Game Changer Energy Drink Case Study
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Game Changer Energy Drink Case Study
Running head: GAME CHANGER ENERGY DRINK 1
GAME CHANGER ENERGY DRINK 3
Game Changer Energy Drink
BUS-599
Dr. Banto
Game Changer Energy Drink
Company Overview
Game Changer Energy Drink is a nonalcoholic beverage company that offers a wide range of energy mild flavor energy drinks to customers looking for extra energy boost. The company’s fitness related energy drink, named Game Changer, is targeted at customers seeking extra energy boost from light healthy energy drinks with no additives instead of strongly favored drinks. The name represents the company’s desire to change the growing trend of marketing non-energy health drinks as beneficial in enhancing customers’ concentration, health, and even physical appearance.
Mission Statement
The company’s mission is to offer customers with extra energy they required to finish their day to day tasks, stay focused at work, and finish the day with a light and healthy taste that is not only easy to drink, but comforting and refreshing. Game Changer Energy Drink speaks to health-conscious consumers who require some extra help to perform the daily life activities. Customers can easily get bored of strong-tasting drinks made of artificial additives that add calories to the body. Game Changer drinks help customers boost their metabolism as well as burn more calories.
Non Alcoholic Beverage Industry Trends
Energy drinks are gaining massive popularity among students, service members, and athletes as well as adult consumers across the world. The worldwide energy drink market is expected to grow at CAGR of at least 7.3 percent between 2018 and 2026 to hit nearly 85 billion dollars. These products indicate tremendous popularity among different demographics such as the Latinos, people aged between 18 and 35 years, and millennial. Demand for energy drink products are expected to be at peak among these consumer groups in the next decades (Market Watch, 2019). Vercammen, Koma and Bleich (2019), in a survey, found that 5.5 percent of young adults between ages 20 and 39 reported using energy drinks in 2016. The number increased by more than 5 percent compared to the figures in 2003. Among adolescents, energy drink consumption increased from 0.2 percent to 1.4 percent over the same duration. For middle aged Americans, the level of consumption rose from 0 percent to 1.2 percent.
Among countries, the United States is the world’s leading consumer of energy drinks. In 2016, the country’s energy drink market was estimated at $14.30 billion (Grandview Research, 2019). A May 2017 research report by Mintel Group indicated that the country’s energy drink and energy short revenue grew by nearly 6 percent in 2016, with additional room for growth. Analysts from the group forecast the United States energy drink sales to increase by 47 percent from 2016 to 2021 and reach projected revenue of $19.2 billion (Caballero, 2018). Need for healthy drinks, busy lifestyle, and increasing consumer awareness regarding health benefits of energy drinks has helped trigger the demand for these products in the United States. Nearly, 60 percent of male and 40 percent of female population in the country are regular consumers of energy drinks and the trend is expected to grow between 2019 and 2025. Consumers in the United States are demanding for a variety of new flavors within the low-calorie beverage segment. Among the leading brands in the United States are PepsiCo, Coca-Cola, Heinz, Goldwin Healthcare, NourishCo, Monster Energy, Red Bull, and GSK (Market Watch, 2019).
Generally, the United States energy drinks industry is very aggressive with companies undertaking a few activities such as mergers, strategic alliances, plus capital extension for competitive advantage. Established organizations are focusing on expanding their market share across the globe and technological innovations. Firms are focusing on ideal business development using different development approaches. They are not only forming strategic alliances with strong producers of specific province but sharing innovative expertise in the industry (Grandview Research, 2019).
Organizations are moving toward natural raw materials such as gurane extracts, coffee seeds, and ginseng as well as pomegranate. Other organizations have switched to organic forms of sugar including fructose and sucrose to produce low calorie products. Firms are merging with others to control bigger market share by increasing their customer base and product portfolio. The strategy also enables them to penetrate new markets for operational increase. For instance, Amway Company acquired XS energy brand to strengthen opportunities for new ventures and attract young customers. Monster Energy acquired Burn, Full Throttle, Mother, Relentless, and Mutant to become the second largest organization in the market (Grandview Research, 2019).
Game Changer’s Strategic Position
According to Armstrong et al. (2015), there are many ways to distinguish a business from its competitors. Some of the strategies include customer perception factors, market segment, market share, operational and technological advantage, distribution channel, and business model. Game Changer strategic position is to offer customers with convenience. Game Changer will be available where other nonalcoholic beverage energy drinks are sold and offer an easy to find unique alternative. Convenience is the most appropriate strategy for the business because customers must access its products with ease. Customers must be able to choose the company’s products from other competing brands and pick it regularly. Game Changer will be placed near other nonalcoholic brands for ease of accessibility and differentiation. The company will offer reduced calorie options that provide health benefits. Grandview Research (2019) indicates that impact of growing consumer demand for natural products has been noticed across a wide range of beverage categories. However, the change is more drastic in energy drinks than other categories.
