Premium Essay

Case Study Vitamin Water, Energy Drinks, Other Beverages

In:

Submitted By jdenaro
Words 727
Pages 3
Vitamin Water, Energy Drinks, other Beverages

Case Study 2

The beverage industry has been rapidly growing for many years now. New products are being produced, as well as old products being refined. One of the largest markets thus far, beverages are continuously changing and being tinkered with. We look at a few different types such as, energy drinks, sports drinks, and vitamin-enhanced beverages. With different corporations comes different success factors. Some success factors for the beverage industry consist of rapid growth in category, premium prices, and high profit margins. Coca Cola and PepsiCo have been expanding on numerous different flavors, holding to the same products and production line. By expanding the “line up”, companies can expand their production, as well as profit and the business as a whole. “As consumer preferences shifted during the 2000s, sports drinks, energy drinks, and vitamin- enhanced drinks had grown to become important segments within the industry in 2010.” [Gamble C 76]. Noticing that most of the energy drinks are vitamin based, the growth of these products has been positive. Looking at Exhibit 1, we understand and can see the growth and volume sales over the years between 2005 and 2014. This chart pictures a constant growth based on the growth determined within prior years.
The Five-Forces Model of Competition, is a key analytical tool in organizing a model based on buying and selling. The Five Forces are considered to be: firms with substitute products, rivalry among competing sellers, buyers, potential new entrants, and suppliers. This tool can be used to organize any type of business, for example, if I were to sell PowerAde, my competitors would be Gatorade, vitamin water, and regular flavored water. Because I sell PowerAde, I am competing amongst many different flavors and products, which means I have to sell my

Similar Documents

Premium Essay

Water: an Overlooked Essential Nutrient

...Nutri, Health, & Wellness w/ Lab 8 February 2014 Water: An Overlooked Essential Nutrient Welcome, my name is Karina Padilla I am a registered dietician. I have invited you to lunch and learn about, what you will select for a yearlong beverage contract from these three choices water, Gatorade, and Powerade. The role of water in our body are giving cell life, where water is a carrier, distributing essential nutrients to cells as minerals, vitamins, and glucose. It also has chemical and metabolic reactions as it removes waste products including toxins that the organ cells reject and removes through urine and feces. Water is a transport of nutrients in the biochemical break down of what we eat. H2O regulates body temperature, it has a large heat capacity which helps limit changes in body temperature in a warm or cold environment. The elimination of water is an effective lubricant around joints and acts as a shock absorber for eyes, brain, and spinal cord. The goal of drinking fluids during exercise is to prevent dehydration and maintain performance. Fluids preferably with carbohydrates and electrolytes, should be consumed in small amounts every 15 to 20 minutes during exercise. Water and electrolytes serve very important roles in the functioning of the body and sweating can lead to excessive losses of both critical nutrients if not properly replaced. Dehydration and electrolyte imbalances can adversely impact health and exercise performance. The magnitude of fluid...

Words: 2653 - Pages: 11

Premium Essay

Marketing

...Energy Drinks: An Assessment of Their Market Size, Consumer Demographics, Ingredient Profile, Functionality, and Regulations in the United States M.A. Heckman, K. Sherry, and E. Gonzalez de Mejia ABSTRACT: The consumption of energy drinks is rapidly increasing, as demonstrated by their large market growth. The targeted demographic group is teenagers, young adults, 18 to 34 y old; although expansion into nontraditional markets is also occurring. It is claimed that energy drinks can offer an increased energy boost related to their ingredient profile of caffeine, taurine, herbal extracts, and vitamins. Research suggests that energy drink formulations, in addition to increasing energy utilization, may also improve mood, enhance physical endurance, reduce mental fatigue, and increase reaction time. However, in most cases, the corresponding mechanisms of action are not clear. In addition, concerns have been raised over their safety and with a currently weak regulatory environment, efforts need to be made to ensure consumer safety. The objective of this article is to review the current U.S. energy drink market with emphasis on its market size, target demographic, active ingredients, potential benefits, safety, and regulations. Introduction Energy drinks refer to beverages that contain, besides calories, caffeine in combination with other presumed energy-enhancing ingredients such as taurine, herbal extracts, and B vitamins. They first appeared in Europe and Asia in the 1960s in...

