The document is a case analysis report for Big Boom Beverages regarding their caffeinated alcoholic beverage "Totaled". It summarizes that BBB is facing potential regulatory action from the FDA due to health issues linked to underage binge drinking of Totaled. The report evaluates alternatives for BBB, concluding they should acknowledge mistakes, educate consumers, and work with the FDA to address issues rather than ignore warnings. Implementing robust awareness campaigns on platforms like Facebook and working with retailers is recommended to improve compliance with responsible drinking guidelines. A contingency plan is also advised in case the situation worsens.

1. 0
Letter of Transmittal
November 03, 2021
Prof. Rihana
Visiting Professor
Strategy & General Management Area
IIM Rohtak
Dear Prof. Rihana
Subject : Case Analysis Report on ‘Big Boom Beverages : Fight or Flight?’
As per the guidelines provided by you during the classroom discussion, we hereby submit a
report on the case titles,’Big Boom Beverages : Fight or Flight’. This report has been prepared
after going through the entire case and scrutinizing the facts and assumptions. The report
contains the relevant facts in the introduction, problem statement and list of possible alternatives
and best action plan to be implemented.
Kindly evaluate the same and provide your valuable inputs.
Thanks & Regards,
Group 10
Section B
PGP12

2. 1 | Case:Big Boom Beverages:Fightor Flight?
Executive Summary
Four friends Malik Evans, Jaf Hallett, Denny Grocki, and Randall Searls decided to start a
business venture of beverages with financial help from friends and family. In the initial stage, to
increase awareness of the product among the retailers and bars in the marketplace, all of them
personally persuaded the buyers. Mostly, bars were hard to persuade. After a kick start of the
drink through the YouTube channel made by Totaled consumers, the sales and publicity
significantly increased. Also, after enough recognition in the market, the company also changed
the name price and logo of the product. After deadly incidents among the college students and
high school students, the parents were concerned and government bodies and other authorities
were alert about rash consumption of drinks. The company was not completely efficient as they
should be for evaluating their performance. When the media reported numerous health related
issues due to underage excessive drinking, it was rumoured that the FDA(Food and Drug
Administration) and CDC(Centers for Disease Control and Prevention) were involved and
started reviewing the beverages. After experiencing negative publicity, there was still time for a
short term strategy without the help of a PR department or PR firm to solve this issue. We have
finalized that ignoring the mistakes might result in the dissolution of the company. Thus, a public
acknowledgement about attacks and educating the consumers will help the FDA authorities and
consumers.

3. 2 | Case:Big Boom Beverages:Fightor Flight?
Table of Contents
S.No Title Pg.No
Letter of Transmittal ii
Executive Summary iii
Table of Contents iv
1 Situational Analysis 4
2 Problem Statement 4
3 Facts, Inferences and Assumptions 5
3.1 Relevant Facts and Underlying Assumptions 5
4 Evaluation of the Alternatives 6
4.1 Acknowledging the steps of FDA 6
4.2 Public Acknowledgement 6
4.3 Legal Advice 7
4.4 Plan of Action regarding the FDA Warning Letter 7
5 Best Possible Solution and Implementation 7
6 Contingency plan 8

4. 3 | Case:Big Boom Beverages:Fightor Flight?
1. Situational Analysis
Malik Evans, Jaf Hallett, Daenny Grocki, and Randall Searls are four friends who studied
together during their graduation in 1990’s. During graduation, they consumed a mixture of
various drinks and that became the cornerstone of their motivation to start their own venture,
BBB (Big Boom Beverages). All four pooled funds and contributed to the formation of BBB,
LLC. Some competitors offering caffeinated beverages are SABMiller (Spark), Anheuser-Busch
Inbev (Tilt), and United Brands Company (Joose, Max Vibe, and Max Fury). Their product
consisted of malt liquor, caffeinated energy drink and fruit flavoured sparkling soda. They
named their product “Highbrid” with 8% ABV, 12 Ounces container and retail price of 2.99$.
Their main target was young males and they sold in single cans. To cope up with the liquidity
crisis, they renamed it as “Totalled”, changed packaging design, strengthened marketing and
increased ABV to 14%, size of container to 23.5 Ounces and retail price to 2.99$.
Their marketing strategies allowed users to upload their videos showcasing their
inebriated/incoherent behaviour, plunging in sea, sexual misconduct, aggressive driving, fatal
accidents and blackouts after consuming the drink and that became the cause of negative
influence on other people. This led to an exponential increase in their sales. Binge drinking
worsened the troubling incidents as proclaimed by Hospitals and Universities findings and raised
question marks on BBB. The company issued a statement that consumers were responsible for
their own behaviour and no one should consume more than two containers in a single go. The
owners added that even if they discard the product, consumers will mix the drinks on their own.
They felt a strong need to educate consumers and therefore announced that they will promote
responsible drinking and display warnings on product packaging.
Next, the FDA got indulged and started reviewing beverages in the market. FDA had
the power to issue a formal warning letter demanding corrective action and it cannot be
challenged in court thus making the company more vulnerable. BBB’s competitors quickly
withdrew their caffeinated alcoholic beverages from the market but if BBB withdraws its product
it would lead to cessation of the company.
2. Problem Statement/Decision Dilemma

