Identify a product or brand that you believe could use the same three step approach for entering foreign markets. Develop a clear rationale to support this example. Other well established beer companies can take advantage of this approach because the it will almost have the same resources and capabilities in order for them to succeed. Identify a product that probably could not use this strategy. Develop a rationale to support this example Growing any type of fruit would not be able to use this strategy because it is has it particular conditions in order for it to grow.
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).
If Datril decides to employ the second option, I do think they may be able to gain some market share from Tylenol’s existing customers, however if the drugs are identical, the only competitive advantage is price. Unfortunately, price is one the easiest advantages for a company to counter attack. Because Tylenol is the market leader of acetaminophen, they can employ the defense strategy and be successful in their counter attack Bristol-Myers. If Tylenol lowers their prices to match Datril’s, there will be no advantage in the market. The other risk with this option is the longevity of any marketing materials created.
In the field of marketing, the primary objective of an organization is to satisfy the consumer needs. It is very obvious, however, that not all consumer needs can be satisfied. By identifying its potential subsets or target markets, the organization can concentrate its efforts on certain needs of the specific groups of potential consumers. In this case of the Cabana Boy Flavored Rums, young adults with legal age of drinking are the primary target market for this product. The Cabana Boy Flavored Rums is a product brand of flavored light-alcoholic beverage.
Threats include media scrutiny as to the caffeine content of the drinks as well as misuse by some individuals using the drink as a stimulant irresponsibly. One of the most popular energy drinks on the market is Nero, a line of beverages with sexy packaging that are designed to assist your body throughout the day. Strengths of Nero beverages include; a relatively successful following and attractive packaging. Weaknesses include the fact Nero is not organic and thusly doesn’t appeal to that part of the market, as well as what the actual ingredients are in which provide energy. Opportunities are the growing energy drink market as well as the possibly expansion of their flavor line.
Clorox also has a large marketing budget, an experienced research and development team and most importantly, brand recognition. Clorox can use their large market share to attract customers to new or improved products. Also brand recognition will be very important in the sale of the faucet filtration systems. They claim to have the best tasting water and according to their research, customers are more concerned about taste than removing contaminants. Even though the Brita products are a bit more expensive, people are willing to pay at that price for greater tasted water.
Evaluation of strategy: Peter McAuslan ensured that the focus of the business was correct in the context of the customers, competitors and industry trends. McAuslan was able to identify a focus, that is to offer a more distinctive taste than the big Canadian brewers. This fit right into customer context as his beer was welcomed by patrons who appreciated his beer with an imported taste at a lower price. At the time, microbrewery competition was very limited in the microbrewery sector and the industry trend was toward regular mainstream beers offered by the big 2 breweries: Molson and Labatt beer. Indeed there was a “fit” between the McAulsan breweries and the external environment.
But the premium pricing on the successful products covered the loss on the failures. The product in itself was marketed with the accompanying mantra of “100% Natural” and proved to be quite popular among a very difficult to define market segment. Snapple was neither defined as a “lifestyle” brand or a “fashion” brand, it was somewhere in the middle, generally grouped in the “alternative” beverage category. Price: The Snapple was sold at $24 for a pack of 24 bottle case on the street which is a very aggressive price for the product category. Premium price could be one of the reasons for propagating the premium nature of the brand to the customers.
Unilever has one detergent powder that is very good quality in the Omo, but it are priced higher than lower income individuals would pay. Unilever has cheaper brands, in the Minerva and Campeiro. They are both affordable for the lower income market, but do not have as strong cleaning power. The competitors of Unilever’s detergent powders are mainly Ace and P&G who pose little threat in the lower income market because there quality and price point is matched similar to the Minerva brand.
They also improved the label design of the bottle. They were placed in Alternative Beverage Category where at the time Coke and Pepsi did not have a share in the market. Snapple was in the middle where it was neither like Coke with unhealthy drinks nor the healthiest drinks in the market. As for the Price, it applied premium pricing for its successful products which enabled it to be profitable and cover losses from failures. Its Promotion method was one of the key elements that made the company achieve success.