Booster Growth Small Report

Segmentation and opportunity identification

Small case

• Purpose – To show the thought process and methodology involved when identifying growth potential in

a market based on segmentation.

• To fulfill its purpose this Short Report will: – Identify one or more opportunities for Faxe Kondi Booster in the marketplace. – Identify one or more marketing opportunities based on the findings of the segmentation.

• The methodology will be as follows: – Create a segmentation model – Place brands in segmentation model – Evaluate segments for availability/opportunity – Size of segment compared to the market. – Growth in segment. – Booster Market Share in the segment. – Cost of share in segment – Choose a segment to attack – Come up with possible ways of attacking the segment.

• Limitations – As no official or real statistics are available at this point, the results in this paper are based

only on estimates and 2. hand statistics. – Conclusions and suggestions coming from this Small Report should only be seen as results of a

mythology and not as a result of precise statistics. – In order to evaluate and attack the right segments in the right way a lot more work needs to

be done.

Key Findings

• Booster Opportunities in the marketplace. – There is a significant opportunity for brand holders who will start creating segment oriented

marketing. At the moment marketing is only focused at the message “Get more energy” not at a specific segments and/or age groups. Marketing is not even targeted at the lucrative mixer segment.

– Therefor any marketing afford aimed at any segment should yield benefits and turnover. However some segments are more lucrative than others. Using an evaluation matrix we can see that apart from the segments where Booster is already strong the following segments are interesting: • Driving age 20 and up • Studie age 15 to 20 • Work are 20 and up • Mixer all ages • Age group 30 to 40 holds potential in all segments • Age group 40 to 50 plus holds potential in all segments • Coffee killer – shot size – quick energy holds huge potential for all ages.

• Marketing opportunity – The Ping Pong Marketing stunt

• This report chooses, based on its findings to move on with the Mixer segment. • In order to market Booster in this segment I have come up with a new concept concentrated around

the game of Around the Table ping pong. • This game holds a lot of the values that we want to bring across to the consumers • Potentially this game & event can be executed in bars, at festivals, in the nightlife ad hoc, in public

places etc. A tournament can be created around the concept and much more. The concept is also promising in regards to user centric online social marketing.

• In this Small Report the concept is only outlined and it needs a lot more thought in order to be successful

• Further the concept should be supported by marketing in other channels as well.

Segmentation model.

• Segmentation – In order to be able to identify opportunities in the market, it is important that we are able to

identify and quantify all segments in the market.

– To this end, this report will work with a segmentation model based on consumer needs segmented by: • Age • Occasion.

– Once the segments have been identified we will , based on brand positioning, be able to place

existing brands as well as Faxe Kondi Booster within the model.

– Once we know where each brand is placed within the segmentation model, we will be able to determine • Segments share of total market • Faxe Kondi share of segment • Segment growth • Cost of share (Budgets)

– Once we have a clear knowledge of the marketplace we will be able to identify opportunities.

To this end we will use a segment evaluation matrix.

Segmentation model

• The segmentation model uses age and occasion to determine where Booster is present/not presents, strong/not strong and ultimately to determine opportunities in the market.

• The segmentation model shows us where the different brands are positioned within the market. And it shows us where there might be openings in the market.

Boost Rebuild

15-20 Booster Maxime Booster Monster Booster Booster Monster

Burn Linus Pro Burn Need Burn Burn Need

Cult Cult Smag Cult Cult Smag

Red bull Red bull Full Thro. Red bull Red bull Full Thro.

etc etc Hustler etc etc Hustler

20-30

A 30-40

G

E

40-50

50+

Sport Work Studies Mixer Driving Coffee Killer

ENERGYOCCASION

Findings

• Sport Boost – Faxe Kondi Booster and Red Bull dominates

• Sport Rebuild – Segment dominated by Maxim & Linus pro

• Work/Studies – These segments are covered by a multitude of

brands. – Non of the segments have target marketing

aimed at them

• Mixer – Mixer is dominated by Red Bull and Cult. Most

brands however are used to mix with vodka. – No other brand comes close to Red Bull and

Cult. – No brand use targeted marketing directly at the

segment except Cult who use SHAKER in the night life.

