Question

What happens if an established energy-drink company decides to enter the antienergy space? How does the marketing game change for a company like Slow Cow

Answer 1

If would be extremely harmful for an established energy-drink company to enter the anti-energy space. Slow Cow is a small company and the change could lead to its quick decline. The major reason why this would hinder Slow cow's growth is that it is already an established energy drink company and is small to tackle the change. On the other hand,taking red bull as an example, it has already maintained loyal customers,people who are loyal to the brand. People who have put their trust in Red Bull are more likely to try on new products introduced by Red Bull over any other competing brand.

Slow cow is still in the growth phase and gaining customer's trust, unlike Red Bull which just simply have to invest money in promotion and advertising of their new product line of anti energy drink. As they have a such a great pool of customers who are loyal to their company, the growth stage of their company would be way shorter than Slow cow's and would reach the maturity/final stage quickly.

The marketing game would change for Slow cow as they would have to quickly analyse the risk and determine strategies that should be used to counter their powerful competitors. A few strategies that Slow cow can use against its competitors are:

1. Coming up with health benefits of their drink to catch a rising trend in customers.

2. Reaching new customers and market like people who suffer from stress.

3. Thinking of characteristics that would distinguish their brand from their competitors in both anti energy and energy drink sector.

To conclude, for small companies like Slow cow, it would be difficult to go from energy drink to anti energy drinks as they are in growing phase. Even if they try to switch,with the existing competition in anti energy drink market they would stay in growing phase for a long period of time until they are able to breakthrough.