Energy Drinks Introduction Essay

Energy Drinks Introduction Essay.

Energy drinks refer to beverages that contain, besides calories, caffeine in combination with other presumed energy-enhancing ingredients such as taurine, herbal extracts, and B vitamins. They ? rst appeared in Europe and Asia in the 1960s in response to consumer demand for a dietary supplement that would result in increased energy (Reissig and others 2009). In 1962, a Japanese company, Taisho Pharmaceuticals, launched Lipovitan D, one of the very 1st energy drinks, which is still dominating the Japanese market.

Lipovitan D contains B vitamins, taurine, and ginseng, which are all frequent constituents of mainstream energy drinks with the intended purpose of providing the consumer with sustained energy, and to reduce mental and physical fatigue (Taisho Pharmaceutical Co.

Ltd. 2009). Energy drinks did not make their way into the U. S. market until 1997 when Red Bull was ? rst introduced, which originated and was initially launched 10 y earlier in Austria (Reissig and others 2009).

Since the 1960s, the energy drink market has grown into a multibillion-dollar business which has been reported as being the fastest growing segment in the beverage industry since bottled water (Agriculture and AgriFood Canada 2008).

Energy drinks have established a viable position in the beverage market as evidenced by their commonplace consumption in the morning, afternoon, and night, not only by the general consumer, but those of age 18 to 34 in particular (Lal 2007). Athletes initially were the primary consumers of energy drinks.

However, as the energy drink market grew and expanded into various niche markets, athletes are no longer the primary target. Today, the majority of energy drinks are targeted at teenagers and young adults 18 to 34 y old due to this generation’s on-the-go lifestyle and receptiveness to advertisements for these types of products (Lal 2007). While the energy drinks and shots market may be a small component of the non-alcoholic beverage industry, it is perhaps the most dynamic market—growing 60% from 2008-2012 according to Packaged Facts estimates in the all-new research report Energy Drinks and Shots: U.

S. Market Trends. In 2012, total U. S. sales for the energy drinks and shots market was worth more than $12. 5 billion. Intense competition surrounds the beverage industry as marketers seek to increase market penetration and consumption frequency through positive alignment as a healthy and/or functional beverage. Thirst quencher/sports drinks remain the most formidable competitor for energy drinks as this type of beverage attracts a large constituency of energy drink users.

Energy drinks are subject to competition from other energy-boosting beverages such as coffee and tea beverages, as well as an increasing number of new product innovations that tap into the energy trend but are outside of the beverage industry. At present, energy drinks have the lowest consumption rates of any RTD beverage—a point which reflects the market’s relative infancy but also its growth potential. Experian Simmons analysis shows the growth trend of this market, with the incidence of energy drink usage among adults rising from nearly 13% in 2006 to 17% in 2012.

In addition, there is a modest segment of heavy users: 5% of adults consume energy drinks 5-7 times per month and less than 2% drink energy drinks 10 or more times. Packaged Facts estimates that energy drinks account for some 78% market share, followed by 18% for energy shots, and energy drink mixes (roughly 4%) in 2012. A few select marketers dominate the energy drinks and shots market. This demonstrates the first mover advantage in each category. The result is a market that is highly dependent on a handful of key brands, namely Red Bull, Monster Energy, 5-Hour Energy, and Rockstar Energy.

Energy Drinks Introduction Essay

Energy Drinks and There Effects Essay

Energy Drinks and There Effects Essay.

Have you ever wondered what the side effects were after drinking an energy drink? People buy these types of drinks all the time and they are very popular with the younger groups. They give you a boost of energy but they can also make you sick. There are many different brands of energy drinks on the market the most popular are Red Bull and Monster. People are now mixing these with alcohol which has a serious side effect. There are several ingredients in energy drinks: caffeine, taurine, b vitamins, inositol, ginseng, glucuronolactone, artificial sweeteners, ginkgo biloba, and l-carnitine.

The caffeine in these drinks can cause dizziness, jitters, nausea, irritability and nervousness. You can also have an allergic reaction like: a rash, difficulty breathing, and swelling of the mouth, face, lips or tongue. To many b vitamins like vitamin (B3) can cause flushing of the skin. Ginkgo biloba can cause nausea, vomiting, heart palpitations and the l-carnitine can cause headache, diarrhea, sleep difficulty.

Why do people buy these drinks? Because they give you an energy boost when you need it.

These types of drinks are more popular with the teens and college kids they drink these to give them a boost when they are studying or partying to help them stay awake but when the effects of the drink wears off they feel more tired than they already were. These drinks contain more caffeine then a regular soda a normal soda has 25-40 milligrams of caffeine and the energy drink has 280 milligrams of caffeine. This much caffeine can affect your heart rate and blood pressure. Having this much caffeine in your body can make you heart rate become accelerated.

These sorts of drinks can also cause dehydration which is not good on your body. Mixing energy drinks and alcohol has become popular with people. It says that when you mix the two together the energy drinks counteracts the depressant effect of alcohol. Mixing the two causes your body to become more dehydrated than drinking one of the drinks alone. After you drink one or more of the mixed drinks your body wants more and you become more dehydrated. My thoughts about this type of drink are that they are not very healthy and they can cause permanent damage to your body. Why would anyone want to put something like that in there body?

For me they are no good and would cause more damage to my heart than there already is and you only have one heart. My own children have tried these energy drinks and the effects they had on them were not pleasant they were full of energy and could not hold still for a minute and when the effects wore off they were too tired to do anything. When they woke up the next day they still felt tired and they said they didn’t feel all the greatest.

References: The Health Effects of Energy Drinks-Associated content from Yahoo http://www. associatedcontent. com/article/234299/the _health_effects_of_energy_drinks_pg.

Energy Drinks and There Effects Essay

Energy Drinks Persuasive Speech Essay

Energy Drinks Persuasive Speech Essay.

INTRODUCTION I. We’ve all have probably had an energy drink at some point II. CNN Study shows 50% students, drink one to four a month III. Many don’t pay attention or know short and long term effects IV. The concept of downing energy drinks among college students V. Thesis: Today I am here to persuade you to not drink energy drinks VI. Overview Problems ED pose, The cause of those problems, and solutions VII. Transition: Now lets take a look at the health issues energy drinks cause BODY: I.

Problem: a. Students using energy drinks as necessary part of day b. Cause immediate or short term health issues i.

Tachycardia (increased heart rate) ii. Agitation iii. Gastrointestinal upset iv. Chest pain v. Dizziness vi. Insomnia vii. Headaches c. According to livestrong. com i. Drinks contain 500mg of caffeine ii. Toxic amount iii. 14 cans of caffeinated soft drinks d. Health issues may be felt immediately e. Personal account felt effects first hand i.

Increased heart rate ii. Upset stomach f. Long-term health issues g. According livestrong. com i. Nervousness ii. Hypertension iii. Weight gain iv. Increased urination v. Insomnia vi. Other serious medical conditions H. According to US National Library of Medicine i.

Caffeine dependency major problem 1 ii. Those addicted cannot function properly without it I. According to NPR i. Boost in Emergency Room visits ii. People who don’t know have heart condition iii. Exceeding their limit iv. Mixing with other substances Transition: We can now talk about why those health issues occur and why people consume energy drinks. II. Causes: a. Two major cause of energy drinks being a problem i. Content of drinks ii. Being drank in an excessive manner b. Energy drinks contain i. Caffeine (3-4 cups) ii. Guarana (Brazilian cocoa) iii. Sugars iv. Taurine v. Ginseng vi. B Vitamins vii.

Other addictive’s c. All ingredients i. Body and mind have more energy or ii. Function at higher speed and efficiency d. College students i. Main target of energy drink companies ii. Social group with highest percentage of consumption e. College students use because i. Live on edge ii. Take advantage of time in college by iii. Staying up late iv. Wakening up early v. Going out vi. Work vii. Sports f. Energy drinks i. Perfect for lifestyle ii. Until secondary effects Transition: problems and cause, now I will tell you about some solutions on how to get energy without consuming energy drinks III. Solutions: a.

Livestrong, Three major energy drink alternatives i. Healthy diet (more protein) ii. Sleep more (7-8 hours) iii. Drink more water (8 cups per day) Transition: In closing 2 CONCLUSION: I. Review of Main Points a. Problems b. Causes c. Solutions II. Final Remarks a. No legality of energy drinks b. People have the choice c. Natural ways for energy 3 References Sifferlin, Alexandra. “What’s in Your Energy Drink? ” CNN. Cable News Network, 06 Feb. 2013. Mon. 20 Oct. 2014. Morris, Ivy. “short-Term Effects of Energy Drinks on Teens. ” LIVESTRONG. COM. N. p. , n. d. Mon. 20 Oct.2014. Hetzler, Lynn.

“Negative Effects of Energy Drinks” LIVESTRONG. COM. N. p. , n. d. Mon. 20 Oct. 2014. Reissig, Chad, and Eric Strain. “Caffeinated Energy Drinks – A Growing problem. ” US National Library of Medicine. Drug Alcohol Depend. 2009 January 1; 99(1-3): 1-10. , 21 Sept. 2008. Mon. 20 Oct. 2014. Shute, Nancy. “Energy Drinks Blamed For Boost In Emergency Room Visits. ” NPR. NPR, n. d. Mon. 20 Oct. 2014. Predict, Robert. “ER Visits Linked to Energy Drinks Double: Report: MedlinePlus. ” U. S. National Library of Medicine U. S. National Library of Medicine, n. d. Mon. 20 Oct. 2014.

