The case study “Slow Cow” illustrates the changing trends of beverages among consumers. Slow Cow is an energy drink introduced by the Slow Cow Inc., and produced in Quebec, Canada. This case takes in hand the case of “Slow Cow” to highlight the beverage market trends, and to show the real picture of energy drinks. Several beverage experts argued that energy drinks are not a relaxing agent but a mean to tweak consumers. Moreover, energy beverages contain ingredients that are injurious for health, such as potassium, sodium, hops, linden, valerian, Passiflora, chamomile and L-Theanine. On the other hand, anti-energy beverage market emerges as a new beverage segment; however, this segment is very small than energy beverage market.
The key players of energy market are Red Bull, Rockstar, Monster and Jolt. During recent times, Slow Cow entered the energy drink market. Slow Cow had quite similar logo as Red Bull, to avoid potential lawsuits; the company redesigned its logo and featured a cow relaxing on a ground. Slow Cow claimed that the product improve learning, memory and concentration capabilities without causing drowsiness. Slow Cow Inc. does not use ingredients, such as preservatives, sugar and caffeine that are harmful for human health but uses natural ingredients that are healthy. However, Slow Cow includes amino acid L-Theanine that is supposed to provide relaxation, improve the neurotransmitter responsibility pleasure, and improves the capability of brain whereas; contain ingredients (hops, linden and valerian) that reduce nervousness. These claims of the company are not scientifically proven. Moreover, Slow Cow faced intense competition from the market leaders like Red Bull as they do not allow the new entrant to capture their market.
SWOT Analysis:
Strengths
Despite being a new player in the energy market, Slow Cow has a significant market share.
Company has good financials. According to the company, Slow Cow has made a sold of over 1.2 million cans in Canada during its launch between 2008 and 2009.
Company image - anti energy drink that helps in reducing anxiety and hyperactivity as opposed to energy drinks.
Weaknesses
Slow Cow is wrongly segmented in energy market. It must be segmented into new and emerging market of anti energy beverages.
Lack of innovation. Since, the market of energy beverages has a lot of competitors, along with their strong financials and USP that leaves Slow Cow behind.
Slow Cow has small product base. The company has only ...