Prepared For: MKTG600
Table of Contents
This marketing plan report on Synergy energy drink, an Australian owned and produced company provides an analysis and evaluation of the current and future performance and marketing strategies for the future growth and establishment. Being one of the leading brands of energy drinks in Australia, its main competitors are Red Bull, ‘V’ and Mother. Beginning with the introduction and then the environmental analysis which indicates the trend and consumption of energy drinks in Australia and worldwide. Followed by a SWOT analysis of Synergy energy drinks and then there are the marketing goals and objectives that needs to be achieved for the re-launching their brand of energy drinks. Furthermore, there is the marketing strategy for different target markets and ages along with the implementation plan and method of these strategies and later on is the success evaluation of the synergy re-launch along with the qualitative measures to be implemented.
Synergy Energy Drink, from an Australian owned and produced company, came to fruition in 2009, and entered the ever-competitive Australian energy drink market. Statistics from 2007 reveal that the Australian energy drink market is worth $325 million, up from approximately $200 million in 2004. At the time, two products in Red Bull and V dominated the market – capturing 90% of the market share. Coca Cola, in their failed attempt to initially capture a slice of the market, reformulated their Mother energy drink in 2008 backed by a $3 million advertising campaign. As a consequence of successfully reformulating and relaunching their Mother drink, Coca Cola at present holds approximately 30% market share – eroding the once dominant positions of Red Bull and V. In response to this, Red Bull and V have both added additional product lines into the market place – including increased drink/can sizes, compact energy ‘shots’ and additional flavours and variations of their original products. With now three dominant leaders in the energy drink market, Synergy has entered the market in a precarious situation. Some 250 brands of energy drink have launched since 1999, most of which have come and gone. To separate the Synergy brand from their competitors, they have marketed their selling point as “it contains no carbohydrates and sugar”. Hence, it’s being targeted at the health conscious individual with a busy lifestyle, yet it still contains the core ingredients featured in most energy drinks including caffeine, taurine, brahmi and B vitamins. Furthermore, in addition to the launch, cricketer Michael Clarke and model Lara Bingle were hired as the “face” of the company. This partnership was said to be worth in excess of “several hundred thousands dollars”. When the couple announced their relationship and engagement was off back in March 2010, Synergy dumped the couple citing that “they no longer represent Synergy’s core values; that of forces combining to create greater healthier energy”. This was a significant blow to the company, in that they lost as significant amount of advertising capital in what was ultimately an unsuccessful advertising campaign. At present, Synergy’s energy drink is available in a single and four-pack 300ml can from Woolworths, Woolworths Petrol and BP at a RRP of $2.95 each ($6.99 for the four-pack).
The energy drink market in Australia and abroad is very competitive. The market is approaching the maturity stage where room for growth is limited and this puts Synergy in a vulnerable position because they are more likely to fail in such a market. According to the MarketWatch (2009) global energy drink volumes have risen by 2% in 2008 to 3.9 billion litres which represent almost double the 2.0 billion litres sold in 2003. North America represents 37% of global volume followed by Asia...