Branding of Booster Energy Drink
It is really important to the success of an energy drink to give it a brand name which makes it stand out from the crowd. The brand name for our selected energy drink Booster indicates that the drink comes with fresh and natural ingredients which are aimed at lifting up the energy levels during times of extreme physical activities such as sports. Building a brand image in the mind of customers holds prime importance. It can also be linked to positioning where a firm is able to establish the brand name of a product or service in the mind of customers in a way such that the customers perceive it the way the firm wishes (Riezebos & van der Grinten, 2012).
Building brand loyalty is also a great task which all brands must take up in order to gain loyalty or long-term commitment from the customers. Loyalty can be gained from customers by building strong relationships which can be acquired by providing exceptional levels of product features and living up to the promise of achieving the company’s mission and vision. Another essential component of building the strong brand of Booster is establishing brand equity. Brand equity is derived from the value which is associated with the energy drink. If Booster is able to deliver maximum value in terms of the benefit such as energy, freshness and moral uplift and the customers are delighted with these value propositions, then we can say that brand equity has been established with success (Aaker, 1996).
Pricing of Booster
As discussed in the earlier sections, the pricing of Booster will be set up by keeping the market trends in view. Booster energy drink will make use of market penetration strategy to set up its pricing in the market. Kotler & Armstrong (2010) proposed that market penetration is a strategy in which products or services are priced little lower than the market so as to attract a number of market segments thereby, acquiring more market share and increase customer base. Because competitor drinks such as Red Bull and Monster are already operating in the market and providing high-quality energy boosting drinks to the customers, the only way that Booster can sweep share from the market is by keeping its pricing low. It was assumed that by keeping the price of Booster energy drink can at a price which is less than fifty percent of its competitors’, more revenues can be generated.
Distribution Strategy
Booster energy drink will make use of various channels to ensure that the drink is readily available to the target market. This distribution strategy is known as an inclusive strategy where several distributors, wholesalers and retailers are used to ensure that product is available to the customers within their convenient locations (Hunt, 1976). The drink would be manufactured at the factory from where it will be transported to the wholesalers at discounted rates. It has been kept in view that the distribution strategy can be well established if its logistics are strong.
The wholesalers of Booster energy drink will be given special trade discounts so that they ensure the delivery of the drink to a maximum number of retailers. The retailers are responsible for acting as the direct point of purchase for the customers. The retailers are offered promotional discounts for putting up banners of Booster energy drink; placing the drink in a prominent position on the shelves and informing the customers about the qualities of newly launched Booster energy drink to the extent that they decide to purchase it.
Competitors of Booster Energy Drink
The competitors of Booster energy drink is in the category of inter-competition as the energy brands competes with each other for market share and customer base while being in the same industry. Monster, Red Bull, and Rockstar are some of the direct competitors of Booster. Red Bull is the leader in energy drinks and has been able to capture the global markets with the help of its varied products, expansion into global markets and extensive promotional efforts. However, there are certain weaknesses associated with the brand of Red Bull. For instance, the pricing of Red bull energy drink is quite high which does not satisfy its position in the market. The company keeps on launching several flavors of Red Bull for different market segments which cannot be a success all the time. Red Bull contains a high amount of caffeine which is not seen as a sign of health and many health concerned agencies can raise their voices against its marketing and consumption. A weakness of Red Bull also lies in its patents not being registered which means that competitors can use its formulas or recipes to create drinks with similar flavors/tastes. In some geographical locations, the advertisements of Red Bull are not seen by customers as much appealing and some customers can also have ethical concerns with its content.
Leadership Orientation
Booster is also known for its leadership orientation. By keeping pricing low, Booster intends to grab more shares from the market. The recipe of energy drinks is simple and ingredients used have a natural appeal. Customers want their energy levels to be restored with consuming much caffeine and as Booster is free from caffeine, customers would certainly prefer it over competitors. The management wishes to see Booster as a leader in the energy drink segment with differentiated features and appeal.
Differentiation Strategy
Booster will pursue differentiation strategy to attract target market. The differentiation factor of Booster would be based on the natural ingredients with no added preservatives. These ingredients will not only raise the energy levels but also makes the mind feel more fresh and active. Red Bull, Monster, and Rock Star contain quantities of caffeine which is not viewed as good for health. Booster offers drinks without even little quantities of caffeine. Customers who adapt to a healthy lifestyle will see Booster as the only right energy drink in the market.
Integrated Market Communications (IMC) including Social Media
Marketing objectives can be achieved only when all promotional and communication channels work in collaboration with each other (Belch & Belch, 2003). For carrying out marketing integration activities, advertisement area has to be made very strong. Print media and broadcasting media are seen as useful marketing communication tools. Advertisements need to be designed while keeping the customer characteristics in view. Direct or personal selling is a great way to achieve marketing objectives. Promotional sales are carried out to further attract the target market. Recently, social media has been seen as a great tool for carrying out marketing communication activities. Advertisements and word of mouth can be used to inform customers on social media such as Facebook and Twitter about the newly launched Booster energy drink. Reviews of customers on social media are given importance by the fellow users so one positive or negative comment can affect its sales and market growth.
For building a customer base and increasing market share, Booster energy drink can make use of another good marketing tool which allows customers to taste a sample of the drink before making a purchase. This activity is usually done at shopping malls or large grocery stores so that the market segments can be targeted in the best possible manner.
Carrying out fun filled events at university campuses, shopping malls, and amusement parks is also a great way to attract youngsters and families to create awareness of Booster energy drink.
References
Aaker, D. A. (1996). Measuring brand equity across products and markets.California management review, 38(3), 102-120.
Belch, G. E., & Belch, M. A. (2003). Advertising and promotion: An integrated marketing communications perspective. The McGraw− Hill.
Hunt, S. D. (1976). The nature and scope of marketing. Journal of Marketing,40(3), 17-28.
Kotler, P., & Armstrong, G. (2010). Principles of marketing. Pearson education.
Riezebos, R., & van der Grinten, J. (2012). Positioning the brand: an inside-out approach. Routledge.