Energy Drinks Persuasive Speech Essay

Energy Drinks Market in Denmark Essay

Energy Drinks Market in Denmark Essay.

1. Introduction Danish soft drinks sales have recorded positive volume growth in recent years. Strong volume growth was recorded in energy drinks sales attributed to the aggressive marketing and new product launches. Some of the major players in the Danish energy drink market are Burn and Red Bull. Accordingly, the main aim of this report will be to identify and analyze the possible ways for Burn energy drink product to compete with the world famous energy drink Red Bull which has recently entered into Danish energy drink market in 2009.

1. 1 Problem Description In 2009, the Danish Veterinary and Food Administration approved the increase of caffeine level in energy drink. This has given a wide-open-door for beverage companies to develop in this segment. Taking advantage of this opportunity, Red bull the world’s most famous energy drink company, started to compete within the Danish energy drink market. On the other hand, Coca-cola Denmark also considered it as an opportunity to further develop product chain of its energy drink Burn.

In Denmark, Burn has been dominating the energy drink market so far but now with the entry of Red Bull into the market it will now have to strategically develop its marketing mix to find a better way to compete with Red Bull and maintain its dominant position. 1. 2 Problem Statement We define the problem question for our research as follows: How could Burn compete with Red Bull on the Danish energy drink market? To support main question we have formulated some sub questions. They are as follows: 1. 2. 1 What is the preference of customers between Burn and Red Bull?

1. 2. 2 How should Burn products be developed and how should they be priced? 1. 2. 3 How should Coca-cola Denmark promote and distribute Burn? 1. 3 Definitions 1. 3. 1 Energy drink Energy drink can be defined as a drink or the beverage that contains higher doses of caffeine and other stimulating agents that give you instant energy. The doses of the caffeine and the stimulants are legally approved by the government health authorities. The main purpose of drinking an Energy drink is to get an instant energy to your body. 1. 3. 2 Burn energy drink.

Burn Energy Drink is a functional beverage, mixture of 14 ingredients that come in a 16 ounce can and is available at almost every grocery store or convenience store across Denmark. It is one of the products of Coca-Cola Company. 1. 3. 3 Red Bull energy drink Red Bull Energy Drink is a functional beverage, specially developed for periods of increased mental and physical exertion. It can be drunk in virtually any situation: during sports, at work, whilst driving and during leisure activities. 1. 4 Demarcations (Scope and limitation of the study) As every report has its limitations, this report is also subject to various limitations.

This report is based on two products, Burn and Red Bull which are the products of The Coca-Cola Company and The Red Bull Company respectively. These two companies have various product categories; however this report will be focused only on those two products among wide category of energy drink in energy drink sector. As far as the market place is concerned, this report is limited to the Danish market. Most of the consumers of energy drinks in Danish market are mainly the younger people aged 18-25. Considering this fact we have selected this age group as our target group. 2 Theoretical Background.

This section of the report helps to provide the broad theoretical framework used for interpreting the research presented in this report. Various marketing theories have been applied as a background in this report. Theory of Market segmentation is used to analyze Burn and Red Bull in the Danish Market. To analyze the competition between Burn and Red Bull, Competitor Benchmark Analysis is used. Finally Using the theory of Marketing Mix (4 Ps), recommendation to Burn has been made to successfully develop its marketing campaign so that it can increase its sales and compete with Red Bull. 2. 1 Market segmentation.

Market segmentation will be identified by taking into consideration the demographic variables (like gender, different age group and life style) and geographical locations (various cities of Denmark) like Center of Copenhagen, Sj? lland, Fyn and Jylland 2. 2 Competitive Benchmark Analysis Competitive benchmark of Burn will be made with its direct competitor, Red Bull. For this we will take various factors which are flavor, taste, brand, price, place (convenient to buy), packaging and effectiveness of the products. During our group discussion these factors came up as the most relevant criteria for making competitive benchmark.

Accordingly, respondents were asked to rate and evaluate both Burn and Red Bull on those factors during the online survey. 2. 3 Marketing Mix (4 Ps) Marketing Mix i. e. 4 Ps will be taken as theoretical base for providing recommendation to Burn after the analysis of data and findings are presented. Accordingly, Product, Price, Place and Promotion Strategy will be presented in order for Burn to successfully compete against its rival Red Bull. Then after, the conclusion will be made. 3 Methodology Description This section of the report gives information about the stages that we went through while doing the research and writing the report. 3.

1 Research Design We chose exploratory design as our research design. We have a research problem which is unstructured. We do not have enough information about our topic for which we have to investigate more on our topic. Both Qualitative and quantitative data collection methods are used. To gain more and more information and insights about the problem topic, Qualitative research design was chosen. Using qualitative data collection method, it became easier for us to change translate and reformulate our unstructured questions. Quantitative method is also used in order to check the validity of the results obtained from qualitative method.

For quantitative data collection we tried to get as many respondents as possible who can represent the total population. 3. 2 Primary and secondary data collection For this research we have chosen both Qualitative and Quantitative data collection method for primary data. Similarly, wherever required, we have also used secondary data from the articles, publications and website of the company as well as blogs and other relevant news articles. 3. 3 Qualitative data collection To collect the qualitative data, a focus group interview was conducted. We prepared the interview guide for the focus group which is attached in the appendix.

The focus group contained 11 members who are the students from 2nd semester class at Niels Brock. After the completion of interview process we also took a blind test among the focus group interview participants plus 15 other students. Students were chosen randomly. Each of them were given to drink two glasses, one filled with Burn and another filled with Red Bull and were asked which one they like and how they taste. The responses from the participants were used for the analysis. 3. 4 Quantitative data collection To collect quantitative data, we prepared structured questionnaire. It consisted of 15 questions (open and closed ended questions).

We posted our research questionnaire in the Facebook blogs and invited 600 Facebook users through simple random method. We got only 116 responses and of which only 77 respondents answered all questions of questionnaire. So in this research 77 respondents are our total number of observation. In other words our sample size is 77 which represent the total population of energy drink customers in Denmark. 4 Presentation and analysis of data The presentation and analysis of data has been categorized as Market segmentation and Competitor Benchmark. 4. 1 Market Segmentation of energy drinks 4. 1. 1 Analysis of Focused group interview:

During the focused group interview, 11 participants were asked about the consumption of energy drink every week. Among the participants, 1 participant consumes 5 or more cans per week. 4 respondents consume 3 to 4 cans and 1-2 cans as well. Whereas, 2 respondents consume less than 1 can of energy drink. Thus their consumption habit is around 1-4 cans per week. When there was a discussion about the occasions during which they consume the energy drink, most of the answers was during workout, training or going to sports and when mixing with alcohol. There was also a discussion about having coffee instead of energy drink when one is tired.

6 participants said that they prefer coffee whereas others preferred energy drink. Regarding price, most of the respondents voted for cheaper one, less than 20 DKK and between15-17 DKK. 4. 1. 2 Analysis of Online questionnaire survey The willingness of various age groups towards energy drink is illustrated in the diagram below. It shows that 56% of respondents from age group 18 to 25 years are interested in energy drink. Figure 1 Willingness of various age-groups towards energy drink Source: Appendix 4 Similarly, 20% of respondents from the age group below 18 and 26-35 years age group showed their interest in energy drink.

But only 4% of the elderly respondents are interested in energy drink. Thus, it can be seen that the highest number of people from the age group 18-25 years are interested in the energy drink. Figure 2 Willingness towards energy drink by gender Source: Appendix 5 The above figure shows that 68% of male population is interested in energy drink whereas only 32% of female population is interested in Energy drink. Figure 3 Willingness towards energy drink by location Source: Appendix 6 According to the above figure, most of the respondents from center of Copenhagen are interested in energy drink.

68% respondents from the Copenhagen region and 32% respondents from Sj? land region showed interest in energy drink. While analysisng the age wise consumption of energy drink which is illustrated in the figure below it has been seen that the data is bit conflicting. Figure 4 Age wise consumption of energy drink Source: Appendix 7 As shown by the diagram, those who almost never drink energy drinks are higher in age group 18 to 25 years.

But again, those drinking from 1-2 cans per week are also higher number in age category 18-25 years but less compared to those who never drink. But what can be concluded that those who drinks energy drinks they normally consume 12 cans per week and are higher in 18-25 years category. Analyzing the preferred occasions when customers usually like to drink energy drink, the research show that customers usually prefer it to mix with alcohol as their first preference and then drinking when they are tired. Figure 5 Occasional preference of Energy Drink by gender Source: Appendix 8 The above graph shows most of both females and males consume energy drink when they mix with alcohol.

22 females out of 35 female respondents (63%) and 19 males out of 42 male respondents (45%) said they consume it when they mix with alcohol. Similarly 43% of female and 40 % of male respondents answered that they take energy drink when they are tired. Likewise, 11% female and 33% male said that they take it when they go to sports. 14% of female and 21% of male chose energy drink when they are thirsty and 6% of female and 7% of male chose for other occasions. Figure 6 Customers willingness to pay for the energy drink Source: Appendix 9.

Relating to the price it can be clearly seen from the figure above that 18-25 years age group which is the target customers for energy drinks are willing to pay 16-20 DKK for the energy drinks where as 26-35 years age group are willing to pay 10-15 DKK for the drink. 4. 2 Competitor Benchmark (Burn and Red Bull) 4. 2. 1 Analysis of Focused group interview: During the focused group interview, 8 out of 11 participants preferred Red Bull. Only 3 preferred Burn. When there was a discussion of product features like taste, flavor and effectiveness of the products; participants said that effectiveness of the product is important.