• Driving – All brands no marketing directed at the

segment.

• Coffee Killer – Not dominated by anyone

• Opportunities in the age group: – No brand targets marketing at Mixing – No brand targets marketing at Work Study – Driving and coffee killer are open segments no

one dominates

Age Group 15 - 20 Age Group 20 - 30 • Sport Boost

– Sport boost is dominated by Faxe Kondi Booster and Red Bull

• Sport Rebuild – Sport Rebuild is dominated by Maxim & Linus

pro (these brands have succeeded in covering a niche in the market where Red Bull is not strong)



aimed at them





• Driving – The segment is small in driving due to the age.

• Coffee Killer – The segment is not yet big on coffee usage

• Opportunities in the age group: – No brand targets marketing at Mixing – No brand targets marketing at Work Study

Findings

• Sport Boost – Faxe Kondi Booster and Red Bull

dominates

• Sport Rebuild – Segment dominated by Maxim & Linus

pro Nutramino

• Work/Studies – Non of the segments have target

marketing aimed at them

• Mixer – If energy mixer is used it is Red Bull – The mixer market is wide open for this

age group.

• Driving – All brands no marketing directed at the

segment.


• Opportunities in the age group: – No brand targets marketing at this age

group – All segments are open for attack

Age Group 30 - 40 Age Group 40 – 50 & 50 + • Sport Boost

– Sport boost is dominated by Faxe Kondi Booster and Red Bull

• Sport Rebuild – Segment dominated by Maxim & Linus pro and

Nutramino



aimed at them





• Driving – All brands are represented.


• Opportunities in the age group: – No brand targets marketing at Mixing – No brand targets marketing at Work – No brand targets driving – The age group is not represented in marketing

Segment share of total market • In order to evaluate the value of the individual segments we have to determine their share of the

over all market. • Below each segment has been assigned a share of the market. • The model shows a very fragmented market with a few larger segments.

Boost Rebuild

15-20

20-30

A 30-40

G

E

40-50

50+

3%

3% 2%

0% 0% 0%0%0%0%0%

5% 2%

10% 2%

4% 1%5%8%1%5%

3% 1% 3% 1% 1%

5% 1% 1%3%1%

3% 5% 15% 5% 1%

SEGMENT SHARE OF TOTAL MARKETOCCASION


Faxe Kondi Share of Segments • To determine where booster is big and where booster is not so big we have to determine Boosters

share of each individual segment. This will reveal opportunities. • The segmentation model shows us, not surprisingly, that Booster dominates in the sport segment

and that our share lacks behind in the larger segments Mixer in all ages.

Boost Rebuild

15-20

20-30

A 30-40

G

E

40-50

50+

0%0% 0% 0% 0% 0% 0%

1%

5% 2% 3% 1% 0% 1% 1%

5% 0% 5% 5% 3% 5%

1%

10% 0% 3% 5% 8% 5% 1%

10% 0% 1% 3% 8% 8%

FAXE KONDI SHARE OF SEGMENTOCCASION


Segment growth index

• In order for us to be able to target the most lucrative segments it is important to know something about the growth in the segments

• This table shows us where the market is growing fast and where it is stagnating or declining • In the energy market most segments are growing, however some are growing faster than others.

Boost Rebuild

15-20

20-30

A 30-40

G

E

40-50

50+

103120 106 110 100 110 115

105

107 106 106 100 110 115 109

108 105 105 113 115 120

101

105 110 105 112 115 115 103

110 110 105 112 115 100

SEGMENT GROWTH INDEXOCCASION


Cost of Share

• Cost of share needs to be evaluated. However, as it is difficult get precise figures we will need to estimate the marketing spending in each segment. In this model we will use: High spending, Medium spending and Low spending.

• The table gives us an idea about how expensive it is to penetrate a given segment.

