Explain. Answer: The strategically relevant components of the global and U.S. beverage industry macro-environment are: Global beverage companies such as Coca Cola and PepsiCo have relied on alternative beverages to sustain in volume growth in mature markets where consumers were reducing their consumption of carbonated soft drinks. Coca-Cola, PepsiCo, and other beverage companies have made various attempts at increasing the size of the market for alternative beverages by extending existing product lines and developing altogether new products internationally. The primary concern of most producers of alternative beverages was how to best improve their competitive standing in the market place. The global beverage industry was projected to grow from $1.58 trillion in 2009 to nearly $1.78 trillion in 2014.
4. Campaign Publics: Target: aged from 12-24 youngsters’ primary school, middle school, high school, and college students in U.S. 5. Campaign Objectives: To rebuild Pepsi positive brand attitude then establish its consumers loyalty among 50% target audience by March 2013. 6. Campaign Messages(s): Advertising will rebuild positive brand attitude among regular users that Pepsi is a healthier soft drink that play an important role as a companion in their daily life.
| Coca Cola carries market development by introducing new types of Coca-Cola in their market by catering the needs of the market such as dietary needs. Coca Cola has therefore introduced a new type of dietary cola that cater to different dietary requirements. Coca Cola has developed a new dietary soda called Coke Zero | Product Development | Cadbury carry out their product development, by developing new products for example new types of chocolate such as the Cadbury Dairy Milk Ritz and Lu chocolate, which they investing highly on through market research. This generated sales and interests and allowed the organisation to get new customers. | Coca cola carries out its product development in almost the same manner as Cadbury except Coca Cola he company's Business Intelligence and Planning Department is responsible for collecting the research and presenting it to the Consumer Marketing Department.
1.0 Introduction: Xcellerate is a new concept of energy drink that will take the energy drink market by storm. Using lots of Vitamin B6 and B12 the drink is able to provide the same energy boost as a normal caffeine and sugar based drink, but is a much healthier alternative. The drink will be available in one flavour upon its initial launch in order to reduce the chance of brand dilution as well as easing manufacturing and distribution burdens. The brand will be priced in the medium to higher end price bracket in order to compete with premium brands and to avoid being associated with the low quality alternatives that compete solely on price. The main competitors in this segment for Xcellerate will be Red Bull, Monster Energy and Livita, however Red Bull’s dominance is easily identifiable with 5.6 million litres sold in 2011 (Marmet Sizes - Historic off trade volume - mn litres Malaysia, 2011).
Question 1 In order for successful expansion of the new line of energy drinks that Snazzy Sodas are promoting careful considerations in the marketing strategy will feature. (Armstrong 2012 p52) The market targeting strategy has to maintain a customer centred motivation. Through dividing distinctive markets by processes of individual and personal characteristics, wants needs and behaviours of the consumer the basis of the marketing segmentation is established (Armstrong 2012 pp52-55). From this position greater classification of the market segments can be maintained. The target market for the energy drink would redevelop and associate with varied amounts of current markets to carefully build and generate profitably whilst upholding customer value.
4. Is ECCO following the inside-out or outside-in strategic perspective? What are the implications of this choice and how can ECCO increase their sales/marketing efforts? * Inside-out strategy: which is an internal oriented strategy. This strategy emphasizes the company’s ability to utilize its existing internal resources and focuses on streamlining operation through proper sizing and cost reduction.
To try to increase our brand awareness we increased our advertising for each brand to help improve our image for our target markets. Another contributing factor to our underperformance was our over production, we over produced SOLD and SONO starting out at a production level of $900,000 for SOLD and $100,000 for SONO. Regrettably this caused us to have excess inventory for both brands. By period four our inventory holing cost were extremely higher than the other firms our inventory holing cost was $1,059K for our firm O, compared to $74K for firm I. figure 1 has the comparison of the four firms inventory holding cost by a cumulative time scale. The customer perception of our bands was a problem for us, we were unable to position our brands right in order to make our
Secondly, as the project was launched in the Pepsi cola drink trademark instead as PepsiCo, it remains to be seen what positive externalities the project has brought along – i.e. increase in sales for PepsiCo’s snacks products. Thirdly, market research need to be done to assess the change materialized in consumers’ perception from the project – i.e. as Pepsi’s positioning changed in consumer’s minds? If so, is it towards the direction Pepsi favored?
• According to Brazilian Market Research Association classification of five social classes, class C accounts for 28% of the total national consumption of soft drinks and these class C people favor price affordability at comparable quality. • Per Capita Consumption of Soft Drink in Brazil is increasing by average rate of 17.37% per year. In year 2003 it was 95.3 liters & projected 104.9 liters in 2008 indicating growth. • As of 2003, the Coca Cola brand (regular and diet) was the leader in the Brazilian soft drink market with 35.6% market share. Second closest was Guarana Antartica with 7.9% market share followed by Fanta with 7.1% market share.
Declining market in North America allowed for growth in emerging markets such as central and South America as well as Central/Eastern Europe, Asia and China. In order for these markets to be successful the company strategically consolidated mature markets and positioned themselves to improve margins through higher volumes of premium and specialty brands. By cross fertilization of best practices between sites, utilizing capacity in growth markets , working with a smaller number of its best suppliers and building considerable positions in markets by acquisitions; Interbrew was able to build brand strategy. One of the main issues to be addressed is how Interbrew/Stella Artois would become a global brand. As mentioned before acquirement of breweries across markets was an intentional and integral part in building a brand strategy.