Case-Study,_Mother_Energy_Drink

1.1 Current Marketing Mix 1.1.1 Current Product By purchasing MOTHER, consumers gets “A MOTHER of an energy hit” (Motherland) as shown in the Motherland advertisement, they get more than what they need. MOTHER is preferred by consumers who need the caffeine kicks from a can, instead of a cup of coffee at all times of the day (Robinson 2009). It is available in 3 flavours, Original, Orange Surge and Inferno, in a 355ml or a 500ml Can (Mother facebook). “Mother of a mixer”, is a 250ml Can sold to the bars and clubs, and the Extra Energy Big Shot MOTHER for those who needs extra energy. MOTHER was designed with, “WARNING Heaps of Energy”(Mother 2010) across the top of the Can. It also differs itself from the previous launch, with the new red and black gothic style, and similar tattooed design name that gives MOTHER an “all-natural energy drink with attitude” (Mother Energy Drink 2008.) The time spent on searching for Mother is short as it is sold in the supermarkets together with the other Caffeinated drinks, or individually at the Coca cola vending machines and convenience stores. Some consumers may use a substitute product if MOTHER cannot be purchase if they are not loyal to the product, as it tastes similar to Redbull. However, it stands out from the other energy drinks such as V, Monster and Redbull. with a high caffeine content of 32mg per litre (Robinson 2009.) 1.1.2 Current Pricing MOTHER exists in a competitive Energy Drink Market, which involves V and Redbull (Mahalo), energy drinks that are widely seen and consumed in clubs and shops. A change in MOTHER’s pricing would attract more energy drinkers to MOTHER as the current pricing is about the same as the price of V and Redbull (Coles 2010.) However, with a price increase, the demand for MOTHER would decrease as the consumer’s purchase decision is mostly made on price, then, the features and quality of the product as most of the consumers are in the age of 18 to 23 years, where they do not have a stable income to constantly invest in such products should the price increase. However, stated in the article by Robinson, during the time when Mother was sold at 4 cans for 2 dollars (Robinson 2009), the demand for Mother was stagnant as there were not a lot of consumers drinking MOTHER. The price of MOTHER is determined by the business’s costs as it would project the amount of profits the business would receive, therefore, showing the importance of the business’s cost. 1.1.3 Current Distribution In a Facebook conversation seen on one of the MOTHER products, Inferno, was not found in Australia as the distribution of the new flavour is limited (Facebook.) to New Zealand so far. This shows that the demand is available but it is not easily purchased. However, other models of MOTHER can be located at the supermarkets, convenience stores and the vending machines in schools. It is placed with the other Coca Cola products such as Coke, Mount Franklin and Pump® (Coles, Woolsworth 2010) and sometimes placed with the other energy drinks such as the vending machines placed at the café at the Curtin University’s Library. These products are mass-produced by Coca Cola for sale to the other businesses. Should the consumers want to purchase Mother, they would need to purchase it from the shops itself. As Mother contains caffeine, this is useful to the consumers who need this caffeine and energy to stay up, for exercise, or for the adrenaline. Thus, Mother can be found in the cafes in schools, the supermarket where it can be purchased for home consumption or bars and clubs for the rush of adrenaline while having a party. 1.1.4 Current Promotion The promotional message, “New MOTHER SURGE of Energy” was placed at the top of Mother’s 500ml can, indicating that the product gives a high content of energy. The other promotional message is “Taste nothing like the old one” (Lee 2008). This was seen in most of MOTHER’s advertisements such as the “Mother stick film” (theenthusiastmag 2009) and the “Hunting down those responsible for the old Mother” (MotherEnergy 2008.) What Mother is promoting, is the difference in tastes from the previous production, which failed due to the horrible flavour, which consumers dislike. The current promotion, “Mother of all Energy hits” (Seth 2009), sends the same message as the previous promotion as Mother wants to continue sending the same message, which would then leave an impression of the kind of energy hit that the consumers will get, without regrets. 1.2 Environmental Scanning 1.2.1 Political Environment In the legal environment, countries, such as Sydney, has a pressure group called the Australian consumers’ Association called for a ban of sale of energy drinks to minors, energy drinkers who are below 18 years of age (Carter 2001), as it was mentioned that the caffeine content is too high for minors ranging from 12 years to 18 years of age. This would impact the marketing strategies for MOTHER slightly as their advertisements would have to focus more at the young adults such as those from 18years to 23 years of age. Thus, the advertisements would need to be done in a matured way in order to avoid conflicts between the non-government organizations and the company. 