Case Overview 1 Essay Example

  • Category:
    Marketing
  • Document type:
    Case Study
  • Level:
    Masters
  • Page:
    2
  • Words:
    946

PDB Product Positioning

Institution Affiliate

1 Overview of the situation

Portland Drake Beverages (PDB) is an energy drink company specializing in organic drink sales.Their main customers include individuals who would prefer energy going hand in hand with health fitness.PDB is in business with the likes of Fright,Razor,Torque,Gleam and Drap who pretty much control the market share at this time.A product positioning strategy for crescent products after acquiring the business some months back was carried out .This was meant to determine where the product will fall in from the reviews made by headof market research on a group of individuals who had never heard of or come across the crescent product in question. Products were not emphasized as the main objective was to showcase the crescent product and know where to strategically place it on the market. The advertisement cost is $75,000 which Sarah thinks might not be enough depending on the position decided for the drink.

2 Statement of the main problem

Level analysis

PDB’s ViceChair was responsible to determine whetherthe crescent drink should be in the sport drink, energy drink or the organic drink position in the market. The individual is tasked to explain the advantages and disadvantages of each selection.

Problem type

Product positioning for crescent is the main problem for PDB.They had different suggestion where the management team debated about the sport and energy drink positions. The management are to choose from the recommendations which position suits their products.

3 Critical analysis

Market research

From the findings by head of market research it was realized that 50% male and 33% female liked the drink with a higher percentage (77% being 12-17 years and 62% being 18-24)

Message strategy

PDB message to consumers is that crescent is healthy and provides energy just like the other drinks in the market.Furthermore, the prices are withinthe limits in place ($2.75 per 8 ounce can) Quality is not belittled just because a lower price is offered for the product.

Evaluate budget and result

The product positioning market does not have a specific target and market for the $75,000 meant for advertising. This poses a risk on which position to use the finances. The Industry study carried out by the Matt Levor was not adequate to show which regions need improvement for PDB product positioning as it deviated from the objective.

Critical factors

Critical Factor

Type of market positioning strategy

This is because it will determine the suppliers and distributors to be contacted for sale of the crescent product.

Time to set up product positioning

It will provide a niche for PDB if done I time before the big companies begin their market strategies in early 2015.Failure to which will make PDB be in the same rat race as all other soft drinks companies.

From the constraints of production it is clear that finances are not well off.Advertising cash($75,000) should therefore be used for a good caused if product positioning strategy is to work out.

Alternative solutions and analysis

Alternative Solution

Advantages

Disadvantages

Energy drink position strategy

  • Has higher markets especially the young people (12-24) and crescent considered an energy drink by many.

  • It provides energy in high amounts compared to other soft drinks.

  • Due to the risky things in advertisements, it poses negative media influence hence can cost the viability of this position.

  • High competition from established companies

  • Due to high calorie intake,the government has removed such drinks from vending machines in schools to reduce obesity reducing customers.

  • It is highly preferred by men hence gender bias on the market

Organic drink position strategy

  • Promote health and energy concurrently as no factor is ignored.

  • People are more health conscious hence providing an emerging market.

  • Prices are conducive even though expected to be higher for quality products.

  • The younger people do not prefer it due to lower levels of sweetness reducing the market populace.

Sports drink position strategy

  • Has a large market 50% male and 33% female hence viable.

  • The market has grown by 9% (2007-2012) hence good things still to come in terms of sales.

  • Prices are within the threshold of the market hence cheap.

  • Less preferred by health conscious customers reducing customer base.

Recommendation and Rationale

If the management considers sport position, they will garner young customer base who upon seeing the health hazards imposed will push back consumption. They also have smaller incomes compared to older people hence in the long run, proceeds will be reducing. In the case of an energy drink, the negative publicity created about energy drinks enabling one do risky things may reduce markets if endorsed by retailers and distributors. Furthermore, there exists big companies in this field.

It is recommended that PDB management take on the organic product positioning.This is because it poses a good viability because of the emerging markets perspective.Not many soft drink companies have gone all organic hence they would have higher chance of being a stakeholder on this position.However, the younger generation would be reluctant to purchase such due to the degree of sweetness but in the long run,proceeds will come their way.

References

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Westland, J. C., & Clark, T. H. K. (1999). Global electronic commerce: Theory and case studies. Cambridge, Mass: MIT Press.

Lai, C. D. (2010). Chinese community leadership: Case study of Victoria in Canada. Singapore: World Scientific.

John Quelch& Alisa Zalosh (2014) Case study of crescent pure marketing position. Harvard Business School

Broadbridge, D. (2008). Qantas, a business case study. St Ives, NSW: David Broadbridge.

Farquhar, J. D. (2012). Case study research for business. London [England: SAGE.