Competition in Energy Drinks, Sports Drinks and Vitamin-Enhanced Beverages Essay Example
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Case Three – Competition in Energy Drinks, Sports Drinks and Vitamin-Enhanced Beverages
Introduction:
The problem which I will be looking at in this report is whether the energy drink, sport drink and vitamin-enhanced beverages are able to be sustainable in the beverage industry. Of the four companies to be discussed; will all of them still be around in 10 years? During the mid-2000’s these alternative beverages enjoyed rapid growth; they had premium prices and high profit margins that made them an important part in the lineup of their brands (Thompson, p. C-75). The strength of these companies had been growing strong but had a slight decline in recent years.
SWOT for the Industry
Strength:
Product Expansion – many new products have been developed Distribution Channels – Can use convenience stores, grocery stores Able to deliver with carbonated soft drinks
Weakness:
Price is high compared to soft drinks Unhealthy ingredients Caffeine is not regulated – like in soft drink industry
Opportunity: Consumer demand Supplier Channels – ingredients, cans, labels Product Innovation – provides differentiation Brand Loyalty – taste, image, energy boosting Brand building skills needed 2 oz. energy shots
Threat:
Economy
Scientific evidence that some products are not healthy
Effect people with heart arrhythmias and insomnia
Mix with alcohol
Relaxed Drink Niche – abuse with prescription cough syrup
As we look at this SWOT analysis of the alternative beverage industry we notice that there are some opportunities that they have created and are able to use in the future. Consumers’ choices are changing from the standard soft drink to alternative beverages. The key is to be sustainable by building up these products. The main opportunity to help with sustainability is to build brand loyalty. Try building up the knowledge and uses of your brands will help you gain the skills needed to continue building the brand.
SWOT for PepsiCo
|
Case Three – Competition in Energy Drinks, Sports Drinks and Vitamin-Enhanced Beverages
Introduction:
The problem which I will be looking at in this report is whether the energy drink, sport drink and vitamin-enhanced beverages are able to be sustainable in the beverage industry. Of the four companies to be discussed; will all of them still be around in 10 years? During the mid-2000’s these alternative beverages enjoyed rapid growth; they had premium prices and high profit margins that made them an important part in the lineup of their brands (Thompson, p. C-75). The strength of these companies had been growing strong but had a slight decline in recent years.
SWOT for the Industry
Strength:
Product Expansion – many new products have been developed Distribution Channels – Can use convenience stores, grocery stores Able to deliver with carbonated soft drinks
Weakness:
Price is high compared to soft drinks Unhealthy ingredients Caffeine is not regulated – like in soft drink industry
Opportunity: Consumer demand Supplier Channels – ingredients, cans, labels Product Innovation – provides differentiation Brand Loyalty – taste, image, energy boosting Brand building skills needed 2 oz. energy shots
Threat:
Economy
Scientific evidence that some products are not healthy
Effect people with heart arrhythmias and insomnia
Mix with alcohol
Relaxed Drink Niche – abuse with prescription cough syrup
As we look at this SWOT analysis of the alternative beverage industry we notice that there are some opportunities that they have created and are able to use in the future. Consumers’ choices are changing from the standard soft drink to alternative beverages. The key is to be sustainable by building up these products. The main opportunity to help with sustainability is to build brand loyalty. Try building up the knowledge and uses of your brands will help you gain the skills needed to continue building the brand.
SWOT for PepsiCo