Case Study Zumo

Only available on StudyMode
  • Download(s) : 1622
  • Published : January 22, 2013
Open Document
Text Preview
Creating a global brand
Creating a global brand
ZUMO
ZUMO
CASE STUDY
CASE STUDY
RELIQUET Emilie
SCHERRER Laurie

Sir Tostain,

You will notice during your reading that some of your recommendations offered during the debriefing oh our oral presentation have not been met, including the change of our logo. This reflects in any way an act of negligence or a lack of rigour. Indeed, we are convinced by some of our ideas, so we prefer to develop you them so that you join there rather than suppress.

Hope you like it, enjoy your reading.

Sincerely,

Laurie and Emilie.

Zumospa would like to make Zumo a global brand; the company needs to reposition Zumo for the international market. Zumospa would like to launch a global campaign focussing first on South America, Mexico, The Southern states of the US and Japan, where they have regional offices.

Zumospa is a food and drink company based in Valencia, in Spain. Zumo is the best-selling sports drink in Spain. In the last financial year, Zumo contributed €30 million to Zumospa’s annual sales revenue, accounting for 20% of the company’s total turnover, and 4,5 million in profits. It is Zumospa’s cash cow, generating more revenue than any other of its products. The drink contains vitamin and a secret ingredient: “herbora”, made from roots of rare African plants. Scientific studies results about its formula and proved that the body absorbs Zumo faster than water or other soft drink. Zumo offers four flavours: classic, light, kiwi and strawberry.

Zumo is now sold all over Europe. It has a large channel of distribution: the drink is distributed mainly through grocery stores, convenience stores, and supermarkets, also through sports clubs. Sales generated through contracts with professional leagues, such as football, golf and tennis associations. Press, TV and radio advertising is backed up by endorsement contracts with famous European footballers and tennis stars. Which is a pity; it’s that this drink is sold only in Europe. Such a success deserves to be applied internationally.

The sports drink market is the most rapidly growing segment of the world beverage market. The market is very competitive, with major companies such as Coca-Cola, Pepsi Cola another fighting for market share. We can expect an Entry Barriers from the existing market on each country.

Product strategy: Zumo’s new face

Even though Zumospa has been going well in Spain, if we go and run a business with the same brand name "Zumo" and similar image to the USA, Mexico, South America, and Japan, it would be possible to make the countries rouse antipathy. The reserve for the foreign products is increasing. Initial research suggests that Zumo is perceived, as a Spanish drink, and its close identification with Spain may not be suitable when developing a global brand. We will discard old perspectives towards the markets, especially when we expand our services or products to international market, which have different cultural foundations.

An energizing drink is a drink that gives a renewal of energy to the consumer, not to confuse with an energy drink dedicated to the hydration of the sportsmen. In most case, an energizing drink contains a concentration rather high of caffeine and sugar then, according to the specific receipt of each product, of the extracts of plants like the guarana or the ginseng and various molecules like the bull-fighting one, of the vitamins B, the arginine, creatin, etc.… As we know, Zumo just contain vitamin and African plants, and scientific have recognized the energy inputs of natural products used. We believe it’s important to emphasize this point, which represents a competitive advantage of the products to its competitors. That’s why we propose several solutions to refresh Zumo, and highlight the brand’s values. In addition, for a brand to be global, its logo, name and slogan must be recognized and perceived like a familiar for all people. We invented a new...
tracking img