Words: 12218 - Pages: 49

Premium Essay

Alternative Drink Industry

...Case Analysis of the Alternative Beverage Marketplace Companies around the world are fighting for position in their industries. The completive world of alternative beverages is no different. The companies involved in this epic battle for market share all are challenged with the three questions outlined by Arthur A. Thompson “What’s the company’s present situation? What should the company’s future direction be and what performance targets should we set?” (Thompson, 2012) The development of a strategy for the companies involve in the alternative beverage arena is a daunting one. There are pressing internal and external environmental factors that present significant challenges in the gaining and maintaining of market share with in the industry. The obstacles faced by these organizations include global economic slow downs, dynamic distribution channels, negative press and fickle customer tastes. These companies, however, must remain focused and vigilant to attract customers to their brands. The case study presented by John E. Gamble, Competition in Energy drinks, Sport Drinks, and Vitamin-Enhanced Beverages, outlines the boons and challenges faced by the four leading distributers of alternative beverages around the world. The industry leaders (PepsiCo, Coca-Cola, Red Bull and Hansen Natural Company) in the alternative beverage market are what is know as a strategic group. “A strategic group is a cluster of industry rivals that employ similar competitive...

Words: 2393 - Pages: 10

Premium Essay

Case Study - Dr Pepper

...Practice Case 1: Dr Pepper Snapple Group, Inc: Energy Beverages 1. How would you characterise the energy beverage category, competitors, consumers, channels, and DPSG’s category participation in late 2007? Energy Beverage Category: Energy drinks provide consumers with a boost of energy and they fall under the category of functional drinks. Functional drinks are non-alcoholic drinks which include ingredients such as herbs, vitamins, minerals, amino acids or other nutritional ingredients. Other functional drinks include sport drinks, teas, fruit drinks and enhanced water drink. DPSG participation → In the US and Canada, Dr Pepper Snapple Group participated primarily in the flavoured carbonated soft drink (CSD) market segment Competitor: The largest non-alcoholic beverage category, after carbonated soft drinks, sport drinks, and bottled water, but the fastest growing one. DPSG participation → their major competitors include Red Bull, Monster Energy, and Coca Cola. Consumers: Average US per capita consumption of energy beverage drinkers increased by 14% since 2004. Predominantly consumed by males aged between 12- 34 during the afternoon or morning. The reasons for consumption include energy boost, mental alertness and taste. Most limit their options to 1.4 different brands which sheds light on strong brand loyalty. DPSG participation → DPSG have an attractive positioning within a large, growing, and profitable market. Channels: Distribution channels include convenience...

Words: 864 - Pages: 4

Premium Essay

Strategic Marketing & Planning, 2009 Fiji Water

...Strategic Marketing & Planning, 2009 Fiji Water Executive Summary: There are multiple recent strategic issues that the bottled water company Fiji Water is facing. The economic recession has led to a change in consumer purchasing trends, and the bottled water category is not as stable financially as it used to be. Environmental issues, such as waste and pollution, are also affected Fiji Water and its competitors. Bottled Water companies are attempting to shift packaging and shipping to more ecologically friendly materials and modes, as consumers favor environmentally sustainable products. Additionally, as consumers focus on obtaining healthier lifestyles and diets, they have begun to question the safety and purity of the water that bottled water companies are producing. Fiji Water has been affected greatly by all of these issues, as well as negative press about the socio-economic conditions of their souring location, and in 2008 was forced to layoff 40% of their staffing resources. With limited resources, an action plan going forward must be cost efficient and extremely effective. By analyzing and critiquing four potential strategic options, a rational next step for Fiji Water can be discovered. By supporting this plan with marketing tactics and communication, it can attempt to stimulate growth for the company. Current Overview: History: Fiji Water is bottled water artesian water that was founded in 1993 in Colorado and first produced and sold to the world...

