3 Product Analysis
3 Products Analysis
This paper gives an analysis of the Red Bull brand. Red Bull is one of the leading energy drinks available to the globe’s beverage market. It is sold by an Australian company called Red Bull GmbH, which was created in 1987. Red Bull takes the highest market; it shares 40% of the market. From the 5.387 billion cans sold by the firm in 2016, sales of Red Bull GmbH Company has been increasing consistently. By giving the analysis of the brand Red Bull, the paper will cover its sales and the profit, and associated marketing strategies. Finally, the paper will provide recommendations based on the marketing techniques applied by Red Bull GmbH. Therefore, the entire analysis of Red Bull as a brand will be discussed in this paper.
Red Bull is grouped under soft drink. It is a non-alcoholic stimulant beverage that provides revitalization. It also stimulates the body after a vigorous or light activities in which either the physical or mental parts of the body are used. Production of Red Bull was started by the inspiration of Dietrich Mateschitz, an Australian entrepreneur. After being amazed by the real energy drink called Krating Daeng, which was initially introduced and marketed in Thailand, Dietrich utilized the idea by modifying the ingredients of preparing Keating Daeung to suit the Westerner’s taste. He progressively partnered with Chaleo and created the Red Bull GmbH Company in Chakkapong, Thailand. The Red Bull energy drink is packed in tall slim silver blue cans. This product is sold through advertisement activities, music, and endorsement of celebrities. Apparently, Red Bull has been associated with health risks (Pai, Kamath, & Goel, 2015). For example, physicians have found that when Red Bull is consumed alongside alcohol.
Red Bull Company has taken marketing strategies to the next level. Besides the product promotion to college students and offering sponsorship to sports activities such as athletics, the business advertised the brand through television, cars, and flights. All in all, these activities are aimed at increasing the awareness of the brand. In each case, the firm puts the name on the front to capture the attention of a bigger audience. This strategy has led the company to be the most recognized and profitable product (Consumers seek out energy boosts, 2012). The revenue of the company has been consistent, with the least in the last six years being $ 5.1 billion in 2010 (Red Bull: A trailblazer in marketing strategy, 2012). Besides this recommendable performance, Red Bull still faces stiff competition, especially from the Monster and Rockstar. Other competitors include the NO, Amp, Full, and Throttle. These competitors offer substituting products, hence imposing additional threat to the Red Bull caffeinated drinks. However, this threat is minimized by the firm’s brand power and client loyalty.
Practically, Red Bull started on a non-existing marketplace. On the contrary, today it is facing an extreme diversification of similar products alongside significant competitors as indicated above. Considerably, the brand of Red Bull is high; the company should aim at maintaining the leading position. People have welcomed the product, hence, making the image to be promoted. Concerning this, the company should keep its price as well. Expanding the product is also recommendable. Product expansion can be done by the creation of more needs apart from Red Bull. Possible alternative products include the White Bull and power energy drink. Another option is entering the markets of newly developed nations. This move will not only increase the brand awareness but also boost sales.
This paper discusses Coke, an American soft drink marketed by the Coca-Cola Company. Originally, Coke was meant for medicine for patent and was invented in late 19th century by John Pemberton. Through this discussion, the paper aims at giving depth coverage of Coke of Coca-Cola Company. Therefore, the company’s market share, sale, and profit. Marketing strategies will also be discussed, whose analysis will result in appropriate recommendations. Thus, a full analysis of Coke will be given.
Coke is a sugar-free soft drink processed and distributed by the Coca-Cola Company. This product was unveiled in 1982. Since then, the company has experienced a consistent growth. Currently, it is the best soda brand in virtually all nations across the globe. Beverage Digest, through its trade publication, stated that Coca-Cola holds 17% of the United States’ market share, making a sale of 1.6 billion cases in 2009. Presently, the product is available in more than 200 countries resulting in a daily sale of 1.9 billion. This progress has led to more sales and bigger percentage of the market share (PR.N, 2014). For instance, the company’s last report indicates a better-than-expected revenue and profit. This beverage giant is also accelerating bottle franchise efforts.
Primarily, the company invests billions of money in repurchasing bottling assets. However, recently it has reversed the course to help in cutting the cost. The enterprise’s global volumes grew by 3% in the fourth quarter. In overall, Coca-Cola reported a profit of $ 1.24 billion. Besides this success, consumption of Coke has been associated with negative sides. The deep study has been conducted about Coke product, revealing that man who likes drinking Coke suffers from sperm count reduction. Specifically, in 2010 Reuters stated that people who drank more Coca-Cola had their sperm count reduced by 30%. Coke is one of the most acidic soft drinks, with a pH ranging between 2 to 3.4 (Grobe & Voltz, 2015). Therefore, it increases the acidity of the stomach; hence, it is not healthy.