Distribution Channel
By distribution channel, the nonalcoholic beverage energy drink segment is classified into on-trade and off-trade selling. The former accounted for at least 65 percent of the entire market revenue in 2016. It comprises of bars, coffee shops, hotels plus restaurants. Product distribution in the United States through on trade channel is expected to record higher growth in the future. The off trade sector, on the other hand, is estimated to record slow growth between 2019 and 2025 because of stringent practices regarding collaborations with retail outlets and shifting consumer preferences (Grandview Research, 2019). With this in mind, Game Changer will use restaurants, clubs, and other on trade distribution channels to distribute 75 percent of its products. The other 25 percent will be distributed via retail stores such as supermarkets and convenience stores. By doing so, the company will concentrate on production and bulk distribution for better sales.
Types of Risks
Game Changer Energy Drinks is prone to three types of risks: regulatory risks, marketing risk, and stakeholder risks. With regards to regulatory risk, Outifa and Gwilliam-Beeraree (2015) indicate that the Food and Drug Administration released a series of adverse health reports associated with consumption of goods marketed as energy drinks. In this regard, energy drink companies face a wide range of lawsuits from consumers. In 2015, the Food and Drugs Administration investigated 5 deaths and 1 fatal heart attack linked to Monster product. To overcome regulatory risk, Game Changer will use organic raw materials and adhere to safety plus quality standard in its production activities.
Regarding stakeholder risk, Vercammen, Koma and Bleich (2019) indicate that energy drinks are normally portrayed as beneficial in improving users’ concentration, alertness, physical performance, risk taking, endurance, plus reaction time. Even so, various studies that overconsumption of energy drinks can lead to negative behaviors and behavioral effects. In this regard, the company’s products will have labels warning clients of the effects associated with the product. The third risk is getting enough distributors to carry the company’s products. The company will overcome the problem through relationship building with businesses. Securing contract with on trade distribution channels will be the most appropriate method. Also, the company will secure contracts with retailers such as supermarkets and convenience stores.
SWOT Analysis Matrix
Strengths: · Unique and high-quality products that is distinguishable from established rivals
· High quality packaging
· Unique product design
· Cross category product
Weaknesses: · Limited financial resources
· Inadequate distribution channel
· High development cost
· Limited raw material suppliers
Opportunities: · Growing market
· New products categories and flavors
· Global expansion
· Technological innovation
Threats: · Competition from established firms
· Changes in government regulations
· Natural disasters such as drought
· Changes in consumer preferences
References
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2015). Principles of marketing. Melbourne, Australia: Pearson Australia.
Caballero, M. (2018, May). Energy’s evolution: It’s a huge category. But where do energy drinks go next?. Bevnet Magazine. Retrieved from https://www.bevnet.com/magazine/issue/2018/energys-evolution-huge-category-energy- drinks-go-next
Grandview Research. (2019). U.S. energy drinks market size, share & trends analysis report by product (organic, non-organic, natural), by target consumer, by distribution channel (off- trade, on-trade), and segment forecasts , 2019 – 2025. Retrieved from https://www.grandviewresearch.com/industry-analysis/us-energy-drinks-market
MarketWatch. (2019, April 18). Energy drink 2019 global market net worth US$ 84.70 billion forecast by 2026. Retrieved from https://www.marketwatch.com/press-release/energy- drink-2019-global-market-net-worth-us-8470-billion-forecast-by-2026-2019-04-18
Outifa, S., & Gwilliam-Beeraree, K. (2015). Energy drinks-regulatory risks and market growth. Vigeo Food and Health, 1-5
Vercammen, K. A., Koma, J. W., & Bleich, S. N. (2019). Trends in energy drink consumption among US adolescents and adults, 2003–2016. American Journal of Preventive Medicine, 56(6), 827-833.
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
CLICK ON THE LINK HERE: https://www.perfectacademic.com/orders/ordernow
Also, you can place the order at www.collegepaper.us/orders/ordernow / www.phdwriters.us/orders/ordernow
Do You Have Any Other Essay/Assignment/Class Project/Homework Related to this? Click Here Now [CLICK ME]and Have It Done by Our PhD Qualified Writers!!