Paper instructions:

Launched in the mid-1980s, this energy drink is aimed at fitness conscious men and women between 20 and 45. Zumo® is offered in four flavours and is distributed through supermarkets and sports clubs. Advertising is based on TV and radio media with endorsements from well- known European sports stars. It is currently sold only in Europe, where average incomes are high. It is priced above an equivalent non-energy soft-drink, such as Coca Cola, but is not as expensive as some energy drinks. Zumposa® is the food and drinks company based in Valencia, Spain that produces Zumo. The managers want to make Zumo® a global brand. They know Zumo® is seen as a Spanish drink which may not be suitable when developing a global brand image. The board of directors has decided to focus first on South America and Asia to launch a global campaign. The aim is for a ten per cent market share in the first year. Decisions are needed on: • Price: should this reflect different average income levels in different countries? – Flavours: does it keep the same flavours across the globe or adaptproducts to different markets? Packaging: should the design and colours on the cans and bottles be the same everywhere? Advertising: should different adverts be used in each country or should a global advert be made with different languages added? • Name and brand image: should these be changed or should a global image and name be established? QUESTIONS 1. Explain 4 different reasons why Zumposa® would want to enter new international markets. [4 marks] 2. Dicuss 3 questions Zumposa® should exmine before deciding whether to go global. [3 marks] 3. Outline 3 different strategic options for entering Asian and South American markets that Zumposa® could choos from. [3 marks] . END OF CASE

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