Marketing and Sniper

to apply the theory to real world cases. A solid understanding of principles in finance,

Please note that this Assessment document has 12 pages and is made up of 5 Sections.

Please note that this Assessment document has 9 pages and is made up of 4 Parts.

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.

The design and packaging of many energy drinks also relates to the target market. For example, Energy Fizz, which is sold as a powder that is mixed with water to create the drink, is easy to store and carry, so it is convenient for people continually on the go. Although the energy drink industry currently caters to a very specific target market, as it continues to grow and develop, it is likely that marketing efforts and the focus consumer base will be more diverse and expansive.

What are the main concepts presented in the article? What information is the author using, and what is its relationship to the main issue? Does the information used appear relevant, significant, valid, and sufficient for the conclusions being drawn? Do you have enough information to determine whether the information is relevant, significant, and valid?

Building and enhancing leading brands, focusing on high-growth and high-margin categories, increasing presence in high-margin channels and packages, leveraging integrated business model, strengthening route-to-market through acquisitions and improving operating efficiency each capitalize on DPSG strengths and will greatly influence the decision to launch a new energy beverage drink (Kerin, 2013 pg 96). Other relevant issues include understanding the attitude and behaviors of current heavy users. According to data for the United States, collected by Nielsen identifies busy mothers and their households are more likely to use energy drinks than average households (csnews.com). The data indicated that busy young moms had a higher purchasing index then young adults leaving college or independent singles, 20 -30 (csnews.com). This information is relevant because it will help identify a potential target audience.

If one has to analyze the profitability scheme of Red Bull Energy Drink, perhaps it can be safely said that it is in a very uncompromising situation. First and foremost, the stiff competition have paved the way for the emergence of many small time players (Helm 2005). With every bottled drink that aims to steal the limelight nowadays, Red Bull should capitalize more on its creativity and ingenuity—this is of course, in relation to advertising and marketing. The company should never disregard that Coca Cola and Pepsi are still top competitors (Helm 2005). More so, even if the two share equally different components as with Red Bull, still, it is evident that the two continue to partake into the market share. Meanwhile, the notion that energy drinks offers no variety in taste is an important marketing aspect that the company should take into full consideration (Laing 2005). In 2001, Pepsi had already released AMP Energy Drink (“Amp Energy Drink” n.d). It is the company’s maidens venture into the energy drink arena. Evidently, AMP’s raison d’ etre is to capitalize on Mountain Dew’s established image. The concept would be to introduce something new, yet very familiar (“Amp Energy Drink” n.d).

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.

Dr. Pepper/Seven Up, Inc. is the company which produces the brand Squirt. “Squirt is a caffeine-free, low sodium carbonated soft drink brand with a distinctive blend of grapefruit juices that gives it a tangy, fresh citrus taste. Squirt is the best selling carbonated grapefruit soft drink brand in the U.S.” (Kerin and Peterson, 2010) Kate Cox, the brand manager responsible for Squirt believes that market targeting and product positioning are key elements in Squirt’s advertising and promotional plan development. This case study will provide a summary and analysis of Dr. Pepper/Seven Up, Inc.’s options and the examination into the company’s strengths, weaknesses, threats, and opportunities.

Evaluate the possible solutions using a simple decision making technique to arrive at the best solution. Your evaluation should include human, material and financial resources.

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.

_1. HOW WOULD YOU CHARACTERIZE THE ENERGY BEVERAGE CATEGORY, COMPETITORS, CHANNELS, AND DPSG'S CATEGORY PARTICIPATION IN LATE 2007?_

Energy drinks have outperformed the growth in carbonates in the last few years, and present a substantial opportunity for beverage manufacturers to extract further growth from their sales. There are many driving forces of change and critical success factors in the energy drink industry. Companies such as Coke Cola and Pepsi contend with criticism from health officials due to the excessive caffeine in most high-energy drinks. However, before the 2000’s consumers were accustomed to carbonated soft drinks as the traditional beverage. The shift to an energy drink, sports drink, and vitamin enhanced waters increased sales while becoming an alternative beverage choice for a fast-paced mobile society. Therefore, this industry endures many

concepts. You should be familiar with the problem, but you will not be expected to have fully