Preview

Energy Drinks Case Study

Better Essays
Open Document
Open Document
938 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Energy Drinks Case Study
Johnson & Wales University
Providence, Rhode Island

Feinstein Graduate School

Competition in Energy Drinks, sports Drinks, and Vitamin-Enhanced Beverages
Case Study

A Research Project Submitted in Partial Fulfillment
Of the Requirements for the MBA Degree
Course: MGMT6800

Ningning Shi

March 18th, 2012

Competition in Energy Drinks, sports Drinks, and Vitamin-Enhanced Beverages Case Study There are new coming items in beverage industry during the mid-2000s, which are energy drinks, sports drinks and Vitamin-Enhanced beverages. These items focus on different flavors, specified consumers, efficient distribution systems, and products innovation in the beverage market. They compete with water, soft drinks, juices, tea, and other common drinks, which are in low prices, good and long history of brand reputation, easy to accept the taste. From 2005 until now, alternative beverages grow fast and take more and more market share in the whole world beverage market. The main alternative beverages companies are Coca Cola, PepsiCo, Red Bull and Hansen Natural Corporation.
Energy drinks, spots drinks, and vitamin-enhanced beverages use many strategies to find a good position in the beverage industry in the Global market, which also give us some ideas about how to operate beverage companies. Firstly, alternative beverages take the action via wider product selection, better product quality, good delivery system to gain sales and market share. For example, PepsiCo develops 12 flavors of Amp Energy drinks and 28 varieties of SoBe vitamin-enhanced drinks (Gamble, 2010, p.C-83). Again, PepsiCo, Coca-Cola through their own soft drinks distribution channels to deliver energy drinks at the same time, which reduce much time and cost. Secondly, energy drinks take big actions to enter emerging market opportunities, like most Asia countries and South America. For example, alternative beverages take 31.5% market share in Asia-Pacific in 2009 (Gamble, 2010, p.



References: Gamble, John E. (2010). Competition in Energy Drinks, sports Drinks, and Vitamin-Enhanced Beverages. Crafting & Executing Strategy. p.C-77. Gamble, John E. (2010). Competition in Energy Drinks, sports Drinks, and Vitamin-Enhanced Beverages. Crafting & Executing Strategy. p.C-79. Gamble, John E. (2010). Competition in Energy Drinks, sports Drinks, and Vitamin-Enhanced Beverages. Crafting & Executing Strategy. p.C-83. Gamble, John E. (2010). Competition in Energy Drinks, sports Drinks, and Vitamin-Enhanced Beverages. Crafting & Executing Strategy. p.C-84.

You May Also Find These Documents Helpful

  • Better Essays

    Golf and Gatorade

    • 1022 Words
    • 5 Pages

    Cited: * Decision News Media SAS, "Gatorade to expand advertising". Ethical Naturals, Inc.. 2/8/10 <http://www.nutraingredients-usa.com/Consumer-Trends/Gatorade-to-expand-advertising>.…

    • 1022 Words
    • 5 Pages
    Better Essays
  • Best Essays

    Marketing Plan for Kickstart

    • 3527 Words
    • 15 Pages

    References: Bhasin, K. (2013, Jan 4.). Coke vs. Pepsi: The Story Behind the Neverending “Cola Wars.”…

    • 3527 Words
    • 15 Pages
    Best Essays
  • Best Essays

    Spano, M. (2010, June 1). Trends in sports drink formulations. Prepared Foods, Retrieved from http://www.preparedfoods.com/Articles/Feature_Article/BNP_GUID_9-5-2006_A_10000000000000842893…

    • 1658 Words
    • 7 Pages
    Best Essays
  • Powerful Essays

    Andrew Barker, brand manager for Snapple beverages at the Dr Pepper Snapple Group, Inc., has been charged with the task of assessing a new market opportunity for the brand. The decision has been made by senior company management to explore a new energy beverage as a part of a corporate business strategy to focus on opportunities in high-growth and high-margin beverage businesses. Barker must determine whether or not a profitable market opportunity exists for a new energy beverage brand to be produced, marketed, and distributed by the company. He must then make a recommendation as to whether or not the company should introduce a new branded product into the energy beverage market. Any proposal to enter into the beverage market requires a marketing strategy for a branded energy drink, including a first-year sales and profit projection. It is important to note that Dr Pepper Snapple Group, Inc. is the only major domestic nonalcoholic beverage company in the United States without a significant branded energy drink of its own. In order to come to an educated conclusion, Barker must assess Dr Pepper Snapple Group, Inc.’s current situational analysis, analyze the energy beverage market in the United States, and consider the market opportunities available to the company. The problem facing the Snapple brand is how to maintain its competitive position given an environmental threat (energy beverages). They must determine whether or not it is strategically effective to enter the energy beverage market, while at the same time preserving profitability and its customer base.…

    • 1857 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Case Study Instruction

