Competition in Energy Drinks - Case Study Example

? Competition in energy drinks Energy drinks or rather beverages range from cold to hot, sugar to sugar free, and those that containcarbon dioxide to those that do not have. The key players in the market must apparently scan the entire market and set long-range plans that will enable them acquire worthwhile market segments. The variations on what a particular segment requires are a point of concern. Different markets pose different characteristics and consumption patterns thus every market calls for a specific approach. For instance, Coca-Cola’s to the United states market is completely different from that of Asian market in that the latter takes carbonated drinks while the former declines completely. Despite the fact that the beverage market is wide, the needs and wants vary in accordance to various aspects. Description of the industry’s strategically relevant business and environmental components People have different beliefs and perceptions, tastes and preferences, needs, and wants simultaneously. A company should not take consumer wants for granted. The reason behind it is simply that the consumer turns out to be the heart and soul of the business, without the company cannot survive. The world comprises of cultures observed to by their specific habitats and they differ accordingly from one place to another. Different geographical and climatic conditions also affect consumption parts of the consumer. A company seeking to exploit the market fully must consider reviewing the above factors for they clearly state consumer-marketing environment. The vision and mission of any beverage company must highlight the importance of customers. Since the beverages directly affect the customers, the mission and vision should be encouraging such that the customers feel close to the organization. Essentially, production and delivery of the beverages will be dependent on the economic political structures of the market. A company approaching a third world country shall not apply the mechanisms of that which is approaching developed countries. A company shall have to establish clearly, the production, promotion, distribution, and strategies. Strategic planning for the above factors enables a company to reach segment appropriately and deliver satisfaction. The choice of a delivery channel should relate to the perceived costs to incur and time taken to reach the consumer. Technological advances ultimately affect the industry and a company seeking competitive advantages must perceive chance as rather an opportunity to a threat. It must study the competitor’s impact in the desired market, the various tactics, and their target customers. Evaluation of competition Assumptions that any markets are perfect are bound to injure efforts. A company must scrutinize and understand competitors’ strong points, measure the degree on which they influence the market, and weigh them against their weaknesses. Through the realization of the competitors’ weaknesses, the company stands the opportunity to counter competition and survive tremors in the new segment. Since all beverage companies may tend to crawl in the shadows in an attempt to fish information. The company should watch closely and try as much possible to contain its information. On the idea of pricing, the company should ensure that its prices vary from those of competitors, a factor that minimizes chances of switching from one brand to another. However, it is advisable that company first wins the hearts of the customers, mainly through proper distribution and advertisement (Kotler 2009). Drivers of change in the industry dynamics Bearing that the beverage industry comprises of many players and so are the customers, the Company must be specific on which end to cater for in the segment. The company does not perform these tasks solely as there are other key players in the market contributing to its success. It must analyze its suppliers, employees, buyers, and logistics channel. Suppliers are important to the point that they bring production materials to the organization. If a company happens to be at loggerheads with the suppliers, production eventually halts, it is therefore important to create a harmonious environment with the suppliers. Employees are an important factor for they are concerned with the day-to-day operations (43). Proper motivation to employees will positively improve production of the beverages. Further, employees meet directly with the external environment and may influence the buying process. It is advisable that a company should endure in practices that lure employees to sense ownership and as part of the organization. Beverage delivery process is delicate due to the limitations of breakages and perishabillity. The distribution and delivery channels must thus meet the required standards. Beverage companies must ensure that the channels employ ethics and practices that will attract the customers further. Because wholesalers and retailers constitute to the distribution line, their views should respected for the company has to acquire shelf space. Beverages sell in shops, cafes, coffee joints, restaurants among other places. All the places are equally important, as via them the targeted customer will achieve satisfaction. The beverage packaging should be tailored that it wins the stockiest even before the buyer, merely because, it is the only way to acquire shelf space (71). Buyers draw the utmost attention of every business, the fact that they possess the power to accept or decline the product. They are the end users of every product offered in the market including beverages. The company must therefore analyze their needs and wants, bearing that a buyer might need a beverage but be distinctive on the specific one to take (want). The company, having contemplated on the characteristics of the target market, must further ensure that all buyers in the segment feel the impact of the product. With a critical and an analytical of their characteristics and behavior, it becomes easy for the company to set methods to lure the customers to buying its beverages and drinks. Key success factors The factors to succeeding in the beverage follow the planning sequence of the entire planning. The beverage company must ensure that the chosen segment favors stay in the market. Its strengths will serve as a shield against persuasive and relentless competitors who always will push for their bid to exploit the segment. Strong objective pose strong execution of strategies mainly production and delivery. Advertisement is a key to success in the beverage industry as it is the only way to reach the targeted buyer. Opportunities in the beverage industry are many, since every healthy human being must drink or take something at the end of the day. Opportunities in the beverage industry should not be underestimated. Having defined what the customer needs, it is possible restrategize and decide on what to offer satisfactorily to the market. The decision should enable the company to come a range of beverages that will cater the needs of the entire market segment. This is essential because different customers have different capabilities to buy depending on their incomes. The company must consider and opportunity and endeavor in packaging styles so that the beverages suit all buyers in the broad market share. Reference Kotler, P., & Kotler, P. (2009). Marketing management. Harlow, England: Pearson/Prentice Hall. Read More