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Four Loko: Alcoholic Energy Drink

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Case Study 1. Identify the situation, and the basic issues presented. • Three friends from Ohio State University formed a company called Phusion Projects, LLC. The company produced Four Loko, an alcoholic/caffeinated beverage that quickly became a favorite drink of college students in the United States. This drink targeted college students who grew up with energy drinks. • This beverage was referred to as an energy drink that contained caffeine and 12 percent alcohol. • Four Loko caused people to panic when in 2010 nine university freshmen (who all had drunk Four Loko among other alcoholic beverages) were hospitalized with blood-alcohol levels from 0.12 to 0.35; 0.30 is considered lethal. Additionally, one of the nine students almost died. …show more content…

Answer the questions posed in the case itself. 1. The target market for Four Loko is young hedonistic adults who enjoy drinking alcohol and who enjoy or are familiar with energy drinks. 2. The consumer decision-making process for Four Loko:  Need recognition: a consumer develops a want for this drink through an external stimulus through the advertisement of the product being an alcoholic energy drink. As well as an internal stimulus thirst.  Information search: Once the consumer knows that they have a want for this type of product they search for information about this product or other alternatives besides this specific product. For a product like Four Loko the consumer will likely gather information through personal experiences with drinks of this kind and personal sources like friends.  Evaluation of Alternatives: If the consumer found this product to be better (for some reason) than other alternative products they will make the choice to either purchase Four Loko or something else similar.  Purchase: Here the consumer decides either to buy or not to buy Four Loko.  Post-purchase behavior: If the drink satisfies the consumers expectations (or perhaps goes beyond them) the consumer will be satisfied and likely purchase

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