New product review: soft drink market analysis

¶ … Product:

The Redux Corporation, a company based out of Las Vegas, Nevada has launched a new energy drink to rival the popularity of Red Bull, Full Throttle and other industry leaders. Their new product is called "Cocaine," and it claims to be the product with the most caffeine on the market today. Redux has never been a major player within the energy market before, which has traditionally been dominated by giants such as Pepsi Co and Coca Cola. However, this new product with its provocative name and high caffeine content has provoked a strong reaction in both consumer markets and watchdog organizations.

Company's Strategy:

The company's strategy is based upon the "shock-value" of their product name. Cocaine, which is traditionally the name of one of the most lethal and highly prohibited drugs in the world, gives the product a strong "rebellion" tagline. Their current advertising strategy surrounds the use of the product name and as aptly labeled as "The Legal Alternative" (cocaine, npg). The biggest sale factor that this product has is the fact that it contains 32.5 mg/oz of caffeine. This is more than triple the amount within other competitive brands such as Red Bull and Full Throttle. The company wants to use the shock value of this drink to lure teens to switch to their new product.

Target Market:

The target market for this product is aimed primarily at young adults. It is currently only available within Los Angeles and New York convenience stores and bars. The suggestions of mixing Cocaine and alcohol on their website implies that they want to introduce this as an alternative to Red Bull and other energy drink mixes. The eventual market is the lucrative teenage market, which buys approximately 85% of all energy drink products. However, this strategy may very well backfire on them, since their has been a strong backlash to this product within both government and special interest organizations. Professor Charles O'Brien argues that "It's just a bad idea and has all the same downsides of too much caffeine plus a very bad name" (O'Brien, npg). Although this product is currently not available mainstream, orders have been increasing on their main advertising website.

Customer Needs Filled:

The main advantage of the new product "Cocaine" is that it provides a "cool" alternative to traditional energy drinks. Energy drinks, which are traditionally uppers used to produce a strong caffeine rush, target a very fickle teenage segment that value product "sex appeal" over actual quality. Not only does Cocaine provide the allure of a rebellious and taboo name, it also contains much more caffeinated rush than traditional products on the market. Which means that there is a greater adrenaline rush for product users?

Competition:

The main difference between Cocaine and other competitors is product placement; it has done a wonderful job of providing an underground advertising campaign that has caused even more people to become interested in it. Its current strategy of providing limited supplies has also helped to create greater hype for the product as it is only accessible through Peer to Peer websites such as Ebay and their primary sales website. Another strong factor in its favor is its increased dosage of caffeine. With 280 mg of caffeine per 8.5 ounce bottle, it easily outclasses the majority of competitors on the market. However, this high dosage may in fact work against the company in the future, as numerous doctors have come to the fore to attest to the health risks of drinking such much caffeine in one sitting.

What Makes the Product Great:

The best part of this product is the product placement methodology that Redux has employed. By strongly using a website-based promotion program rather than advertisements, they were able to leverage the shock value of their product to their full advantage. Through outraged criticism from interest groups and news websites, they have been able to brand themselves without having to break the bank in advertising costs. As a result, their product now has all of the hype of industry leaders within only two months of its release.

Improvements: