Introduction Our company. Otsuka Pharmaceutical Co. . Ltd. is be aftering for a merchandise scheme to its merchandise: Pocari Sweat. Pocari Sweat is a grapefruit-tasting. non-carbonated sweet drink and is advertised as an “ion supply drink” . It is designed to increase endurance. replace electrolyte loss or prevent desiccation when exerting for long periods of clip. Pocari Sweat is well-recognized by the local people. particularly to the jocks. Category Attractiveness Analysis Category Factor The merchandise class we defined is the Sports and Energy Drinks.
We gained the first mover advantage when the merchandise was launched at 1980. which we are the market leader which has a off-trade volume of trade name portion of 43. 8 % in 2012 ( see Appendix Table 6 ) . The menace of new entrants in this class is low due to the intensive competition. and there is low force per unit area from replacements as athleticss and energy drinks are specialized merchandises. The dickering power of providers is low while the dickering power of purchasers is high. The competition in current market is extremely intensive. Detailss can be referred to the analysis on Category Factors on Attractiveness in Appendix.
Overall. this class is still attractive. Aggregate Factor The merchandise life rhythm of Sports and Energy Drinks is more likely in mature phase. From the historical figures of whole drink market. the market size of Sports and Energy Drinks is comparatively little. The market growing of off-trade gross revenues volume of this class is increasing invariably by 5. 4 % from 2007 to 2012. It will turn invariably in the hereafter by 5 % of each twelvemonth. Since Sports and Energy Drinks are day-to-day trade goods for those people after exerting. the gross revenues periodicity and seasonality is low. every bit good as the net income variableness.
Net income degree of the market is high. Overall. this class is attractive. Environmental Factor Due to the rise of childhood fleshiness and the increasing figure of instances of malignant neoplastic disease. diabetes and bosom disease. there are an increasing figure of enterprises by both authorities and non-governmental organisations to advance healthy life and a more balanced life style. The consumer consciousness of making exercisings additions and consumers become more willing to prosecute in athleticss to maintain tantrum and alleviate the emphasis of their work.
Besides. there are an increasing figure of engagements in athleticss event. Each twelvemonth. the figure of enrollment of Standard Chartered Hong Kong Marathon increases bit by bit. Other athleticss events such as Nike Night Run. New World Harbour Race. and charity tallies are besides good supported by the local occupants. These led to increased consumer consciousness of the benefits of athleticss drinks. consequence in the addition of buying of athleticss drinks. Competitor Analysis Level of competitions Level of competitions can be divided into Sports Drinks. Sports and Energy Drinks. Beverages and Food.
Since the gross revenues volume of Sports Drinks is contributed to 80 % ( Appendix Table 1 ) of gross revenues in the Sports and Energy Drinks class. analysis of competition would be focus on the Sports Drinks merely. Based on the perceptual map analysis. the closest rival to Pocari Sweat is Aquarius. Both Pocari Sweat and Aquarius are ion supply drinks with a grapefruit-liked spirit. Aquarius tastes a spot lighter than Pocari Sweat. For Lucozade and Gatorade. the trade name images of both are more professional for jocks. with stronger gustatory sensation in different spirits. Aquarius would be the chief rival for farther analysis.
In footings of the trade name portions of Sports Drinks. Lucozade would besides be a chief rival of Pocari Sweat. GlaxoSmithKline. the company of the trade name Lucozade. stated that beef uping nucleus concern is their strategic concern on 2012. The company aim is holding growing in the Sports Drinks market. and they set up a new invention Centre in mainland China. Aquarius. which is a athletics drink launched in 2011 by Coca-Cola Company. is extremely involved in many race events in Hong Kong. Although there are no Aquarius advertizements in Hong Kong. you can happen Aquarius as sponsored athleticss drinks in local events such as Standard Chartered Marathon Hong Kong.
Keeping growing in the market is besides the chief aim of Coca-Cola Company in Aquarius. Although Aquarius is a new entrant to the market since 2011. it has approximately 5 % of volume trade name portions in the market in two old ages. With the fiscal background and the trade name image of Coca-Cola Company. it raises the trade name consciousness of Aquarius by support affecting in the public event. in order to pull the sportswomans to purchase their merchandises. Aquarius would be the chief rival in the field of isosmotic rehydration athleticss drink. Decision.
The Sports and Energy Drinks market is attractive. as the market size is invariably turning. the menace of new entrant is low. the force per unit area from replacements is low and the net income variableness is low. With the uninterrupted athleticss and healthy life style publicities by both authorities and non-government organisations. they will hike up the gross revenues of Sports and Energy Drinks. In the Sports Drinks market. Pocari Sweat is the market leader with 43. 8 % of trade name portions of entire in volume. Peoples prefer purchasing Pocari Sweat for recovery after exerting comparing with other related merchandises.