During the blind test 26 participants were made to taste both Burn and Red Bull drinks blindfolded. Table 1 Preference of product by tasting without knowing the product (Blind Test) BurnRed BullBoth Total no. of participant (26)9152 The research showed that Red Bull was highly preferred by the participants with 58% appreciating the taste of Red Bull. Burn was preferred by only 35% of the participants. 4. 2. 2 Analysis of Online questionnaire survey The illustration of various measures to which the consumer gave importance when buying energy drink is shown in the figure below. Figure 7 Customers’ emphasis when buying energy drink.

Source: Appendix 10 We found data of customers according to the importance they give to various measures or elements when they want to buy an energy drink. The above graph shows that 53% of the total respondents said flavor is very important when they buy energy drink. About taste, 60% said it is very important. None of the respondents said that it is not important at all. Talking about brand, only 19% said very important, 34% said important, 30% said not so important and 17% said not important at all. About price, 51 %( more than half population) said that it is very important.

Only 5% said not so important and no respondents said that it is not important at all. So far as convenient place to buy is concerned, 29% said very important, 54% said important. When packaging is concerned 16% said very important, 29% said important 39% said not so important and 16% said not important at all. When it is about effectiveness, 44% said it is very important, 38% said important. Thus the analysis shows that flavor, taste, price, convenient buying options and effectiveness of the drinks are important for customers where as brand and packaging are not that important in buying decision.

Based on the various factors to which the consumers give preference when buying energy drinks, comparative analysis between Burn and Red Bull has been carried out. This can be described from the figure given below. We asked the respondents to evaluate Burn and Red Bull giving them 4 options (Very Good, Good, Bad, Very Bad). But here in the analysis we have taken only two options as we think these two options are sufficient for comparative analysis. Figure 8 Comparison of Burn and Red Bull based on the various factors Source:

Appendix 11 The above figure shows the customers preference between Burn and Red Bull on the various factors which are important for their buying decision. 34% of the total respondents said the flavor of Burn is good and 23% said very good while 48% and 29% said the flavor of Red Bull is good and very good respectively. Similarly, 39% and 13% of the total respondents said the taste of Burn is good and very good respectively while 52% and 29% respectively chose good and very good for the taste of Red Bull. As far as brand is considered, 39% and 26% said the Burn brand is good and very good respectively while 42% and 45% said Red Bull brand is good and very good respectively.

When it is about price, 27% and 12% chose good and very good for Burn while 16% and 12% for Red Bull. 35% and 23% of total population said Burn is good and very good respectively when considering convenient to buy whereas for Red Bull it is 38% and 17% respectively. About packaging 36% and 22% answered good and very good for Burn while for Red Bull its 45% and 18%. Finally for the effectiveness of the product, 39% and 18% respectively chose good and very good for Burn while it is 45% and 25% for Red Bull.

Thus the analysis shows that customers highly prefer Red Bull while relating to flavor, taste, and brand. On the other hand, with relating to price, convenient to buy and nice packaging, customers seemed to prefer Burn. So far as the effectiveness is concerned, Preference towards Red Bull is high but the difference is not so much. 5 Findings and summary of the analysis According to the analysis presented above, it can be seen that the energy drink market segmentation is more concentrated on the costumers between age group of 18-25 and that the customers are dominantly male rather than female.

Looking at the geographic distribution the market segment is undoubtedly concentrated on Copenhagen with to some extent also in Sj? land. However, the other fact is also that since Copenhagen is the largest city with dense population this result is quite obvious. The other important findings of the study regarding the life style of the customers relating to the consumption of energy drinks is that energy drinks are excessively consumed as a mix in alcohol and then it is consumed while people get tired. Also energy drinks are often consumed just 1 or 2 cans per week. Normally customers are willing to pay 16-20 DKK for the drink.

The analysis shows that in general the customers give high importance to the flavor, taste, price, effectiveness and buying convenience while making their buying decisions of energy drinks and that the brand and packaging are not of importance for the customers. Keeping this in mind the competitor benchmark of Burn and Red Bull Red Bull clearly shows that though Red Bull being a new entrant in the Danish market it has succeeded in taking good share of energy drink market in Denmark. Red Bull is preferred by customers in terms of its flavor, taste which are important factor in general for customers while making their buying decisions.

Similarly, with the effectiveness as well Red Bull is preferred by customers in comparison to Burn. Burn is preferred by customers in packaging which not of important factor for customers. But Burn still dominate Red Bull in terms of its easy availability at stores which is due to the fact that it is distributed by Carlsberg Brewery which is considered to have a very strong distribution channel in Danish market. (footnote) Again at price Burn is rated better owing to the fact that they are cheaper than Red Bull. Of course with the brand Red Bull is rated much better as it is an internationally recognized brand.

6 Recommendations Based on above findings following recommendations have been suggested for Burn to improve its products, promotion and pricing strategy. The recommendations will be based on the marketing mix (4 Ps) which is product, price, place and promotion. 6. 1 Product Since the research findings show that Red Bull has dominant preference by customers in terms of flavor, taste and effectiveness, therefore Burn has to come up with innovative product development in order to provide added value to its product so that customers preferences divert towards Burn.

Therefore, considerable amount of resources and time should be spent on research and development of variety of flavors and appealing taste with its product. Since the market segment of the energy drink is mostly 18-25 years old and that they consume it as mix in alcohol so the taste preference of these age group should be taken into consideration and the flavor and taste should be developed which is appealing while mixing with alcohol as well. 6. 2 Price Relating to the price, Burn is cheaper that Red Bull and realizing the fact that Red Bull is gaining market share it is wise to maintain its low price strategy.

6. 3 Place The research show Burn with strong placement but since strong distribution channel is its one of core competencies it has to fully utilize this competences to move ahead form Red Bull to place its products at all the convenient stores. The major priority should be given to Copenhagen since it’s the main market segment but again taking advantage of its well managed distribution channel it should also focus on other cities where Red Bull are not able to reach due to lack of experience with the Danish market.

6. 4 Promotion A well planned advertising strategy should be developed mainly targeting on the 18-25 years age group and again the male customers who are the major customers of energy drinks. Though Red Bull is world recognized brand, Burn also has its brand reputation as it is a product of world class Coca Cola Company. Thus advertising campaign should also be focused to create awareness of the Coca Cola brand among the customers while promoting Burn which can positively influence customers’ choice.

7 Conclusion Based on the research analysis and findings, it can be concluded that within the Danish energy drinks market Burn is definitely getting a tough competition from Red Bull despite the fact the Red Bull is a new entrant in Danish market. Its global brand recognition has provided Red Bull with competitive strength which can be a serious threat to Burn in coming future. Therefore it is a must for Burn to take timely action and initiate necessary marketing strategies to compete with Red Bull.

Burn has low price advantage as well as strong distribution channel which provide Burn with an edge in the competitive market and therefore it needs to look more into product development and promotion strategy in order to compete with Red Bull and thus gain success in the competitive energy drink market. 8.

References Books David Jobber. (2007). Principles and Practice of Marketing. UK. McGraw-Hill Education Pervez GH, Kjell Gr. (2005). Research Methods in Business Studies. UK. Pearson Education Bryman, A. and Bell, E. (2007). Business Research Methods. 2nd Ed. UK.

Oxford University Press Burns, A. C. and Bush, R. F. (2006) Marketing Research, 5th ed. , Prentice Hall Kotler, P. and Keller, K. L. (2006) Marketing Management, 12th ed. , Prentice Hall Svend Hollensen, (2007) Global Marketing – a decision-oriented approach, Websites http://www. euromonitor. com/Soft_Drinks_in_Denmark http://advantageaustria. org/dk/news/local/Red-Bull-und-Shark. en. jsp http://www. aeofooddrink. com/34. php http://www. dietspotlight. com/burn-energy-drink-review/ /cs/Satellite/en_INT/Products/Red-Bull-Energy-Drink-021242751115866?p=1242745950125#/product-FAQ 9 Appendices Appendix.

1 Questionnaire Dear respondents, we make this survey in order to obtain more comprehensive knowledge about the energy drink sector in Denmark, particularly the two big brands: Burn and RedBull. So we would highly appreciate if you spend a few minutes answering our questionnaire. Your information will be treated anonymously! 1. How interested are you in energy drinks? oVery interested oInterested oNot very interested oNot intererested at all 2. How often do you drink energy drinks? oAlmost never oFrom 1 – 2 cans per week.

oFrom 2-5 cans per week oMore than 5 cans per week 3. ON WHAT OCCASIONS DO YOU DRINK ENERGY DRINKS? oWhen I’m tired oWhen I’m thirsty oWhen I go to sports oWhen I mix with alcohol oOther (please specify in the box below) 4. Where do you often buy energy drinks? oIn the super markets oIn the bars oIn Seven Eleven oIn small shops (eg: gas station, kiosk etc) oOther (please specify in the box) 5. How much would you like to pay for an energy drink? o10 – 15 Kr o16 – 20 Kr o21 – 25 Kr oMore than 25 Kr 6. How important are the following factors when you buy energy drinks?