1.2.2 Economic Environment According to the article from the Reserve Bank of Australia (Domestic Economic Conditions 2010), it was stated that current economic situation have improved since the financial crisis in 2008. Currently, there is an increase in employment since December last year, thus leading to a rise in income. However, with the high goods and services tax placed on every goods and services in Australia, consumers are still weary about their expenditure, as they do not have an increase of disposable income. Thus, this would impact Mother’s marketing strategy as Coca cola would need to come out with a cost-effective promotion, such as selling 2 500ml cans at $6. 1.2.3 Social Environment Staying up late has become a trend in order to complete assignments or just by needing to stay up in the day, these people, requires a can of energy booster (Robinson 2009.) Thus, this impacts the marketing strategies of Coca Cola, as they would need to market Mother in places, which these consumers can easily purchase the product, be it at the vending machines at school or at the cafes. This is because students are most likely to consume energy drinks as it has a sweet and carbonated taste apart from bitter cup of black coffee. 1.2.4 Technological Environment With the improved in technologies in the recent years, manufacturing processes are done quickly and carefully before it leaves the factories. These improved facilities, would ensure the product quality of Mother (CCA Sustainability Report 2010) and reduce in production price, producing a cheaper end product for the consumers to purchase. Marketing strategies are also altered to more a visual aid as more people are greatly involved in online activities, such as Facebook and Twitter. Therefore, marketing of Mother is also done on Facebook, increasing consumer’s product knowledge as well. 1.2.5 Natural Environment As the society becomes more environmentally concern, taking into the accounts of recycling, reusing the products, Coca cola modified their products to label “Recyclable” on every bottles and cans (Mother 2010.) Therefore launching Mother as an environmentally friendly drink as the product can be recycled and thus, consumers would be able to consume the product as it is environmentally friendly. 1.2.6 Competitive Environment In the energy drink market, there are already popular drinks such as V, Redbull and Monster, who have dominated the energy drink markets (Robinson 2009.) These competitions would impact Mother’s marketing strategies, as Mother would have to come out with a more impactful advertisement, which would differentiate itself from the other energy drinks. Currently, Mother’s tagline is “Tastes nothing like the old one (Lee 2008)” However, this does not impact consumers as much as Redbull’s slogan, “Redbull gives you wings” (Redbull 2010.) 1.2.7 Demographic Environment As the society becomes more educated, more late nights are spent completing assignments or taking the night off to relax, these group of people are mostly the Yindies, generation Y. Therefore these impacts the marketing strategies of Mother as the identification of where consumers would purchase the product and when they need the energy kick would need to be considered, such as selling Mother in the clubs, bars and schools. In the day and night. 1.3 Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis Table Strengths Weaknesses • The salesperson that sells the brand Mother is well equipped with brand knowledge. • The quality of Mother tastes about the same as Redbull, Mother’s competitor. • The product has a warning label, which warns the consumers about the high caffeine content. • Mother first produced the 500ml can that did not consider that there are other consumers who needs a smaller amount, as 500ml may be too much for them. • Mother has a backing from the established company Coca Cola • The price of Mother is slightly higher compared to the price of their competitors. • Mother looks after the consumer needs. An example would be changing the taste of the product to suit consumer’s taste preference. • There are still limited knowledge of the products by consumers as it is only sold in New Zealand and Australia. It is not widely marketed to the other countries. Opportunities Threats • More consumers are consuming in energy drinks, as it is a convenience product. • Consumers are mostly buying the promotional package instead of the individual cans. This can cause Mother to lose market shares • With the new and improved image of the product, More consumers are attracted to the product. • The government is calling for a ban of sale of energy drinks to ages below 18, therefore, Mother may lose sales from consumers who are below 18. • Mother contains a high caffeine intake, thus attracting consumers who needs this excessive amount of caffeine. • Mother does not have much endorsers to endorse Mother as compared to Monster energy. 