Evaluation Essay on Jagerbull

Introduction

Marketing a new brand involves many steps in strategy and planning in that poor execution can result in derailment even on the best products despite their quality. The company aims at producing a new drink into the market, "Jagermeister." To successfully market the product the company is required to maintain focus and address the needs of the customers to gather a loyal following. They are expected to ensure that the brand attributes meet the customers' needs and preferences. The industry hopes to provide Jagermeister at a premium price while targeting a specific market (Heckman et al, 2010). To achieve this, the product will only be available in selected retail shops and sold under time restrictions.

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The drink is made from a blend of saffron, liquorice and citrus making it rich in nutrients and sweet. The brand's attributes appear to be conflicting with those of red bull energy drink which is cheap and affordable for the mass market and easily accessible in retail shops. The original purpose of Jagermeister was as a digestif whereas red bull is built to increase performance and concentration due to additional caffeine content. Red bull has attained and maintained the highest share of the market for energy drinks globally.

Strategic Techniques

Through the existing strategies, the company aims at utilizing the market to their advantage. Strategies applied are centered on the popularity of Jagerbombs to ensure that the sale of the two brands improves simultaneously. According to market sales analysis, the consumption of Jagermeister is mostly promoted by the sale of Jagerbombs (Heckman et al, 2010). The research also provided details that the most significant number of consumers of the product are club-goers and young adults. The two brands are expected to benefit from the current reliance on each other to maintain a large portion of their sale within the market. Before launching their original products, both companies carried out experiments within the market using different flavored options. Jagermeister introduced ginger lime and Guarani extract whereas red bull made use of cola. The data collected during the research together with the gradual increase in the sale of both products over the past seven years confirms the success of the products within the market.

Taking into consideration the strength of the two brands the company has been able to formulate a shared attribute which in this case acts as a decisive factor for selling both products. The applied strategies and adopted qualities are expected to ensure that Jagerbull will receive recognition globally for its merger and maximum effectiveness during the marketing of its products as well. The merger is expected to provide a platform for improving Jagerbull's image and direction through the replicating red bull's image while applying minor tweaks where necessary (Ogden et al, 2011). However, before the merger red bull had to contend with minor issues involving its effects on the health of its users which could turn out to be the main issue that Jagerbull might face within the market.

Market Segmentation

Jagerbull is expected to have a high alcohol content compared to the two drinks, thus eliminating a large market below legal drinking age within the market. As a result, the customer base for the brand is expected to be formed by young and middle-age adults. One of the main reasons for the segmentation is to entice the expansion of red bull into market countries with the highest population of young adults. The merger marks red bull's first forage into the alcoholic beverages market. Jagerbull is expected to mirror the market of beer companies and companies with products similar to it such as Smirnoff ice and breezer.

Target Market

Jagerbull is expected to target adult consumers within the age of 18 to 35 with 65% of them being males. Youths aged 18 to 24 have also been categorized within the market since the toll of consumers within the range has increased gradually since 2015 (Heckman et al, 2010). The company's main aim is ensuring that Jagerbull can provide an image of energy, thrill, and celebration which will enable the product to appeal to energetic and enthusiastic consumers seeking to enjoy themselves using the product. Their main advantage will be the already existing market of red bull within the energy drink industry which will assist them in discovering opportunities and the alcohol business market.

Strategic Differentiation

Competition is stern within the market hence need for the brand to take into consideration strategies that will allow the product to stand apart from the rest. Jagerbull is made as half liquor half energy drink compared to other products which are often made from fruit juices. Their merger has also played a significant role by turning out to be a crucial moment in the industry allowing both companies to conceptualize ingenuity ideas for their customers (Ogden et al, 2011). Redbull also holds sporting events which in this case places it in a unique position compared to other companies within the liquor industries which are often strengthened by the branding of Jagermeister within the industry. Its canned convenience also allows consumers to access and consume the drink at any place any time.

