Purple - Notes
Green - PDB
Red - Competitors
Orange - Decisions
Sarah Ryan - Vice President of Marketing, Portland Drake Beverages (PDB). PDB - Manufacturer of organic juices and sparkling waters.
Positioning: After segmenting and targeting. Where in customers’ minds the product occupies relative to competing products.
Crescent: Non-alcoholic functional beverage, impending launch in three U.S. markets. Acquired in July 2013. Energy-enhancing, hydrating, all-organic ingredients.
Energy drinks vs. Sports drink(hydrating)
PDB’s competitors: Planned to launch all-natural versions of own sports/energy drinks in second half of 2015.
PDB: Due to production capacity constraints, national launch only in early 2015. Soft launch in Jan 2014 in Cali, Oregon, Washington (15% of demand).
Michael Booth - CEO, PDB. Tasked Sarah Ryan to:
(1) Evaluate and recommend positioning strategy. (2) Define product by Oct 1. (3) $750,000 advertising budget. Benchmark earnings goal.
In order to form:
1. Industry specifics related to both options
2. Potential benefits and drawbacks of each option
3. Final recommendation.
Target: Maximize revenue.
Third option: Healthy and organic roots
Due date: Monday, September 16.
Beverage industry: Non-alcoholic
Includes: Water, dairy, juice, soda and functional beverages.
Value: $131 billion. Projected growth: $164 b by 2018.
History: Suffered during recession as customers restrained spending.
Current: Many new products launched in segment in 2012. More entrants expected.
Distribution:
Either (A): “Big box” retailers – own product distribution systems for purchasing, transporting and stocking.
Or (B): Small to medium retailers –
“Manufacturers” to “Distributors” (Mark up 25%),
“Distributors” to “Retailers” (Mark up 40%).
Distributor:
(1) Sometimes stocked items, else only delivered upon order. (2) Maintained relationships w/ retailers (3) Included products they expected to have high demand in their