Having a joyful product must be supplemented by other mechanisms to transform a company into the most valuable enterprise in the world. In respect to this, the Coca-Cola Company applies seven main designs alongside marketing strategies to increase its performance across the world (Coca-Cola reveals new one-brand’ packaging, 2016). The company started with a distinct, market-tested formulary towards the realization of its mission. This model enabled the business to adjust Coke to the most valued product by eliminating handful parts of its ingredients. Another strategy is the company’s outstanding and a timeless front logo. While the organization is modifying its goods and brands every year, its logo has remained untouched for over the years to make it printed on the minds of the global users. This strategy does not only increase the awareness of the brand, but also implies that Coke is the leading soft drink. These plans gain competitive advantages for Coca-Cola Company. Therefore, besides aiming at how to make more sales, the business should also focus on maintaining its competitive benefits and its market position.
Coca-Cola is a well-known brand in the world. The flexible marketing techniques discussed above and innovation capacity has made the company a leader in the field of soft drinks. However, the ‘junk food’ labels and health risks associated with excessive consumption of Coke form the negative sides of the brand. Therefore, it is recommendable for the business to invest considerably and make a profit from other non-soft drink products, alongside window dressing the brand. Coca-Cola is the sole marketer of Coke among other beverage companies in Canada and the United States. The company should also diversify to limit the focus on Coke as the only product.
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The paper aims at giving an analysis of Hot Chocolate, a heated beverage product that consists of shaved chocolate, the heated water or milk, sugar, and melted cocoa powder or chocolate. Aztecs introduced the first brand of hot chocolate at around 2,000 years back. By discussing hot chocolate as a product, the paper is going to cover its sales and profit and marketing strategies. Based on substituting products, market share and marketing strategies, the paper will conclude by giving recommendations on how to maximize the selling of this hot chocolate. Thus, a complete analysis of hot chocolate will be provided.
Hot chocolate is presented in a variety of kinds ranging from sweet to glossy chocolate bread. In between, there are 100% cacao disc flakes which melt quite quickly when stirred with a spoon (Fortney et al., 2016). Hot chocolate is often taken for pleasure. However, it has confers potential benefits in the health of a person. For example, a study conducted in 2003 at Cornell University affirmed that cocoa mostly consisting of antioxidants. Scientifically, this antioxidant is significant in preventing cancer. Besides, hot chocolate plays an important role in digestion, especially when made of cocoa beans (Dogan, 2015). Therefore, hot chocolate as a beverage is valued in medicine and can be used as a medicine. According to Francisco Hernandez, an explorer, hot chocolate can help in treating liver and fever diseases. On his side, another explorer named Santiago de Valve under Tories stated that when hot chocolate is consumed in a large amount, it can treat chest ailments. He also said that its consumption in small amount helps in the treatment of stomach disorders.
There are four main marketing strategies applied by businesses to market hot chocolate, the first one being the introduction of new brands on a weekly basis. Chocolate specialists struggle for the finest cocoa beans across the globe. Winnowing pictures and tempering machines are widely covered on the internet, implying that the brand is advertised through the same channel. Tentatively, online magazines and newspapers convey messages of fine chocolate (Wispa Hot Chocolate Frothyheast, 2013). Sales, discounts, giveaways, and collaborations are the key strategies used by firms to increase the awareness of the brand.
All the mentioned strategies are applied by the company with the primary aim of gaining and retaining consumers, hence, ensuring service quality. The luckiest clients are the ones who greatly enjoy the sweetest sides of the deal. While customers are willing to spend money on hot chocolate based on its sweetness and health advantages, they are rewarded with infinite alternatives of brands and flavor. Such clients are from a major targeted group of the company, especially during important occasions such as moments of Valentine and birthday celebrations, mother’s day and Christmas. During normal days also termed as off-peak seasons, chocolate businesses still struggle for the attention of customers through the provision of appealing new creations and offers. Tentatively, this strategy maintains the client’s mind.
Chocolate marketing is characterized by a phase of product saturation as it is a timeless product. While it has associated in companies experience with off-peak seasons, more sales are made on a daily basis. The companies realize the enormous amount of sales because of the benefit sides of the product. Hence, focusing on both acquisition and building a long-term customer loyalty is recommendable for any chocolate marketing strategy. To this respect, these marketing companies should consider loyalty compensation schemes to maintain the consistency in sales.