Kickstart Marketing Plan
Author: EcD
BUS 620: Managerial Marketing
Dr. Jan T.
March 17, 2013
Introduction This paper presents a marketing plan for Kickstart, a new product launched February 25, 2013 from Mountain Dew and PepsiCo in the United States. PepsiCo is a beverage and snack company worldwide and Mountain Dew’s Kickstart is launching out “’a new way to do mornings’ with Kickstart, a fruit-flavored caffeinated Mountain Dew beverage” (www.kickstart.com). Kickstart is advertised to present an “alternative to traditional morning beverages – one that tastes great, includes real fruit juice and has just the right amount of kick to help them start their days" (www.kickstart.com). This plan analyzes Kickstart’s 4Ps
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(McRae, 2013). For Kickstart, these industry trends can be leveraged significantly.
Climate Key Trends (PEST) In terms of the PEST Analysis, political factors (Finch, 2012; The Secret Marketer, 2011) suggest that there is little governmental regulations regarding the non-alcoholic beverage industry domestically. There is evidence to suggest that politicians and consumer advocacy groups have asked the U.S. Food and Drug Administration to investigate the safety of the high levels of caffeine in energy drinks for younger people (Choi, 2013) and that other companies are under investigation for these concerns but this does not present a barrier to the marketplace. Economically, soft drinks are not expensive and they are consumed by most everyone. The soft drink industry is not influenced significantly by economic influences. However, the raw materials used to create soft drinks and in juices like sugar, fruits and vitamins may affect production costs and PepsiCo’s costs of production and the profit margin (Finch, 2012). The distribution channel and transportation also affect the price of the product and the commercial tax rates can vary (Finch, 2012). Socially (Finch, 2012), people today are sensitive towards the content of advertisements. Taking this into account, PepsiCo is targeting the next generation of consumers, and they differentiate
Coca-Cola’s confidence in its domination over the soft drink industry eroded, and its advertising slogans began to recognize industry competition: “No Wonder Coke Tastes the Best”. While Coke’s slogans have always centered on the product, Pepsi’s advertisement emphasized the users of the product. Rather than targeting every market, Pepsi focused on the demographic environment. Pepsi foresaw the mass appeal of the youth generation for soft drinks and in 1961 divulged the successful slogan “Now, It’s Pepsi, for Those Who Think Young”. The campaign was such a success that Pepsi’s sales growth outperformed that of Coca-Cola.
For more than a century, Coca Cola and PepsiCo have been the major competitors within the soft drink market. By employing various advertising tactics, strategies such as blind taste tests, and reward initiatives for the consumer, they have grown to become oligopolistic rivals. In the soft-drink business, “The Coca-Cola Company” and “PepsiCo, Incorporated” hold most of the market shares in virtually every region of the world. They have brands that the consumers want, whether it be soft-drink brands or in PepsioCo’s case, snacks. With only one soft-drink market, the two competitors have no choice but to increase sales by stealing the other competitor’s clients. This led to the term, the “cola wars” which was first used
Coca-Cola is shifting its product strategy to develop healthy beverages. “Minnick’s ambitions, if they hold, would utterly redefine Coca-Cola’s image as a purveyor of sugar-laden junk that you should’ve give your kids” (Carvens & Piercy, 2009). Entering a healthy-beverage market segment can potentially improve as well as expand Coca-Cola image. The new market segment will reel in even more consumers for the company, only
The consumption of various energy drinks has been increased tremendously over the past few years, with a number of brands coming up (Marketingmagazine.co.uk, 2012).
The product we are focusing on for this report is a soft drink. Soft drinks are sparkling and non-alcoholic beverages with carbonation, including carbonated energy drinks and etc. Specifically, we are focusing on Coca-Cola. This is a common luxury good, meaning that it’s not essential but a highly desired good. The Company operates all over the world, therefore we will be looking at its global market.
The cola industry has faced a great deal of adversity in recent years, mainly concerning the health effects that consumption of cola has on the drinker. From obesity to diabetes, consumers can be plagued by a plethora of health problems through regular ingestion of soda. With such steep health consequences, consumers are beginning to make the switch away from soda and towards beverages with little to no negative health implications. There is an ever-growing availability of substitutes for sodas that are beginning to chip away at soda sales. Every company is watching their sales slip, while fighting over the remaining consumers. Amid declining sales, plateauing growth, and a deteriorating consumer base, soda companies are up against a
Situation Analysis: Soft drinks are a multibillion dollar global commodity in the 21st century Coke alone produces over 400 brands in 250 countries, serving an average of 1.5 billion servings of some type of beverage per day (Warner, 2005). However, in the last decade or so, soft drink sales
Imagine you’re at a graduation party. Everyone is talking and having a good time around you. You suddenly realize that you’re thirsty. So you make your way to the coolers and in it is an ice cold refreshing cola. What did you think of? Pepsi? Coke? These two cola giants have gone from pharmacy sold local drinks into what we know today. The overly sugary, high fructose corn syrup loaded, and acidic drinks have become the frontrunners in a highly fought over competition to be the number one soft drink in America, and through through psychological tactics in their ads has convinced people into thinking that it is okay to only drink their .
