Energy Drink Marketing Report

In: Business and Management

Submitted By junkieliu
Words 3875
Pages 16
Executive summary

This report provides analyses of the fast growing energy drink market and the top two companies of this sector, they are: Red Bull GmbH and Hansen Natural. The two companies sell Red Bull and Monster Energy drinks respectively. We will explore both company’s background information and their strategic marketing of differentiating from traditional soft drink industry and within the energy drink market itself. We found that the macro and micro environment of the industry and company is influenced by the changing household structure, the health focus of the customer, power of distributors, competitors and regulations. Furthermore, we find that core market segments of the two companies are different. Red Bull focus on a premium position and their target markets are students, workers, athletes and clubbing crowds. Monster on other hand use their focused marketing and product variation to appeal to the extreme sports fan, teenagers and people who dislikes the taste of the common energy drinks. We determined Red Bull is employing the concentrated targeting strategy with a single product, and Monster is using differentiated targeting strategy with their range of drink variations. The positioning strategies of the two companies further highlighted their difference. Red Bull place importance on image differentiation, and drive through their premium product and pricing position through global leadership position. Monster is equally focused on product differentiation with variations and innovations; and image differentiation through organising and sponsoring events while ignoring traditional advertising medians. Lastly based the marketing analysis of the report we recommend Red Bull to introduce product variations to safeguard its market leader position from competitors and Hansen Natural should look into expansion into the clubbing segment for the benefit of…...

Similar Documents

Energy Drinks in France

...L ES B OISSONS É NERGISANTES Étude de marketing stratégique de trois principaux concurrents sur le marché des boissons énergisantes : Red Bull, Burn & Dark Dog. Barbé Charles - Diep Albert - Jagmohan Dishnu Laruelle Alexandre - Régnier Quentin 12/10/2010 – ISCID 2 Promotion JFK Table des matières Introduction............................................................................................................................... 2 I) Les boissons énergisantes d’aujourd'hui ..................................................................... 3 1.1) L'environnement des boissons énergisantes ................................................................. 3 1.2) La demande : quels sont les acheteurs ? ....................................................................... 5 1.3) L'essor de la concurrence depuis 2008 .......................................................................... 6 II) La stratégie marketing des 3 principaux acteurs du marché ............................. 11 2.1) La stratégie marketing de Red bull ............................................................................ 11 2.2) La stratégie marketing de Dark Dog .......................................................................... 14 2.3) La stratégie marketing de Burn .................................................................................. 16 III) L’analyse du marketing-mix des vendeurs de boissons énergisantes .............. 20 3.1) Politique de produit ..............

Words: 8523 - Pages: 35

Cogave+Energy+Drink+Marketing+Plan

...healthy, and effective energy drink. The product strategy is defined in this marketing plan. | | Chad Rodriguez, Alvaro Alvarez, John Paul Mejia, Sabrina Casillas, Huda Tanjung | 5/26/2011 | | Table of Contents I. Executive Summary 3 II. Company Analysis 3 Mission Statement 3 Company Location 3 III. Situational Analysis 3 External Market Environment 3 Economic Environment: 3 Technological Environment: 3 Political Environment: 4 Cultural / Social Environment: 4 Natural Environment: 4 SWOT Analysis 4 IV. Competitive Analysis 5 Competitors’ Advantage: 5 Perceived Advantage: 6 V. Customer Analysis 7 Product Market 7 Product Type 7 Customer Type 7 Customer Needs 7 Geographic Area 7 VI. Target Market Strategy 7 Target Market 7 VII. Positioning Strategy 9 Future Target Market 10 VIII. Marketing Mix 11 Customer (Product) 11 Cost (Price) 12 Capabilities (Place) 14 Competition (Promotion) 15 IX. Action Plan 16 X. Long Term Objectives 17 I. Executive Summary The Cogavém brand was inspired by a growing demand for a natural and healthy alternative to the current energy drink market. Our flagship product, Cogavém, includes three essential ingredients: maqui berry for energy, coconut water for hydration, and agave nectar for flavor. Our company recognized the need for something different - an energy drink that is actually good for you. Consumer demand for energy drinks continue to grow......

