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Zumo's Global Expansion Strategy

Zumo is Zumospa's best-selling sports drink, accounting for 20% of their revenue. While currently only sold in Europe, Zumospa wants to expand Zumo globally as the sports drink market grows rapidly worldwide. Initial research found Zumo is seen as a Spanish drink, so Zumospa plans to reposition it and launch a global campaign first in South America, Mexico, southern US and Japan. Focus groups in these markets will help adapt the advertising theme and materials to local needs before expanding Zumo's global presence.

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2K views2 pages

Zumo's Global Expansion Strategy

Zumo is Zumospa's best-selling sports drink, accounting for 20% of their revenue. While currently only sold in Europe, Zumospa wants to expand Zumo globally as the sports drink market grows rapidly worldwide. Initial research found Zumo is seen as a Spanish drink, so Zumospa plans to reposition it and launch a global campaign first in South America, Mexico, southern US and Japan. Focus groups in these markets will help adapt the advertising theme and materials to local needs before expanding Zumo's global presence.

Uploaded by

zumozumo77
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

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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.

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.

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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 global brand a


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

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.

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Youaremembers the Marketing of Department of Zumospa. Work groups brainstorm points in and the listed therough in notes. person thegroup One in should takenotes. Then meet onegroup as ind setect someof the bestsuggestions further for studv.

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