A strategic map of different drinks - Essay Example

? Case Analysis affiliation Case Analysis 4. What does your strategic group map of the energy drink, sports drink, and vitamin-enhanced beverage industry look like? Which strategic groups do you think are in the best positions? The worst positions? Multi-brand Dominate brand Single brand Regional National International A strategic map provides a visual evaluation of how a brand dominates the market concerning its presence in the market. from the case study, the strategic map would be represented by the above graph. The products have been evaluated by comparing the brands and their presence in the market. other products available in a specific region have the lowest position in the strategic map, this is because they are a local product and the management has not focused on marketing. Comparing products available internationally, single brand products like Red bull and Rockstar are positioned lower compared to dominate and multi-brands. A brand with many products attracts a larger market share compared to a product with a single product. In the case study, Coca-Cola and Pepsi are better positioned compared to other brands under evaluation. For other brands to compete effectively with the best-positioned brands, the management needs to market the products to the international market. the management needs to strategize to ensure product diversity in a brand. Geographic distribution will increase product scope and diversity in a product will allow customers to have choice. Products like 5-hour energy are moderately positioned in the strategic map in terms of distribution, the single brand is distributed nationally placing it above regional brands (Gamble, 2010). 5. What key factors determine the success of alternative beverage producers?  The beverage industry is competitive due to the many players that have invested in it. The success of each player is dependent on various factors. One of the main factors is a strong brand name. some of the older and established brands have a larger market share compared to the newer brand. Companies like Coca-Cola and Pepsi have a larger market share. Market penetration is another factor influencing the success of products. Brands that have penetrated the market and have a global distribution system have more sales compared to local brands. The companies are able to advertise their products through developed distribution channels. Big companies like Pepsi and Coca-Cola have established productions and distribution outlets in many parts of the world to ensure that the customer has access to the product. The taste of the beverage is also a key factor, the beverage should have a unique taste that attracts clients to the brand. Coca-Cola has a secret formula that is passed down from generation to generation, giving Coca-Cola a unique global brand. The beverage companies invest heavily in the marketing of its products, marketing creates market awareness thus increasing the popularity of the products. Marketing also informs the customers of the variations in the products a brand has and their availability. Beverage companies have to invest in innovation. The management should ensure that the company competes not only in its primary competition group but also against other beverages in the market. 6. What recommendations would you make to Coca-Cola to improve its competitiveness in the global alternative beverage industry? to PepsiCo? to Red Bull GmbH? Coca-Cola has a good position in the market. To maintain this position, the company has to carry out extensive research to evaluate the customers’ needs in the global market. Through research, the company will be able to produce new products that will appeal to the dynamic beverage market. Through market research, the company will be able to evaluate the products being produced and discontinue production of non-profitable products. The resources can be reassigned to profitable product and the production of new products in the market (Gamble, 2010). Pepsi is also a strong brand in the market, the main issue facing the brand is customer awareness. The company has diversified its product portfolio by introducing new products to the market. The company should focus its resources into marketing of this new product if it is to remain competitive. Increasing product awareness should be prioritized by the company. The energy drink market is also a new market that Pepsi can explore to increase its product range and market share. The success of Red Bull is due to the company’s ability to focus on a single product and market it extensively in the global market. it is the right time for the company to produce more products under its brands to capitalize of the market share acquired. The Brand has a wide client base that is loyal to the product and the company should use this to increase its revenue. The company needs to evolve with the changing needs of the customers. the company should invest in research to know which product line will benefit them and invest in this line of products. References Gamble, E., John. (2010). Case 5: Competition in Energy Drinks, Sports Drinks and Vitamin-Enhanced Beverages. University of South Alabama. Read More