MKG721 S2 2018: Supply Chain Evaluation of Powerade ION4 Report

This report provides a comprehensive evaluation of the Powerade ION4 supply chain, focusing on its design and effectiveness within the food marketing sector. It identifies the product as an innovative offering within the sports drink portfolio and highlights its potential for growth under the Coca-Cola brand. The evaluation maps the supply chain flow, detailing the roles of suppliers, manufacturers, assemblers, retailers, beverage services, and customers. A SWOT analysis identifies strengths such as product innovation and brand image, weaknesses like limited online presence, opportunities for market expansion, and threats from competitors like Gatorade. The report also addresses challenges posed by globalization and fast-changing markets, recommending improvements in online marketing, distribution channels, and compliance with regulations. Furthermore, it suggests sponsoring sports events and celebrity endorsements to enhance brand image. The conclusion emphasizes the importance of proper marketing and supply chain management for the success of new products, recommending continuous assessment of KPIs to gauge market performance. Desklib offers a variety of resources, including past papers and solved assignments, to aid students in their studies.

FOOD MARKETING

Agenda
1. PowerAde beverage brand and POWERADE
ION4 range
2. Supply chain management based on the
marketing theories and concepts
3. Supply chain aspects:
 Activities
 SWOT
 Major issues
4. Strategy of supply chain
 Recommendation
 Conclusion

PowerAde beverage brand and POWERADE ION4
range
 The introduction of new flavour to the ION4, i.e.,
POWERADE Pineapple Storm IO4+ Coconut water
range enables innovation (Powerade.com.au 2018)
 It is an effective brand strategy that focuses on the
innovation in sports drinks portfolio and hydration
 The product enhances the production of electrolytes
in the form of potassium, sodium, calcium, etc. in
body.
 It is a brand of Coca Cola and thus the growth
potential is considerably higher (Cairns et al. 2013).
 Aimed at the physical active people of ages
between 16 to 39 years of age.

Supply chain management based on marketing
 The supply chain flow includes flow of information involving the suppliers,
manufacturers, assemblers, retailers and customers.
 The supply chain product and information flow has been represented below.

Supply chain aspects (Activities and roles)
Suppliers
 Suppliers of ingredients like glucose, fructose, vegetable
concentrates, acidity regulators, energy boosters and
coconut juice
 Maintaining corporate citizenship through maintenance
of codes of conduct and supplier guiding principles
Manufacturers
 Combining the various ingredients including useful
minerals and coconut juice too for the production of
ION4+ Coconut of Powerade (Atkins and Bowler 2016)
 Mnaging proper distribution of products through
effective marketing and promotional channels
Assemblers
 Involvement of Bottling partner Schweppes for
packaging

Supply chain aspects (Activities and roles)
Retailers
 The retailers create link between the manufacturing
department and consumers for ensuring that the
products are delivered properly
 The products are made available in retail stores,
supermarkets and convenience stores for easy
accessibility by the consumers
Beverage services
 Availability during sports events and at places like
restaurants, takeaway and at institutions
Customers
 The end users who consume the products and are
manly the sports persons and people aged between
16 to 39 (Bragg et al. 2013).

Supply chain aspects (SWOT)
Strengths
 Innovative product with refreshing taste and
combination of fruits flavours like coconut water
and pineapple
 Strong brand name and image due to falling under
Coca Cola
 Proper social responsibilities management
including sustainable measures and friendly
bottling and packaging (Bragg et al. 2013).
Weaknesses
 Absence of a unique website
 Lack of social media presence, due to which
lagging behind competitors

Supply chain aspects
(SWOT)
Opportunities
 Product and market expansion along with
diversification strategies
 New and refreshing flavour of fruits can add
something unique and bring innovation
(Powerade.com.au 2018).
Threats
 Competitive environment and high
competition with Gatorade
 There are many substitute products available
in the market

Supply chain aspects
(Issues)
 Globalisation could create challenges for the
energy drink brand while managing the supply
chains
 The costs might increase, which could also rise the
prices of products
 The fast changing markets could create market
challenges for the products with shorter life cycle
or the newly launched product (Cohen and Roussel
2013)
 As the SCM involves various stages, maintaining
quality and complying with the laws and rules
might be difficult from the production to delivery
stage.

Supply chain aspects (Recommendations)
 It is recommended to maintain a prier website
from where customers can gain necessary
information about the newly introduced
product (Powerade.com.au 2018).
 The use of new marketing and distribution
channels could arouse interest among the
customers and influence their buying
behaviours
 Complying with the laws and rules is necessary
without compromising on the quality or
innovation procedures to meet customers’
expectations (Monczka et al. 2015).

Supply chain aspects (Recommendations)
 Powerade promotional tactics should include sponsoring
sports events related to baseball, soccer, etc.
 Celebrity endorsements by popular sports persons is
recommended as well for enhancing brand image and
identity.

Recommendations for
overcoming SCM issues
 Data management and integration helps in resolving
supply chain management issues associated with the
suppliers and partners
 Managing proper data and information related to direct
and indirect materials cost, labor agreements, rental
contracts, tax documents, freight bills, and compliance
certificates is important too (Hugos 2018).
 Maintaining proper transportation systems for ensuring
delivery of products from the source to the destination
 The KPIs including market share, revenue generated,
market volume, profit and customers should be
measured.