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BVC manufactures canned energy drinks. It produces the market leading energy drink, Beta +, which is sold directly to, and exclusively in, sports clubs. BVC
BVC manufactures canned energy drinks. It produces the market leading energy drink, Beta +, which is sold directly to, and exclusively in, sports clubs. BVC encourages intrapreneurship and innovation within its organization. To purchase Beta+ legally, the consumer has to be over the age of 18. However, many younger teenagers illegally purchase these drinks. Sales of Beta+ have grown dramatically. To have legal sales to teenagers aged 17 and below, BVC created Beta Lite, which has a much lower caffeine and sugar content than that of Beta+. Beta Lite will be sold using long distribution channels and to a range of retail outlets. Initial sales of Beta Lite were disappointing. The marketing manager argues that Beta Lite is not innovative and is only adaptively creative. According to market research, consumers were confused between Beta+ and Beta Lite because the packaging is so similar. Many younger consumers were frustrated because they thought they were purchasing Beta+ when buying Beta Lite. Using social media, they launched a "Ban Beta Lite" campaign. BVC's management were unprepared for this consumer reaction. To overcome this criticism and to boost sales of Beta Lite, two proposals are being considered: - Proposal 1: launch a guerrilla promotional marketing campaign for Beta Lite. - Proposal 2: completely redesign the packaging of Beta Lite. (a) Describe one feature of intrapreneurship. [2] (b) Explain why the marketing manager considered Beta Lite to be adaptively creative rather than innovatively creative. [4] (c) Explain one advantage and one disadvantage for BVC of using long distribution channels for Beta Lite. [4] (d) Discuss the two proposals to overcome the criticism of Beta Lite and to boost its sales. [10]
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