5. 4 | Case:Big Boom Beverages:Fightor Flight?
Big Boom Beverages is in a dilemma on how to deal with the situation they are stuck in.
“Totaled” which is their most selling beverage is in the bad light and in the target of FDA. There
is the possibility that they might have to withdraw their product from the market which will lead
to the complete closure of the business and incur loss. There are different ways available and
they have to select the best possible solution.
3. Facts, Inferences and Assumptions
Spirits such as vodka and gin had been the largest segment of the alcoholic beverage market in
the 1970s, but beer and malt liquor displaced them in the 1990s.
Malik Evans, Jaf Hallett, Denny Grocki, and Randall Searls, four friends, founded Big Boom
Beverages (BBB) in 2007. They identified a gap in the market for caffeinated alcoholic
beverages and decided to form their own company. The product was selling, but not enough to
generate profits and help the company grow in the long run. As a result of this circumstance,
they decided to increase the alcohol concentration of the drink to 14%, up from 8% earlier,
making it more concentrated than competing products.
In order to raise brand knowledge and hype, they created a page on their website, as well as on
Facebook and other social media pages, where individuals could share their thoughts on the
product after using it.
Energy drink sales in the United States increased by 3,500% between 2000 and 2010, while
coffee sales stayed unchanged. Red Bull continued to have the highest proportion of the energy
drink industry, however Monster, which is owned in part by Coca-Cola, had gradually reduced
the gap. In the early 2000s, researchers reported that 34% of 18- to 24-year-olds consumed
energy drinks on a daily basis.
3.1 Relevant Facts and Underlying Assumptions
1. A warning letter from the FDA was likely on the grounds that the increasing number of traffic
accident injuries and deaths, and sexual misconduct traced their way back significantly to the
consumption of caffeinated alcohol drinks.

6. 5 | Case:Big Boom Beverages:Fightor Flight?
1. Binge drinking and the resultant incidents from consumption of caffeinated alcoholic beverages
other than Totaled, snowballed into an extensive media coverage which included the YouTube
videos made by consumers on their consumption of Totaled.
2. The Centers for Disease Control and Prevention (CDC) pointed out that a third of adults aged 19
to 28 had consumed caffeinated alcoholic beverages, and given the fact that the target market for
Big Boom Beverages were students of Midwestern universities with large enrolments, it is highly
likely that a significant segment of these consumers came from BBB’s target market.
3. The YouTube videos uploaded by Totaled consumers, in an inebriated state after consuming the
beverage and attempting rather dangerous stunts, are likely to have amplified the eventual media
trial and condemnation of the beverage and the company by the irate public.
4. BBB maintained a stance throughout the timeline of these incidents, that they could not control
the sale and consumption amounts of their products, and hence tried to maintain a distance from
the ill-effects that their product was clearly one of the causes of. This is likely to have backfired
with respect to the kin of the victims of these incidents, in the public eye, as it projected the
company to be not mindful of the effect of their product on their customers, and thus not care
about the implications of the same.
4. Evaluation of the Alternatives
4.1 Acknowledging the steps of FDA
After disturbing instances like sexual assaults, the majority of the partners were concerned about
the company image and they realized that the current situation was a negative outcome from
their mission/expectations. They had aimed at helping the young generation experience joyful
moments of their lives. The focus of negative publicity on the company had initiated and
escalated because of the YouTube Channel and company’s ignorance towards it. The company
should try to spread awareness about fundamental knowledge and cautions one should take while
consuming their products on their website and social media handles.
4.2 Public Acknowledgement
When the attacks escalated and harmed a huge population of adults, the company had made a
statement that the quality and price of the product was their responsibility and not the
distribution of products till the end, i.e. to the consumer. Thus, the company should publicly