In Brazil, there is not as much of a market for energy drinks as there is in places like the United States. Still, introducing 5-hour energy shots to Brazil could cause the desire for energy drinks to grow in that country. That would open up an entirely new market for energy drinks that could make millions or even billions of dollars for companies that manufacture energy drinks throughout the world. In order to clearly understand how marketing will take place in Brazil and the issues that must be addressed, there are four specific areas that will be considered here. These will be the social-cultural environment of Brazil, the economic environment, the political environment, and the technological environment. Since all of those areas play a role in how an energy drink could be marketed and how much success it might have, they all must be discussed before any decisions are made.
The Coca-Cola Company is one of the largest soft drink company in the world and remain as the top brand among Colas. Coca-Cola’s success begins with their world class distribution system that helps them deliver
Imagine you’re at a graduation party. Everyone is talking and having a good time around you. You suddenly realize that you’re thirsty. So you make your way to the coolers and in it is an ice cold refreshing cola. What did you think of? Pepsi? Coke? These two cola giants have gone from pharmacy sold local drinks into what we know today. The overly sugary, high fructose corn syrup loaded, and acidic drinks have become the frontrunners in a highly fought over competition to be the number on soft drink in America, and it was through their ferocious advertising that we as a nation have allowed it to happen.
Carbonated drinks are so popular around the globe that people can hardly do without them. There are several companies that produce carbonated drinks, but the two most populous brands are Pepsi-Cola and Coca-Cola. About half of the population of people in America consume carbonated drinks like Pepsi, Coca-Cola, and Sprite (Chan T.H). According to beverageuniverse.com, an average American consumes 44 gallons of soda each year (beverageuniverse.com). Majority of the drinks are high in sugar content and the chances of them leading to health issues are very high. However, in the early 1990’s, Pepsi cola diversified from producing only carbonated drinks to marketing new products like water, tea, juice, and beverages like tea,
Today Non-alcoholic Beverage Industry continues to grow due to the growing population and rise of the middle class, especially in emerging markets, and disposable income. All these are key growth drivers for non-alcoholic beverage companies to thrive. According to the Market Intelligence firm Euromonitor International predicts the middle class around the country will make up 1.5 billion households by 2020, a 25% rise since 2012. According to the Bureau of Economic Analysis report, U.S. consumption accounts for over two-thirds of the country 's gross domestic product (or GDP). Individuals tend to spend more with a rise in their disposable income. The increase in consumer confidence also increases consumption expenditure (www.marketrealist.com). Another reason non-alcoholic beverage is on the growth because consumers are more health conscious, and sugary drinks are on the decline. According to the Center for Disease Control and Prevention, calories from added sugars in soda are down 39 percent since 2000 because Americans are more conscious about their weight and the rising obesity rates. Two-Thirds of U.S. adults prove to be overweight or obese, a number that has been rising steadily for the past three decades (www.cnbc.com). According to the latest Energy Drink
This essay presents the carbonated soft drinks in the worldwide soft drink market, and Coca-Cola and Pepsi Co, the two companies that have been competing and fighting to control profits and market share in this segment. First, this essay explains the reasons that the carbonated soft drink industry is so profitable and lucrative. Second, this essay compares the economics of the concentrate business to the bottling business, and explains the reasons that the profitability metrics are different. Third, this essay explains how the competition between Coke and Pepsi have affected the world beverage markets profits with carbonated soft drinks. Fourth, this essay forecasts the feasibility of Coke and Pepsi being able to sustain their profits as a result of demand decreasing and
In order to provide an outside perspective, PepsiCo tasked us with creating a recommendation to one of its current problems: how should it adjust its beverage product portfolio to better align with changing retailer and consumer tastes and preferences? After much consideration and analysis, we have decided to approach the problem by focusing on society’s shift to more health and environmentally conscious purchasing habits, which has caused annual decreases in carbonated soft drink (CSD) sales.