Very important Important Not so important not important at all Good flavor Good taste Good brand Reasonable price Convenient to buy Nice packaging The effectiveness of the drinks 7. Which of these brands do you know? oBurn oRed Bull oNone of them 8. Which one of these brands do you prefer? oBurn oRed Bull oNone of them 9. How do you evaluate RED BULL in the following factors? Very goodGoodNot good-not badBad Very bad Brand Taste Flavor Price Convenient to buy Packaging Effectiveness 10. Do you have any recommendations for RED BULL to better meet your satisfaction?

oI don’t know oI’m already very satisfied oI would recommend as follows: 11. How do you evaluate BURN in the following factors? Very good Good Not good-not bad Bad Very bad Brand Taste Flavor Price Convenient to buy Packaging Effectiveness 12. Do you have any recommendations for BURN to better meet your satisfaction? oI don’t know oI’m already very satisfied! oI would recommend as follows: 13. What is your age? oYounger than 18 years old oFrom 18 – 25 years old oFrom 26 – 35 years old 14. What is your gender? oMale oFemale 15. Which part of Denmark do you live in?

oCenter of Copenhagen oSj? lland oFyn oJylland Appendix 2 Interview guide for focus group What criteria do people choose when they buy energy drink products? Are different flavors important? What occasion do they drink energy drink? Eg: when they’re tired, or mix with strong alcohol, etc. What product name(s) do they like? Why? Do they know Burn/Red Bull? Where do they buy? Do they like Burn/Red Bull products? How much should a can of energy drink cost? Appendix 3 Fokus gruppe analyse 2. Semester klasse Niels Brock Lien, Niraj, Silas og Michelle Market research

Alle kender begge 11 deltager 8 ud af 11 kan lide red bull Dog viste det at 6 ud af 11 faktisk kun valgte Red Bull efter blinde smagning Smagen er bedre, burn er for sodt. (inden smagning af begge m? rker) Hvor mange energidrinks drikker du per uge? 1 drikker 4-5 cans a week 4 – 3-4 cans 4 – 1-2 cans 2 mindre end 1 Hvornar drikker du energidrinks? Sprut, tr? ning, Det er meget i forhold til det at man drikker alkohol. Enighed blandt minimum 8 af deltagerne Dog drikker mange det ogsa hvis de er tr? tte eller skal til tr? ning efter en lang dag i skole.

Kaffe frem for energi drink hvis man kan lide det hvis man er tr? t og skal videre, dette mener 6 ud af 11 af deltagerne hvor de andre ikke kan lide kaffe eller mener at en energi drik er bedre… Hvor meget vil du betale for en energidrink? Ikke mere end 20kr, mellem15-17kr ca er de fleste villige til at betale Men ville kobe den billigste hvis de stod mod hinanden pa hylden i super marked. Energien er mere vigtig end smagen. Irriterende reklamer – for meget nogenhed – provokerende reklamer – mener 2 af deltagerne, Red Bull promoverer ikke sadan (I Dk hvert fald).

Energy Drinks Market in Denmark Essay

Energy Drinks Speech Essay

Energy Drinks Speech Essay.

A. People all over the world have been getting a jolt of energy from a cup of coffee or tea in the morning for hundreds of years, so getting that jolt in a little can seems to make sense, right? B. The desire for a powerful energy drink can lead to a lot of misinformation. C. There is a lot of misinformation about energy drinks in regards to they speed up your metabolism, help you with your workout, mixing these drinks with alcohol, and the effects on your body.

II. BODY OF THE SPEECH D. Energy drinks speed up your metabolism. 1. A 16 oz.

can energy drink may contain 13 teaspoons of sugar and the same amount of caffeine found in 4 or more colas. 2. The sudden energy rush you feel after drinking one of these cans is often followed by a “crash-and-burn” effect which could leave you craving more. 3. While these drinks give your metabolism a quick boost, afterwards your stomach is left with the carbohydrates and caffeine neither of which are metabolism boosters.

E. Energy drinks help you with your workout. 4. Where it would take an average person 15-20 minutes to burn off the 110 calories that are in one can of Red Bull. 5.

Caffeine is known to increase endurance, but consuming in combination with other herbal supplements found in energy drinks prior to or during exercise is found to be life threatening. 6. Because caffeine, like alcohol, is a diuretic it increases the chances of a person becoming dehydrated. F. Mixing energy drinks with alcohol. 7. A person might feel sober because their more alert, but that’s just a false sense of sobriety. Therefore they end up drinking more alcohol. 8. Another downside to this is your body will take longer to sober up because caffeine slows down the burning of alcohol in your bloodstream.

9. These energy drinks are stimulants and alcohol is a depressant, the combination can have disastrous consequences. G. Energy drinks and the effects on your body. 10. These drinks are known to increase your heart rate, blood pressure, and affect brain function. These drinks are not recognized by the FDA. 11. Seizures that are caused by energy drinks are due to the “crash” that follows the energy high. 12. With the large amounts of sugar and citric acid from these energy drinks also comes an increased risk for cavities and the breakdown of the enamel on your teeth.

III. CONCLUSION H.

The bottle line on energy drinks is that taken in moderation will not cause you any harm. I. I know our society strives on immediate gratification and convenience but a healthier, cheaper alternative is just to eat an apple. You’ll be getting the energy, fiber and vitamins while avoiding the sugar and caffeine. Works Cited “3 Myths About Energy Drinks. ”

Healthy With Good Foods, Makes perfect with sports. 02 July. 2010. <http://avenidausa. com> Brody, Jane. “Scientists See Dangers” Energy Drinks Are Cause for Concern, Scientists Say. ” NY Times. 01 February. 2011 <http://www. nytimes. com/2011/02/01/health/01brody.html> “Energy Drink. ” Wikipedia, the free encyclopedia. Wikipedia Foundation, Inc. 2011. <http://en. wikipedia. org/wiki/Energy_drink> “Energy Drinks – 6 Myths Debunked. ”

Truth about Energy Drinks. <http://www. heroenergyshot. com/energy-drinks-myths> “Energy drinks: myths and reality. ” Squidoo, LLC. 2011. <http://www. squidoo. com/energydrinks-myths-and-reality> “Health Canada mulling classifying energy drink as drugs. ” Sympatico News. 28 September. 2011. <http://news. sympatico. ctv. ca> Siegel, Lindsey.

“Energy Drinks Cause Harmful Side Effects. ” 24 September. 2007. <http://www. thesandspur.org/sports/energy-drinks-cause-harmful-side-effects. com> “Some Facts About Energy Drinks. ” Nutritional and Health Info-Sheet. ” 2007. <http://nutrition. ucdavis. edu/content/infosheets/EnergyDrinks. pdf> Trenier, Theresa. “Energy Drink Dangers. ”

Newsletters for Mental Health. Milwaukee School of Engineering. January. 2007. <http://www. msoe. edu/life_at_msoe/current_student_resources/student_resources. com> I. INTRODUCTION A. People all over the world have been getting a jolt of energy from a cup of coffee or tea in the morning for hundreds of years, so getting that jolt in a little can seems to make sense, right?

B. The desire for a powerful energy drink can lead to a lot of misinformation. C. There is a lot of misinformation about energy drinks in regards to they speed up your metabolism, help you with your workout, mixing these drinks with alcohol, and the effects on your body. II. BODY OF THE SPEECH D. Energy drinks and your metabolism 1. 16 oz. can, 13 teaspoons sugar, 4X amount caffeine than cola 2. “crash & burn” effect 3. Stomach left w/ carbs & caffeine E. Energy drinks help you with your workout 4. 15-20 min. burn 110 calories 5. Caffeine and herbal supplements-life threatening 6. Diuretic – dehydrated.

F. Mixing energy drinks with alcohol 7. False sense of sobriety 8. Longer alcohol in bloodstream 9. Drinks stimulants, alcohol depressant – consequesnces G. Energy drinks and the effects on your body 10. Increase HR, BP, brain 11. Seizures 12. Effects on your teeth III. CONCLUSION H. The bottle line on energy drinks is that taken in moderation will not cause you any harm. I. I know our society strives on immediate gratification and convenience but a healthier, cheaper alternative is just to eat an apple. You’ll be getting the energy, fiber and vitamins while avoiding the sugar and caffeine.

Energy Drinks Speech Essay

Sales Promotion Energy Drink Study Essay

Sales Promotion Energy Drink Study Essay.

1. Introduction: It is widely believed that energy drinks have been an integral part of beverage in UK market. Consumers can commonly buy energy drinks in a number of places such as supermarkets, grocery stores, corner shops or even convenient shop in petrol stations over UK. A report from Independent indicates that the growth of market for energy and sports drinks has increased b nearly 20 per cent from 2009 and it is anticipated to reach ? 1. 1 billion market value per year and there has been 209 new energy drinks launched in the past five years in the UK.

Mintel also reports that the industry could be worth nearly ? 2 billion by 2016. Energy drinks are functional, non-alcoholic, often lightly carbonated beverages, designed to give the consumer a burst of energy by the addition of a number of energy enhancing ingredients, most notably caffeine. Popular brands of energy drinks such as Lucozade Energy and Red Bull deliver a dose of caffeine equivalent to a cup of coffee, while their more potent competitors Relentless and Monster – marketed to extreme sports fanatics – can contain twice that amount, around 160mg per can (Independent, 2011).

Nowadays there around 73 per cent of 16- to 24-year-olds young people drink them regularly and most say they simply like the taste, market analysts Mintel said. Moreover, two-thirds of those aged 16 to 24 questioned by the researchers said the energy drinks improved their performance at work or while studying. The purpose of this study is to analyse and discuss the use and effectiveness of sales promotion on energy beverages and investigate how these brands are doing with their promotions onto existing products to effectively enhance their awareness and market share. It will be done into four parts.

