Question

Specific competition strategies for V energy

Answer 1

V energy is the main energy drink in Australia and New Zealand produced by Frucor. The main competitors for V energy include Coca Cola’s Mother, Red Bull and Monster. The target customers include the customers in the age group of 18- 24 as they are more in need of energy. V energy should identify their strengths and weaknesses while developing the competition strategies. The main strength for V energy is its higher market share and the strategies should be able to maintain the share among tough competition. The main threat for V energy is the growing health concerns regarding energy drinks as they contain high amount of sugar caffeine. V energy should be able to find the healthy alternatives that would help them to replace such unhealthy contents. Coca cola has already started replacing sugar content and advertising based on zero sugar on their products as part of their competition strategies and V energy should not allow Coca Cola to compete them. The main weakness of V energy is its failure to capture the global market when compared to its competitors. This provides them opportunity as well to expand to other markets like they did in Australia and New Zealand by understanding the consumer behavior and developing the strategies accordingly. V energy should be able to utilize the social media and digital advertising more effectively as the younger generation mostly uses digital media in their daily life.