Marketing Final Essay Example
Marketing Final Essay Example

Marketing Final Essay Example

Available Only on StudyHippo
Topics:
  • Pages: 10 (2563 words)
  • Published: March 20, 2018
  • Type: Case Study
View Entire Sample
Text preview

Kobe Bryant, the founder of Kobo Inc., has made a significant investment in a new product called BODYARMOR@. He owns over 10% of the company, making him the third largest shareholder after co-founders Mike Repose and Lance Collins. Estimates put Bryant's investment at $4-6 million (Badness's, 2013). As an entrepreneur, he values dedication, loyalty, and strong partnerships and believes that BODYGUARD@ is an excellent product with great potential for success. Kobo has partnered with industry experts Mike Repose and Lance Collins, who have previously sold their companies to The Coca-Cola Company. Despite BODYGUARD's sales totaling only $10 million last year, they aim to increase market share in 2014 by collaborating with Brand and other committed partners like Kobe Bryant. This partnership will establish a dominant presence in the sports drink industry and serve as evidence that informed investments are crucia

...

l for success. Conducting a SWOT analysis before embarking on this project provides numerous benefits as it ensures all relevant factors are considered to guarantee business performance meets or exceeds standards. If desired results are not achieved, the SWOT analysis can be used to investigate underlying issues.

It is important for BODYARMOR@ to leverage various strengths, such as Kobo's established name and broad fan base in the sports industry, in order to succeed. Having recognized figures like Kobo supporting the product increases consumer comfort and faith. Bryant's involvement in all aspects of the business, particularly marketing and branding efforts, brings valuable expertise from his background with Nikkei. Experience, trial and error, and general involvement are vital for successful product marketing in any industry. Considering Kobo's other successful endorsements with companies like Nikkei, Turkish Air, Smart Car,

View entire sample
Join StudyHippo to see entire essay

Leno, Hubble, and Pain also demonstrates their strength in this area (Badness's 2013). Clearly,the strengths of Kobo's product are sufficient to compete in this industry.

However, there are weaknesses that need to be addressed. Knowing these weaknesses will prepare for necessary improvements.One weakness is skeptics hesitant to purchase Kobo's product due to the reputation of Kobo Inc., a relatively new company in the industry. It takes time for a company to fully dominate the industry.Therefore,"companies need to give creative thought to finding partners that might complement their strengths and offset their weaknesses" (Kettle & Badness 2013). According to Keller (2012,p.53), the company's opportunities in this campaign are crucial.The demand for a natural healthy delicious sports drink is widespread among athletes and the general populationHowever, products such as Storage and Powered do not satisfy these requirements. BODYGUARD@ Superseding is a natural multipurpose beverage that addresses hydration, protection, and recovery (Keller, 2012, p.53). It is available in four exotic fruit flavors and two teas. Each flavor of BODYGUARD@ contains four nutrient-rich proprietary Superintends@ with antioxidants, Vitamins A,C,B complex, electrolytes,and amino acids (Keller, 2012, p.53). The drink comes in a shelf-stable 16-ounce package. Furthermore , all flavors of the BODYGUARD@ platform use coconut water fortified with extra electrolytes for enhanced hydration. Recently recognized as the "Best Functional Beverage of 2011" by Bennett.Com (Chemicals & Chemistry Business, 2012), BODYGUARD@ solidifies its position as an industry leader. This acknowledgment highlights Kobo Inc.and its partners' successful investment in a previously unavailable but highly accepted product (Chemicals & Chemistry Business, 2012). Shareholders acknowledge the importance of this partnership and product; one shareholder expressed excitement about having Mike's brand-building expertise to grow the BODYGUARD@

brand (Chemicals & Chemistry Business, 2012). What sets BODYGUARD@ apart from competitors' bland offerings is its variety of flavors like fruit punch, tropical punch, strawberry banana,mixed berry orange mango,and grape which provide a refreshing change (BODYARMOR@ , 2014).Mr. Bryant also recognized the disruptive potential of the current sports drink market dominated by Storage and Powered as lacking innovation (Badness's, 2013). Furthermore, a user-friendly website enhances consumers' interest in BODYGUARD@ by offering detailed information on flavors and nutrition, store locations where the product is available, personal interviews with top players who use the product, and information about the company's investors (BODYARMOR@, 2014). These factors generate consumer engagement and demonstrate the developers' commitment to providing them with up-to-date information. The developers also prioritize ensuring consumers have access to purchase-related information including reasons behind their purchases and the people involved. Lance Collins, CEO of BODYARMOR@ mentioned that they frequently receive inquiries from interested distributors nationwide (Headdresses's , 2013). Additionally, the brand utilizes in-store marketing opportunities to connect with customers and promote their products. Collins explained that they engage with shoppers to encourage them to try and buy their products. In response to consumer feedback, BODYGUARD has adapted its packaging due to dissatisfaction with a difficult-to-remove overdraw material covering the cap (Headdresses, 2013).The brand implemented changes to their product, such as eliminating the overdraw feature and introducing a twist-off top for easier access (Headdresses, 2013). This showcases effective marketing strategies by involving customers in product development and emphasizing the importance of consumer-business relations. The company values customer input and takes their concerns seriously. It is crucial for Kobo, as a newcomer in this field, to gather extensive information on