    • 633 Words
    • 3 Pages

    2) CASE 2: “Competition in Energy Drinks, Sports Drinks, and Vitamin- Enhanced Beverages,” by John E. Gamble, C75–C87. Case Questions 1. What are the key success factors (KSF) in this industry? 2. Apply the Five Forces Model of Competition tool to analyze the Energy Drinks, Sports Drinks, and Vitamin-Enhanced Beverages.…

    • 633 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Gatorade

    • 2167 Words
    • 9 Pages

    Decision News Media SAS, (September 26, 1990). Gatorade To Expand Advertising. Trends, Retrieved Feb 24, 2004, from http://www.nutraingredients-usa.com/Consumer-Trends/Gatorade-to-expand-advertising…

    • 2167 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Gatorade Market Research

    • 3853 Words
    • 16 Pages

    Howell, Debbie. Gatorade vs. the beverage giants—going head-to-head in sport drinks. 4 Feburary 2000. 2 June 2010 <http://findarticles.com/p/articles/mi_m3092/is_3_39/ai_59426672/>.…

    • 3853 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    the major competitors are the energy drinks that provide a physical and mental stimulation. Among them, Red bull and…

    • 702 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    We have noticed an increasing number of businesses catering to the recent rise of a new target market: the health-conscious consumer. At Nike, our goal has always been to give consumers what they want now, as well as to anticipate their future tastes, and to thus tailor our strategy to accommodate those tastes. We have recognized an unfilled market potential in the non-carbonated energizing sports drink arena, thus developing an entirely new product category.…

    • 2894 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Marketing Plan of Gatorade

    • 8162 Words
    • 33 Pages

    The first step is to study the external environment of Gatorade. We noticed that it is not easy to enter the energy drinks market in France as it could be in other countries, from the political and legal aspect. Moreover, the purchase of these product is not fundamental for most of the future consumers and the recent economic crisis could represents an important reduction of sports drinks’ sales. However, a positive aspect is that Gatorade is part of the American dream and the current trends reflect a specific demand for sports drinks.…

    • 8162 Words
    • 33 Pages
    Powerful Essays
  • Powerful Essays

    Gatorade is a sports beverage designed to replace electrolytes and carbohydrates lost while exercising. Gatorade is owned and produced by PepsiCo and is positioned to be sold at supermarkets and convenience stores. The thirst quenching drink is sold as a high performance sports beverage in 80 countries world wide, with over 50 flavors. Gatorade can be found anywhere that Pepsi products are sold. PepsiCo manufactures a flavor concentrate that it ships to independent bottling facilities. The bottling facilities then mix the final product, bottle it in packaging supplied by an independent supplier, and distribute it to the various retailers. Gatorade is priced slightly lower than its main competition, POWERade. PepsiCo keeps very close control over the pricing of its products, ensuring that every channel member makes a profit. Product promotion for Gatorade is focused in three areas, media advertising, event sponsorship, and contests. The main competitor for Gatorade is the Coca-Cola product, POWERade. Currently Gatorade seems to have the upper hand because it is experiencing sales growth while POWERade is not expecting any growth in the next year. Gatorade keeps its competitive edge through product innovation. All of Gatorade 's product research takes place at a special facility called the Gatorade Sports Science Institute, use of this resource will help to maintain Gatorade 's competitive edge in the years to come.…

    • 3898 Words
    • 16 Pages
    Powerful Essays
  • Satisfactory Essays

    Customers Customers includes majorly sports drink consumer and antioxidants pill consumers. Beside that there is a little market among V7 consumers too. CompetitorsEstablished sport drinks (Croc-Ade, Sport-Ade, PowerBoost), Vegetable juices(V7) and antioxidants. These are well established players of the market and small players face difficulty to survive.Company Strength…

    • 503 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Powerade marketing

    • 3151 Words
    • 13 Pages

    The main competitor of powerade is Gatorade. The combined market share of all Gatorade products is 84.7% of the sports drink market. These Gatorade products include traditional Gatorade, Gatorade Frost, Gatorade Fierce, Gatorade X Factor Gatorade All Star, Gatorade Ice, Gatorade Extreme, and Gatorade Endurance Formula. The combined sales for these Gatorade products were $2.1 billion for the 52 weeks ending June 12, 2005. In this time period Gatorade has seen a 0.1% increase in its market share. Gatorade has sponsorship deals with the National Football League National Basketball Association, Major League Baseball, Major League Soccer.…

    • 3151 Words
    • 13 Pages
    Good Essays
  • Best Essays

    Sorensen, Chris. "The Pepsi challenge: real sugar." Maclean 's 123.5 (2010): 29. Business Source Premier. EBSCO Web. Quinsigamond Community College, George I. Alden Library, Worcester, MA. 17 June 2010.…

    • 1779 Words
    • 8 Pages
    Best Essays
  • Satisfactory Essays

    RED BULL Brand Audit

    • 5379 Words
    • 22 Pages

    Bibliography: BEVNET (2009, April 15). Red Bull Energy Drink: Red Bull Energy Shot. Retrieved May 22, 2011…

    • 5379 Words
    • 22 Pages
    Satisfactory Essays

Related Topics