In the first paragraph it will show the methodology planned by implementing secondary research from authentic resources such as Mintel, online articles and professional reports, books and articles etc. Following by an overview of current promotional marketing in UK energy drinks industry, it will be written in the second paragraph and the content will compare the difference of promotions applied among dominated energy drink brands: Lucozade Energy, Red Bull, Monster and Relentless etc. and analyse how the most used marketing skills of promotion target consumers’ purchases to gain their attraction.

In the third part, it will indicate the key findings in relation to sales promotion and select promotions in good and poor views, then finally to suggest which method would be a good way in the future. 2. Methodology: This section contains the techniques that were employed in this market study process. For the purpose of this study the secondary research method and actual fieldwork were mainly utilized with its critically selected data collection methods from authentic resources such as Mintel, owned media, professional reports, and articles etc.

This will enable the research process to be tackled comprehensively in order to draw the right conclusion. It was decided to investigate some representative energy drink brands chosen from this sector. They were: * Red Bull * Lucozade Energy * Monster The chosen energy drink brands target on extreme sports enthusiasts, students and teenagers who have energy needs, and also some of other brands try to attract the video game crowd. Top energy drinks by brand are Red bull in first place, followed by Lucozade Energy, and Monster.

Other brands like Relentless, managed and marketed by the Coca-Cola Company are relatively moderate in UK promotional activities. Overall the target market for energy drinks is mostly male teenagers and sports enthusiasts. – The frequency and occurrence of sales promotion: During the period of this study there were a number of special events implicated, for example, sport events and festivals in spring and summer, Easter holiday, the Queen’s Jubilee, football EURO 2012 and 2012 London Olympic Games.

This report will investigate the relevant promotional activities with different time in the next part and examine how those brands use promotional tactics to net the competitive energy drink market in the UK. 3. Analysis 3. 1 Comparison of the different promotions (April – June) This analysis revealed that all the producers contained a mixture of sales promotional, brand advertising, and PR activity in different occasions. As per secondary research, Red Bull did the most number of promotional activities such as advertising and PR events. Lucozade also did a number of advertising and PR events.

They used similar tactics. However, Monster carried the most number of sales promotions but it constantly using price promotion and also competition games to the teen-aged market in order to get the target involved, because Monster Energy got relatively lower brand image and value from the other two competitors. No matter which brands they all use “price discount” to boost short term sales and provide price-pack deal or prize promotion as a bargain to gain more market share in this industry. TABLE 1 Brand/ Time| April| May| June| Red Bull| SP Activities: 2No. Brand Ads: 3PR Activities: 8| SP Activities: 2No.

Brand Ads: 3PR Activities: 6| SP Activities: 2No. Brand Ads: 4PR Activities: 9| Lucozade Energy| SP Activities: 3No. Brand Ads: 2PR Activities: 6| SP Activities: 3No. Brand Ads: 2PR Activities: 6| SP Activities: 4No. Brand Ads: 2PR Activities: 6| Monster| SP Activities: 5No. Brand Ads: 2PR Activities: 4| SP Activities: 5No. Brand Ads: 1PR Activities: 5| SP Activities: 7No. Brand Ads: 2PR Activities: 6| It appears that all three brands different promotional strategy but the same tendency is that they did more marketing activities when the time is close to summer and some festivals.

3. 2 Promotional Marketing Overview of Energy Drink Since there are number of brands and similar products in energy drink industry marketplace, it is preferably to promote products through different means to obtain consumer’s attention. One of which is undertaking sales promotion. Sales promotion can be defined as ‘’a marketing initiative the purpose of which is to drive a call to action that has a direct impact on the behaviour of the brand’s target audience by offering a demonstrable benefit. ’

(West, 2012, p. 6) Here are some examples of prevalent sales promotions activities as well known in energy drink market: * Price Promotion / Price-pack deal: When browsing in supermarkets or grocery stores the price reduction and pack discount are commonly seen to stimulate shopper’s purchase. Occasionally the price promotion comes up with price drop, discount-off packs, and buy one get one free (BOGOF) or buy more pay less. The promotional price reduction had been constantly conducted by many brands to boost short term sales growth and it can significantly influence on consumer’s purchase behaviour.

* Free Sample/ Point-of-sale displays Promotion It is widely believed that free sample or a trial of energy drink is often offered on streets and events as a firm’s promotional strategy and usually seen in stores where energy drink brands would seasonally offer a promotional new flavour or package of product or money-saving discount to motivate sales. A number of brands like Powerade, lucozade and Monster Energy used to adopt the method to boost their new products and promote the sales and brand awareness.

Free sample can have a significant value that consumer can be aware of the new product and urge a trial as the sample is free. Nevertheless, there might be a risk that consumer think they do not like the taste or quality of the product and cause a negative impression. Moreover, with a strongly colourful and a sensational display used by general energy drinks point-of-purchase can capture consumer’s attention and reach a profitable increase of purchase. Point-of-purchase can assist to improve with building an image for the brands as reported by a (Ioana, C & Aline, T 2008).

In some big supermarkets in the UK like Sainsbury, Morrison etc. many energy drinks are displayed at point-of-purchase to attract shopper’s eyes. * Prize Promotions It can be argued that prize promotion is the most broadly used as a sale promotion to energy drink industry of the UK. Prize promotion is not a promotion of free item. There is no such a guarantee for prize promotion when consumers take part with it. Some companies like Relentless, Rockstar have their promotions giving participants a chance to win tickets for anumber  of events and festivals.

As well as the general prize promotion of energy drinks from time to time are designed as a competition or game to win rewards or to give incentives. It can be the question plus slogan which is the most common type of test in a competition. 4. Selected Promotions The effectiveness and the efficiency of promotional strategy should be evaluated critically. It is crucial that if the promotional expenditure can optimise to target a firm’s marketing objective.

This section will compare and look into the effectiveness and the efficiency from two selected promotional skills and also the PR activity during the time period. 4. 1 Promotion No. 1: – Lucozade Energy launches festivals campaign 2012 Taking an aerial view of energy drink market, prize promotion or free item competition is currently used by most energy drink companies. As Thedrum (2012) reported that Lucozade Energy recently launched a new marketing campaign offering customers the chance to win tickets to some of the summer’s biggest music festivals in the UK.

The Win a Festival Road Trip campaign features five limited edition bottles promoting the V Festival, T in the Park, Latitude, Global Gathering and Beach Break Live. Lucozade will be giving music fans the chance to win tickets to each of these festivals and chauffer-driven transport in a reconditioned VW camper van. This promotion is related to youth market to get young people engaged and start from the time close to the summer vacation when most students and young people have more spare time to get involved with its promotional activities.

The ? 2m campaign will include outdoor creative, digital and promotional activities such as sampling and experiential event at all of the festivals. It will run alongside a three month radio partnership with Kiss FM starting in March. These platforms provide the well opportunity to reach a wide range of consumers and inject excitement and consumer relevance into the brand. However, the drawback of prize promotion can be impacted by the law as shown in Mullin’s study (2010) that ‘’prize promotion are heavily regulated by.

British Codes of Advertising and Sales Promotion, the Lotteries and Amusement Act 1976, the Gambling Act 2005, and by other legislation that is far from simple to interpret. ’’ It is apparently recognised that the prize promotion is dynamically attractive to consumers. Consequently, prize promotion is worthy taking by marketers as long as they play it safe. 4. 2 Promotion No. 2: – Coupon/ free mail-in promotion While price promotion is a powerful and effective method to produce immediate short term positive results, it may be not a cure for a bad product.

It seems price-conscious consumers are more likely to spend time to claim the savings, coupons as a form of price discrimination, enabling retailers to offer a lower price only targeting deal sensitive buyers. Alternatively most of energy brands such as Monster, Powerade and Relentless provide a free mail-in for obtaining free voucher, sample or even valuable products. But the drawback is that costumers need to collect the number of proofs of purchase to obtain the items and it may waste time and may only benefit for those customers who drink very often and regularly.

Coupons have pros and cons that make them popular with sales promotion tools for both new and existing products. The following chart shows the advantages and disadvantages of coupon. Therefore, price promotion can enhance short and immediate sales but in terms of building loyalty, it is hard to retain the consumers who are preferable for other premium products like Red Bull and it is difficult to track the time that how consumers will use coupons as a purchase. Coupons have pros and cons that make them popular with sales promotion tools for both new and existing products.

The following chart shows the advantages and disadvantages of coupon. Therefore, price promotion can enhance short and immediate sales but in terms of building loyalty, it is hard to retain the consumers who are preferable for other premium products like Red Bull and it is difficult to track the time that how consumers will use coupons as a purchase. Figure 1: Advantages and disadvantages of coupon promotion (Sources: George E. Belch, Michael A. Belch (2007), Advertising and Promotion-an integrated marketing communications perspective, 7th edition).

4. 3 Relevant events and successful PR activities Brands of energy drink embrace their innovation within promotional activities and as such are able to create a lasting impression on younger consumers. To meet the needs of its customers, a number of energy drink brands communicate with their target audience through numerous promotional events and activities in related to physical competitions, extreme sports, modern music festivals, night clubs, parties which most youths engage in their exercise. – Red Bull Crashed Ice World Championship 2012.

The energy drink maker used mobile to promote and drive registrants for its annual Red Bull Crashed Iced World Championship event, which combined ice hockey, downhill skating and boardercross and took place on March 15 2012 in Quebec City, Canada. The mobile campaign targeted males between 18 and 35 years old across Canada who are interested in skating, hockey and other winter sports. Red Bull Crashed Ice broke new ground in 2012, as more than 200,000 spectators witnessed four exciting ice cross downhill races in Europe and North America which set a new standard for competition.

