5 pages/≈1375 words
Business & Marketing
Dare Situation Analysis ANF Problem Statement: Product And Market Trends Situation (Case Study Sample)
The task required that one do a situation analysis of businesses state of that company and come up with a problem statement which will give suggestions on the how business can be improved. The sample is on dare, an AUSTRALIAN brandsource..
DARE SITUATION ANALYSIS ANF PROBLEM STATEMENT
In Australia, Dare is the top-selling iced coffee brand which primarily competes with Coca-Cola, V energy and Red Bull for the market share. It has got a wide range of products which includes Dare Double Espresso, Dare Raw, Dare pressed and so on. In most recent years, the company has taken on the international pick-on-me and locally based iced coffee brands through its creation of a consumption occasion that is unique. This aspect has brought the company lots of success in most recent times. Not only did its sales and market share growth, but also the brand became a market leader in the iced coffee category. Therefore, the goal of this study will be to analyze the current market trends so that they can help redesign a five-year market plan that is aimed at capturing a larger market share for the brand. Thus, the focus will be on developing a marketing strategy that will enable the creation of more opportunities to facilitate capture of a larger market share.
Product and market trends situation
According to business analysts, there is an expected increase in demand as far as the non-alcoholic drink market is of concern. This is due to the anticipated increase in the disposable income as well as changing lifestyle. Also, witnessed global warming that has resulted in the rise in temperature, is seen as a factor that will contribute to the market growth Global (Non-Alcoholic Drinks Market report, 2014). Despite these, the issues of health awareness and in particular those surrounding obesity is seen as the market restraining factor. Nonetheless, this issue has been well addressed by the manufacturers through the introduction of zero-sugar beverages and diet (2014). Also, because of the health concern issues, the demand for juice is expected to go high. Therefore, there is an opportunity here, for the Dare Brand to come up with a zero-sugar beverages or even a more natural product. Even though the changes in customers’ need is a challenge to many manufacturers, it can be said to have a positive effect on the non-alcoholic drink manufacturers as they will get an opportunities to introduce new flavors and variant products. This market is largely driven by demographics and consumer tastes thus smaller players can tap into the market and control a share of it (Global Non-Alcoholic Drinks Market report, 2014). There is an expected fast growth of this market in different parts of the world owing to factors such as increase in disposable income, emerging large young consumer base and change in policy and regulations which encourage foreign players.
First and foremost, it is important to note that, the Dare brand, is competing for a market share with NARTD competitors such as Coca-Cola, Red Bull, V Energy and Ice Break among many others. In most recent time, the Dare brand claimed the third position behind Red Bull-market leader and before Coca-Cola (Hidskes and Weiler, 2017). Although Dare commands a good market share today, there are so many competitors in the market that are of concern. Given that the market is driven by both demographics and consumer preferences, competition aspect is worrisome as this allows more competitors into the market. Red Bull controls about 70% of the market making it the market leader. What concerns Dare is that there a huge gap between it and Red Bull regarding sales. This has been attributed to its ‘buzz-marketing’ strategy whereby the brand lures its consumers and also potential consumers to exciting and also exclusive events which have got good media coverage. The brand supports more than 500 world class sports athletes that take part in spectacular events that happen across the World. Unlike many marketing strategies whose aim is to brings products to consumers, this Red Bull strategy brings consumers to their products (Gschwandtner, 2012). Also, and to capture the young generation market, Red Bull applies ‘viral’ marketing strategy whereby it pays DJs, students and opinion makers to host events where the drinks will be sold. It is surprising to note that Red Bull products can be said to have a bad taste and yet it’s the market leader. This can be attributed to the two strategies. For Dare to compete effectively for the market share, it not only needs to change its marketing strategies but also create a new and engaging image.
Sale of the nonalcoholic beverages mainly depends on industry players’ ability to get their products into the market and distribute them via the most efficient channels like retailers and large-scale supermarkets (Nonalcoholic Beverage Market Size, Share & Trends, Report, 2017).Improvement and growth in distribution channels are one of the factors that have contributed to the expansion of most brands market in both rural and urban areas. Usually, the non-alcoholic beverages are distributed through channels such as supermarkets, hypermarkets and also the convenience that display the presence of such products in the market (2017). Unlike before, food service providers such as restaurants, hotels are thought to be the essential channels which of these products. In 2016, studies showed that supermarkets were the most important distribution channel for non-alcoholic beverages and that this is expected to continue in the future. Also, fast food joints, drinking, and food service places are other distribution channels that are primary (2017). For Dare to reach and also expand its market share its ought to make deals with various supermarkets, hotels, restaurants, stores, drinking and first food joints places so that they can help it distribute its products.
Dare SWOT analysis
Strengths and weakness
Overall, Dare’s biggest strength is its strong market position. It occupies the 3rd position in the NARTD market. The brand also has a product portfolio that is diverse and that it can risk investing in products that are new and unique in the market. Due to global warming and increase in disposable income, the market is also expected to grow and thus boost its sales. Emerging market is a strength for r Dare.
The most significant weakness is regarding the increased health awareness on the issue of obesity. This has had the effect of turning consumers away from beverage drinks, and thus its market share is threatened.
Opportunities and threats
Though the change in consumer preference, taste, and needs, this gives Dare an opportunity to be innovative and come up with new products that can bring success to the brand. Also, there is an expected increase in consumer disposable income which increases spending of consumers. Therefore, the brand has an opportunity to make more sales shortly.
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