Kool-Aid Brand Strategy Study: Growth through Affordability

A study of the brand

Current Goal Cost Leadership Kool-Aid's current goal is to expand its market share in the flavored beverage industry by providing affordable and innovative beverage solutions to families and individuals. Kool-Aid adopts a cost leadership strategy , aiming to offer competitive prices while maintaining product quality and variety. Basic Framework $ Business Challenge - Attract new customers. - Foster brand loyalty.

Type of Business What do customers care about? Clients’ Competition What is Kool-Aid good at? Convenience and affordability Soda companies + other juice brands Enjoyment Providing Nostalgia Kool-Aid Market Focused on families → directly to children Drucker’s 5: Value and Loyalty

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Society and Trends - Kool-Aid’s competition is increasing with trends, staying up to date with current societal perspectives regarding healthier eating habits, and popularizing their products more by getting them out far more to consumers - There is opportunity to change these public opinions and create a larger consumer market

Why are these of importance? - They’re the main reason for the gradual, steady decline in popularity of Kool-Aid - Offers insights into how we can change Kool-Aids advertising/marketing How do they impact your client? - Creates an association of negative health effects with Kool Aid - Lowers direct sales What are the factors? - 21st century society = health oriented (parents are often less free- range than they were during the Kool-Aid craze) - Keeping their children's diets more under control is their first priority - Kool-Aid competitors becoming more well-known to social media

Sugary and artificial ingredients. Koolaid Man depicted as a large, unhealthy portion. Bad advertising strategies; no social media presence. Strengths Well known and recognized. Affordable: appeals to lower income families. Variety in the product line: envelopes, singles, canisters, bursts. Has remained present in the market since 1927. Weaknesses Opportunities Threats Change brand image, redesign to focus on nostalgic aspects Expand target audience with new marketing strategies. (Gain social media presence) Expand into different markets. (ex. Energy drinks) Competitors have similar products with health at the forefront. Outdated brand image. Evolving regulations from government. Brand perception: negative connotations and publicity.

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Company Analysis: Market & Macroeconomic environments

2023 World Market - Juice producers will continue to grapple with changing preferences and greater competition - Consumers are expected to continue to adopt healthier diets and opt to consume other calorie-free beverages, like water. - Market share concentration for the Juice Production industry in the US is low, which means the top four companies generate less than 40% of industry.

Changes in the Industry ➔ Industry revenue in juice production has declined ➔ The average American is drinking about half what they drank when the industry hit its US peak in the late 1990s. ➔ Drink producers will face increasingly tough regulation forcing them to reduce energy use or pay heavy fines.

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- Creating marketing campaigns that appeal to wider age ranges of consumers - Promoting nostalgic/sentimental value around the brand - Generating bigger presence on social media Conclusion of where we are directing the brand:

References https://news.kraftheinzcompany.com/press-releases-details/2015/Oh-Yeah-Kool-Aid-Ma n-is-Stirring-up-Some-Fun-with-the-Introduction-of-New-Liquid-Beverage-Mix-with-50-L ess-Sugar-Than-Leading-Regular-Sodas/default.aspx https://elib.sfu-kras.ru/bitstream/handle/2311/5330/s22_179.pdf?sequence=1 https://www.businesswire.com/news/home/20220520005188/en/Insights-on-the-Fru it-and-Vegetable-Juices-Global-Market-to-2027---Mounting-Competition-and-Pressur e-on-Bottom-Lines-Drive-Juice-Producers-to-Focus-on-New-Technologies---ResearchA ndMarkets.com https://www.tetrapak.com/insights/cases-articles/juice-nectar-still-drinks-challenges https://www.ibisworld.com/united-states/market-research-reports/juice-production-ind ustry/#IndustryStatisticsAndTrends

Brand Analysis Presentation_ Kool-Aid

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