Energy Drinks Case Study Essay Example for Free

null Drinks Case Study EssayThere be sore coming items in deglutition industry during the mid-2000s, which are dynamism soak ups, sports drinks and Vitamin-Enhanced beverages. These items focus on different flavors, condition consumers, efficient distribution systems, and products innovation in the beverage market. They compete with water, soft drinks, juices, tea, and other common drinks, which are in low prices, good and keen-sighted history of brand reputation, easy to accept the taste. From 2005 until now, substitute(a) beverages climb fast and take more and more market share in the whole world beverage market. The main alternative beverages companies are Coca Cola, PepsiCo, Red Bull and Hansen Natural Corporation. Energy drinks, spots drinks, and vitamin-enhanced beverages part many an(prenominal) strategies to find a good position in the beverage industry in the globose market, which alike give us some ideas ab bring out how to operate beverage companies. Firs tly, alternative beverages take the action via wider product selection, better product quality, good delivery system to gain sales and market share.For example, PepsiCo modernizes 12 flavors of Amp Energy drinks and 28 varieties of SoBe vitamin-enhanced drinks (Gamble, 2010, p. C-83). Again, PepsiCo, Coca-Cola through their own soft drinks distribution channels to deliver energy drinks at the same time, which reduce much time and cost. Secondly, energy drinks take big actions to enter emerge market opportunities, like most Asia countries and South America. For example, alternative beverages take 31. 5% market share in Asia-Pacific in 2009 (Gamble, 2010, p. C77).Thirdly, Energy drinks, spots drinks, and vitamin-enhanced beverages try to acquire or merge with other clarified companies to assure market standing and competitiveness. For instance, PepsiCo has a multiyear distribution agreement with Rockstar to distribute Rockstar energy drinks in the United States and Canada (Gamble , 2010, p. C-83). Coca-Cola also has a multiyear distribution agreement with Hansen Natural Corporation to distribute Hansens Monster energy drink in some areas of the United States, Canada, and six European countries (Gamble, 2010, p.C-84).SWOT Analysis Strengths Weaknesses * Healthier than traditional soda. * spherical brands * New product development * Strong manufacturing and distribution capabilities * Strong support of parent company * eminent price * Consumer limitation Opportunities Threats * Growing demand for healthy drinks * High growth developing markets * Cost reducing measures * Traditional drinks competition which includes price and taste * Regulations and law * Health risks * Environment problem * New entrents.To understand weaknesses and threats, alternative beverages industry companies set up business models to match the customer value and gain profit. Firstly, Energy drinks, sports drinks, and vitamin-enhanced beverages companies develop many different flavors to match different customers taste. Second, these companies also focus on different customers demands. Third, they contend products in many different locations, not only supermarkets, but also convenience stores and vending machines some every corner, which give convenient service to customers.Fourth, alternative beverage companies always try to follow the assert law and regulations. try to avoid risk ingredients. Fifth, to pretend the health risk, some companies placed warnings on their products labels. Sixth, because many spate and organizations are focus on environment issues, alternative beverages plastic bottles and cans are really revive by these people. To solve this problem, beverage companies recycle plastic bottles and cans to keep pollution away.I also ware some recommendations to alternative beverage companies to grow bigger and faster in the orbicular market. First, try to suck innovation on the local taste in different countries. Do research on peoples taste i n various countries. McDonalds is a good example in promoting global market. McDonalds knows Indian people dont eat beef and pork and love high food, so McDonalds over there never check any product with beef or pork but with more spicy taste. Again, dont put sensitive ingredients in the drinks. people are more curious about health and drink ingredients.Many organizations are strict with it, too. Try to produce healthier and more nutritious drinks to the market. Moreover, drinks function attempts to everyone, but not only for a small group of people. Nowadays, teenage boys always buy energy drinks, people who do sports, fitness, or other toilsome activities bought sports drinks adult consumers are interested in buying vitamin-enhanced beverages (Gamble, 2010, p. C-77). What I recommend is alternative beverage companies should develop beverages suited for most people.White collar can drink energy drinks sports people also suitable to buy some kinds of vitamin-enhanced beverages. Additionally, dont publicize the function too powerful. Some alternative drinks have some special effects, but not like what the advertisement said. If the company wants to operate for a long time running, it should be honest and act in good faith. Last but not least, incumbents of alternative drinks use strong brand preferences, high degrees of customer loyalty, significant cost advantages to keep new entrants out of the market.ReferencesGamble, John E. (2010). Competition in Energy Drinks, sports Drinks, and Vitamin-Enhanced Beverages. Crafting performance Strategy. p. C-77. Gamble, John E. (2010). Competition in Energy Drinks, sports Drinks, and Vitamin-Enhanced Beverages. Crafting carrying out Strategy. p. C-79. Gamble, John E. (2010). Competition in Energy Drinks, sports Drinks, and Vitamin-Enhanced Beverages. Crafting Executing Strategy. p. C-83. Gamble, John E. (2010). Competition in Energy Drinks, sports Drinks, and Vitamin-Enhanced Beverages. Crafting Executing Strate gy. p. C-84.