EnergyFizz is a new energy drinks’ company focused on conquering the USA market. The company will not process its products but will acquire them from the East, repackage its products to ensure they fit the regulations and standards set by FDA. The market is ready for a new entrant. However, the entrant should be different from what is already on the market. For that reason, we are focused on exploiting the organic foods. People are currently on the lookout for healthier options to processed foods and drinks and are geared to favor organic foods over processed or Genetically Modified foods. Therefore, EnergyFizz being the only energy drink company that is organic, will attract a huge following of customers who are health conscious but still love to get the benefits associated with using energy drinks.
The company needs to market itself aggressively in the USA as the market is full of older recognized products and brands. Therefore, there is a lot of competition in the market, and that the reason the company needs to focus on aggressive marketing. Otherwise, it may never grow to compete with the already recognized companies in the United States. During marketing, the company should position itself in the market. Therefore, it should roll out a brand positioning strategy to ensure success.
According to Thompson (2012) these aspects need consideration when rolling out the Brand Positioning Strategy: competitive advantage distinction, ensure that the company has a competitive advantage that is superior to that of the competitors’, communication strategies and ensuring that the brand positions is in line with the business’s vision and values. All of the above are part of the market analysis.
The organization will use progressive marketing to promote itself in the market. Being a new entrant is an already saturated market will be an advantage. The market is ready for a new entrant that will offer more than what is currently on the market, for the right price. The established companies experience an already leveled market and are not keen on introducing new products to revamp the market or even revitalize themselves. That is an opportunity that we should exploit to win over the market. As new entrants, it is likely that the market leaders do not feel threatened by us as they already have control over a significant market share and their products have a huge demand. Therefore, by using progressive marketing focused on popular events such as music and sports, the company will attract clients, and woo them to use our products. Also, we shall exploit the social media and digital marketing to win over our target markets, which are trendy young adults, college students and the population that is below thirty-five years. These people spend a lot of time following trends, sports, music and other activities; therefore, we shall also come out big on these trends. That will offer a distinction angle from competitors and woo the target market to using our products.
The above marketing strategy is in line with the EnergyFizz Co. mission and value statements which show that the company is dedicated to ensuring that it meets the consumers' needs. For instance, people around the world are becoming conscious about their health, and that is the reason we will use organic products in the processing of the company’s products. Nowadays, people prefer the use of natural food products to prevent disease; EnergFizz will be first energy drinks' company to use organic items in the production of its products. It will be first energy drink to do so, and as such, we expect a huge following among the health conscious population in the USA. We shall also capitalize on that fact as it will show people that we are committed to ensuring their good health, and also, deriving high energy levels from our products, even with low consumption. We shall use digital and social media marketing to ensure that this aspect of the company and our products is well known to the people, and therefore, we shall attract huge followers based on that.
Upon research, we have come to the conclusion that we shall avoid the use of television and other mass media marketing methods. That is because our competitors have made use of these channels already, and being bigger and older brands, it will be difficult to compete with them. Unlike them, we shall capitalize on our brand. The name EnergyFizz will be promoted at a more granular and target level, unlike our competitors. The name EnergyFizz promises high energy levels after consumption; it is also a ‘cool’ name that promises excitement and a fast-paced lifestyle. Therefore, we shall promote the products to specific targets, which include young adults and college-going students. With the promise of excitement, a fast-paced and cool lifestyle, we have the ability to win over these targets and make them loyal users of our products. Moreover, we shall ensure that the packaging is right for our target. That means that we need to use attractive and alluring packaging, incorporating graffiti, loud, colorful cans and art they describe as cool or the ‘in-thing’.
With the above strategies, it is clear that the product users will get more for their money. That is because the products will offer value for the money spent. The purpose of energy drinks is to stimulate high energy levels after consumption. Therefore, the product will ensure that the person experiences an ‘energy fizz ‘after using the products. Also, unlike our competitors, we intend to make sure that the fizz lasts longer so that the clients can enjoy the benefits of the energy, undertake activities that make them. For that reason, we will be big on supporting and promoting the activities that our customers enjoy, especially if they are 'fresh' and attractive to the target market. For starters, we shall promote graffiti art, skating activities, and different genres of music that resonate well with young adults, among them Electric Dance Music, Rock, and Hip-hop. These activities are typical the youth who are our targets, and by promoting them, we shall have brought consumers to our products, and began the process of conquering the USA market.
The above arguments focus mostly on the direct competition in the energy drinks industry. However, the industry also faces indirect competition from fizzy soft drinks. Soft drinks are a cheaper option and have the ability to replace energy drinks, especially if mixed with alcohol. Also, caffeinated drinks serve the same purpose as energy drinks. Coffee is a caffeinated drink that is popular and poses threats to energy drinks due to its enormous popularity, especially among the working class. There are also energetic products such as powders and chewing gums which have the ability to give a person more energy after consumption.
The indirect competition is rife and should be undone through proper marketing efforts and pricing of products. The competition can be defeated through marketing and correct product pricing. The products mentioned earlier are significantly cheaper. Therefore, there is the need to ensure our products are correctly priced and affordable to the targets.
References
Alexander, C. (2008). Market risk analysis: Qualitative methods in finance. Hoboken, NJ: Wiley.
Kuada, J. (2008). International market analysis : theories and methods. Adonis and Abbey.
Paley, N. (2005). The manager's guide to competitive marketing strategies. London: Thorogood.
Smith, T., & Woods, J. (2009). Billion Dollar Green: Profit from the Eco-revolution. Hoboken, N.J.: John Wiley & Sons.
Thompson, A. A. (2012). Crafting and executing strategy : the quest for competitive advantage : concepts and cases. New York: McGraw-Hill/Irwin.
