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Team 3 Ivan Ordonez Jane Alicia Laura Tobi Sherif

Team 3 Ivan Ordonez Jane Alicia Laura Tobi Sherif

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Page 1: Team 3  Ivan Ordonez  Jane  Alicia  Laura  Tobi  Sherif

Team 3

Ivan Ordonez

Jane

Alicia

Laura

Tobi

Sherif

Page 2: Team 3  Ivan Ordonez  Jane  Alicia  Laura  Tobi  Sherif

SKU and Overview

Headquarter and distribution center in Corona, California

2nd largest seller in US

Distributed in 50+ countries

6 product categories

Energy drink category - 92% of total revenue

SKU selected

Monster Energy Drink, 16oz

Page 3: Team 3  Ivan Ordonez  Jane  Alicia  Laura  Tobi  Sherif

Market Share and Sales

Red Bull; 43%

Monster; 39%

Rockstar; 10%

Others, 8%

2011 2012 2013 $500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

Red Bull Monster Rockstar

Mill

ions

United States Top Selling Energy Brands

Page 4: Team 3  Ivan Ordonez  Jane  Alicia  Laura  Tobi  Sherif

Market Research

Walgreens 67 Eleven 5CVS 4Safeway 2RJs 1Rincon Market 1Google Shopping 1Food Court 1Clouds Smoke Shop 1Bristol Farms 1Amazon 1

24 stores – Most in District Area

What did we measure?

Facing & Branding Pricing Promotion Branding

Where did we go?

Page 5: Team 3  Ivan Ordonez  Jane  Alicia  Laura  Tobi  Sherif

This is what we found

Facing

Lower than eye-line shelf display

Flavor variety strategy with average 15 SKU

Branding

Few “Monster fridges” and in-store branding

Page 6: Team 3  Ivan Ordonez  Jane  Alicia  Laura  Tobi  Sherif

Promotion

2 x 4

3 x 5

14

1

There is a consistency

in the promotional

strategy of the brand

given that 14/22 offline

stores we visited had

the same 2 cans x $4

promotion.

HIGHLIGHT

Type of promotion

29%

63%

8%

NoYes

Any promotion?

Page 7: Team 3  Ivan Ordonez  Jane  Alicia  Laura  Tobi  Sherif

Pricing

STORES Min MaxMax. Price

after promotion

Safeway $ 2.29 2 x 4 $ 0.58Walgreens $ 2.49 2 x 4 $ 1.38CVS $ 2.49 2 x 4 $ 1.387 Eleven $ 2.69 2 x 4 $ 1.38RJs $ 2.49 - $ 2.49Clouds Smoke Shop $ 2.50 - $ 2.50Rincon Market $ 2.69 $ 2.69Bristol Farms $ 2.99 - $ 2.99

Amazon$ 1.70 - $ 1.70

Google Shopping $1.75 - $ 1.75

Food Court $ 1.89 3 x 5 $ 0.67

OFF

LIN

EO

NLI

NE

WH

OLE

SA

LE

RETA

IL Strong impact of promotion on prices

HIGHLIGHT

Page 8: Team 3  Ivan Ordonez  Jane  Alicia  Laura  Tobi  Sherif

Conclusion

Costco Clubs Branding

Page 9: Team 3  Ivan Ordonez  Jane  Alicia  Laura  Tobi  Sherif

Pricing

STORES Min MaxMax. Price

after promotion

Safeway $ 2.29 - $ 0.58Walgreens $ 2.49 $ 2.69 $ 1.38CVS $ 2.49 $ 2.69 $ 1.387 Eleven $ 2.69 - $ 1.38RJs $ 2.49 - $ 2.49Clouds Smoke Shop $ 2.50 - $ 2.50Rincon Market $ 2.69 $ 2.69Bristol Farms $ 2.99 - $ 2.99

Amazon$ 1.70 - $ 1.70

Google Shopping $1.75 - $ 1.75

Food Court $ 1.89 - $ 0.67

OFF

LIN

EO

NLI

NE

WH

OLE

SA

LE

RETA

IL

Price variation inside chains

Location crossed out

Traffic hypothesis

HIGHLIGHT

Page 10: Team 3  Ivan Ordonez  Jane  Alicia  Laura  Tobi  Sherif

PRODUCT RESEARCHSUNGLASSES

TEAM 11

DOLORES PARK

Ivan O.

Mariya

Rao

Mayuri

Ioanna

Markus

Page 11: Team 3  Ivan Ordonez  Jane  Alicia  Laura  Tobi  Sherif

THE CONSUMPTION EXPERIENCE

23%

59%

10%9%

Can't go out without sunglasses

Take them when it's sunny

Have them, but everytime forget at home

Don't care about them

• Young Adults from (17) to Seniors (55+) • Men and women of all income levels• 86% of the people in U.S. uses sunglasses

Who uses it?

• Sunglasses are bought by U.S. customers every 2.5 years (Average)How often is the product used or

consumed?

• This product is consumed mostly during summer season• Survey shows that an average of 160.000 sunglasses were sold in S.F. from

May to early September

When are they used?

• Outdoor (As eye protection) • Indoor since 1970’s (Fashion trends)

Where are they used?

• Fashionistas: they feel “trendy” and “stylish”

• “Protected”: Not showing their mood

• “Status”: Depending on brand and style

What feelings and opinions surround the consumption

experience? • Customer relationship with • sunglasses (survey based on

responses• from Hult students 22-35 years

old)

What type of relationship does

the customer have with the product

• 16% use it for healthy reasons

Page 12: Team 3  Ivan Ordonez  Jane  Alicia  Laura  Tobi  Sherif

THE PURCHASE EXPERIENCE

Fashion change

s

Special occasio

n

Broken sunglas

ses

Gift

? Social

PressureFashion Pressure

What factors influence the purchase? Internal? External?

• Find the style they want• Good price• Sufficient help from the

salesperson• Satisfactory guarantee if

broken

Satisfaction

• Ignored by salesperson to find what they want/suits them

• No guarantee• Low customer service

Dissatisfaction

What are examples of satisfaction or dissatisfaction in the purchasing experience?

Is the customer (purchaser) also the consumer (user)?

80% is the consumer (user)

20% is not the consumer – bought as gift

Average price paid

$29US23% of U.S customers wears prime

sunglassesOver $50US

Only 3%use prescription

sunglasses

Page 13: Team 3  Ivan Ordonez  Jane  Alicia  Laura  Tobi  Sherif

THE SELLING EXPERIENCE How is this product sold?

1. Seller looks at the features of the customer

2. Asks price range they are looking for

3. Shows new arrivals

4. Describes functionality - i.e. polarized

How is the product positioned by the sales person?

1. High-end style

2. Comfort

3. Suitability: classic, sporty, stylish, funky

When customers do ask for help, how long is the typical sales discussion?

1. Ranging from 2 minutes – 10 minutes

2. Affected by customer leaving the store satisfied

Team member.

2% 2%

8%

23%

18%

47%

Channel Sales

Independent Op-tical Store

Retail Optical Chain

Department Store

Sunglass Specialty Store

Pharmacy / Drugstore

Mass Merchandiser

Page 14: Team 3  Ivan Ordonez  Jane  Alicia  Laura  Tobi  Sherif

NEWSLETTERS PRESS CUSTOMER SERVICE ABOUT

COLLECTIONS MENS WOMENS DIGITAL MKT. CAMPAIGN SMART LUXURY STORES

PROJECT MANAGERS

• IVAN O.• MEMBER 2• MEMBER 3• MEMBER 4• MEMBER 5

TEAM 4

IN ASSOCIATION WITH