United Beverage Case Study

United Beverage's first product, Gangbuster Interactive Beverages was succeed in the beverage market and reached wide brand recognition. These years, Gangbuster's sales seems stable. The month profit was almost the same for every month. Paul Diaz came up one innovative idea to expend United Beverage's market and development. After team discussion, they had three opinions to develop the product in the future. One is invest in Gangbuster, maintain the stable sales. Another is develop a energy beverage for adolescents. The last one is create a mixed flavor beverage (dual drinks) with a revolutionary bottle. Each idea has its opportunity and risk. I suggest a "1 year raise-half year educate-feed mix flavor " plan. I will explain the details in followings.

According to pros and cons analysis, we noticed that Dual drinks are much more attractive than other options without its risks. Because Dual drinks will make United Beverage differentiate from its competitor, gain core competence of sustainable success. Dual drinks has huge potential market and will expand United Beverage to a better position in the whole beverage market. Kid-energy seems to be a safe but less potential choice. Gangbuster cannot maintain its position by making no changes all the time, so the first choice is pretty much safe but sucks. If dual drinks is a really good idea, how to avoid the risks and make the good result more certainty? The biggest problem of Dual drinks is the cost (the second problem is product acceptance, I will talk this later).The huge investment and uncertainty profit make it risky. The team worried that the cost will draw R&D people's attention and will threaten the vulnerable Gangbuster's financial basement. Let's get more information from finance, so we can learn better about this risk.