its entry into this market. We will also analyze few likely scenarios that could play out and we will try to estimate the likelihood of each scenario. Based on our analysis, we will give a recommendation for HSC to plan their entry into this market.
Profits will be maximised if potential consumers who are most likely to keep on purchasing are filtered from once off consumers. Catering to the specific needs and wants of the desired customer will aid in establishing a loyal customer base. Buyers who are more health conscious will tend to be more informed about the health benefits of the health bar whereas those who buy basing their decision on the price might be less concerned about the nutrients in it and their respective ratios. Realising the factors that influence buyer’s decisions helps a marketing strategy to...
The information in this report comes from databases, financial articles, company reports, books and academic journals. Boost Juice is a successful business however there are many threats and weaknesses that influence the company’s overall performance. A reduction in sales and limited multimedia advertising are factors that have affected Boost Juice’s ability to create and further develop products. However in addition to this, Boost Juice has many strengths and opportunities that have a positive influence on the company. Iconic Branding and Growth have allowed Boost to open its doors to new markets and introduce new products into the business.
Companies utilize different marketing strategies to appeal to their target audience. The methods they use to market their products usually reflects the target audience’s preferences or needs. Gatorade was invented at the University of Florida in 1965 by a team of researchers. They discovered nutrients were not being replenished when the school’s football team competed and formulated a solution to the problem. Today Gatorade primarily targets athletic or physically active individuals, especially professional athletes. Over time, Gatorade has become one of the most popular and leading sports drink companies in the world. Many people recognize what Gatorade is and what they do to help individuals who need the extra replenishment so they can continue
Marketing mix is a business tool used in marketing and by marketers. It is often associated with the four P’S that are price, product, place and promotion. As we know, promotion is one of the four P’S. What we understand about promotion? Promotion is defined of all the methods of communication that a marketer may use to provide information to different parties about the product. Besides that, promotion comprises elements such as advertising, public relations, sales organization and sales promotion. Apart from this, promotion is also known as communication. We cannot deny that promotion decisions are those related to communicating and selling to potential consumers. After a long discussion among all of our group’s members, we would like to select an existing product that is Nike (Sport Wear) to do a marketing situation analysis report.
Red Bull is predominantly known as the forerunner in the energy drink grouping across the globe. Founded in 1984 by Dietrich Mateschitz in Austria, the product was formally launched in 1987. Mateschitz originally became aware of products called “tonic drinks” in Asia and brought this effective product in Austria, developing a unique marketing strategy for the organization. The drink itself focuses mainly on young students and professionals. It is exclusively produced in Austria and then distributed around the world through the channels of local companies and external importers and distributors. The key factor of the brand’s success is Red Bull’s marketing strategy, which is known as “buzz marketing”, and involves the trendsetters in target communities to carry the brand’s message. This unique branding plan in selling their product helped to retain the authority and distinctive nature of the brand. A brand image was cultivated that associated the beverage with younger culture, along with extreme and adrenaline fueled sports, such as motocross, mountain biking or snowboarding. By 2004, Red Bull had attained a significant market lead position, with a 70% market share. The attraction of fast-growing profits in the market and the increasingly growing success of Red Bull brought many competitors into the useful drink sector, including global powerhouses such as Coca-Cola and Pepsi. Several competitors started to emulate Red Bull’s marketing strategies in order to take market shares from the energy drink front-runner. Red Bull soon lost its individuality and began to suffer from a decline in its perceived value in the consumer eyes. They were also affected by negative publicity associated with taurine-based energy drinks, which were bein...
The brand has identified themselves as a beverage that contains the “best stuff on earth,” which means any properties that would taste pleasant to the consumer. Members of the focus group stated Snapple was more believable as a brand if they endure their slogan, rather than trying to adapt to the environment around them such as the fitness market. Redefining themselves as a healthier beverage would make them lose creditability since they are known for their sugary juices and teas. On the other hand, the statement regarding energy did appeal to the group significantly. If Snapple decided to create an energy beverage, actions will stated to be taken. Nevertheless, the creditably factor was issue because a member stated to choose a energy drink that’s already in the market over a Snapple because she knows coffee will give her the energy she needs, but doesn’t know the outcomes of Snapple. Clearly, Snapple must classify their brand as a refreshment beverage, along with their slogan, because that is how consumers know the brand and will continue to distinguish it for other beverages on the
Now that I have given some background information on the benefits of sports drink, I will tell you why my sports drink is a good option. One reason is because it will cost less than other sports drink companies. The second reason is it will have less sugar the most companies and still maintain good flavor. The third reason is the ingredients will have lots of benefits to good health. The fourth reason is there will be no negative, unnecessary added preservatives to the drink. It's not that alternative sport drink companies are dreadful, I am trying to open up your eyes to something modern.
1.Red Bull differentiates itself in not only the soft drink industry by focusing on energy drinks solely, but also in the business industry, seeing how their strengths, weaknesses, opportunities for improvement, and threats all seem to blur together . The fact that Red Bull is seen as a luxury and sports drink is a strength, weakness, opportunity, and threat within itself (Kansara, 2); being labeled as such sets Red Bull apart from their competitors, pushing them into one field and industry to prosper in and be associated with, leaving them opportunity to determine the way that industry will grow as they are the pioneers but also threatening their hopes for expansion. In a nutshell, in order for Red Bull to truly work towards their mission
New product development is an essential key for a company to survive or stay competitive in the highly changed business environment nowadays(Annacchino, Marc A, 2003). Although technology plays an important role in the development of new products, the role of marketing should not be underestimated. A result illustrates that companies with a marketing department which has strong capabilities and skills are more likely to be more successful with their new products(Drechsler et al.,2013). Hence this essay will investigate the role of marketing played in the different stages of new product development and launch. And this paper will use the new energy drink brand Wakee as an example to see how marketing mix can be applied to support the marketing
China has embarked on a rapid economic growth specifically in urban areas which has resulted on booming consumer market for high end good and services. People of China would account for 20% of global luxury goods for as early as 2015 which will be a huge $27 billion. By 2020, Chinas middle class is expected to burgeon to 45% of the population which would be nearly 700 million people. These reasons make China a very lucrative target market for luxury drink makers like ours. This well documented growth of disposable income amongst Chinese consumers puts forth a very advantageous space in the regional market as global beverage manufacture. An in-depth research on Chinas fastest growing soft drinks from 2010-2013 gives a strong signal that with right kind of marketing and featuring beverages with a targeted function can lead to exponentially growth. Our energy drink by Illy fits this bracket very nicely. Illypower has a narrow focus and gives the prospective consumers a drink with a function rather than the flavour alone. It is full of anti-oxidants and is made from recyclable coffee capsules used in making coffee in our Illy’s Italian coffee manufacturing plant.