competitors and market trends to outperform them. Focusing on the brand name BODYARMOR@ can also enhance the marketing strategy as it represents protection and safety beyond just a name. BODYGUARD@ should demonstrate how their high-quality drink protects and shields customers with dynamic components in a nutritious, health-conscious, and enjoyable way. Threats are realistic for any company regardless of its quality (Headdresses et al., 2013), so immediate attention is required to prevent more serious issues from internal or external sources. In the future, one potential concern for BODYARMOR@ is that competitors may offer different flavors or make changes to their own products in response to the company's designs and concepts becoming known.There is a threat from Under Armor, a clothing manufacturer with a similar name, who has accused BODYGUARD@ of trademark infringement. However, BODYGUARD@ strongly denies this allegation and believes they have the necessary resources and expertise to defend themselves. They hope that by standing up against such claims, it will discourage baseless lawsuits against start-ups. As a shareholder, though, I would be concerned about Under Armor diverting its resources towards a lawsuit against a beverage company instead of focusing on competing with other apparel industry companies. Operating fraudulently can harm a company's reputation regardless of the validity of the accusations made against them. This negative publicity may deter potential investors in the future.

Despite these challenges, BODYGUARD@ has achieved promising results with $10 million in revenue over the past year and significant sales growth. The product is currently available in 20 states and plans to expand nationwide within two years. Positive reports indicate that the product is performing well and has great potential for ongoing success.

When

evaluating investments and product stability, it is important to assess key factors such as customer satisfaction and word-of-mouth. BODYGUARD@ benefits from the support of distinguished individuals who have invested in their product, which can create opportunities in the sports drink market.Baseball player Mike Trout and football players Lessen McCoy, Jason Pierre-Paul, and Ray Rice have partnered with BODYGUARD@. This partnership allows athletes to participate in events, promotions, product testing, and campaigns at regional and national levels. Additionally, customers can support their own charities through The Ray Rice Charitable Fund which focuses on helping youths in Baltimore MD and New Rockwell NY areas (Madden, 2014). Such charity work presents companies as charitable and community-oriented, showcasing their ethical and generous nature. Having a unique product sets a company apart from competitors by offering exceptional qualities that are significant both to the company itself and to consumers. Design is crucial for any product as it provides functional and aesthetic benefits that appeal logically and emotionally (Kettle & Keller, 2012,p.332). BODYGUARD@ recognizes the importance of capturing consumers' attention amidst similar products on store shelves. The CEO of the company stated that new packaging visuals would enhance the brand's visibility on shelves while attracting consumers with its superior benefits inside the bottle (DB staff writer, 2013).In order to ensure long-term success in a competitive industry, BODYGUARD@ must employ exceptional marketing strategies, maintain strong customer relationships, and implement a meticulous pricing system. Pricing plays a crucial role in successful product sales. If the price is too high, consumers will only buy it if they believe it is worth the cost. However, other factors such as buyers, target markets, economic fluctuations, and

past purchasing trends should also be considered when determining the price. Conversely, setting the price too low can result in revenue loss and struggle to generate profit. Assessing demand is an important factor in setting a price; even if a product is not necessary, consumers are willing to pay for it when there is high demand. However, setting the price too high can decrease demand. Navigating this complex situation requires critical thinking and knowledge of financial statements and trends (Kettle & Keller, 2012).

Currently unavailable for purchase in every city due to expansion and market testing phase; however consumers who desire BODYGUARD@ but cannot find it locally have the option to buy online. Individuals can check availability of BODYGUARD@ in their area by visiting the website and entering their zip code or city and state. If not available locally, they can contact the company to request availability. Online purchases through the website direct customers to Amazon for completion of the purchase while offline orders offer special deals.
Subscribing to regular deliveries of the product offers customers a 5% discount and savings on their entire delivery when they subscribe to five or more items that arrive in the same month. There are no commitments or obligations, and shipping is free. The cost for a 12-pack of 16 oz each is $29.12, with orders over $35 qualifying for free shipping.

The combination of affordable pricing and positive customer reviews demonstrates that BODYGUARD@ attracts customers with its price and quality, benefiting from word-of-mouth as an effective sales strategy. However, proper distribution is essential to ensure access to the product by the intended audience.

To distribute the product effectively, several questions need answering.

These include identifying geographic areas where our most valuable customers reside, evaluating our market penetration in these segments, and determining the optimal distribution channels and promotional media to reach our target clusters in each area.

