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Background

The best-sellingsports drink, Zwmo, is produced by Zumospa, a food and drinks company basedin Valencia, Spain. In the last financialyear, Zumo contributed 30 million to Zumospa'sannual salesrevenue, accounting for 20% of the company's total turnover. It is, in fact, Zumospa's cashcow,generating more revenue than any other of its products.

At present, Zwrnois 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.

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2.5Listen to this excerpt from a radio programme, BusinessToday.Ricardo Gonzales,Zumospa's president, d.iscusses Zumospa'spfans 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 storesand supermarkets. Also through sports clubs.Additionally, salesare generated through contractswith professional leagues,such asfootball, golf and tennisassociations.

Press,TV and radio advertising is

by endorsement contracts with famous European footballers and tennis stars.

Zwmo is offered in four flavours and its price is in the medium range.

backed up

Developing a global brand

Zumospa needs to reposition it for the global market. Initial researchsuggeststhat Zumo is perceived asa Spanishdrink, and its close identification with Spain may not be suitable when developinga global brand.

Zumospa would like to launch a global campaign focussingfirst 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 thesemarkets, although the copy of the advertisements and language of the TV and radio commercials will b; adapted to local needs.

Before setting up focus groups in theseareas

YouaremembersoftheMarketingDepartment of

Zumospa.Workingroups andbrainstormthepoints listedintheroughnotes.Oneperson inthegroup shouldtakenotes.Thenmeetasonegroup ind setectsomeofthebestsuggestionsforfurtherstudv.

Writing

z Internationalmarketing I

As Marketing Manager for Zumospa,write an e-mail to the directors of the company informing them of the key ideaswhich came out of the brainstorming sessionyou attended. You should indicate which ideasyou favour and why.

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