This document outlines a business case for launching an energy drink called Force Fruit to displace Red Bull as the market leader in Europe. The strategic approach is to launch in Hungary as a beachhead market where competition is less strong. Force Fruit will be positioned as a healthy product made with fruit vitamins and guarana instead of caffeine. It will target people aged 18 to 90 years old. The launch plan involves using existing soft drink distribution channels to get the product on shelves in small shops and supermarkets. Salespeople will be trained to sell Force Fruit as a natural alternative to competitors' products. The goal is to generate growth by diversifying into the energy drink category and reinvesting soft drink profits into the new product launch.

1. Business case study
Market launch
1
Simon Daspe

2. To displace Red Bull as market leader for Energy
Drinks in Europe within a short time
2
The challenge

3. 3
Weaknesses of Red Bull
Vulnerable to regulatory control
The relatively high caffeine content of Red
Bull makes the brand highly vulnerable to
regulatory control
Still considered as unhealty product
The core audience supports Red Bull sales,
but a lot of people are still reluctant to
consume energy drinks
The different challengers
TCCC and PepsiCo have their own energy drinks
brands and their distribution deal with Monster
and Rockstar, respectively, has added layer of
pressure on Red Bull
They use the same kind of
marketing mix. They try to
imitate the model of Red Bull
Red Bull and its competitors have a « similar » positioning, if we use the same
strategy it will take many years to compete and displace Red Bull
The approach (1/2)

4. 4
The approach (2/2)
The beachhead in Europe
This market is not mature and the competition is less strong than in other
european countries and Hungary is an emerging market
“Sports and energy drinks remain popular despite the crisis. In 2012, consumption grew by 205%
over 2007. However, the government is planning to ban the sale of energy drinks to consumers
under the age of 18, according to an article on business website Pénzcentrum in June 2012.”
(Compound annuel growth rate)

5. 5
Strategic approach
The beachhead: Hungary
Brand positioning: Healthy product
and more mainstream
Force Fruit
Basic Facts about the product:
Key components
Vitamins from fruits
Non-carbonated drink
Guarana instead of caffeine
Low calorie
When the product is consumed?
Off-premise (like an energy juice
drink)
On-premise (replacing classic juice)
Target group
From 18 to 90 years old people

6. 6
Added value of the product
With a sales point of view
• It creates a new type of energy drink (juice)
• It removes the aspect of unhealthy product
• It permits a communication around vitamins and fruits rather than « chemical » products
• We are not obliged to sell our energy drink in a can, we can create packaging in pet plastic or
carton
• We can differentiate our product from competitors
• We have an energy drink and we sell it as a « natural product ++ »

7. Force Fruit
Development of new
flavours
New fruits flavour
Carbonated drinks
Eastern Europe
Western Europe
Other emerging
markets
3-years strategy
A bowling pin strategy

8. 8
Launch plan
• Off-premise sales
To convince small shops, groceries, supermarkets to sell our product we can do a kind of
« piggybacking ».
In soft drinks, we have a negotiation power (our core business)
→ Use this power to implement our new product in shelves
• On-premise sales
According to Michael Schaefer, Head of Beverages and Foodservices at Euromonitor
international:
“Though juices have long been a staple in any well-stocked bar, the reemergence of cocktail
culture over the last five years has brought a surge in opportunity” […] many of them juice-
based, freshly-squeezed juice remains the only choice for budding “mixologists” across the
globe.”
With our new energy drink, we open a new way to consume cocktail and juice in bars and
night-clubs

9. 9
Sales Organisation (1/2)
No change in the structure
of our sales organisation
Training and education of
our sales people to the new
product
• Provide them materials to sell
the product (.ppt, brochures,
samples, elevator pitches…)
• Prepare incentives for our
customers (challenge them)
Their job descriptions are
flexible so they will be
responsible for both soft and
energy drinks
Set up KPIs to encourage our sales
people to sell the new product (ex.
Number of customers convinced by
selling our product, value and volume
of energy drink sales in their total
portfolio…

10. 10
Sales Organisation (2/2)
Sales arguments and
objectives
Be sold in cooler and create
new places among juices for
this new kind of energy drink
It will attract people attention
to their other juices, it is a
product with no competitor
Be sold in the stores where
our soft drinks are
It is the future of energy drink
because it is healthy and it helps for
well-being
We have no « direct » competitors, we want to change the way people think « energy drink » to
reach a wider audience. And thanks to the lobbying of doctors, pharmaceutical industry… we will
be the reference of « energy drink 2.0 »

11. 11
Key actions
Try our new product in off-premise
and on-premise environments
To ensure that our product is attractive to
final customers / creation of a new need
And to create customer references
Set appointments with our customers
To raise awareness and interest of our
customers about our new product
Business development
To have visibility and to become part of
the energy drink environment as a
brand new competitor
Gather feedbacks from the field
To align our sales strategy to the reality
To improve our sales arguments
To launch our energy drink we have to raise awareness of our resellers about
the benefits of our energy drink and to educate them how they can sell it and
promote it

12. 12
Financial estimation
1,80€*1,40€*
Energy drink (ed) Soft drink (sf)
0,70€*0,40€*
473ml250ml
*It is an estimation
Source: Jorge Olson, Beverages Consultant
• If we shift our sales from 100% in
soft drink to 80% of soft drinks and
20% of our new product, our margin
will have a significant growth
• Example:
100sf x 1€ = 100€
80sf x 1€ + 20ed x 2.5€ = 130€
→ benefits multiplied by 30%
By diversifying our business
activity, we can generate a
growth of our benefits

13. 13
Conclusion
Force Fruit, an healthy energy drink
On-premise: cocktail strategy
Off-premise: Use of our core business to negociate facing in shops
The profit made in the core soft drink business re-invested in the
launch of the new product
Beachhead: Hungary (year 1)
Development in similar markets in Eastern Europe (Q4 of Y1)
Launch in competitive markets in Western Europe (Q3 of H2)
Relative growth of our margins by diversifying our business activity

14. Thank you for your attention
14
Force Fruit
the power of nature