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Zumo

By Ann Flores,2014-09-20 20:59
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Zumo

    Zumo----Creating a global brand

    Background

    The best-selling sports drink, Zumo, is produced by Zumospa, a food and drinks company based in Valencia, Spain. In the last financial year, Zumo contributed ?30 million to Zumospa's annual sales revenue, accounting for 20% of the company's total turnover and ?4.5 million in

    profits. It is, in fact, Zumospa’s cash cow, generating more revenue than any other of its products.

    At present, Zumo is sold only in Europe. However, the sports drink market is the most rapidly growing segment of the world beverage market. Zumospa would like to make Zumo a global brand, even the market is very competitive, with major companies such as Coca-Cola, Pepsi Cola and Heinz fighting for market share.

    Key features of Zumo

    1. Zumo contains caffeine, vitamins and glucose.

    2. Zumo has a secret ingredient, “herbora”, made from roots of rare African plants.

    3. Scientific studies show that the body absorbs Zumo faster than water or other soft drinks.

    4. The unique formula contributes to Zumo’s taste and thirst-quenching properties.

    Marketing

    1. Launched in the mid 1980s. Positioned as an energy product for fitness-conscious people

    especially sportsmen and women between the ages of 20 and 45.

    2. Distributed mainly through grocery stores, convenience stores and supermarkets. Also

    through sports clubs. Also, sales generated through contracts with professional leagues such

    as football, golf and tennis associations.

    3. Press, TV and radio advertising is backed up by endorsement contracts with famous European

    footballers and tennis stars.

    4. Zumo is offered in four flavours and its price is in the medium range.

    Developing a global brand

    Zumospa needs to reposition Zumo for the global market. Initial research suggests that Zumo is perceived as a Spanish drink, and its close identification with Spain may not be suitable when developing a global brand. Zumospa would like to launch a global campaign focusing first on South America, Mexico, the Southern states of the US and Japan, where they have regional offices. A decision has been taken to use a standardized advertising theme in these markets, although the copy of the advertisements and language of the TV and radio commercials will be adapted to local needs. Before setting up focus groups in these areas and commissioning market surveys, the Marketing Department of Zumospa have organized an informal departmental meeting to brainstorm ideas for their global marketing strategy.

    Brainstorming session

    1. Does Zumo need a new name;If so, what?

    2. Introduce new Zumo varieties for different market segment e.g. Diet Zumo? Other versions? 3. Redesign Zumo bottle/can? If so, how;Create a new slogan? Suggestions? Ideas for

    advertisement media?

    4. Price-medium range?

    5. How to compete against similar products from Coke, Pepsi Cola and Heinz?

    6. New market opportunities for Zumo?

    7. Create a special division to Zumo worldwide?

    8. Apply to be official sponsor at new Olympics Games?

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