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Energy Drink Study (will give case study info) - Essay Example

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Players in the beverage industry around the world engage in stiff competition in a bid to capture a significant market share necessary to make each player’s business aspects successful. Different firms have been established in that regard, guided by the goal and objective of…
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Energy Drink Study (will give case study info)
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Energy Drink Case Study Players in the beverage industry around the world engage in stiff competition in a bid to capture a significant market share necessary to make each player’s business aspects successful. Different firms have been established in that regard, guided by the goal and objective of satisfying beverage markets around the world. Consumers across the globe exhibit variant tastes and preferences in relation to beverage drinks consumption. Due to the ever rising competition, players in this industry have pursued creative and innovative product qualities to ensure that they draw a significantly large pool of consumers.
In the beverages industry, marketing is an essential undertaking. Each firm tries as much as possible to create product awareness, study consumers’ buying behaviors, and subsequently offer a competitive product in terms of quality and prices. Market demands vary across different consumers. In this regard, different products are offered by the different players in the beverage industry. Energy drinks, sports drinks, and vitamin-enhanced beverages have persistently become a central component of the beverage industry (Gamble 81). Carbonated soft drinks and fruit juices have had to deal with the stiff competition that has been realized with the production of alternative beverages.
Firms that produce carbonated soft drinks and fruit juices have had to turn to the production of alternative beverages as competition in the industry exacerbates. Consumption of energy drinks, sports drinks, and vitamin-enhanced drinks have significantly increased, leading to reduced consumption of carbonated soft drinks and related products. Major players in the beverage industry like Pepsi, Coca-Cola, and Red Bull among others have pursued creativity, innovativeness, and technological advancement in the pursuit of producing alternative beverages that are highly demanded, thus fetching huge revenues for these firms (Rhum 150).
The alternative beverages have become quite lucrative, in many instances outperforming carbonated drinks and related products. A company like Coca-Cola that primarily dealt with carbonated drinks has also engaged in the production of alternative beverages due to the high price premiums and profitability associated with alternative beverages. With the competitive trend in the industry, marketing has had to be informed by responsible marketing practices. Pepsi, Coca-Cola, and Red Bull among others have dominated this business, resulting in stiff competition for a worldwide market share. Fair competition has been the basis of competition. In other words, marketing has not been characterized by one firm trying to drive another out of business. Rather, each company has had to account for product quality and product pricing variables in a bid to secure a significant market share.
The position of each provider of alternative beverages in the industry is determined by the trends in the market. For instance, although Coca-Cola is a worldwide brand in carbonated soft drinks, its alternative beverages are not consumed as much as those of Pepsi. On the same note, Pepsi and Red Bull have significantly captured the alternative beverages market, but cannot perform like Coca-Cola in offering carbonated soft drinks. In other words, each company in the industry has its strengths and weaknesses. However, with responsible marketing, players in the industry have exploited their business potential and subsequently offered unique products that define their lines of business (Rhum 193). Responsible marketing has further enhanced fair competition in the alternative beverages industry globally.
Works Cited
Gamble, John. Competition in Energy Drinks, Sports Drinks, and Vitamin-Enhanced Beverages.
South Alabama: University of South Alabama, 2010.
Rhum, Aimee. Beverage Industry: Markets, Players, Packaging Trends. New York: Business
Communications Company, 2007. Read More
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