Sample Paper on Evaluating Success of Sizzle Energy Drink

Introduction

This plan discusses how to evaluate the success of Sizzle Energy Drink by Coca Cola as an ongoing process. Around the world, many companies are potentially relying on new products to drive revenue generation. There is a popular belief that new products and services tend to do well if the product launch and feedback processes are handled appropriately. However, managers are cautioned not to undermine the role of marketing initiatives as it the only way to ensure that a product reaches its intended target market. As such, companies have embarked on activities of evaluating ongoing product success or failure to ascertain performance in the wake of changing market dynamics. It is therefore imperative for companies to establish accurate measurement criteria of specific activities and the mechanisms regarding marketing and branding. In addition, companies can only be sure that a product is either failing or succeeding when appropriate feedback reporting systems are put in place. Feedback reporting systems are significant in providing way forward and the changes that departments can implement to rectify a situation. Evaluating the ongoing product processes is important to a business because it ensures that a product aligns to strategic mission and meets customer expectations.

Evaluating success of a new product

Indeed, before deciding on the success measurement and interval of activities, it is critical to establish the key components of an effective ongoing success measurement. Foremost, it is important to clearly define actionable and measurable goals from an organization’s mission and the product levels. The company needs to be sure that Sizzle Energy Drink meets it intended purpose and aligns to mission and vision of Coca Cola. Secondly, the production success evaluation should cascade performance measures to make sure that organizational goals, missions and goals are being met. Third, the need to establish baselines from which progress of Sizzle Energy Drink can be measured in line with product goals. Fourth is the agreement on how to collect accurate and verifiable data to aid decision-making process. Finally, the nature of feedback reporting systems and processes that support continuous product improvements based on success or failure of Sizzle Energy Drink.

Evaluating product or service success is of great importance to a company. There are numerous metrics that can be utilized by business entities to measure success. As such, product success can manifest through evaluating costs incurred in promoting the product and examining the number of sales made after specific duration. In addition, Ernst et al. (2010) reveals that success can be ascertained by evaluating the number of sales closed from marketing targets, and return on investment. However, the Sizzle Energy Drink product is sponsored by a Coca Cola, a multinational giant. Thus, the process of determining the effectiveness of a product needs to go beyond the simple metrics outlined above. The main intention at this point is to measure awareness of Sizzle Energy Drink, and may be difficult to examine by simply looking at the number of product clicks and sales generated by a banner advertisement. Measuring product success can be conducted mid-way or after a marketing campaign or branding. It is imperative to provide adequate time for the company to create adequate brand awareness and navigate through target market. Ernst et al. (2010) assert that companies should allow their product to reach target market to establish whether they are accepted or rejected by customers. In the case of Sizzle Energy Drink by Coca Cola, the product launch and branding can run for about three weeks. The ideal time is for evaluation will be after the end of product launching. At that time, the product brand ambassadors would have infiltrated the market with information about the product.

Product launch and campaign is the first process in evaluating the success of a new product. It is composed of internal activities of evaluating leads generated, promotional channel utilized and extends beyond the business by examining news content and coverage. Per Engelen et al. (2012), generating leads can generate insightful information by revealing interests of customers in the new product. In this case, the leads generate relates to trials tested, demonstration requested, and data downloaded related to the new product. This metric is essential as it provides indication of how the market is responding regarding the new product. Therefore, if few trials or demonstrations are requested then the product may be doing poorly in the market. Notably, this process should take place concurrently with the evaluation of promotional channels. Engelen et al. (2012) posits that channels used for promotion can be integral in generating leads and indicating the relative performance of a new product in the market. For example, the marketing department should evaluate the email open rate and website product click is the company utilizes online marketing. Ideally, if the emails open rates and clicks are high, it demonstrates that the product is doing well as many customers seem to show interest. However, it is equally important to gauge the cost of branding against the clicks generated. Additionally, the marketing team will be expected to target the public relation coverage in both broadcast and print media. As such, it is imperative to measure the quality and quality of media articles and evaluate the engagement of information content concerning Sizzle Energy Drink. Thus, constructive engagement and positive comments about Sizzle Energy Drink indicates success and forms the basis of deciding to retain the product in the market.

Second process is the product adoption measurements. This can take place at an interval of weeks or months as defined by the marketing department. Though, it should closely follow the product launch and branding process. Engelen et al. (2012) avow that product adoption metrics provide insights on the success of releasing and branding a new product. Specifically, evaluating adoption is essential in determining whether Sizzle Energy Drink is ultimately fulfilling the needs of customers and serving the business revenue goals. Product adoption can be measured through products trial, usage and customer retention. Product trials metric is crucial to evaluate the real interest in Sizzle Energy Drink since it was introduced into the market. Drechsler et al. (2013) reinforces that evaluating product trial is the initial step towards sustaining long-term product adoption. Moreover, customer usage is a fundamental bearing to setting and tracking whether Sizzle Energy Drink fulfill goals revolving around customer usage over time.  This extends beyond the business and may require the company to conduct customer’s user survey to generate accurate and verifiable information about the actual usage of the new product. It is essential to establish the unique characteristic of Sizzle Energy Drink that is effectively guiding customers into the product. Finally, user retention can also be used to evaluate the success of Sizzle Energy Drink in the market. This activity is reinforced by Drechsler et al. (2013) claiming that while it the core goals of the product and branding to generate brand awareness and interest, it is critical to retain new users to impact positively on revenue generation. Thus, success is indicated by the ability of the company to retain more customers through its Sizzle Energy Drink product. If Sizzle Energy Drink is capable of attracting new customers and retaining current customers there no need to withdraw the product from the market since it is already doing well.

