PRIME Hydration (PRIME, for short) is an American energy drinks brand that launched in the USA, United Kingdom and Australia in 2022. PRIME has been the talk of beverage town since January this year when it was promoted by two of YouTube’s biggest content creators, Logan Paul and KSI, who have a combined following of over 47 million subscribers. Reports say that the drink has generated R4.5 billion ($250 million) in retail sales worldwide with R818.3 million ($45 million) made in January 2023 alone.

Local sweet shops hopped on to the trending drink, selling it between R300 to R600 while it retails for R650 on Takealot. Clicks also started selling PRIME for R70 but due to popular demand, it continues to sell out. Now, PRIME lovers and those who want to give this hyped-up drink a try can do so since Checkers, Checkers Hyper stores and Checkers Sixty60 online in the Western Cape, Kwa-Zulu Natal and Gauteng announced that they'll sell PRIME Hydration from 1 May. The price? Just R39.99 - an unbelievable drop from the original cost. Checkers says that only eight units per customer will be sold each day in Ice Pop, Blue Raspberry, Lemon Lime, and Tropical Punch. As for the taste? Most people say it tastes like a normal energy drink and that there's nothing extraordinary about it.

But the brand says, unlike other drinks, PRIME is packed with:

• 10% coconut water

• BCAA for muscle recovery 

1.1. Despite being a newly developed brand PRIME was in high demand with no consideration of the exorbitant price initially communicated.

Briefly discuss the concept of Brand Equity and how it applies to the success of PRIME. 

1.2. Debate on the role played by social media and influencers in the success of PRIME’s launch in South Africa.  

1.3. Mofaya is an energy drink launched in 2015 by a South African entrepreneur. However, since its launch, Mofaya has not realized the same success as PRIME has in a short time.

With this statement in mind, analyze why you think Mofaya’s launch was not as successful as PRIME’s.

1.4. PRIME will maintain its position as one of the leaders in the energy drinks market globally.

Discuss the accuracy of this statement by clearly taking a stance if you agree or disagree.

 

Answer rating: 100% (QA)

11 Brand Equity and PRIMEs Success The concept of Brand Equity refers to a value premium that a company generates from a product with a recognizable n... View the full answer