Suggested Amendments

Marketing is defined as placing the product in the right place, price and time. To make the product sale a success, the company has come up with strategies and proposals on how to market the product, where to sell it, price to sell it at and the time which the products should be made available to the consumers. All products in the liquor market tend to follow a logical life cycle. Both companies are required to plan and strategize for each of these stages and identify significant challenges they might face while marketing the products. In this case, the issue of health that existed with red bull needs to be studied and addressed (Ogden et al, 2011). The study should be conducted on the product and the consumers to ensure that they have detailed and credible data concerning the issuer before the product is released.

Consumers are expected to pay a higher price for Jagerbull compared to previous products which in most cases can have a significant effect on how the product sells. To successfully identify and label the products the company is expected to study the link that exists between the value of the product and to the customer rather than applying objective costing and placing the products on offer. The situation creates need to understand how a customer perceives Jagerbull and its value. If the value is positive towards the customer, then the price can be placed high compared to its objective monetary value. In this case by combining the two brands the value of Jagerbull is expected to be high hence it will be sold at a higher price.

All techniques and strategies used by the company act as efforts to promote the product. Primary methods used in promoting red bull and Jagermeister include sales promotions, advertising, public relations and special offers for customers (Heckman et al, 2010). However during the promotion, they should ensure that whatever strategic channels they use, they should be suitable for the price, the product itself and the consumers within their target markets thus ensuring that the promotion is only a communication aspect as it should be within the entire marketing activity.

The existence and establishment of red bull within the market act as an advantage for Jagerbull in determining the placement of the products for the customers. The company can make use of the already existing placement routes and come up with strategies to improve channels that are most suited for Jagerbull. A well-suited placement strategy will enable to access the product quickly and at the same time complement existing product strategies.

Intangible Resources

Most companies in the liquor industry are often faced with the question of whether they should adapt their product to the local market or come up with a standardized international product. Jagerbull is expected to be marketed to a broad range of customers, thus presenting many variations within different environments (Battagello et al, 2017). Customers are different in most markets regarding income, language, and culture. The markets also tend to differ in complying with the provided local laws as well as government pressure concerning certain products.

The company is also expected to consider whether they should sell their brands on a complete international product range or select few products from within their field. In the case of the Jagerbull foreign product range is preferable in that its shorter compared to home markets and focusses on the top sellers because it's less costly and straightforward mainly due to the need to adapt.

Intangible resources play a significant role in determining product and service offering. They enable the company to generate huge profits and significant revenues over time. Intangible resources are assigned a market value based on the benefit they have towards the company and income anticipated to be generated through them (Ogden et al, 2011). Intangible assets are not used during the production process or service. However, they are vital for the daily company operations. The value of the products and services sold by the company are dependent on the value of the available intangible assets within the company including customer loyalty, brand name, copyrights, and patents (Battagello et al, 2017). Intangible assets play a vital role in the marketing of Jagerbull as well as increasing the competitive advantage of the product. The assets speed up the growth of other resources increasing the performance advantage of both companies within the market.

Additional Strategies

The marketing mix plays a vital role within all companies by providing a combination of factors that are used to encourage customers to purchases their services and products. The elements include product, physical evidence, process, promotion price and place. The Ps, are divided strategically into traditional and modern Ps (Ivy, 2008). The conventional methods are divided into product, place, price, and promotion whereas the modern are subdivided into people process and physical evidence. The modern techniques were introduced due to the increase in demand for services within the marketing industry.

People

The modern category plays a vital role in the marketing of services compared to products. People in this case act as a critical element in service provision. They include appropriate staff within the company that facilitates the production processes. To ensure smooth operations, the company should ensure that they recruit the right employees and give them adequate training on the delivery of services to increase their competitive advantage within the market (Ivy, 2008). In the liquor industry, service is a vital component and consumers make judgments and perceptions based on the performance and behavior of the employees catering for them. Therefore the staff is expected to exhibit appropriate interpersonal skills, service knowledge and aptitude to provide required services the consumers are paying for.

Process

While delivering services to the customer employees are expected to follow a step by step procedure to ensure quality is depicted. Service processes can be atomized or done manually. In this case, both methods are applicable within the market hence the company needs to purchase automated sale machines and at the same time ensure that manual deliveries and sales are conducted effectively and efficiently. The machines will allow them to save up on time enabling them to reduce the human element during service delivery (Ivy, 2008). Manually they can also increase the number of personnel to reduce the wor...