Aquarius is the closest rival related to our merchandise. Still. the company has to keep the trade name trueness and pull more clients by marketing and advertisement. Recommendation The company can set more resources on advertisement and besides aim a new market section: manual labor. Manual labors need to replace electrolyte loss and prevent desiccation while working. particularly in the hot seasons. Pocari Sweat would be the best pick for them. Besides. the company can put more on R & A ; D to develop a new merchandise which is best suited for the new market section. Wordss counted: 934.
Euromonitor International 2013. Sports and Energy Drinks in Hong Kong. China. Passport. Euromonitor International 2013. Bottled Water in Hong Kong. China. Passport. Euromonitor International 2013. Carbonates in Hong Kong. China. Passport. Euromonitor International 2012. Consumer Lifestyles in Hong Kong. China. Passport Annual Report 2012. Otsuka Holdings Co. . Ltd. Annual Report 2012. GlaxoSmithKline plc. Annual Report 2012. Swire Pacific Ltd. Supermarket Price Watch. [ Online ] . Consumer Council. Available: hypertext transfer protocol: //www3. consumer. org. hk/pricewatch/supermarket/index. php? filter1=027 & A ; filter2=006 & A ; lang=en Erik. P.
Sports drinks vs. energy drinks. [ Online ] . Available: hypertext transfer protocol: //www. tester. com /article/sports-drinks-vs-energy-drinks-the-good-the-bad-and-the-ugly Appendix Category Factors on Attractiveness Reasons Attractiveness Low Threat of new entrants Current market is competed intensively. and the new entrants are barely survived in this environment. The capital demand is high as particular expression for athleticss drinks demands to be developed. High High Bargaining Power of purchasers The major purchasers are supermarkets ( 61. 4 % ) and convenience shops ( 35 % ) . which they have a higher bargaining power when buying a big sum of merchandises.
( Appendix Table 3 ) Low Low Bargaining Power of providers The ingredients of the Sports and Energy Drinks can be purchased from different providers. The exchanging cost to other providers is low. High High Intensity of Rivalry There are 9 major trade names in the current market. ( Appendix Table 6 ) The competition is extremely intensive. Low Low Pressure from substitutes Other carbonate drinks or juices do non hold the same benefits as athleticss and energy drinks on public presentation and recovery during exerting. Bottled H2O would be the chief replacements of Sports and Energy Drinks. High.
Attraction of Market Variables Reasons Attractiveness Small Market size Compare with other drinks. the market size of Sports and Energy Drinks is comparatively little. merely has an off-trade sale volume of 20. 3 million liters in 2012. ( Appendix Table 2 ) Low Changeless Market growing Market growing of gross revenues volume increased by about 5. 4 % each twelvemonth from 2007 to 2012. the prognosis growing rate of the market is besides positive. ( Appendix Table 4 & A ; 5 ) The market is turning invariably. High Low Gross saless periodicity Sports and exerting are day-to-day activities across the twelvemonth. High Low Gross saless seasonality.
Sports and exerting are day-to-day activities across the twelvemonth. High Net income degree With the benefit of economic of graduated tables and mass production. the net income degree is high for Pocari Sweat. High Low Profit variableness Sports and exerting are day-to-day activities across the twelvemonth. High Product Life Cycle Stage Reasons Maturity There are tonss of rivals in the Sports and Energy Drinks market. The pricing of the Sports and Energy Drinks is stable among this few old ages. ranged from $ 9. 5 – 13. 9. which means that the monetary value is at the border related to the stuff costs. ( Appendix Table 7 ) Besides. the volume growing of class is about 5.
4 % in each twelvemonth from 2007-2012. which is low to chair growing of the market. The prognosis volume growing of the class has 5 % which is rather considerable. Degree of competitions Product Form Sports Drinks: Pocari Sweat. Aquarius. Lucozade Sport. Gatorade. Drinkazine Energy Watt and other related “ion supply drinks” Product Category Sports and Energy Drinks: Including the energy drinks. such as Lucozade Energy. Monster Energy. Red Bull. Libogen Tonic Drink Generic Competition Beverages: Carbonated soft drinks. bottled H2O. beers. juices. etc. Budget Competition All consumer merchandises with similar monetary value.
Current & A ; Future Company Strategy Matrix on Sports Drinks Otsuka Pharmaceutical Co. . Ltd GlaxoSmithKline Coca-Cola Company Objectives Grow market portion and volume Grow market portion and volume Grow market portion and volume Current Strategies Advertising and publicity of merchandises. Merchandises spread outing in multiple sections of class. Products establishing and increased advertisement spend. Expected future schemes Focus on merchandise development. increased advertisement and publicities. Focus on trade name extensions with new spirits to make full class. Focus on raising trade name consciousness through local athleticss events.