marketing assignment

Running Head: MARKETING 1

MARKETING 5

Marketing

Anthony Bahlman

Mktu 605

06/02/2022

Introduction:

The value proposition is one of the most important factors to consider while understanding the product from the marketing perspective and its implication process in the market. I have chosen energy drinks because the market of energy drinks is growing at a good pace, and for the past ten years, the market has not seen a negative year when it comes to growth. There are stages in the process of the value proposition. The first one is the problem associated with the product, the second is the solution to that problem, and the last one is the benefit of the solution to the end consumer. (da Costa Fernandes et al., 2020)

Problem:

Energy drinks are widely used by the general population and are very famous among the young population, but there are some the problems associated with the energy drinks as these drinks are advertised to increase the energy level of any individual who chooses to drink the product, and the ingredients of the product also contains some elements which boost the energy but the boost is temporary, and there are a lot of side effects to these energy drinks, and one of the most prominent ones is insomnia which keeps the consumer awake for a longer period which is bad for health, and there are also other severe health-related side effects associated with the energy drinks, and there is one more problem which is one of the major problems is the pricing of this drink because the price of energy drinks are high and are not affordable to the majority of the population which resulted in low sales although the market is growing but without in relation with the middle-income class of the economy. Health and pricing are two major problems associated with energy drinks, and a solution is needed before entering the market. (Pollack et al., 2020)

Solution:

So the first problem is related to health issues, and that needs a very solid solution which means the product should be less hazardous and, if possible, comes with health benefits; energy drinks are usually designed to give the temporary energy to its consumer, and most of the consumers take those drinks to get active while doing a certain task r if they are feeling weak and needs to be active, so they consume the energy drink, but it comes with side effects so the solution should be to make an energy drink which has fewer side effects and some health benefits as well which requires a good team of researchers and the proper facilities and materials to make a healthy energy drink and the second problem with the energy drinks is the overpricing as the product is made of expensive special ingredients and this inflates the price of energy drinks so, the solution is to find cheap alternative ingredients to make an energy drink so the price can be brought down. As we have discussed earlier that, there is a huge middle-income population cannot afford the drink, and if the energy drink is available at a lower price, then it will be a great opportunity to capture this untapped market. (Somers & Svatikova, 2020)

Benefits:

After identifying the problem and then its solution, the consumer will have the benefit as the product is available at a lower price and there are fewer side effects, and it is more healthy for the consumer, which gives the consumer a satisfaction level while buying the product and the other beneficiary of this will be the company because by reducing the price the company will be able to capture the untapped market and make good profits and this will also help the company to capture the overall market share of the product. This market is already growing more than 10 percent per annum, and with the help of the middle-income class, it will be a huge opportunity for the company to make good profits and increase the size of the company.

References

Pollack, C. C., Kim, J., Emond, J. A., Brand, J., Gilbert-Diamond, D., & Masterson, T. D. (2020). Prevalence and strategies of energy drinks, soda, processed snacks, candy, and restaurant product marketing on the online streaming platform Twitch. Public Health Nutrition, 23(15), 2793-2803

Somers, K. R., & Svatikova, A. (2020). Cardiovascular and autonomic responses to energy drinks—clinical implications. Journal of Clinical Medicine, 9(2), 431.

da Costa Fernandes, S., Pigosso, D. C., McAloone, T. C., & Rozenfeld, H. (2020). Towards product-service system oriented to a circular economy: A systematic review of value proposition design approaches. Journal of Cleaner Production, 257, 120507...

Problem

Solution

Benefit