Marketing case study

Launched in the mid-1980s, this energy drink is aimed at fitness conscious men and women between 20 and 45. Zumo is offered in four flavours and is distributed through supermarkets and sports clubs. Advertising is based on TV and radio media with endorsements from well-known European sports stars. It is currently sold only in Europe, where average incomes are high. It is priced above an equivalent non-energy soft-drink, such as Coca Cola, but is not as expensive as some energy drinks. Zumposan is the food and drinks company based in Valencia, Spain that produces Zumo. The managers want to make Zumo a global brand. They know Zumo is seen as a Spanish drink which may not be suitable when developing a global brand image. The board of directors has decided to focus first on South America and Asia to launch a global campaign. The aim is for a ten per cent market share in the first year. Decisions are needed on: Price: should this reflect different average income levels in different countries? Flavours: does it keep the same flavours across the globe or adapt products to different markets? Packaging: should the design and colours on the cans and bottles be the same everywhere? Advertising: should different adverts be used in each country or should a global advert be made with different languages added? Name and brand image: should these be changed or should a global image and name be established? QUESTIONS 1. Explain 4 different reasons why Zumposa would want to enter new international markets. [4 marks] 2. Dicuss 3 questions Zumposa should exmine before deciding whether to go global. [3 marks] 3. Outline 3 different strategic options for entering Asian and South American markets that Zumposa could choos from. [3 marks] 2 END OF CASE