QUESTION 4: Within the key drivers for market share, RefreshNow! wants to know which to tackle first and what the strategy should be. Therefore McKinsey helped RefreshNow! design and run a study to understand branding and distribution. The following information shows results from the study, based on a sample of target consumers. What can you conclude from the study in regards to the preferred marketing image and strategy of O-Natura?
Reveal answer
A very good answer would include the following insights:
Branding should emphasize sports drink identity. “Healthy” identity is dominated by Cool product, “Leisure” by O2Flavor and “Sports” fragmented in other products. Clear niche within “Sports” identity, with top 2 brands currently occupying only 30% of share of mind. Sports branding should also determine thinking around the sales channels (e.g., sales during sports events or at sports facilities).
Distribution differs from current outlets and needs new agreements/research. Major shifts compared to current distribution model required in “Supermarkets”, “Other”, and “Convenience stores”. Agreements with major retail players may accommodate for product introduction, with RefreshNow! managing mix across channels. “Other” channels need further research, since they are a major component of the Flavored water segment.
Marketing message to emphasize identity and availability. Marketing campaign should be built around the currently unaddressed market need for sports drink in order to connect with customers in that segment. Given required changes in distribution channels, O-Natura messaging should clarify new distribution strategy.