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Energy drink case - Research Paper Example

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However, the alternative beverage segment of the industry is growing incessantly, as beverages like sport drinks, vitamin infused drinks, and energy drinks in general, progressively…
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Download file to see previous pages It is, therefore, feasible to posit that market positioning of alternative beverages is largely dependent on product differentiation. Just like in production of carbonated drinks, principal sellers in alternative soft drinks industry are globally renowned beverage manufacturers like PepsiCo and Coca-Cola (Barr & Hajela, 2013). This is ascribable to the fact that the two companies already had strong brands in the beverage industry before venturing into the provision of alternative beverages. Nonetheless, other beverage manufacturers like Hansen Natural Corporation, which produces Monster Energy and Red Bull GmbH, have succeeded in building recognized brands, while gaining a considerable share of the potent alternative beverage industry. Even though the latter industry was projected to sustain the steady growth observed previously, it suffered a setback following the 2008 financial recession. Unfavorable economic conditions impeded consumers’ buying capacity thus resulting in a significant decline in sales, particularly those of highly-priced alternative beverages. All the same, industry analysts foresee improvement in sales of alternative soft drinks with time, as carbonated drinks consumers progressively shift their preference towards the relatively new beverage category. Competing companies in this industry can only increase their chances of success depending on their readiness to match volatility of consumer trends, capacity to build brand loyalty, willingness to adopt innovation, and ability to increase distribution and marketing channels, among other distinctive strategies.
Global beverage organizations like PepsiCo and Coca-Cola are focusing on reversing the major decline of carbonated by venturing into production of alternative beverages. These organizations have expanded their market presence by introducing vitamin drinks, sports drinks, and energy drinks in the international market (Esterl, 2013). Additionally, ...Download file to see next pagesRead More
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