Report on Prime Drink

Submitted To

Rohit Sharma

Submitted By

Rakshyak L. Shrestha

LUC Registration No: LC00015002167

Lincoln International College

Hattisar, Kathmandu

Nepal

Kathmandu, Nepal
Mar, 2024

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Introduction:
Prime Drink, a revolutionary beverage company, was founded in 2022 by KSI and Logan
Paul. The inception of Prime Drink marked a significant milestone in the beverage industry,
driven by a vision to redefine the way people consume and experience drinks. It was
developed to fill the void where great tasted meets function.

Prime (stylized as PRIME) represents a line of beverages, including sports drinks, drink
mixes, and energy drinks, crafted and marketed by Prime Hydration, LLC. This assortment,
introduced in 2022, gained substantial attention on social media due to its association with
popular YouTubers and internet personalities, Logan Paul and KSI, who collectively boast
tens of millions of followers. The launch was further amplified through mainstream spo rts
sponsorship agreements.

Prime Hydration, in collaboration with Congo Brands, co-owned by Max Clemons and Trey
Steiger, oversees the production. Initially shipped from the United States, the product,
launched in June 2022 in the United Kingdom, is now manufactured by Refresco.

Product:
Prime Hydration Ingredients

Below is a summary of the ingredients found in Prime Hydration drinks, as detailed by

Zenker and Christina Lombardi, a New York City-based registered dietitian and the owner
of Functional Nutrition Rx, a nutrition private practice.

 Water
 Coconut water
 Electrolytes (sodium, magnesium and potassium)
 Branched-chain amino acids
 Antioxidants vitamins A and E
 B vitamins
 Artificial sweeteners (sucralose and acesulfame potassium)
 Natural flavors
 Gum arabic and ester gum as stabilizers
 Sea salt (in the hydration sticks)

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Competitors (Market Share):

In the competitive landscape of the beverage industry, Prime Drink faces formidable rivals
such Cure Hydration, De La Calle, Pure boost, fuel for fire and so on. Prime Drink holds a
significant market share, leveraging its commitment to quality, innovation, and consumer
satisfaction. Prime Hydration has ascended to the top 10 brands in terms of both value and
volume within the sports and energy drink category.

Competitive landscape of Prime Hydration

 Prime Hydration has a total of 18 competitors and it ranks 3rd among them.
 4 of its competitors are funded
 Overall, Prime Hydration and its competitors have raised over $23.7M in funding
across 10 funding rounds involving 23 investors.
 There is no private Unicorn in the entire competition set.

Who are the top competitors of Prime Hydration?

 Cure Hydration - New York City based, 2018 founded, Series A company
 De La Calle - Los Angeles based, 2020 founded, Series A company
 Pure boost - Encinitas based, 2018 founded, Seed company

What sales strategy prime used to attract and retain customer? How effective are these
strategies in driving revenue growth?

Sales Strategy:

Prime Drink has implemented a multifaceted sales strategy to attract and retain customers.
Key components of their strategy include:

Product Innovation: Prime Drink continually introduces new and exciting beverage
options, staying ahead of market trends. This innovation not only attracts new customers but
also keeps existing ones engaged.

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Brand Positioning: The company has strategically positioned itself as a premium and
health-conscious brand. Through targeted marketing and branding efforts, Prime Drink
appeals to consumers seeking a sophisticated and wholesome beverage experience.

Customer Engagement Programs: Prime Drink employs customer loyalty programs,

discounts, and exclusive offers to incentivize repeat purchases. These initiatives enhance
customer satisfaction and encourage long-term relationships with the brand.

Social Media Presence: Leveraging the power of social media, Prime Drink has established
a strong online presence. Engaging content, influencer collaborations, and interactive
campaigns contribute to increased brand visibility and customer engagement.

Effectiveness of Strategies:

The implemented sales strategies have proven highly effective for Prime Drink:

Revenue Growth: The company has experienced consistent revenue growth, showcasing
the success of its innovative product offerings and strategic positioning.

Customer Retention: Customer retention rates have been impressive, indicating that the
engagement programs and loyalty initiatives effectively keep customers coming back for
more.
Market Expansion: Prime Drink has successfully expanded its market reach, entered new
demographics and gained a broader customer base.

How does Prime promote its product or services & what channels or platforms does the
company utilize for ads and marketing?
Prime primarily promotes its products through the influential reach of YouTubers KSI and
Logan Paul, who jointly have over 40 million subscribers on YouTube and millions of
followers across other platforms. The company's announcement on January 4, 2022, was
made through a live Instagram feed, generating significant social media hype around the
product. The involvement of these internet personalities led to a surge in demand,
particularly among school-age children, especially teenage boys.

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The social media hype created by KSI and Logan Paul was instrumental in generating
interest and demand for Prime products. The announcement and subsequent promotion were
likely shared across various social media platforms, including YouTube, Instagram, Twitter,
and possibly others.

The Evening Standard reported that the high demand for Prime drinks resulted in elevated
prices among online resellers, with instances of twelve bottles being offered for £400 on
eBay. The release of the product reportedly caused chaotic scenes at Asda and Aldi
supermarkets in the United Kingdom, as mentioned by Sky News. The Financial Times
highlighted how children who possessed used Prime bottles filled with water were elevated
to higher status among their peers, indicating the social impact of the brand.