Boost Rebuild

15-20

20-30

A 30-40

G

E

40-50

50+

LowLow Low Low Low Low Low

Medium

Low Low Low Low Low Low Low

High High Medium Medium High High

Low

High High Medium Medium High High Medium

High High Medium Medium High Low

COST OF SHAREOCCASION


Evaluation matrix • Cost of share needs to be evaluated. However, as it is difficult get precise figures we will need to estimate the

marketing spending in each segment. In this model we will use: High spending (Red), Medium spending (Yellow) and Low spending (Green). Boosters share in a segment will be represented by the size of the segment circle. Growth and size of the segment is represented on the X/Y coordinates.

• In this example segments have been placed to illustrate the purpose. Not all segments

Size

Growth

Faxe Kondi Share

Cost of Share

Mixer 40 - +

5% or less

5 – 15 %

15 – 25 %

25 – 50 % +

High

Medium

Low

Mixer 20 - 30

Mixer 30 - 40

Driving 20 -30

Boost 15 - 20

Boost 30 - 40

Mixer 15 - 20

Work 30 - 40

Driving 15 - 20

Driving 30 - 40

Driving 40 – 50 +

Mixer 40 – 50 +

Boost 20 - 30

Work ´40 – 50 +

Choosing a segment to attack

• Judging from size, the mixer segment and the booster segment are the most interesting ones.

• Faxe Kondi Booster is already present in the booster segment with a relatively high market share

• Attacking the mixer segment therefor makes sense. However the cost of share is high.

• The question then becomes: How do we get a higher market share in the mixer segment without spending millions and millions.

• On the following pages is a suggestion as to how this can be done. The events will not stand alone and will have to be supported by marketing in other channels' in particular Online/Social will be important.

The Ping Pong Concept

• Values that we want to bring in to the mixer segments – The Faxe Kondi Booster spirit:

• Sport • Doing things together • Fun • Friendship • New friendships • Competition

• A concept that matches these values

does actually exist in the form of new trendy bars in Copenhagen, Berlin London, NY, etc.

• The concept of this bar evolves around

table tennis and the game Around the Table.

• Just like Dart, Pool, Foosball and Backgammon, Ping Pong is moving into the night life.

• This is a great opportunity for Booster as Ping Pong and Around the Table embodies the Booster values.

Bounce Bar Holborn

London UK

Über Pong Berlin

Germany

Dupong Nørrebro Denmark


• Creating events around the Around the Table concept – Events and venues:

• Be at the bars with Ping Pong Tables • Tournaments at bars • Tables & Tournaments at Festivals^ Concerts • Private tournaments in the nightlife.. • Pup up Ping Pong

Faxe Kondi Booster Rundt om bordet kom og

spil med på Dupong. Vind en kasse booster til

dig og dine venner..

Vi spiller onsdag aften 20.00 Til 22.00


• At Bars – Everywhere the ping pong

concept is popping up Booster should be present

– There should be booster in the bar

– There should be a choice of Booster cocktails on the card

– A small booster brand on or at the table.

– Booster brand on the bats, etc.

• Weekly tournaments

– In addition to making sure that Booster is sold at bars with Ping Pong Tables Booster could arrange small tournaments.

– Weekly tournaments – Discount on Booster/Cocktails – Winn a crate of Booster or tickets

for a booster Event/Festival/Concert…


• Festivals and Concerts – At sponsored festivals and

concerts Booster could put up tables.

– People are there with friends, they are in a festive mood, they drink, they have fun. Perfect for Booster

– People can play around the table just for fun and we can arrange small tournaments where winners can win Booster and Back stage passes for an hour etc.

• Private Ping Pong Events in the

Night Life – Yes that does exist – Booster should not only be

present at these but also stage some of these helping the concept to take off in Denmark


• Pup Up Ping Pong

– A team of Booster people sets up a number of ping pong tables at any given location in the country.

– Only prerequisite for the location is that there are people who wants to relax and enjoy them selves.

– This could be at places like • Dronning Loises bro in Copenhagen • Bellevu strand • Kongens have • Fellede parken • Israls Plads

– The Pup up venue will be delicately

branded with Booster and people can buy booster and booster cocktails. Further people participating will be able to win tickets and r booster products.

Booster Growth Small Report

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