Question

Which market targeting strategy is 5-Hour Energy following? Justify your answer.

Answer 1

Strategy called "Market segmentation" which is described as dividing a market into distinct segments that have similar needs or behaviors and behave in similar ways.

This strategy has been applied by  5-Hour Energy, the founder believed could compete in the rapidly expanding energy drink market. The focus now shifted to identifying target groups of individuals that could be pulled away from the major players, such as Red Bull and Monster. With a goal to ambush the energy drink market with a customer-responsive product,

At the core of this effort was a belief that in a monopolistically competitive market, the product needed to differentiate itself by directly fulfilling customer demands. The most glaring result of the company’s massive marketing research was that creating a profitable position in the energy drink market was only going to be possible by differentiating 5-Hour Energy from much larger conglomerate distributers.

The product, in and of itself, possessed a points of parity laundry list when compared to other energy promoting soft drinks. Research showed that consumers were virtually indifferent as to the flavor, content and end-results of popular brands. The data did, however, produce several key areas where the potential for product differentiation shown out like a beacon of light in a cavernous black hole. they developing a plan based on these very points of differentiation, which would slingshot the company into the market leader in only three short months.

When the focus shifts from selling people your product, to producing the product they want, the odds of sustained profitability are exponentially increased. -Hour Energy utilized fundamentally sound research techniques to develop a marketing plan that emphasized the competitive advantage of the product. With continued attention to the static nature of their target market and demographic segmentations, the company can look forward to a long and prosperous future