Consumer Goods

Failure Case Study: Powerade Energy - the Risk of Targeting an Unverified Need

  • CAN376373
  • 15 Pages
  • June 2015
  • Consumer Goods
Summary
Brand guardians can significantly benefit from developing an in-depth understanding of the reasons for the success or failure of new product launches or marketing campaigns. This study explores why Powerade Energy failed to build market share in the UK, leading to its withdrawal only two years after being introduced to great fanfare as a solution to the perceived "dual energy" needs of consumers.


Synopsis
- Use Canadean Consumer's selection of successful and failed product launches and marketing campaigns from across the globe to inspire innovation.

- Reduce the risk of failure by learning from brands/products that have under-performed: failed innovation can severely impact profit and reputation.

- Understand the relevant consumer trends and attitudes that drive and support innovation success.

- Obtain a broader appreciation of the fast-moving consumer goods industry by gaining insights from both within and outside of your sector.

ReasonsToBuy
- Why is Powerade Energy considered an interesting case of failure?

- What consumer insight underpins the failure of Powerade Energy?

- Which consumer trends has Powerade Energy failed to capitalize on?

- What can I learn from Powerade Energy's failure to establish a profitable niche between the very congested energy and sports drinks sectors?

Key Highlights
Powerade Energy was released in the UK in April 2011 by Coca-Cola Enterprises as a solution to what the company described as consumers' "dual energy" needs - a one-stop product to meet both the need for instant energy (as typified by drinks such as Red Bull, Monster) and sustained performance enhancement typical of sports drinks (e.g. Lucozade).

Powerade Energy's basic message did not resonate with consumers. The idea of a caffeine-based energy drink as fuel for an "everyday race" proved problematic, given the alternatives and consumer perceptions about potential negatives of normalizing energy drink consumption.
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