Zumo Energy Drink: STP, Marketing Mix and Promotion

This Principles of Marketing assignment uses a short case on Zumo, a Spanish energy drink that wants to go global, starting with Malaysia and South East Asia. Students act as marketing advisers and write a report that recommends a strategic plan: which markets to serve, how to build the marketing mix for the chosen market, and how to promote the brand in Malaysia.

Case: Zumo the Energy Drink

Launched in the mid-1980s, Zumo is an energy product sold in four flavours. It is currently sold only in Europe, where average incomes are high. It is priced above an equivalent non-energy soft drink such as Coca-Cola, but is not as expensive as some energy drinks.

Zumposa, the food and drinks company based in Valencia, Spain, produces Zumo. Its managers want to make Zumo a global brand. They know that Zumo is seen as a Spanish drink and that this might not be suitable when developing a global image. The board of directors has decided to focus first on Malaysia and South East Asia, launching a global campaign with the aim of a 5% market share in the first year. Decisions are now needed on target markets and the marketing mix strategy.

Task

Write a marketing report recommending a strategic plan for Zumo energy drink. The report shall include the following:

1. Identify the best markets to serve using the STP (Segmentation, Targeting and Positioning) framework, and justify your recommendation.
2. Develop an appropriate marketing mix (4Ps) for the business targeting the identified market.
3. Propose an integrated promotional mix to create awareness and promote the brand in Malaysia.

Experts Answer on Zumo Energy Drink Case Study

STP – segmentation targeting and positioning

Segmentation – the best segmentation strategy is to segment Malaysian consumers on the basis of age of 18-35, lifestyle including active and social, and behaviour seeking energy for work, study or exercise.
Targeting – the appropriate targeting strategy is to focus on university students, young professionals and recreational fitness enthusiasts in urban areas including Penang, Selangor and Kuala Lumpur.
Positioning strategy – Zumo needs to be presented as an affordable, european energy drink that is available in four flavours at the price between ordinary soft drinks and premium energy drinks.
Justification – the selection of young urban adults is justified because they provide a focused starting market with access to convenience stores, supermarkets and e-commerce platforms. It is important for Zumo to validate demand using a pilot launch before expanding into southeast Asia.

Marketing mix – 4Ps

Product – the strategy in relation to product is to retain its existing four flavours any utilise modern packaging with clear ingredient, caffeine and nutrition information. It is important to comply with Malaysian regulatory requirements and obtain necessary approvals where required.
Pricing – the pricing strategy should be a competitive mid-range pricing that should be priced above the regular soft drinks but below premium energy drinks. It is best to utilise introductory discounts and multiple offers in order to encourage trials.
Place – the launching should be carried out through convenience stores, supermarkets, petrol stations, university area, gyms and Malaysian E-Commerce platforms with specific emphasis on Klang Valley initially.
Promotion – it is important to make the public aware of its product through tik Tok and Instagram campaigns, campus sampling, fitness partnerships and introductory vouchers.

Integrated promotional marketing mix for Malaysia

Social media advertising – the campaigns through Tik Tok and Instagram should feature local creators, flavour comparison and everyday energy occasions.
Sales promotion – the promotional strategies should include offering launch discounts, multi-pack deals and digital vouchers that are redeemable at participating retailers.
Public relations – the appropriate strategy is to organise product launch events and enter into collaboration with local lifestyle publications in order to introduce Zumo’s European Origins.
Experiential marketing – the best approach would be to carry out sampling activities at University events, shopping centres according to age and venue requirements.
Influencer marketing – this requires partnerships with Malaysian student lifestyle creators and fitness influencers in order to reveal the product without any performance claims.
Point of sale promotion – utilise branded refrigerators, QR codes and self displays that links to flavour information and promotion.
Campaign objective – the objective of the campaign is to achieve the stated 5% market-share target in the 1st year, and the progress should be measured using retail sales data, distribution coverage, trial to purchase conversion and brand awareness surveys.

Want Detailed Answers with References?

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