Clustering allows us to capture the increasing diversity of the U.S. population (Kettle & Keller, 2012, p.216). Currently, BODYGUARD@ successfully distributes its products in specific areas but aims for further expansion once it reaches its plateau.

Beverly Hills-based Bodyguard@ Nutrition LLC has partnered with DRP Pepper Snapped Group (DIPS) based in Plano, Texas to distribute Bodyguard@ in select U.S markets. This partnership seeks to expand Bodywork's@ presence in northern California and New Jersey (Business Insight Global, 2013).The product is currently available for online purchase in certain areas, but shipping is limited to the 48 contiguous states. However, it is not yet available in APP/FOP Hawaii, Alaska or Puerto Rico (Amazon BODYARMOR@, n.D.). In order to serve New York City's five boroughs as well as Westchester, Long Island, Nassau and Suffolk Counties, a partnership has been formed between BODYGUARD@ SUPERSEDING and Big Geyser - one of New York’s largest independent non-alcoholic beverage distributors (India Pharmacy News , 2012). This partnership emphasizes the importance of distribution and positions Kobo Inc.BODYGUARD@ as a leader in the sports drink industry. The success of BODYGUARD@ can be attributed to their strong marketing and promotions strategy, as well as their effective product and pricing strategies. Their reputation in the sports industry has facilitated acceptance from athletes and supported their achievements. To promote their product, specific areas were targeted for testing purposes and well-known athletes were featured in personal videos showcasing its benefits. This drink benefits both athletes and

the general population due to its infusion of multiple nutrients and electrolytes that effectively rehydrate consumers. Additionally, BODYGUARD@ offers promotions on their website to attract potential customers and generate attention by giving them an opportunity to win products or trips through sign-ups.Consumers are always excited for opportunities like this. Collins and Kobo Inc. have formed a beneficial partnership that is revolutionizing the perception of the sports drink industry by offering a distinctive and exceptional sports drink that stands out in the market (PR Newswire, 2011). Entrepreneurs can gain an advantage over competitors by providing engaging products to consumers through accurate information, innovative tools, and effective strategies (PR Newswire, 2011). Having investors who are willing and able to contribute to the business is advantageous; however, it is important to exercise caution and intelligence when deciding to invest in a product. The benefits must outweigh the associated risks, and although nothing is foolproof, projections and future earnings can be estimated and calculated (PR Newswire, 2011).

The super team has expressed their intention to allocate approximately $50 million over a period of 4-5 years for marketing and developing their one-year-old brand called "superseding" (Galilean, 2013). In 2012, sales of this new sports drink reached between $5 million and $10 million, which is a significant achievement for both the company and the industry as a whole (Galilean, 2013). Despite fluctuations in sales figures over time (see Appendix A for industry comparisons), this field has consistently maintained stable numbers.

BODYGUARD@ is well-prepared with substantial financial resources from a sizeable budget and notable investors.They have partnered with companies like Kobo Inc. to enter the market, compete effectively, and thrive. They have allocated $50

million over 4-5 years for necessary exposure, which should not be a problem. Their average annual expenditure from their maximum budget utilization is around $10 million, showing potential to meet or exceed expectations based on their impressive first-year sales in the range of $5-$10 million. Community acceptance and growing reputation indicate positive prospects for BODYGUARD@. Recent figures compared to industry forecasts suggest that Kobo Inc. is moving in the right direction financially. The sports drink industry outperforms other health and sports-related sectors such as sports foods and supplements. Research shows that the global market for sports nutrition products grew from $27.8 billion in 2007 to an estimated $31.2 billion in 2008, with a projected growth rate of 24.1% reaching $91.8 billion by 2013 (BCC Research, n.D.). Sports beverages hold the largest share of this market at $24.9 billion in 2007 and expected to rise to $27 billion in 2008 and an impressive $87 billion in 2013, reflecting a compound annual growth rate of 25.6%.This positive trend shows that consumers highly value fitness and health consciousness, giving Kobo Inc. an advantage over newer companies trying to meet their needs and desires. It is crucial for a company to invest time and focus into marketing strategy while prioritizing customer satisfaction and aligning with the company's mission and vision in order to maintain a large customer base. Despite being relatively new, Kobo Inc. has gained support from influential individuals through successful initial investment but still has much to learn about investing (See Appendix B for detailed projections from 2007-2013 of sports drinks). It is important for a company to constantly strive for improvement, even if they are satisfied

with sales and revenue, as there will come a time when enhancements become necessary. Investment goes beyond financing and participating in a business venture; it serves as a statement to various stakeholders such as competitors, shareholders, and the company itself. Introducing oneself to society and emphasizing the significance of the customer is crucial. An investment is more than just a financial move aimed at generating profits; without prioritizing the customer, the product will struggle to succeed.To achieve their marketing goals and effectively invest in their product, an unlimited amount of dedication, drive, and consumer attention are essential.

Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New