2. Segmentation Theory 2.1 What is segmentation Segmentation is when consumers are grouped according to their needs of a particular product (Nelson 2001.) These needs are then looked at and concentrated, so that the consumer’s needs are thoroughly looked at and well taken care of. These segments can be of a similar product, however, looking at the product, Mother, consumers can be grouped according to their taste preferences, price preference or the energy level required by these consumers. 2.2 Why is segmentation used' Segmentation is used to identify the needs of each homogeneous groups of the product. This way with their needs carefully looked at, Marketers would then be able to come out with different ways to approach the different segments. An example would be, looking at the segment that are price sensitive, Marketers of Mother, can come out with promotions such as selling 2 cans of mother for a cheaper price. By using segmentation, it would both benefit the consumers and the organization as the organization would be able to attract more customers from each segment’s needs. (Market Segmentation Analysis 2003) 2.3 How can firms benefit from a multidimensional approach to segmentation Firms can benefit from a multidimensional approach to segmentation by categorizing the consumers into the appropriate sections, then meeting the customers needs by looking at what determines the value of the customers (Reed, Hariharan, Saito 2005.) The multidimensional approach helps the organization to focus on the consumers needs in an all-rounded manner. Apart from looking at consumer’s needs, company’s can also look at consumer’s desires and means. These are the other criteria that the organizations can look at to ensure a profitable approach. By looking at the multidimensional approach, firms would be able to identify the two major segments in which would help the organization to profit and expand. This is because the products are marketed in a way that fully compromises with the needs of the targeted groups. It also gives a clear idea of how a new product can be marketed to the consumers and how the re-branding of the product can benefit both the company and the consumers (William 1998.) 3. Target Market Identification 3.1 Geographical Traits Looking at the geographical traits of the targeted group selected, these groups of energy drinkers are those who come from Australia. In this case, narrowing down further, Western Australia. Western Australia is an urban country in which there is a population of close to 2 million people (Population by age and sex, Western Australia 2006.) Western Australia is a state that has a dry climate. Thus, having the energy drink around, it cools their throat as well as providing the people with energy that is needed for some parts of the state, which requires them to work late. Australians preference for an ideal caffeinated drink has also changed. Thus, introducing Mother to these people would add a selection to their choice of breakfasts. As a fast paced country, Mother is introduced to Australia compared to the other Asia-Pacific Countries such as Malaysia, Singapore and Indonesia, do not sell the energy drink, Mother, as not only is it produced by Coca Cola Amatil, it is an Australian based company. This is also because the Asian countries are more of a coffee drinker instead of an energy drinker. 3.2 Demographic Traits The specific age group that would be interested in the drink MOTHER would be those from the age of 18 years old to the age of 25 years old. As Western Australia is a country with the most number of international students, these students would usually need the energy booster to pull an all-nighter in order to complete their projects, tutorials or reports (Robinson 2010.) Mother, focuses on young men who are always in need of an energy booster in order to do bigger things (Robinson 2009.) These young men would require an energy drink to stay up late at night, due to gaming, or for exercising purposes. However, the product has slowly widened its targeted market to women as well. A smaller size of an energy drink is produced to suit the consumption of the women. These drinkers can also consume them while working at a 24 hours café or fast food restaurant such as McDonalds to keep them awake while serving customers. The consumers who purchases energy drinks, are usually the low-income earners. However, they have got disposable income, which is used to spend on Mother, a convenience product. 