Red Ginseng Energy Drink& Pills

2010/09/27Elly & Jason

Product introduction Marketing plan Cost SWOT analysis Conclusion

Outline

*Product Red Ginseng Energy Drinks and Pills

*Logo: POWER UP!

• Main ingredient: Red Ginseng Effects of Red Ginseng

- Increasing energy - Stimulating sexual function - Reducing the incident of cancer

• Natural healthy ingredient

Product Description

Energy Drink Industry

65%

35%

Energy Drink Consumer

under 35 years oldabove 35 years old

The U.S. domestic market: $10 billion

Market structure

Red Bull Monster

Competitions

POWER UP!To be in the best of health.No caffeine in it.

Slogan

Marketing Strategy

Price

$1.99 Product Healthy Ingredient

PlaceThree major food

retailer: Wal-Mart, Kroger Co., Costco

PromotionBuy one get one free campaign

TargetPeople Above 35 years old

Item PriceRetail price in Korea $1

Shipping $8 / 1 cubic foot$0.02 per bottle

Duty $0.05 (approximation)( free for ginseng root; $0.01 for beverage with 0.06 liter )

Cost

Total cost: $1.07 / bottle Retail price: $1.99 ( Red bull – $1.99, Monster – $2.29 )

Source: http://uboxworldwide.com/international-shipping/korea_south/ http://usitc.gov/publications/docs/tata/hts/bychapter/1002C12.pdf http://usitc.gov/publications/docs/tata/hts/bychapter/1002C22.pdf

SWOT Analysis

Strengths:1. Healthier2. High quality ginseng resource3. Variety of ginseng product4. Price

Weaknesses:1. Flavor2. People might not be familiar with ginseng drink and pill

Opportunities:1. Awareness of Healthy food2. Up coming FTA between Korea and the U.S.

Threats:1. Taste of American consumer 2. People in the U.S. get used to drinking coffee

Add honey

A healthier alternative to energy drink

A challenge to change people’s habit of drinking energy drink

To expand the market to the North & South America in the future

Conclusion

http://en.wikipedia.org/wiki/Ginseng http://www.kgc.or.kr/front/kgc/network/network.do http://researchwikis.com/Energy_Drinks_Market http://supermarketnews.com/profiles/top75/2010/index.htm

l/ http://www.pe2000.com/caffeine.htm http://kgc.or.kr/brand/product.do?productCtgryGroup=3&na

v=2_4_0 http://uboxworldwide.com/international-shipping/korea_sou

th/ http://www.export.gov/FTA/korea/index.asp http://en.wikipedia.org/wiki/Main_Page http://usitc.gov/publications/docs/tata/hts/bychapter/1002C

12.pdf http://usitc.gov/publications/docs/tata/hts/bychapter/1002C

22.pdf

References