Words: 10365 - Pages: 42

Premium Essay

Project Strategy

...Case Study: Bottled Water Industry Team 3 James Barlow, Julianne Schneider, Robyn Sumner & Katie Austin GBA 490 Dr. Drnevich 26 March 2008 EXECUTIVE SUMMARY The strengths of The Coca-Cola Company’s Dasani brand include its availability and convenience, prominence of the parent company, geographic coverage, financial stability, assets, distribution channels, and image of social responsibility. Dasani’s availability and convenience stems from the fact that the brand is virtually in every supermarket, convenience store and vending machine. Consumers are bombarded with the brand, which makes it very recognizable and well known. Its recognition factor is partly due to the great success of its parent company, since The Coca-Cola Company is so well established and respected in the beverage industry. Another strength is Dasani’s geographic coverage. It is available in 200+ countries in localized flavors, which further extends the brands marketability. Dasani is obviously financially stable, as it is backed by one of the most successful beverage companies in the industry. Its financial stability allows for high cost advertising, marketing, and development. As part of the Coca-Cola family, Dasani reaps the benefits of readily available assets and distribution channels. Assets include water sources, processing systems, and bottling and manufacturing suppliers. Assets like bottling and manufacturing equipment can...

Words: 5068 - Pages: 21

Premium Essay

How Does Caffeine Affect Energy Drinks

...Energy drinks have increased in popularity in adolescents and young adults throughout Jamaica and concerns have been raised regarding the ingredients in energy drinks and their potential negative effects on health. These drinks are consumed for the purpose of providing an extra energy boost. These drinks are also used for their purported athletic-performance-enhancing effects, improved concentration, and weight loss. Factors that contribute to the consumption of energy drinks in Jamaica Effect of caffeine and vitamin contents in local energy drinks on one’s energy boost Most energy drinks contain caffeine, which literature has demonstrated to improve both mental and athletic performance. Several studies have also found that moderate amounts...

Words: 606 - Pages: 3

Premium Essay

Summer Internship S&M in Hccbpl

...Title (Summer Internship Project Report) Submitted in the Partial fulfillment of the requirement for the award of POST GRADUATION DIPLOMA IN MANAGEMENT (PGDM) Submitted to SIES COLLEGE OF MANAGEMENT STUDIES Nerul, Navi Mumbai Submitted By Sunil Kumar Bose 111 Marketing 2014-16 Declaration I, Sunil Kumar Bose, studying in the second year of POST GRADUATION DIPLOMA IN MANAGEMENT (PGDM) at SIES College of Management Studies, Nerul, Navi Mumbai, hereby declare that I have completed the Summer Internship Project titled “Driving Kinley Water NDs at Medical Channels and at WD outlets” as a part of the course requirements for the POST GRADUATION DIPLOMA IN MANAGEMENT (PGDM) Program. I also declare that the work undertaken by me is original and has not been copied from any sources. I further declare that the information presented in this project is true and original knowledge and has not been submitted to SIESCOMS or any other institute for any other examination. Signature of the Student: Date: 5th July 2015 Name of the Student: Sunil Kumar Bose Roll No.: 111 Acknowledgement I take this opportunity to express my profound gratitude and deep regards to my corporate project guide Mr. Gurjot Singh Bedi, Area Sales Manager (ASM) and Mr. Alok Chand, Sale Manager (SM), HCCBPL Varanasi for his exemplary guidance, monitoring and continuous encouragement throughout...

Words: 17851 - Pages: 72

Premium Essay

Monster Energy

...| Product Analysis: Monster Energy Drink | Bill ClymerWednesday August 14, 2013Written by: Maira Khalid | PART A Situation Analysis Monster Beverage Corporation The Hansen Beverage company (recently changing their name to Monster Beverage Corporation on January 5th of 2012), was a family owned and operated company in the 1930’s, selling freshly squeezed juices to local film studios. In the 1970’s, one of the Hansen brothers decided to transition their beverage business into marketing ‘natural sodas’. This was the upturn of the company that led them to where they are today. Today, Monster Beverage Corp. has transformed into the largest energy drink company in Canada with sales of more than $ 2.1 billion in 2012. Monster beverages have always been, and still claim to be free of preservatives, caffeine, sodium, artificial flavours and colours. Although many people believe that all energy drinks contain high levels of caffeine and are not healthy, the company’s mission statement which has not changed since Jan 5th, 2012 when the company changed its name, states otherwise. The Mission Statement The mission of Monster Beverage Corp. is to satisfy consumers' needs for superior quality and great tasting, healthy, natural and functional beverages. Our beverages will be positioned as an upscale brand and will often be marketed at a premium to competitive mainstream products. This mission statement provides Monster Beverage Corp. with the information needed for...

