energy drink case

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%* re M& ffi".-*& k rc w M w @ w Background The best-sellingsports drink, Zwmo, is produced by Zumospa, a food and drinks company based in Valencia, Spain. In the last financialyear, Zumo contributed €30 million to Zumospa's annual sales revenue, accounting for 20% of the company's total turnover. It is, in fact, Zumospa's cash cow, generating more revenue than any other of its products. At present, Zwrno is sold only in Europe. However, the sports drink market is the most rapidly growing segment of the world beverage market. Zumospa is now looking outside Spain for markets and would like to make Zumo a global brand.

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Page 1: Energy Drink Case

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BackgroundThe best-selling sports drink, Zwmo,is produced by Zumospa, a food anddrinks company based in Valencia,Spain. In the last financialyear,Zumo contributed €30 million toZumospa's annual sales revenue,accounting for 20% of the company'stotal turnover. It is, in fact, Zumospa'scash cow, generating more revenuethan any other of its products.

At present, Zwrno is sold only inEurope. However, the sports drinkmarket is the most rapidly growingsegment of the world beveragemarket. Zumospa is now lookingoutside Spain for markets and wouldlike to make Zumo a global brand.

Page 2: Energy Drink Case

11\ / 2.5 Listen to this excerpt from a radioprogramme, Business Today. RicardoGonzales, Zumospa's president, d.iscussesZumospa's pfans to globalise.Make notes on the company results, futureplans and competitive advantage.

Marketingr Launched in the mid-l9B0s. positioned as

an energ'y product for fitness-consciouspeople, especially sportsmen and women,between the ages of20 and,4b.

o Distributed mainly through grocery stores,convenience stores and supermarkets. Alsothrough sports clubs. Additionally, sales aregenerated through contracts withprofessional leagues, such as football, golfand tennis associat ions.

Press, TV and radio advertising is backed upby endorsement contracts with famousEuropean footballers and tennis stars.Zwmo is offered in four flavours and itsprice is in the medium range.

Developing a global brandZumospa needs to reposition it for the globalmarket. Initial research suggests that Zumo isperceived as a Spanish drink, and its closeidentification with Spain may not be suitablewhen developing a global brand.Zumospa would like to launch a globalcampaign focussing first on South America,Mexico, the Southern states of the US andJapan, where they have regional offices. Adecision has been taken to use a standardisedadvertising theme in these markets, althoughthe copy of the advertisements and languageof the TV and radio commercials will b;adapted to local needs.

Before setting up focus groups in these areas

z International marketing I

WritingAs Marketing Manager for Zumospa, write ane-mail to the directors of the companyinforming them of the key ideas which cameout of the brainstorming session you attended.You should indicate which ideas you favourand why.

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You are members of the Marketing Department ofZumospa. Work in groups and brainstorm the pointslisted in the rough notes. One person in the groupshould take notes. Then meet as one group indsetect some of the best suggestions for further studv.