In this event, the Canada division of Red Bull worked with mobile social network companies on a campaign to drive registrations for the event. The campaign generated more than four million mobile impressions and over 10 percent of total event registrants came directly from mobile. Additionally, 27 percent of registrants engaged with mobile during the event. The company reports that the campaign’s mobile ad buy resulted in 4,000,000 brand impressions in mobile, converting to 8,000 clicks.

Additionally, there were 9 percent QR code conversion off of printed flyers, 39,000 social impressions, with 13 percent of campaign shares shared across Twitter versus 83 percent on Facebook. (Mobilemarketer, 2012) This creative campaign seems not only successfully to impress the brand essence and enhance the brand value to the target audience with the well use of media relations but also produced some of the best action ever seen on ice. 5. Budget and ROI As explained by Mullin that ‘’the only justification for spending money on promotional activity is that it will achieve marketing objectives that contribute to long-term growth in profits.

’’ (2010, p. 107) The basic factors of budgeting for sales promotion are as follows: * Promotional packs: The number of packs usually sold over the period of time that the campaign will run for + plus adjustment for impact of the campaign * Proofs of purchase: Average level of purchase of the category * Opportunities to apply (OTA): The number of promotional packs divided by the proofs of purchase * Redemption rate: Often based on certain assumptions like attractiveness of premium, ratio proof / purchase frequency or support given to promotion * Cost: Everything would be charged in campaign

For example assumed that Red Bull is offering consumers the opportunity to mail in for a free ticket for F1 racing game and then the cost of the campaign can be shown as below: * Campaign for one month = 220,000 cans for one month + c. 10% impact = c. 250,000 cans required * Proofs of purchase said 10 required * OTA = 250,000 / 10 = 25,000 * Redemption rate said 20% (highly attractive premium) * Redemption level = 25,000 x 0. 20 (20%) RR = 5,000 RL * Cost of ticket = ? 30 (preferential price from Red Bull F1 team) * Cost per handling = ? 5.

Cost from redemption = 5000 X ? 35= ? 175,000 Cost of artwork, print, support etc ? ?25,000 Total campaign cost = ? 200,000 To calculate the ROI, it can be the sequence as follows: In this case, said the market price of a can of Red Bull drink is ? 1. 2, The turnovers = 220,000 X ? 1. 2= ? 264,000 The ROI = (Turnovers – Investment) / Investment = (? 264,000 – ? 200,000) / ? 200,000 = 32% Thus, it demonstrates that the campaign will generate a 32% return by the investment. 6. Conclusion

In conclusion, the energy drink industry is a smart industry that is continually developing and using innovative promotion techniques in various ways. As a whole, the industry was very reliant on prize promotions but they should not much frequently depend on price promotion like coupon or free voucher because they tend to devalue the brand in the long run. However, public relations activity is also a vital key for energy drink brands as most youths consume energy drinks and they are more engaged in physical activities and more perceived soothing fresh.

Moreover, the industry should focus more on value added promotions such as prize draw, travel or leisure event promotions which can increase further in popularity as people nowadays gradually continue to seek for ways of enjoying their lifestyle, occasions and events which they have won and are likely to feel warm towards the brand behind the promotion as a result.

Bibliography -Ebiquity opinion (2011) UK Sector Snapshot: Sports & Energy Drinks [Online]. Available from: http://ebiquityopinion.com/2011/07/uk-sector-snapshot-sports-energy-drinks/ [Accessed: 24 March 2012] -Ioana, C & Aline, T (2008) SOME ASPECTS REGARDING THE IMPORTANCE OF POINT OF PURCHASE COMMUNICATIONS IN THE MARKETING COMMUNICATIONS MIX [Online].

Available from: http://steconomice. uoradea. ro/anale/volume/2008/v4-management-marketing/146. pdf [Accessed: 24 March 2012] -George E. Belch, Michael A. Belch (2007) Advertising and Promotion-an integrated marketing communications perspective, 7th edition. New York: Irwin/McGraw-Hill -Mullin, R.

(2010) Sales Promotion – How to create, implement & integrate campaigns that really work – 5th Edition. London: Kogan Page Limited -Mintel (2011) Sports and Energy Drinks – UK – September 2011 [Online]. Available from: http://academic. mintel. com/sinatra/oxygen_academic/search_results/show&/display/id=545338 [Accessed: 23 March 2012] – MarketingWeek (2012) Value-added promotions will come to fore in 2012 [Online]. Available from: http://www. marketingweek. co. uk/value-added-promotions-will-come-to-fore-in-2012/3033391.article [Accessed: 26 March 2012] -Monster Camaro (2011).

Get free Monster Energy gear with your Drink Tabs! [Online]. Available from: http://monstercamaro. net/2011/07/get-free-monster-energy-gear-with-your-drink-tabs/ [Accessed: 24 March 2012] -Mobilemarketer (2012) Red Bull energizes event registrations with mobile, social campaign [Online]. Available from: http://www. mobilemarketer. com/cms/news/database-crm/12968. html [Accessed: 01 July 2012] -The Independent (2011) Energy drinks: simply fuel – or a flavour sensation?

[Online]. Available from: http://www. independent. co. uk/life-style/food-and-drink/news/energy-drinks-simply-fuel-ndash-or-a-flavour-sensation-2375960. html [Accessed: 22 March 2012] -Talking Retail (2011) Speed Jam: Red Bull’s first-ever on-pack promotion [Online]. Available from: http://www. talkingretail. com/products/product-news/speed-jam-red-bulls-first-ever-on-pack-promotion [Accessed: 24 March 2012] -Talking Retail (2012) Lucozade Energy team with UK’s festivals for on-pack promotion [Online].

Sales Promotion Energy Drink Study Essay

Monster Energy Drink Target Audience and Company Objectives Essay

Monster Energy Drink Target Audience and Company Objectives Essay.

Consumer Behavior Monster Energy Target Market Because the energy drink is still part of a new and developing industry, the energy drink target market is different than in some of the other beverage industries. Monster energy drinks have become a very popular, “hip” part of society, but the market at which they are aimed is not as wide and expansive, or diverse, as some might think. Early in energy drink history, when they were first being sold in the United States, athletes were the primary consumers.

This shows that even initially energy drinks were directed at a select crowd, a group of people with specific interests. Although the consumer base for energy drinks has now expanded beyond that of simply athletes, the target market is still more particular than in other industries. When thinking about the energy drink target market, it is important to consider who is most receptive to the purported effects of the beverages. Although everyone is susceptible to the fatigue of the super-charged, over-worked lifestyle, young people are especially vulnerable to persistent exhaustion and insufficient energy.

This group of people, more specifically male teenagers and people in their 20s, are also most likely to believe in the veracity of the energy drinks’ claims. As a result, the majority of energy drinks are developed for and advertised to this younger generation. In addition to focusing on a specific age group, many energy drink companies are even more exclusive in their marketing efforts, gearing their products and advertising to appeal to very specialized groups, such as gamers, extreme sports enthusiasts, and the hip-hop crowd. The effects of this emphasis on such a target market can be seen in the advertising campaigns of the energy drinks.

Many of the names of the beverages, such as Monster LoCarb appeal to these specific consumers and the marketing strategies that revolve around sponsoring public events or celebrity endorsements reflect this focus. The design and packaging of many energy drinks also relates to the target market. Although the energy drink industry currently caters to a very specific target market, as it continues to grow and develop, it is likely that marketing efforts and the focus consumer base will be more diverse and expansive.

The Monster Energy Drink, distributed by Monster Beverages Co., uses concentrated targeting as a marketing strategy. Strong promotion strategies including product hand-outs by young attractive vendors in powerful trucks blasting music are common ways The Company promotes in cities. The Company also uses Ricky Carmichael, a motocross legend, to endorse their products. 40 foot posters are used to target motocross fans which are a major target market for Monster Beverages Co. (Murr, 2006). Other effective advertisements include using high contrast, recognizable posters in retail stores and high energy, adrenaline rushed TV ads.

Advantages of concentrated marketing include concentration of resources, better meeting the needs of the target audience, and strong positioning. Disadvantages include segments being too small or changing, and large competitors such as red bull to more effectively market to niche. According to Rodney Sacks, CEO, the target audience is 18 – 25 year old males (Murr, 2006). This market is focused on a product which offers an energy boost, so any audience that is involved in sports, or high endurance activity is a clear target.

The green claw marks resemble adrenaline, power, and testosterone, accompanying its motto, “unleash the monster within”. High schools and colleges are clear niches for these high energy markets. The demographics for the target market for Monster energy drink are: Major Cities 18-25 year olds Males Athletes/ High endurance activities Income ? middle class According to the 2000 census, there are approximately 10 million males who fall under Sacks’ audience of 18 – 25 year old males. But I believe the target market is expanding to be much wider than that including women and older men.

Judging by the effectiveness of free handout promotions in hot locations such as South beach, Florida, I see a target market of males and females ages 12 – 35. According to the census this number is around 80 million (US Census Bureau, 2007). Hansen’s Monster Energy drinks offer giant doses of caffeine and sugar in big black cans adorned with neon-colored claw marks. The scary packaging, plus a bevy of extreme-sports sponsorships, positions Monster as an edgy alternative to Red Bull in the fast-growing, $2 billion a year energy-drink market.