Prime employs a diverse and expansive marketing strategy to promote its products across
various sports and entertainment platforms. Along with the social media they promote the
product through events, sponsorship and collaboration with the influencers. The company
sponsored Timmy Hill's number 13 MBM Motorsports car for a race in the NASCAR Xfinity
Series, highlighting its presence in motorsports. Additionally, Prime entered into significant
marketing agreements with high-profile sports organizations, including Arsenal, the
Ultimate Fighting Championship (UFC), FC Barcelona, FC Bayern Munich, and individual
athletes like Alex Volkanovski, Israel Adesanya, Patrick Mahomes, Alisha Lehmann, Erling
Haaland, Auston Matthews, and Kyle Larson. The partnership with these athletes and teams
involves not only sponsorships but also joint marketing efforts. Prime showcased its brand
in a Super Bowl LVII commercial in February 2023 and secured a prominent role as the first
centre-ring sponsor of the WWE, as revealed during the March 8th, 2024 episode of
SmackDown. The company leverages social media platforms, Twitter announcements, and
sports events such as the Daytona 500 and Wrestle Mania XL to reach a wide audience and
enhance its brand visibility.

How does Prime differentiate itself from competitors in terms of sales and promotion
tactics and what impact does this differentiation have on the company’s market
positioning and competitive advantage?
The company differentiate itself from competitors through a combination of unique
marketing strategies and partnerships. Here are some key points that highlight how Prime
distinguishes itself:

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Unique Product Features: Prime Hydration Drink could differentiate itself by offering
unique product features that set it apart from competitors. This might include special
formulations with added vitamins, minerals, or electrolytes for enhanced hydration and
health benefits. Highlighting these features in sales and promotional materials can attract
customers looking for premium hydration solutions.

Innovative Endorsements and Events: Endorsement deals with a diverse set of athletes,
including Patrick Mahomes, Kyle Larson, and FC Barcelona players, enhancing the brand's
image. Becoming the first centre-ring sponsor of the WWE, marking a unique and
innovative move in sports drink marketing.

Celebrity Endorsement and Social Media Hype: Founded and promoted by popular
YouTubers and internet personalities, Logan Paul and KSI, with a massive combined
following of over 40 million subscribers. The announcement and release of the product
generated significant social media hype, creating a buzz around the brand.

Product Variety and Limited Editions: Prime offers a diverse range of products, including
energy drinks, sports drinks, and drink mixes, with various flavours. Limited edition
collaborations with sports teams such as the Dodgers and FC Bayern Munich, adding
exclusivity to their product line-up.

Controversial Marketing Approach: Controversial marketing strategies, including the

involvement of influencers known for their polarizing content. The marketing campaign has
faced criticism for targeting children and adolescents, leading to regulatory challenges and
bans in certain countries and schools.

Exclusive Collaborations and Special Editions: Collaborations with sports teams like the
Dodgers and FC Bayern Munich, creating exclusive flavours and editions. Limited edition
bottles and special releases, such as the Ice Pop Fly and Bayern editions, contribute to
product differentiation.

Mainstream Sports Sponsorship: Engaged in high-profile sports sponsorship deals with

various teams and athletes, including partnerships with Premier League clubs Arsenal and
FC Barcelona, as well as athletes in the Ultimate Fighting Championship (UFC) and
NASCAR. Sponsorship of Timmy Hill's MBM Motorsports car in the NASCAR Xfinity
Series.

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Impact on Market Positioning and Competitive Advantage:

Brand Recognition: The involvement of popular influencers and high-profile sports

sponsorships has likely contributed to strong brand recognition, especially among the target
demographic of young consumers.

Market Presence: The controversial nature of the marketing approach and social media
hype have helped Prime gain attention and presence in the market quickly.

Exclusive Collaborations: Limited editions and collaborations with sports teams provide a
sense of exclusivity and uniqueness, potentially attracting consumers looking for novel and
trendy products.

It's important to note that while these strategies have likely contributed to Prim e's initial
success, the long-term sustainability of these tactics depends on how well the company
navigates challenges, adapts to market trends, and maintains a positive brand image amid
controversies. The impact on competitive advantage can evolve over time based on market
dynamics and consumer preferences.

Conclusion
In conclusion, Prime Hydration Drink has the potential to differentiate itself from
competitors and establish a strong market position by leveraging unique product features,
health-focused branding, innovative packaging, targeted marketing, engaging storytelling,
and a compelling value proposition. By emphasizing its health benefits, premium
ingredients, and sustainability efforts, Prime Hydration Drink can attract health -conscious
consumers and stand out in a crowded market landscape.

Through effective sales and promotional strategies, Prime Hydration Drink can
communicate its unique value proposition to customers, drive brand awareness, foster
customer loyalty, and ultimately achieve sustainable revenue growth. However, it's essential
for the company to remain agile, continuously monitor market trends and customer
preferences, and adapt its strategies accordingly to maintain its competitive advantage over
time. With a thoughtful approach to sales and promotion, Prime Hydration Drink can carve
out a successful niche in the beverage industry and become a preferred choice for consumers
seeking hydration solutions that prioritize health, quality, and sustainability.

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