The BOOST Drink company Essay Example
The BOOST Drink company Essay Example

The BOOST Drink company Essay Example

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  • Pages: 3 (627 words)
  • Published: September 15, 2018
  • Type: Article
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The primary focus of BOOST Drink is the production and distribution of various soft drinks, commonly known as energy drinks, in Brazil.

Based on research conducted on the leading country’s athletes, the company has developed product lines that offer a guaranteed substantial and durable energy boost to consumers. Originating in Sao Paulo, Brazil's largest city, the company began operating in 1994 with its initial drink, the BOOST drink. Despite competition from primarily Coca-Cola, the organization has grown to capture 15% of the Brazilian market over ten years. The BOOST drink was quickly adopted by young people due to its quality, refreshing taste, and energy-boosting properties, resulting in it becoming a preferred brand in the soft drink category among locals.

The company's growth prompted the opening of additional bottling plants in Brasilia and Rio. The need for these newer centers was just

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ified by the company's expansion, which was fueled by the Brazilian population's preference for consuming national products over imported ones. The founders' original business plan and excellent execution contributed significantly to their success in Brazil. Starting with fewer than 20 employees in 1994, the company now employs over 40,000 people, including factory and plant workers as of 2007 (Brazil.gov, 2007).

In 2007, the company generated $1.5 billion in revenue and achieved a net income of $45 million. With three major manufacturing sites in Brazil and several hundred distribution sites throughout the country, it faces competition domestically but sees potential for growth overseas to increase its share in the global soft drink market. Despite this, over the past three years, its market share has remained steady in Brazil, leading executives, board members, and consultants to investigate the reasons

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behind this trend and its potential consequences.

The company's growth in Brazil had temporarily slowed down due to market saturation, which was unanimously recognized. The BOOST drink, responsible for almost 80% of the revenue, had reached its maximum demand and started to plateau. Meanwhile, competitors were expanding their market share through marketing and advertising efforts. To become global leaders in the soft drink industry and ensure employee and customer satisfaction, the board proposed a three-phase plan: analyzing the current crisis situation, suggesting alternative ways to overcome obstacles, and identifying necessary resources for implementing the plan.

BOOST Drink company conducted a comprehensive analysis in 2006 to decipher the reasons behind their declining market share in the soft drink industry. Despite the global market for soft drinks set to touch around $370 billion in 2009 (Deichert, 2006), the company's presence had been dwindling over the past three to four years. To assess internal and external factors that affected their status both in the Brazilian and industry markets, they launched a company-wide campaign that solicited feedback from consumers and their workforce. The initiative culminated in a series of surveys focusing on their clientele's feedback on the quality of BOOST drinks compared to other energy drinks or soft drinks in general. While most participants acknowledged satisfaction with the beverage, the surveys suggested that reduced market share resulted from consumers consuming less without understanding why that was happening.

After analyzing customer response and market results, the analyst team found that Coca-cola's campaign revamp was directly related to the company's decline in local consumption. This indicated inadequate marketing and advertising efforts, leading to a reduction in market share in Brazil. Consequently, the BOOST

drink company brought in performance management experts to enhance productivity at all levels of the organization. The consultants developed an extensive internal questionnaire that focused heavily on the productivity of major processes at both the corporate and manufacturing plant levels.

Based on the obtained responses, analysts and consultants have inferred that refining certain portions of our processes could result in a 30% increase in productivity over six months. This increase is necessary to drive growth for the company.

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