Monster’s slogan: Unleash the beast. ” Monster has certainly energized Hansen. The company has seen its sales more than double since it introduced the brand in April, 2002. Last year, Hansen earned $20 million on sales of $180 million, up from just $3 million of profits on sales of $80 million in 2001. Sales nearly doubled, while profits quadrupled, in this year’s first quarter. Those results helped Hansen earn the No. 26 spot on BusinessWeek’s annual ranking of Hot Growth Companies. Monster Objectives Hansen has jolted the Monster brand with a dose of guerrilla marketing.

Teams of Monster ambassadors” give out samples of the product at concerts, beach parties, and other events. The company also sponsors motocross, surfing, and skateboarding competitions. Hansen representatives in black Monster vans supplement the company’s network of 300 independent distributors by assembling store displays and restocking specially designed racks in convenience store coolers. Hansen now owns an 18% share of the energy-drink category, according to the trade publication _Beverage Digest_.

While Red Bull remains the leader with nearly half of the market, Hansen’s energy-drink sales increased 162% last year — more than three times Red Bull’s growth rate. A small subset of consumers is going wild over these drinks,” says Beverage Digest editor and publisher John Sicher. Hansen is really riding a tiger. ” It’s a jungle out there, though. Coca-Cola Co. ([**KO**](.. /javascript:%20void%20showTicker(‘KO’)) ) is promoting its new Full Throttle energy drink.

PepsiCo Inc. ([**PFE**](../javascript:%20void%20showTicker(‘PFE’)) ) is marketing energy drinks under its SoBe and Mountain Dew brands. And independent entrepreneurs have elbowed their way in with products such as Rockstar and FUZE Mega Energy. Every month we pick up a new product or two,” says George Kalil, who runs an independent bottling company in Tucson. Sacks estimates that the energy-drink category is growing 50% a year and that there’s room in the market for everybody. These are the new soft drinks of the world,” he declares. Sacks and Schlosberg are fending off the attack by diversifying.

They’ve launched Joker, an energy drink sold exclusively in Circle K convenience stores, and Rumba, a caffeine-laced juice drink designed to be a morning pick-me-up. And they introduced Monster Assault, which comes in a black-and-gray camouflage can that saysDeclare war on the ordinary! ” It’s a slogan that could describe the juiced-up strategy of this formerly sleepy beverage player. It is apparent that Monster has become a major player in the energy beverage market. We hope to be the number one choice of energy drinks among consumers.

Monster Energy Drink Target Audience and Company Objectives Essay

Sports drink market in India Essay

Sports drink market in India Essay.

With the changing trends in society and globalization Energy drinks market in India may show a rapid growth in coming years but for now it is at a nascent stage. Through various studies and research on Indian and British sports and energy drinks market we found out that Red Bull has the most share in this market. Through studies it has been found out that consuming energy drinks can have physical as well as psychological effects on the human body. Studies show that it can have positive effects like improvement in mental and congenital abilities and increased subjective awareness.

Excess consumption can lead to various problems like insomnia, agitation, anxiety, irritability. Our objective through this assignment is to successfully launch a sports drink in the Indian market and market it using our knowledge gained from the market study and our own intellect. In this project are lay down different marketing strategies by how we can promote our product and stand against our competitors.

SPORTS & ENERGY DRINK MARKET IN INDIA MARKET FOR SPORTS DRINK IN INDIA TRENDS.

According to the value calculated in 2012, sports and energy drink market in India grew by 17% whereas in 2011 it grew by 18%. The main reason to this decline was increasing awarness about the side effects of sports drinks. In june 2012 FSSAI (Food Safety and Standards Authority of India) announced that sports drinks will be renamed as “cafifeinated bevergaes”. Burn and Red Bull surpass the max. limit of caffein to be present in carbonated beverage hence they were put under the category of caffeinated beverages. COMPETITIVE LANDSCAPE.

Red Bull is the leading seller having 72% off-trade share within energy and sports drinks in 2012. Second place goes to pepsico having an 11% off-trade value share. However Red Bull was not allowed to be sold in Tamil Nadu due to regulatory changes in sports and energy drinks in 2012. PROSPECTUS Sports drinks in India is still at a nascent stage but might become a part of the changing trends of society and urbanization. However, sales of these drinks could be negatively impacted by regulations and enforcement of statutory warnings.

The Food Safety and Standards Authority of India (FSSAI) announcement that these products should be renamed as caffeinated beverages may lead to decline in sales of brands such as Red Bull and Burn. (Source : http://www. euromonitor. com/sports-and-energy-drinks-in-india/report) COCA-COLA TO LAUNCH A SPORTS DRINK IN INDIAN MARKET The world leaders of beverage drinks Coca-Cola are eager to launch their new product in the Indian Market. The America based company has come up with a sports drink named Godzilla which is to be launched in the market by end of November 2013.

It is being manufactured by Hindustan Coca-Cola Pvt. Ltd. Which has it’s plant in Okhla Industrial Area, U. P. M. S. Dhoni, the Indian prodigy will be the brand ambassador for Godzilla and will be used in promotional Activities and advertisements. TARGET MARKET AND MARKETING STATERGY The research indicated that people in India do not prefer to have energy drink. Only 23% of the population prefers to consume the brand. The most important factors affection the buying decision were found to be health safety, price, lack of awareness and preference of other beverages.

It was also found that 1. 66% of the energy market consists of male consumers. 2. 20-30 age group people was found to be growing rapidly and turning out to be potential buyers having an average income of 3-5 lacs. 3. The awareness about the energy drink among people is average 60-67% except age group 25-30 having an average income of more than 5 lacs (Awareness > 80%). 4. People prefer to have energy occasionally (parties, social gathering etc) with soft drink or neat Sunadulterated. 5.

People like to drink mostly in home or restaurants and 44% of the respondents feel that in the future energy drinks can compete with popular beverages like soft drinks, juices and other non-alcoholic beverages. (Source: http://www. technopak. com/Files/Energy_Drinks. pdf) MARKET OF ENERGY DRINKS IN U. K. RESEARCH METHADOLOGY LOCATION FREQUENCY PERCENT CUMILATIVE % RETAIL STORES 5 16% 94% GYMS 3 6% 66% CLUBS 3 10% 60% JOGGERS PARK 1 3% 69% RESTAURANTS 4 15% 91% SPORTS CLUB 3 9% 100% CAFE 2 7% 76% TOTAL 29 100%.

The survey indicates that people prefer having sports drink in home and sports club Which leads to the possibility of the brand being promoted in the friend circle and family. This will be our target market. VALUE FOR MONEY (Indian Customers) VALUE FOR MONEY FREQUENCY PERCENT Yes 6 21% No 12 40% Can’t Say 11 39% TOTAL 29 100% The Indian customers are very price sensitive and look for value for money when they purchase a product. The high price of energy drinks is the main drawback in promoting and positioning this brand in India.

Sports drink market in India Essay

Dr. Pepper Case Analysis Essay

Dr. Pepper Case Analysis Essay.

Dr. Pepper Case Analysis BY illm0304 l. Define the Problem Central Problem Dr Pepper Snapple faced problems deciding whether the company should enter into the energy drink market. The energy drink market is a high growth and high- margin business. Recent rise in such functional drinks has Dr Pepper wanting to tap into this fast growing market. Dr. Pepper is one of the only major domestic carbonated soft drink companies that have not introduced a line of energy drinks. The challenge Dr Pepper Snapple faces is what would be the best way for it to market a new energy drink product.

The company simply does not have the income to ompete in advertising against Red Bull. Sub Problem Dr Pepper is indecisive about what market it wants to target. The energy drink market range from males ages 12 to 34. Dr pepper is trying to decide whether or not it would be good to target the existing market are restructure the drink and make it more segmented to an older group of people.

In deciding, it must focus on the flavors and ingredients that will differentiate the product from its competitors. II.

Relevant Information Characterize the Industry The energy drink is a consumer product that satisfies the need for consumers to enhance their energy. There are several competitors in the energy drink market. Red Bull being the leader, followed by Monster. The main purpose of this product is to provide the user with energy. Most consumers drink energy drinks in the morning to get them going or in the afternoon. Some users drink energy drinks to help them stay focused and alert throughout their workday. Others use it to boost energy before going to the gym to perform a high intense workout.

Some people even add energy drinks to alcohol while out partying, to help them stay alert. Energy drink companies aren’t changing constantly, but there are lots of new companies entering he market, making it extremely competitive. The product line requires new companies like Dr Pepper Snapple to introduce line extensions to separate its products from the competitors. Characterize Product/Services The energy drink is considered a consumer product. The energy drink is purchased by consumers for personal use. There are several different types of energy drinks.

They come in 8-ounce, 16-ounce, or 24-ounce cans. The goal of Dr Pepper Snapple is to introduce an energy drink that is different from the others. Dr Pepper Snapple wants to introduce a drink that is packaged in a unique container hat allows the user to re-close the bottle, by adding a screw top. In addition to differentiating the package, the company wants to change the ingredients, by increasing the amount of caffeine, herbs, and vitamin B per serving. Although it has lots ot competition, the energy drink market is not a tast changing market.

Identify All Potential Segments and Target Markets Brand positioning is one of the challenges Dr Pepper Snapple currently face. Although the heavy users are currently males ages 12 to 34, the Dr Pepper Snapple wanted to tap into the untouched market of adult energy drinkers. None of the other major energy drinks positioned their product to target adults ages 35 to 54. Dr Pepper Snapple can target this age group to satisfy the need to boost energy, become more alert, or to make them feel revitalized. They can target women by offering a product to boost energy after a long workday.

