Case Study Of Cecent Pure

Gatorade is a flagship brand of PepsiCo and has a commanding 75% market share of the sports nutrition beverage marketplace globally, being sold into 80 different countries according to the latest PepsiCo annual report published in late 2011. Gatorade's success in branding and product marketing has actually expanded the global market for sports nutrition beverages during the late 1990s and into the 21rst century. Recently however the company has faced many channels including product line extensions of the last decade which failed to deliver strong results (Pollack, 1997) and a more critical analysis of their ingredients as many of their beverages are sold in public schools (Tallon, 2009). Despite these challenges however, Gatorade continues to experience strong market share and growth. The intent of this analysis is to evaluate and provide recommendations for each of the four areas of the marketing mix including product, price, promotion and place or distribution.

According to recent studies, the age group of 25-40 year old males and females purchase a reliable amount of small appliance to bring in this product. A household income of $40,000 a year is enough purchasing power for a household to afford this product. Through recent studies, it has shown that cocktails are mostly popular with individuals that like to share their experience with others and go to bars and restaurants because of the specialty cocktails that are offered. The United States has been chosen as the target location because of Company G’s location.

Because of their substantial growth over two decades, they have spent a considerable amount of time defending their image. Their “clustering” strategy put many small coffee shops out of business and many consumers began to wonder if there really was a need

This document is part of the requirements of the Foundations of marketing course, the University of Newcastle. It is the first part of the marketing plan for Red Bull, the leader of energy drinks market.

In addition to the strengths, the weaknesses of the company are also outlined in order for the company to develop and grow. The first weakness defined was their marketing strategies are lacking. In Principle of Marketing, one main concept was how to promote and market a specific brand. In this example, Deep Roots is trying to reach the general public, however this task has been difficult. They currently are selling the products in liquor stores across Prince Edward Island and at the Charlottetown farmer’s market (Deep Roots Distillery, 2016). This is a limited audience if the company’s main goal is to become a business to pass down through generations. The market of people they currently sell to is very small. On the island itself, there are 140,000 people, who could be considered for loyal customers (Beamish, 2016,

They have focused on building brand recognition and profitability by growing the business gaining assets to grow the company and products for greater customer satisfaction (About GMCR, 2004-2009). GMCR’s strategy to incorporate current large brands, such as Tully’s, Diedrich, and Keurig has helped to expand their customer base and satisfaction as well as the markets for their products (Phillips, 2011). Their focus on increasing their market shares in other companies will facilitate their expansion into new geographical markets and promote the brand. GMCR’s partnership with Keurig creates a larger consumer choice and the addition of agreements to create portion packs for the Keurig with companies such as Starbucks, Dunkin Donuts, and Newman’s Own helps set them apart from the competition (Invest in the Markets, 2011).

As a company with limited financial resources, Nantucket Nectars have been disadvantaged in their channels of distribution. They have not been able to distribute their products in the supermarket on a large scale. As can be seen from tables D and E, although most of the New Age beverages were sold in the supermarkets (55%), the proportion of Nantucket Nectars supermarket sales was only 1%. Nantucket Nectars distributed their products mainly through other channels like delis and educational institutions and is thus missing out on a large portion of the consumers pie This inevitably means that the company would be able to increase their revenue substantially if they were able to distribute their products in the

| Weaknesses: * Pays extra payment for new flavor. * More expensive to produce than other sports drinks. * Deciding the segment to target. * How to position the product in the mind of its potential consumers

Both competition and market size are of major importance when one explores the positioning of a product. In the case of Crescent Pure, this is vital as Ryan must determine the level of competition that will be faced if the product is marketed as either an energy or sport drink. In the case of an energy product, it should be noticed that there is heavy market dominance by Together, Freight, Razor, Torque and Steller, as they account for roughly 85% of the market. Despite this, it should be seen that the average price point for a 5oz can is $2.99 which is notably higher than Crescent’s $2.75 pricing. Additionally, the market size for sport drinks is of particular interest as it is estimated to grow to $8.5 billion by the year 2013. This, coupled with the fact that the market had grown 40% between the period 2010 – 2012, makes this sector of particular interest to PDB.

The target consumer market that should be chosen for a new energy beverage brand is males between the ages of 15 and 26. Marketing to this age group falls between the 12 to 34 year olds that estimate to make up 70 percent of the energy drink market (Kerin & Peterson, 2010). This would allow them to still market to the heavy users but would be able to narrow it down to a specific age group within the market. Marketing to this group would allow you to focus on groups such as high school & college students, athletes, and young adults entering the work force or newly parents. The students that would be using the energy products can use it for staying up to study or to help wake up and be alert in class. Athletes could use this product for refocusing after a workout or practice so they would crash. Young adults could use this energy drink for staying up in there social life late at night or to make sure they are awake in the morning for that new job to impress the boss. A different market would be the parents of a newborn. Markets like this could be beneficial because parents want to stay up to feed their new born and make sure everything is okay during the day especially after a sleepless night or two. Marketing to specific target markets helps companies clarify what the product is used for and how it can be beneficial instead of having it say we

The effect of this aggressive competition can be seen in Figure 2, which shows a sharp decrease in Lucozade’s market share from 2002, following the introduction of Powerade (owned by Coca-Cola) and C&C Club Energise (introduced in 2003) to the market. Every year since 2006, however, has seen Lucozade Sport regain market share, firmly consolidating its position of market dominance in Ireland. This trend endorses the quality of Lucozade Sport’s marketing, as it is succeeding in fighting off stiff competition. “Functional drinks is dominated by Lucozade brand, with Lucozade Energy and Lucozade Sport recording a combined volume (market)  share of  54%  in 2009” as stated in Euromonitor International (2011).

Portland Drake Beverages (PDB) had acquired Crescent Pure, a non-alcoholic, all natural energy enhancing and hydrating functional beverage. Having organic ingredients as the bases of Crescent Pure beverages made the perfect acquisition for extending the PDB organic brand to more markets. These multiple attributes made the drink an attractive product for the consumer, but the necessity to position it, sparked a debate. Some people wanted to market it as an energy drink, while others wanted to market it as a hydrating drink. The VP of marketing, Sarah Ryan, thought that although Crescent Pure fit both of these categories, there was an alternative option. The third option would be to position the new beverages as healthy drinks, this would be a broader market positioning strategy, one that a transcendent product like Crescent Pure, could fulfill. The concern was to simultaneously position the drink in the most lucrative market, while also ensuring that the drinks attributes aligned with the market consumers’ needs.

In the Kid-Energy Drink Project, we are assured of at least $500,000 incremental revenue after development. In the Dual-Drink Project, incremental revenue could be negligible.

Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?

This report will critically be discussing the marketing strategy, position and the marketing mix employed by LUCOZADE and the use of some principles. Therefore, the analysis will help to identify how brand is positioned in the energy drinks market and how company promotes its product. After analysing existing marketing strategies, recommended future strategies will be given to advice companies of where the brands are leading to and how they will get there.