Back to Practice case - RefreshNow! Soda

Case Question 3

 

QUESTION 3: RefreshNow! executives believe that the company’s position as the top 3 beverage company in the country gives them strategic strengths toward achieving the desired market share. However, they ask the team to characterize realistically what they would need to achieve that target.

What would RefreshNow! need to ensure realistically to gain the required market share for O-Natura (12.5% of non-sparkling flavored bottled water)?

Reveal answer

A very good answer would include the following.

Match with Consumer Preferences. Ensure product image, attributes, and quality fulfill the needs of all consumers or niche segment, reaching desired market share. Ensure target price is consistent with other products in the market and the consumer’s expectations.

Strong Branding/Marketing. Create a successful introductory marketing campaign, including advertising, pricing, and bundling promotions. Leverage top 3 producer status and limited market fragmentation in order to position O-Natura brand within top 3 in the market segment. Anticipate response from competitors (e.g., advertising, pricing, distribution agreements). Ensure product positioning does not cannibalize on other, more profitable, RefreshNow! products. (Note: In marketing, the decreased demand for an existing product that occurs when its vendor releases a new or similar product is called “cannibalization”. It is not important for you to use this business terminiology.)

Operational Capabilities. Ensure access to preferred distribution channels. Ensure sales force capabilties to sell the new product. Ensure production ramp-up that allows response to increased demand.