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Background
The best-sellingsports drink, Zwmo,
is produced by Zumospa, a food and
drinks company based in Valencia,
Spain. In the last financialyear,
Zumo contributed €30 million to
Zumospa's annual salesrevenue,
accounting for 20% of the company's
total turnover. It is, in fact, Zumospa's
cash cow, generating more revenue
than any other of its products.
At present, Zwrno is sold only in
Europe. However, the sports drink
market is the most rapidly growing
segment of the world beverage
market. Zumospa is now looking
outside Spain for markets and would
like to make Zumo a global brand.
z International
marketingI
11
\ / 2.5Listen to this excerpt from a radio
programme, BusinessToday. Ricardo
Gonzales,Zumospa's president, d.iscusses
Zumospa's pfans to globalise.
Make notes on the company results, future
plans and competitive advantage.
Marketing
r Launched in the mid-l9B0s. positioned
as
an energ'yproduct for fitness-conscious
people, especiallysportsmen and women,
between the ages of20 and,4b.
o Distributed mainly through grocery
stores,
convenience stores and supermarkets.Also
through sports clubs. Additionally, salesare
generated through contracts with
professional leagues,such as football, golf
and tennis associations.
Press,TV and radio advertising is backed up
by endorsement contracts with famous
European footballers and tennis stars.
Zwmo is offered in four flavours and its
price is in the medium range.
Developing
a global brand
Zumospa needs to reposition it for the global
market. Initial research suggeststhat Zumo is
perceived as a Spanish drink, and its close
identification with Spain may not be suitable
when developing a global brand.
Zumospa would like to launch a global
campaign focussing first on South America,
Mexico, the Southern statesof the US and
Japan, where they have regional offices. A
decision has been taken to use a standardised
advertising theme in these markets, although
the copy of the advertisementsand language
of the TV and radio commercials will b;
adapted to local needs.
Before setting up focus groups in these areas
Youaremembers
of the Marketing
Department
of
Zumospa.
Workin groupsandbrainstorm
points
the
listedin theroughnotes.Onepersonin thegroup
shouldtakenotes.Thenmeetasonegroupind
setectsomeof the bestsuggestions
for furtherstudv.
Writing
As Marketing Manager for Zumospa, write an
e-mail to the directors of the company
informing them of the key ideas which came
out of the brainstorming sessionyou attended.
You should indicate which ideas you favour
and why.
Q
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