The energy beverage companies are targeting same group of people as Red Bull and it is hard to make significant increase in profit. To make more profit companies should target diverse types of consumers to differentiate your company from the other companies in the same branch. The heavy consumers of energy beverages are consist of males between 12 and 34 ages. In this market is high brand loyalty which means that average consumer is limiting his/her choice to only 1.4 different brands. The convenience stores and supermarkets are the dominant off-premise retail channels for energy beverages.
As the largest company in the world, Wal-Mart is obviously the largest customer for all of their producers. This gives them the power to demand the prices they want to pay for the products they are buying. If Wal-Mart purchases 65% of all of the goods sold buy a producer, the producer can not afford to lose Wal-Mart as a client. So when Wal-Mart demands that the producers sell them their products for 20% less than what they would normally be sold for, the producer can choose to either lose 65% of their bottom line or sell their product to Wal-Mart at the lower price.
Soda Industry is an Oligopoly Cynthia McLaughlin 10:10-12:10 The soda industry is most definitely characterized by the term oligopoly. An oligopoly is a market run by a few large and powerful firms. Oligopoly companies depend on each other, one decision affects the other companies directly. In the soda industry, there are three major competitors dominating the industry, along with other cheaper “off-brands”. For my research on the topic, I went to a soda aisle at Kroger, off of Ridge Road in Heath, TX.
In 2010, Super Bowl advertisement only equaled to 2.06 percent of the net income from CSD sales. Meaning revenue from gaining market share far exceeds the marketing expenses. Pepsi is in a desperate position to improve its market share; therefore, Pepsi needs to be aggressive and engage in all marketing activities to improve its current position. Problem Statement: A stock analyst, who is conducting a study of the North American carbonated soft drinks industry, is evaluating the impact of Pepsi’s refresh project (PRP) on public perception and its promotional value.
These beverages, which generally command higher price points than their carbonated contemporaries, now account for more than half of all industry growth. The attractiveness of the alternative beverage market makes this an appealing alternative for companies both in the industry and those looking to diversify into an emerging market with tremendous profit potential. The industry is subdivided into four geographical regions; the United States, Asia-Pacific, Europe, and the Americas (excluding the United States) with the United States accounting for over 40% of the industry’s global market share and representing a major battle market determining success within the industry. Currently Pepsi controls nearly 50% of this market and is looking for opportunities to increase market share globally and expand the company’s product line. Intensity of Competition Among Rivals The Pepsi Co., along with all participants in the alternative beverage industry face stiff competition among rivals with the competitive intensity constantly increasing among the industry leaders.
They can do somehow a better job in making sound investments and control the marketing with their products. I see that there were some challenges from some years especially when PepsiCo and Coco-Cola were at a war to compete each other with their businesses. Coca-Cola and PepsiCo are a few years apart, but both of them are well known and have such popularity with people drinking their sodas. Coca-Cola has been trying to surpass PepsiCo in their annual sales; however, from review, PepsiCo somehow has the highest number in their annual sales than Coca-Cola. PepsiCo has shown the best current ratio and is able to pay off their debts, which Coca-Cola does not have that and is struggling to pay off their debts.
Coca-cola believed that as this segment aged, it would move on to healthier diet drinks and hence they needed to look into the “full-calorie” young segment. Figure 1 below graphically depicts this understanding. At that time the youth favored Pepsi’s high calorie content by even more overwhelming margins than the market as a whole. Thus Coca-cola zeroed-in on this segment and launched the “New” Coke (of course they substantiated their strategy with surveys and focus groups, the unbiased nature of these efforts is now being questioned) Fig 1 What went wrong: The purpose of segmentation is to break mass markets into
SWOT Analysis SWOT Matrix The SWOT analysis of Costco Warehouse Corporation is as follows: Strengths ● ● ● ● Weaknesses ● ● ● Strong management Marketing strategies Diverse offerings Company policies Opportunities Expansion E-commerce Governmental stability Huge business setup Meticulous decision making Weak advertising Threats ● ● ● ● ● ● Economic conditions Not enough diversification Fierce competition Strengths Costco Warehouse Corporation has very strong managerial grounds. The Majority of its top management officials are “home grown” which means they started and excelled their carriers through the company Warehouses and learned how to do business at Costco (Costco, 2011). The employee turnover rate is very low as compared to the other retailers in the industry, for example, nearly seventy percent of Wal-Mart’s employees leave after completion of their first year (PBS, 2007).
Mountain Dew New Advertising Campaign Edward Walls BUS 620 Managerial Marketing Prof. Dr. Susan Sasiadek September 30, 2013 Mountain Dew New Advertising Campaign Mountain Dew, owned by PepsiCo since 1964 is one of PepsiCo’s top selling brands of soft drinks that has been a part of the American culture since the refreshing lemony carbonated soft drink was produced by Ally and Barney Hartman in the 1940s as a lemony soda and spirits mixer (Stanford 2012). Mountain Dew has been a top seller in the soft drink market typically among white male Middle American teens and young adults. This particular age group is large in numbers in urban centers such as Los Angeles, Miami and New York has become one of the most diverse consumer groups in the United States and is the main reason why the Marketing management at Mountain Dew has chosen it to be the target market for the new advertising campaign of Mountain Dew. I believe this is the right target market for Mountain Dew because this age group is who will more likely buy and continue buying the soft drink because they like the product and the way the product is being featured as it relates what young celebrities do to have fun to what Mountain Dew customers and consumers like to do to have fun while enjoying a refreshing Mountain Dew. Mountain Dew main objective now is to get more of the target market 18 to 21 year old males to gain awareness of Mountain Dew products through new ideas in the way the organization advertises and markets the soft drink.
Red Bull holds a 70 percent share of the world market for energy drinks, or functional beverages, a category it was largely responsible for building. Its dominant position in the fastest-growing segment of the soft drink market in a number of countries has drawn a number of imitators. Red Bull has become a case study in successful guerilla marketing in the United States and United Kingdom. Marketing is aimed at hip young people with active lifestyles, though the formula began as a popular tonic for blue collar workers in Thailand. Globetrotting Origins Dietrich Mateschitz was born in 1946, a native of the