3.3 Psychological Traits Looking at the psychological traits, these consumers who purchases Mother, are those who belongs to the lower social class groups. These young adults ranging from the age of 18 years to 25 years old, their lifestyles are more of an Experience. This is because as Mother is a drink produced by Coca Cola, these targeted groups are more likely to want to experience the energy drink, as they are the ones who would be giving both positive and negative feedbacks of the product through the word of mouth. As these age group is always in a rush for time, Mother is a convenience product that is less time consuming to purchase, compared to waiting for a cup of coffee to be brewed and served. Mother can be purchased as a grab and go item or a stocked up item at a vending machine, convenience store or at the supermarket. There are also consumers who does activities such as going to the gym, or doing sports regularly. Mother is also a form of sports drink for the sports people. As Mother portrays itself as an energy drink that could generate bigger ideas and doing bigger things as shown in the Motherland Advertisement marketed by Coca Cola (Motherland), this results in consumers wanting to associate themselves with the drink as they want to be portrayed as a capable person or a person with an energetic personality. 3.4 Behavioural Traits The usage pattern of the targeted group for Mother drinkers is that they are usually buying the promotional package, which sells 2 500ml cans of Mother for $6 (Coles 2010.) This shows that the targeted group would usually stock up the Mother cans, for late night consumption while doing their late night activities. Therefore leading to a moderate to high usage rate. This is because sportsmen who are constantly working out, they would be consuming more of these energy drinks to give them the energy they need while exercising. On the other hand, students who are constantly up late at night, studying, or doing leisure activities that requires them to stay up, would also consume the energy drinks in order to feel perked even in the early hours. Due to the brand loyalty seen on Mother’s Facebook page, we can tell that these loyal Mother drinkers are consistently following the brand and drink, looking out for a wider and newer product that would suit their ever-changing needs. Looking at the occasions in which this energy drink consumer purchases the product, Mother is being consumed mostly in the day and night compared to the afternoons. This is because these are the two crucial times in which these energy drinkers would need the energy to do their activities at home, a friend’s place or at the club or bar. 6. Reference List Caffeine Content of Drinks. N.D. http://www.energyfiend.com/the-caffeine-database (accessed August 16, 2010) Carter C.B 2001. Australis: Consumer group calls for energy drink vending ban http://www.just-drinks.com/news/consumer-group-calls-for-energy-drink-vending-ban_id76173.aspx (Accessed August 19, 2010) CCA Annual General Meeting, 2010 http://ccamatil.com/InvestorRelations/AGMDocs/2010/2010%20AGM%20-%20Presentation%20Slides.pdf (Accessed August 14, 2010) CCA, n.d. http://ccamatil.com/Pages/default.aspx (Accessed August 16, 2010) CCA sustainability report 2010 http://ccamatil.com/InvestorRelations/AnnualReports/2009/2010%20Sustainability%20Report.pdf (Accessed August 18, 2010) Domestic economic conditions 2010 http://www.rba.gov.au/publications/smp/2010/feb/html/dom-eco-cond.html (Accessed August 19, 2010) Inferno 2010 http://www.facebook.com/photo.php'pid=3475517&op=2&o=global&view=global&subj=117951398222056&id=691120291 (Accessed August 14, 2010) Lee J 2008. Coca Cola gives its Mother a second Chance http://www.theage.com.au/business/cocacola-gives-its-mother-a-second-chance-20080618-2svo.html (Accessed August 19. 2010) Market segmentation analysis 2003 http://www.westgroupresearch.com/research/segmentation.html (Accessed August 19, 2010) Mother n.d http://mother.socialmediarelease.com.au/ (Accessed August 17, 2010) Mother energy drink 2006. http://www.mahalo.com/mother-energy-drink (Accessed August 16, 2010) MotherEnergy 2008. Hunting those responsible for old Mother http://www.youtube.com/watch'v=HvgIopzPflI&feature=player_embedded (Accessed August 18, 2010) Nelson. C 2001 Market Segmentation http://www.foreseechange.com/mktseg.htm (Accessed August 19, 2010) Population by age and sex, Western Australia 2006. http://www.abs.gov.au/ausstats/abs@.nsf/0/A4D377CAAA8B667FCA256D81007EB5B7'OpenDocument (Accessed August 19, 2010) Robinson. J 2009. Mother Energy Drink http://www.atomicmpc.com.au/Review/155475,mother-energy-drink.aspx (Accessed August 18, 2010) Reed K.L, Hari S. H, Michiko S 2005 http://www.freepatentsonline.com/EP1563437.html (Accessed August 19. 2010) Robinson J 2010. NOS High performance Energy Drink http://www.atomicmpc.com.au/Review/164706,nos-high-performance-energy-drink.aspx (Accessed August 19. 2010) Seth K 2009 Coca Cola’s New Mother http://www.topnews.in/cocacola-s-new-mother-outsells-market-leader-v-new-zealand-2169652 (Accessed August 19, 2010) Theenthusiastmag 2009. Mother Stick Film http://www.youtube.com/watch'v=cASGPg7e9fc&feature=player_embedded (Accessed August 18, 2010) William D 1998 Multidimensional Segmentation http://www.sdrnet.com/article2.html (Accessed August 19, 2010)