Full Health Limited is a beverage company engaged in the production and distribution of energy drink. It plans to launch a new line of beverages…

Strategic Group Mapping is the most appropriate analytical tool in the given case. Since the Indian energy drink market is saturated and dominated by strong national and international competitors, this tool helps in analysing competition within the industry by grouping firms that follow similar strategies. It enables the manager of Full Health Limited to understand the relative competitive positions of rival firms and identify strategic gaps or opportunities. The procedure for constructing a Strategic Group Mapping and deciding which firms belong to which strategic group is is as follows: Identify the competitive characteristics that differentiate firms in the industry. Typical variables include price/quality range (high, medium, low), geographic coverage (local, regional, national, global), degree of vertical integration (none, partial, full), product-line breadth (wide, narrow), distribution channels used (one, some, all), and degree of service offered (no-frills, limited, full). Plot firms on a two-variable map using selected pairs of these differentiating characteristics. Assign firms falling in the same strategy space to the same strategic group. Draw circles around each strategic group , making the circles proportional to the group's respective share of total industry sales revenue. Thus, Strategic Group Mapping helps the manager assess intra-industry competitive dynamics and take informed decisions before launching a new beverage line in a highly competitive market.