Snazzy
Snazzy has decided to entry the energy drink industry. Due to the limited of resources, Snazzy Sodas should use concentrated marketing strategy to target on the 18 to 22 years old college students. Firstly, Snazzy need to make market segmentation. The energy drink market can be divided into three different categories, include sport drinks, energy drinks and nutraceutical drinks. Athletes were the main consumers of energy drinks in the past. Today, the majority of customers of energy drink are teenager and young adults between 18 to 34 years old. Energy drink is especially popular among the 18 to 24 years old males. According to the Nutrition Journal survey, this group of consumers has some same characteristics, such as insufficient sleep, and study or work pressures. So they have more demand for energy drink than others. Secondly, Snazzy need to evaluate the various segments and decide which group of consumers it can serve. Snazzy Sodas should use concentrated marketing strategy to target on the 18 to 22 years old college students. College students have strong demand for energy drinks. College students consume energy drinks for insufficient sleep, studying for exam and strenuous exercise. Besides, they also drink energy drinks with alcohol while partying. Concentrated marketing strategy can help Snazzy to allocate its limited resources effectively. Finally, Snazzy need to make differentiation and positioning. Snazzy must decide how it will create differentiated value for its targeted customers and what positions it wants to be in this market. For example, Red Bull Company is positioned on high energy stimulation. Snazzy Sodas is famous for its all-natural sodas. it has built natural product image in customer’s mind. When Snazzy entries the energy drink industry, it can position itself on healthy and natural. Social factor and personal factor are likely to influence customer’s purchases of Snazzy’s new product. Social factors include groups and social
References: Mintel Global New Products Database. 2009. Energy drink ingredients continue down unhealthy path Heckman, M.A., Sherry, K. and De Mejia, E. G. 2010, Energy Drinks: An Assessment of Their Market Size, Consumer Demographics, Ingredient Profile, Functionality, and Regulations in the United States. Comprehensive Reviews in Food Science and Food Safety, 9: 303–317. doi: 10.1111/j.1541-4337.2010.00111.x