Words: 11229 - Pages: 45

Premium Essay

Panera Bread Company in 2011

...Case 8: Panera Bread Company in 2011—pursuing growth in a difficult economy This case study provides information regarding the past performance, current analysis, stock valuation, market evaluation, and industry comparison. In this analysis and case study, The following key elements comprise the Panera Bread strategy:      1. Capitalize on market potential by opening both company-owned and franchised Panera Bread locations as quickly as possible. Management planned to expand the number of Panera Bread locations by 17% annually through 2010 and to achieve EPS growth of 25% annually.   The addition of the franchising option to the strategy has proven to be key in acquiring desired market penetration. 2. Offer a more nutritious fast food dining option. Panera Bread’s signature product is fresh-baked artisan bread made with limited ingredients and no preservatives or chemicals. The rest of the Panera menu offerings are built upon this bakery expertise. The menu groups were fresh baked goods, made-to-order sandwiches and salads, soups, light entrees, and café beverages. 3. Compete successfully in five submarkets of the food-away-from-home industry. Panera Bread utilizes its distinctive menu, signature café design, inviting ambience, operating systems, and unit location strategy to compete successfully. The submarkets that Panera competes in are: breakfast, lunch, day-time “chill out”, light evening fare for take-out or dine-in, and take-home bread.   Panera’s goal was to increase...

Words: 1017 - Pages: 5

Premium Essay

Case Study on Dr Snapple Group Inc.

...MKT750 MARKETING MANAGEMENT CASE STUDY DR PEPPER SNAPPLE GROUP, INC. ENERGY BEVERAGE PREPARED BY: RAMSIS ANAK WILLIAM AGIM 2012402536 Strategic Issues and Problems Being the consultant of Dr Pepper Snapple Group, Inc. (DPSG), I am charged to assess whether or not a profitable market opportunity existed for a new energy beverage brand to be produced, marketed, and distributed by the company. The decision to explore a new energy beverage was made by senior company management of DPSG as part of a corporate business strategy to focus on opportunities in (1) High Growth and (2) High Margin beverage businesses. My tasks involve a number of important factors. I must assess the likelihood that DPSG Competitive environment will be liberal or conservative in its marketing of the new energy beverage. An important consideration is DPSG role in affecting this environment, given its strong presence in the CSD market and utilizing that strength to push the new energy beverage. Ultimately I must make a “go-no go” decision. A “go” decision requires a recommendation in the form of the new energy beverage, its target market, its price, and promotion. A “no go” decision must take into consideration Dr Pepper’s profit and growth position without the new energy beverage and measures to minimize their impact. The problem facing Dr Pepper’s is how to retain its present competitive position given an environmental threat (other energy beverage) while at the same time preserving...

Words: 2416 - Pages: 10

Premium Essay

Mkt 421 – Marketing Plan - Pepsi B Energy Marketing Plan: Phase One

...Phoenix DATE Professor Pepsi B Energy Marketing Plan: Phase One Pepsi is performing a marketing control of their recent release of the Pepsi Diet Slim can, evaluating the successes and the failures of product. Based on the market successes of the Pepsi Diet Slim can, Pepsi is planning to develop a sugarcane-based Pepsi energy drink consisting of vitamin B12 and other B vitamins. This new product is packaged in a format similar to the Pepsi Diet Slim to offer a new look to Pepsi’s soda cans and to compete with the irregular shapes of existing energy drinks. Pepsi B Energy is to cater to customers who want to drink a healthier Pepsi. Pepsi B Energy’s Marketing Plan Phase One is designed to develop the basics of a marketing strategy for Pepsi B Energy. Pepsi B Energy’s Marketing Plan Phase One provides an overview of PepsiCo, a brief description of the product, the importance of marketing for PepsiCo, a SWOTT chart for Pepsi B Energy, and the preferred marketing research approach for Pepsi B Energy. PepsiCo Pepsi was founded in 1898 by a druggist from North Carolina named Caleb Bradham. Through a series of acquisitions and other business dealings, Pepsi became PepsiCo. PepsiCo currently produces a variety of beverages, many in partnership with other companies. PepsiCo sell soft drinks, juice drinks, sport drinks, bottled and enhanced waters. Recently, the company has acquired Tropicana Juices. This move, combined...

