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Energy Drinks Case Study

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Text Preview Johnson & Wales University
Providence, Rhode Island

Feinstein Graduate School

Competition in Energy Drinks, sports Drinks, and Vitamin-Enhanced Beverages Case Study

A Research Project Submitted in Partial Fulfillment
Of the Requirements for the MBA Degree
Course: MGMT6800

Ningning Shi

March 18th, 2012

Competition in Energy Drinks, sports Drinks, and Vitamin-Enhanced Beverages Case Study
There are new coming items in beverage industry during the mid-2000s, which are energy drinks, sports drinks and Vitamin-Enhanced beverages. These items focus on different flavors, specified consumers, efficient distribution systems, and products innovation in the beverage market. They compete with water, soft drinks, juices, tea, and other common drinks, which are in low prices, good and long history of brand reputation, easy to accept the taste. From 2005 until now, alternative beverages grow fast and take more and more market share in the whole world beverage market. The main alternative beverages companies are Coca Cola, PepsiCo, Red Bull and Hansen Natural Corporation. Energy drinks, spots drinks, and vitamin-enhanced beverages use many strategies to find a good position in the beverage industry in the Global market, which also give us some ideas about how to operate beverage companies. Firstly, alternative beverages take the action via wider product selection, better product quality, good delivery system to gain sales and market share. For example, PepsiCo develops 12 flavors of Amp Energy drinks and 28 varieties of SoBe vitamin-enhanced drinks (Gamble, 2010, p.C-83). Again, PepsiCo, Coca-Cola through their own soft drinks distribution channels to deliver energy drinks at the same time, which reduce much time and cost. Secondly, energy drinks take big actions to enter emerging market opportunities, like most Asia countries and South America. For example, alternative beverages take 31.5% market share in Asia-Pacific in 2009 (Gamble, 2010, p.... Show More

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