7. 6 | Case:Big Boom Beverages:Fightor Flight?
acknowledge that they understand the responsibility of being a market leader in this particular
business and act accordingly.
4.3 Legal Advice
Since it was a suggestion of Malik and they have also registered themselves as LLC, the
company should hire a legal advisor/lawyer with experience of dealing with situations related to
FDA. Although the company cannot afford pause in the sales of their product, they have enough
cash for hiring this service.
4.4 Plan of Action regarding the FDA Warning Letter
The company should not ignore the warning letter especially when they have 14% ABV level in
their drinks. This step will not provide them even a small window to improve their brand image
and business which will result in shutting down of the business. In practical terms, it will
showcase that they were ignorant of prevalent situations and did not value feedback from
customers. The company should not wait for FDA’s actions. A warning letter, along with a
negative public image will certainly tarnish their business performance completely.
5. Best Possible Solution and Implementation
The company should adopt a set of awareness campaigns that include the warning related to the
product, age limit, contents of the product, negative effects of the product on the individual when
consuming excessive amounts of the product. Although the company is currently doing these
activities, they are not effective as desired. So, the company should do these activities more
robustly using more platforms to communicate to the buyers, using platforms such as Facebook
page, Youtube, the company’s website. The company must state properly on the product itself
that who can consume the product in what quantity. The company should talk to its retailers
about what is the desire of the company & they restrict selling of the product to those that are
barred by the company’s policies.
The Company should utilise the online mediums to bring their warnings into notice of the
consumers through their awareness campaigns. The campaign would be directed towards all the
stakeholders through platforms commonly used like Facebook, Instagram and Youtube including

8. 7 | Case:Big Boom Beverages:Fightor Flight?
the company’s website so that the campaign could reach the target audience. Also, to make
retailers aware of the company's policy they should form a contract that would entitle them to
stay within the boundaries of the company's policy. Any violation must be dealt with.
6. Contingency Plan
The company should be prepared for the future contingency if the situation becomes out of
control. The company should go for the legal advisory & explore all the available options to the
company if in case some major decision has been taken by the FDA regarding doing major
changes in the product. The company should be ready to defend its case & must clarify its
product’s role in the recent incident for which Totaled is being blamed.

9. 8 | Case:Big Boom Beverages:Fightor Flight?
Annexure I
Students Learning Team Contract
Working with classmates is both challenging and rewarding. To help your small learning team
succeed, please complete this contract during the first meeting of your team. A significant aspect
to the learning experience of working collaboratively is to resolve differences among yourselves.
However, if the team continues to struggle in any aspect it is your responsibility to approach
your instructor/facilitator.
As with any team/group work, a few common courtesies are required. These include, but not
limited to:
1. Being on time for meetings
2. Completing your share of work by the agreed upon deadlines
3. Staying in touch regularly with your team till your complete the project work
I. Communication with the team (mention the agreed upon method for your team’s
regular communication. Whats app/ e-mail/group call etc.)
● Google meet
● Whatsapp
II. Group Deadlines (list out the number of tasks, members who are responsible for
each task and deadline for completing the task)
Task 1 Anushka Patidar 01/11/2021
Task 2 Sagar Jha 01/11/2021
Task 3 Shivangi Gautam 02/11/2021
Task 4 Shreya Chaurasia 02/11/2021

10. 9 | Case:Big Boom Beverages:Fightor Flight?
Task 5 Shruti Kareliya 02/11/2021
Task 6 Simran Chawla 02/11/2021
Task 7 All members 03/11/2021
III. Individual Roles within the Group (clear state the role of each member in
your group. A brief description)
Anushka Patidar: Designing the situation analysis and listing all the relevant information
Sagar Jha: Finding out the ideal solution from the list of alternatives available
Shivangi Gautam: Defining all the major assumptions required in finding alternative solutions
Shreya Chaurasia: Finding out facts and decision dilemmas from the case
Shruti Kareliya: Designing all the alternative solutions for the decision dilemma and
contingency plan
Simran Chawla: Designing an implementation plan for the ideal solution and also, a
contingency plan
I agree with and will respect the conditions that we have established together in this group
contract.
Name Signature
Anushka Patidar - PGP12082
Sagar Jha - PGP12113

11. 10 | Case:Big Boom Beverages:Fightor Flight?
Shivangi Gautam - PGP12081
Shreya Chaurasia - PGP12106
Shruti Kareliya - PGP12071
Simran Chawla - PGP12109