Trends in the Market The energy drink is an item that will be purchased in the same style as a carbonated soft drink. This would be an item that consumers purchase daily. The average consumer would stop into a local gas station, convenient mart, or retail store and purchase this item. The energy drink can be categorized as a convenience product. The energy drink customer will make frequent purchases that will allow little comparison or shopping effort and low customer involvement. It is also a product that is not really affected by a recession.

Demographics of Current and Future Consumers The demographics of the energy drink consumer consist of males ages 12-34. There are some female consumers, but the male outnumbers them. Males were estimated to account for about 70 percent of energy beverage consumption. Future customers will be in the age range of 34 to 54, both male and female. Some other emographics are athletes and rock stars which were targeted by the Rockstar brand. Consumers’ Perception Consumers’ perception of the energy drink is positive being that they have proved to provide a great deal of energy. The drinks actually boost energy and increase alertness.

Dr Pepper Snapple being the third largest soft drink company positioned in United States, Canada, and Mexico. Dr Pepper Snapple has some of the leading soft drinks with 7 Up, AW Root Beer to name a few. So it is no stranger to the consumer market. The company has strong customer relationships with some of the largest bottlers and distributors. Dr Pepper Snapple is affiliated with major retailers such as Wal-Mart, Safeway, Kroger, and Target. Major Influences on Consumers The pricing in the energy drink market is low and competitive, with the suggested retail price of about two dollars per single serve package.

There was a decline in the price of the energy drink from 2001 to 2006. Attributes such as, larger packages, multi-packs, and increasing availability in supermarkets and other stores caused the prices to decline. The ratings of such energy drink are relatively high and users are generally loyal toa certain brand. General Decision Process ot Consumers The buying behavior of energy drinks differs greatly from the buying behavior of a new house. The purchase of an energy drink can be categorized as a variety seeking buying behavior. In this case the consumer may do a lot of brand switching.

The consumer will have low involvement but significant differences among brands similar to a customer purchasing cookies. The customer may try several different brands just because it is available. Changing brands doesn’t mean the consumer is dissatisfied but simply curious to try other brands. In categories such as this, marketers focus on changing variety behavior to habitual behavior by promoting lots f shelf space and increasing advertising. Where/How is Product/Service Purchased? Distribution of the Dr Pepper Snapple beverage is huge. The product is purchased in the U.

S. , Canada, and Mexico. The Dr Pepper Snapple drink can be purchased at gas stations and large retailers such as: Wal-Mart, Target, and Saveway. Dr Pepper Snapple Group Inc, “has 21 manufacturing facilities and approximately 200 distribution centers in the United States as well as four manufacturing processes”(Kerin 82). Dr Pepper Snapple Group have warehouses located near bottling plants and are geographically dispersed across the region. The company ransports its own products by using company owned delivery trucks as well as third- party logistics providers.

The company is able to reduce distribution cost by having such broad distribution capacity. Identify Channel(s) of Distribution The company distributes its products in convenient stores, vending machines, small independent retail outlets, and through increased selling activity and significant investments in coolers and other cold drink equipment. The Dr Pepper Snapple group bottles its own products. The company strengthened its geographic coverage from its recent acquisition and creation of Dr Pepper bottling Group. Some of its top customers and distributors include; Wal-Mart, Safeway, Kroger, and Target.

It also has large foodservice customers including McDonalds, KFC, Pizza Hut, Taco Bell, Long John Silvers, and W All American Food. Burger King and 7 Eleven are two more of the convience store customers that distribute Dr Pepper Products. In the Caribbean, Dr Pepper Snapple distributed is product specifically through third party bottlers. If there are intermediaries What are their Needs? Are these Needs Met? How do intermediaries influence the marketplace? The Dr Pepper industry maximizes its intermediaries by using intensive istribution and ensuring its product is made available when and where consumers want them.

Convenient stores and supermarkets are the most dominant intermediaries in the energy drink industry. “In 2006 convenience stores accounted for 74 percent of off premise retail dollar sales, up from 11 percent in 2004”. The better the energy drink manutacturers product line and distribution, means the greater the chance they have in gaining shelf space in supermarkets and mass merchandisers. Intermediaries influence the marketplace by making the product available for the consumer to purchase. In most stores the energy drink is in the ame aisle with all of the impulse items, right at the check out lane.

This allows the intermediaries to market the product to every customer that makes a purchase. Identify Existing and Future Competitors Some of Dr Pepper Snapple’s existing competitors consist of Red Bull, Hansen Natural, Pepsi-cola, Rockstar Inc. , and Coca-Cola. These are the top five competitors and all have market share in the energy beverage industry. Some of its future competitors will be the other private Label companies, which in 2006 held an estimated 6% in market share in dollar sales and 6% in unit case volume.

Assess Competitors Health in terms of market share, financial stability and profitability Red Bull is the market leader holding 43 percent of the dollar sales market share in 2006, down from 82 percent in 2000. The company is headquartered in Austria and it was considered the pioneer when it was first introduced to the market in 1997. The Red Bull is usually priced higher than other energy drinks, and this is said to be the cause of the decline in its dollar sales over the years. “The Red Bull Brand was supported by $39. 6 million U. S. edia expenditure in 2006 and estimated $60. 9 million media expenditure in 2007” (Kerin 87). Hansen Natural Corporation markets several different non-alcoholic beverages in the United States. They have the second largest market leader called Monster Energy. The Monster has seen increased profits by partnering with the popular brand Anheuser-Busch to distribute its brand to retailers in different areas within the United States. Monster Energy distributes to bars, nightclubs, and restaurants in areas selected specifically by Hansen. Pepsi-Cola is the third largest competitor.

It markets AMP Energy and SoBe Adrenaline Rush Energy beverage brands. They were first introduced to the market in 2003. Rockstar, Inc. s a producer of alcoholic, Juice, cola, and energy drinks. The Rockstar Energy brand was introduced in 2001. The Coca-Cola Company distributes this brand in the United States and Canada. In the Pacific Northwest and Northern California, Rockstar retains its original distributors. Coca-Cola is the fifth competitor of Dr Pepper Snapple. It markets the brand Full Throttle that is distributed through Coca-Cola’s distributing network.

The company also distributes independent energy brands. Assess competitors’ aggressiveness. Active? Reactive? Passive? All of the top five competitors have been aggressive by being active in mplementing new products and forming alliances with other companies to help distribute its products. Red Bull has the most aggressive prices. The other four are relatively comparative in price. They focus on targeting certain types of markets to stay profitable. They are constantly entering new markets, changing flavors, and bottle sizes.

Assess the Financial Health ot the Firm/Organization Dr Pepper Snapple Group is a major owner, bottler, and distributor of beverages in the United States, Mexico, and the Canada. The company is in good health, with popular brands such as Dr Pepper, 7 Up, Sunkist, A;W Root beer, and Canada Dry. The company is the only major carbonated soft drink company with year over year market share growth. Dr Pepper is the number two largest brand of carbonated soft drinks in the United States. They have continued to bring value and earnings to their stockholders by utilizing their strong operating margins.

The organization is also run by a well-experienced management team, with over 20 years of experience in the food and beverage industry. Ill. SWOT Analysts Strengths The Dr Pepper Group has a strong portfolio in leading consumer-preferred brands. Dr Pepper carbonated soft drink is the number one flavored and the umber two drink in the United States. Snapple is a leading ready to drink tea. Seventy five percent of the volume was generated by key brands that held the number one or number two positions in their category. This allows such cash cows to financially promote new products or question marks into the market.

Weakness Entering the market will require the company to due lots of research and advertising. The company will have to project overall sales in order to create an annual plan, to insure they receive profits from the entrance into this new market. The company simply does not have the funds to for media advertising. Opportunities Dr Pepper Snapple Group has an opportunity to enter the profitable energy drink market. The existing users are males ages 12-34. The company could target other markets women of different ages to tap in to some of the low using markets segments.

There is also an opportunity to use its already popular brands to help promote new products. The company could differentiate a new brand by improving the ingredients. Threats The energy drink market has lots of new competitors entering and several that have already set the mark in the industry. This has caused prices of the drink to decline due to supply and demand. There is such a large supply of the item that producers have to lower the prices to stay competitive. There would be a need for an income statement to determine whether entering this market would be profitable.

IV. Alternatives Identify at least 3 but not more than 5 alternatives There are several alternatives that could be used to replace energy drinks. The first and healthiest alternative is water. One hundred percent natural Juice is another healthy alternative. The herbal green or black tea is third recommended alternative to energy drinks Last is cottee, which is a very popular energy booster and 8-12 vitamins. The caffeine in coffee has been used for several years to keep people focused and alert. The 8-12 vitamins are known for stopping fatigue.

Choose 3 most viable and identify the advantages and disadvantages of each alternative. Water is would be the number one alternative to drinking energy drinks. Lots of times when people are feeling tired are fatigue, they are simply dehydrated. The use of water will help the body become hydrated therefore regaining energy. Drinking one hundred percent all natural Juice is also a good alternative. The advantages of drinking Juice are it is all-natural, with no added preservatives is caffeine. The disadvantage is it may increase the daily sugar intake.

The green or black tea is a good alternative because it is all-natural. The disadvantage would be tea has lots of caffeine in it as well, which can be unhealthy. Ill. Recommendation Choose Best Alternative or combination of alternatives Dr Pepper Snapple should focus on producing an energy drink that will give it the most competitive advantage. Dr Pepper needs to make sure it positions this new drink correctly. The company needs to create marketing development strategy. The company must be careful to promote only products and features that it will be able o provide.

Dr. Pepper Case Analysis Essay