Words: 7771 - Pages: 32

Premium Essay

Affably Baha'Ullah Jamaal

...Introduction In 1984 Mateschitz founded Red Bull. Red Bull Energy Drink was first sold on the Austrian market in 1987. Red Bull reached its first foreign markets in 1989 in Singapore and in 1992 in Hungary. In 2008 Red Bull created its own cola, Red Bull Simply Cola. It created a market segment unlike traditional colas, by using only 100% natural ingredients. In 2009, Red Bull extended its product line with Red Bull Energy Shots. Red Bull headquarters are based in Fuschl am See, near Salzburg Austria. Approximately 4 billion cans of Red Bull are consumed each year; the product is available in 160 countries. Red Bull is the leader of the energy drink market and performs an annual turnover of more than 3 billion Euros. As we will see in this report, polemics, nonconformist, genius marketing are, among others, the ingredients that made Red Bull the star product of Energy Drink Segment in the world. For more than 20 years, Red Bull has managed to establish itself brilliantly in the world, which, despite the widespread economic gloom, has always taken a growing interest for this drink. In this report, we will analyse Red Bull and the environment in which the company evolves, its target and positioning trough marketing tools. It will enable us to understand how Red Bull managed to reach its leader position and to think about some recommendations to further improve its strategy. The Product Red Bull is a lightly carbonated drink that enhances mental and physical activity. It is a blend...

Words: 4736 - Pages: 19

Premium Essay

Memorandum

...------------------------------------------------- Re: Case Study No. 1 ------------------------------------------------- I appreciate this opportunity to assist you in this assignment and address the board with my findings. As per the assignment I have researched the following topic from the course materials. “Illness and death associated with the consumption of energy drinks”, and I have reached the following conclusions: 1. There are potential risks associated with energy drinks in children and adolescents 2. Sale of energy drinks has been debated and or restricted in various places 3. Many ingredients are understated and not regulated Within this memo I will explain my conclusions. I will be presenting my analysis in three parts. The first section addresses potential risks in children and adolescents. The next section about the debates and regulation of energy drink sales. The final section regards the ingredients that are understated or not regulated in some countries and states. Potential Risks to Children and Adolescents For my analysis I began by reviewing “Energy drinks 'potentially dangerous for children' say doctors. Energy drinks could be dangerous for children and teenagers, doctors have warned.” Found on www.telegraph.co.uk. As a responsible company we should be liable to research and warn consumers of the possible risks associated with the consumption of our products. “Energy drinks could be dangerous for children and teenagers,” The Daily...

Words: 972 - Pages: 4

Premium Essay

Explorative Essay

...1102 Ashley Molina 10/29/2012 ENERGY DRINKS Recently, it seems that energy drinks have become the latest fad - from tired college students to business professionals and children. While there may be countless different reasons for the consumption of these drinks, the question remains, are energy drinks ultimately harmful to your health? As a college student who has to stay up late at times to study, I myself have had to use energy drinks. However, I found myself wondering what was inside these drinks and when I looked at the ingredients, I realized I didn’t recognize many of the ingredients that I was drinking. As I try to be very cautious with my health and the things I consume, I wanted to further explore what was in these energy drinks and if they were ultimately harmful to my health. To begin my research, I searched Google to see whether these energy drinks were harmful to my health. I found an article by the McKinley Health Center, published in 2011, and titled “What’s the Buzz with Energy Drinks?” This article discussed how the amount of caffeine in energy drinks is usually much higher than the Food and Drug Administration allows in cola beverages. A high intake of caffeine may have minor effects in the short term, however, in the long term, it can have more substantial and detrimental effects such as bone density, harming unborn children, and weight gain. This article provided some good evidence to the detrimental effects of energy drinks; however, I wanted to see if...

Words: 1140 - Pages: 5