Chapter 7: Service development and design
Case Study - Kickstart: A New Product and
Unique Export Strategy
1. As described in the case study, a sudden change in regulations can have costly effects on an
exporter. What steps could Kickstart have taken before and after its products were removed
from shelves to decrease its risk or avoid it altogether?
A sudden change in regulations can have a huge impact on business financially and on its
reputation. In the case of Kickstart, every guideline and regulations change have an effective
date. Once Qatar government has made a change in their regulations, Kickstart should have
intimated its customer database, that due to following changes in regulations we have to
pull out our product and we will be re-stocking the drink within the stipulated timeframe.
Also, their website should have reflected the same to make aware the customer that they
will be back soon. On the other hand, after the product removed from the shelves, they
could have partnered with athlete sponsors and could have arranged posting its brand in
number of sports for the quick coming back. This strategy could have made aware the
customer that the brand will be getting back in certain time frame and they could have
decreased their risk of being customer moving to the competitors.
2. Kickstart doesn’t follow a traditional sales and marketing model. It brings the consumer to
the product through “buzz marketing” achieved by hosting extreme sporting events and
sponsoring athletes. Why does this strategy work so well for the company?
Kickstart company has a primary product as an energy drink. Now energy drink has a good
bonding with sports and another adventurous event. Company has selected Buzz marketing
strategy instead of going for traditional sales and marketing approach. Company has
targeted primarily to sports event and sponsoring athletes as it will help athletes to be more
focused and be energetic. Once it is preferred by the sports athletes, it has influenced other
people by mouth to mouth communication. After mouth to mouth influencing, company has
grown it sales as company provides quality product and the strategy applied has wider the
reach of company which in turn has grown the business at a faster pace.
3. What are some of the advantages Kickstart reaps from marketing and exporting a standard
domestic version of its product to all markets internationally, customizing only the outer
package?
The promotion and exporting of a standard domestic edition to international market have
some advantages. One of the major advantage is that only by changing the outer package
and labelling according to the region saves the cost and the product also does not need to
be altered. Another advantage is that the product is standardised only by modifying the
labelling and packaging according to the country's regulations. In a similar approach, they
promoted the product but also took care of the country's culture and appreciation editing
through which the sales increased, benefiting the company. The company saved time,
money, and effort by exporting the domestic version internationally in changes and
consumer preferences stay the same even when they move to another country, so
adaptation became simple.