Market impacts form the basis of third process in evaluating success of Sizzle Energy Drink. Drechsler et al. (2013) opines that in competitive markets, measuring penetration of a product into the market and its impact on sales is an essential component of measuring success. Linked to the argument, as on ongoing process, the marketing department needs to evaluate the revenue generated by the product at given intervals. Preferably, revenue evaluation should be undertaken after every quarter of a financial year. This process will shows how customers are loyal to the product and deliver value to clients and the company since its launch. Moreover, the marketing team should be able to measure the market share that Sizzle Energy Drink is occupying and controlling. As reinforced by Arnett & Wittmann (2014), it is critical to establish the portion of markets that Sizzle Energy Drink is capturing. The market share essentially informs the marketing team on how well Sizzle Energy Drink is performing compared to other top energy drinks.  Lastly, it is significant to ascertain performance by evaluating the competitive win rate. According to Arnett & Wittmann (2014), competitive win rate is the ability of a product to succeed in overcoming competitors in the markets. Thus, if Sizzle Energy Drink competes favorably with existing products in the market, then the success rate may be high and the organization will continue with the production and sale of the product.

Feedback processes and loops to be implemented

The evaluation of success of Sizzle Energy Drink is now complete. It is important to develop internal feedback systems that collect accurate and verifiable data from internal audiences like sales representatives, marketers, executives and product managers. Fundamentally, external feedback systems will also be established to collect information from current and potential customers to get their reactions concerning Sizzle Energy Drink. Feedback is essential to discover various ways of sustaining the new product in the market niche. The feedback from customers should therefore be lopped to the production team and managers and then looped back to the customers through product enhancement. Hence, transfer of feedback to the production team is essential support the new idea, keeping it on track and making adjustments mid-way to create value. The first process is to collect use feedback. The best method to collect feedback to sustain Sizzle Energy Drink in the market is through phone calls and personal interactions. Arnett & Wittmann (2014) recommends the act of receiving phones call and in-person interactions as critical components in establishing relationship with customers to provide insightful information. In addition, initiating interactions outside of work environment also helps to get more feedback. This allows production team to be more proactive in dealing with customer request and complaints about the product, if any.

Secondly, once the feedback is collected, it is then channeled towards to the production team. Arnett & Wittmann (2014) argues that feedback is useless if it is not acted upon by the relevant departments. Therefore, the management will have to adjust several business processes to ensure that the feedback reaches to the production team. For instance, feedback will be collected then sent to production manager who will then send specific information to team members based on individual responsibilities. In addition, the processes will be changed to allow for provision of detailed write-ups to production and sales team.   Alternating the normal communication to include write-ups is essential because it provides detailed account of what the customer wants and how it can be fulfilled. Responsibilities of communication can also be changed to put the product team on the front-lines and accord them freedom and authority to get a call and talk to the client at anytime of the day. The third process is looping back to the customers to let them know that the company is working towards meeting their tastes and preferences currently unfulfilled.

Plans on moving forward with a product

Going forward, the company through Sizzle Energy Drink should keep up with its competitors. Hence, the organization will continually improve by implementing strategies through differentiation of products to appear unique and stay ahead of competition.  In addition, the company will be engaged in scientific research to discover new market avenues by consistently demonstrating superiority of Sizzle Energy Drink. Additionally, as on ongoing process, the product managers will regularly guide and empower employees through marketing research on how to improve Sizzle Energy Drink by generating new ideas of promotional and branding the product. Arnett & Wittmann (2014) proposes that employees can promote the success of a product if they are given ownership of the company and its products. Finally, the feedback process should be an ongoing process that allows the company to reach out to prospective clients while retaining the current customers through continuous improvement of Sizzle Energy Drink to outperform competitors.

Conclusion

Evaluating the success of a product is an essential management function that ensures that a product aligns to strategic mission and meets customer expectations.  It is important to select the best metrics to evaluate the success of a product to guide decision-making on whether to continue with a product or initiate exit strategies if it is underperforming. The processes are initiated after product launch and targets adoption and market impacts. As such, Sizzle Energy Drink will be evaluated based on the ability of the product to sustain positive engagements, attract positive comments, retain customers and generate revenues in line with business objectives. If the evaluation results are positive then the organization can decide to continue with its production. Going forward, the organization must continue receiving feedback from customers and addressing their pertinent needs in line with strategic goals of the company.

 

References

Arnett, B. & Wittmann, C. (2014). Improving marketing success: The role of tacit knowledge

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Drechsler, W., Natter, M. & Leeflang, P. (2013). Improving marketing’s contribution to new

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Engelen, A., Brettel, M. & Wiest, G. (2012). Cross-functional integration and new product

performance—the impact of national and corporate culture. Journal of International Management, 18(1), 52-65.

Ernst, H., Hoyer, W. & Rübsaamen, C. (2010). Sales, marketing, and research-and-development

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