Words: 7242 - Pages: 29

Energy Drink

...Welcome to Financial Models in Excel Situation report 1 / 17 • Peter Raahauge Department of Finance Office: A 5.21, Solbjerg plads Background: ˚ – PhD in economics (Arhus) 1999 – System developer (Simcorp) 1999-2000 – Assisting/Associate Professor/Lecturer (CBS) 2000-2012 2 / 17 • Goal The overall goal • Practical implementation of financial theory How to get there? • Exercise-based (solving “real world” problems) • IT-based, everything based on Excel (and VBA) • Professional data source: Datastream Results • • • • Better understanding of (known) financial theory Better Excel-skills Better feeling with real world data All in all: Easier to get started (at your thesis/job) 3 / 17 1 Examples of skills after the course In half a work-day (or 4 hours exam :-) you will be able to solve one of these problems: • • • • Form a reasonable stock portfolio. Price an option, (Eur, Amr, Ber, Asian) Estimation of the term structure, (cubic spline). Predict the standard deviation of stock returns for next week, (basis for risk management). - You know the theories, but it will take you half a “term paper” to get an answer if you have not tried it before. 4 / 17 Structure of the Lessons 15 lessons (2 hours lecture and exercises) 14 has the following structure: 1. 2. 3. 4. E-lec: Review of last weeks exercise E-lec: Financial theory and Excel for next exercise You solve the exercises (guiding solution available) Physical lecture: Your questions /......

Words: 851 - Pages: 4

Energy Drinks

...Energy Drink Case 1. (a) What are the strategically relevant components of the global and U.S. beverage industry macro-environment? The strategically relevant components of the global and U.S. beverage industry macro-environment: • Global beverage companies such as Coca Cola and PepsiCo had relied on such beverages to sustain in volume growth in mature markets where consumers were reducing their consumption of carbonated soft drinks.   • Coca-Cola, PepsiCo, and other beverage companies were intent on expanding the market for alternative beverages by introducing energy drinks, sports drinks, and vitamin drinks in more and more emerging international markets.   • Beverage producers had made various attempts at increasing the size of the market for alternative beverages by extending existing product lines and developing altogether new products. • Expanding the market for alternatives beverages and increasing sales and market share, beverage producers also were forced to content with criticism from some that energy drinks, energy shots, and relaxation drinks presented health risks for consumers and that some producers’ strategies promoted reckless behavior, the primary concern of most producers of energy drinks, sports drinks, and vitamin-enhanced beverages was how to best improve their competitive standing in the market place. • Rapid growth in the category, coupled with premium prices and high profit margins made alternative beverages an important part of beverage...

Words: 291 - Pages: 2

Marketing of Energy Drink

...Gazipur. Mobile +8801710912285, moinul_h2003@yahoo.co.in | | | | | | | Career Summary: Dedicated professional with 12+ year's solid Business Management Experience in Sales and Marketing field with Multi Diversified Industries. Professional Experiences: 1. Chief Executive Officer.- Moinul Corporation , July 2000 – Present (12 years 2 months) Dhaka- Bangladesh. We are marketing & sell the product & services for various companies as well as we also supply the various product & services as per corporate companies’ requirements. Our Company has been sourcing & selling, buying the various products for the market in Bangladesh & international firms from Bangladesh for the last 12 years, We are also working as re-seller, franchise, sole-distributor, sales agent or buying agent of different international company. Provide leadership to position the company at the forefront of the industry. Develop a strategic plan to advance the company's mission and objectives and to promote revenue, profitability and growth as......

Words: 1804 - Pages: 8

Energy Drinks

...Week 3 DB – Energy Drinks Something I learned in my last Health class is the ever-increasing use of today’s new “Energy Drinks.” Caffeine is the single most used drug in America. How many of us must have that morning cup of coffee before heading out the door? How many college students are staying up late at night preparing for a mid-term or final exam by drink these new, all natural, safe, energy drinks? You may want to read their labels and adjust your thinking. You may want to include a little research in regards to these drinks. At this time there is no long-term research to report on in regards to energy drinks. What we do know is that these drinks have a variety of ingredients such as ginseng, amino acids, ginkgo, various vitamins, and high amounts of sugar. However, the primary active energy ingredient is caffeine. At this time, the FDA does not regulate the amounts of caffeine that are in these drinks. They suggest that within a 12-ounce beverage serving the amount of caffeine should be 68 milligrams or less. A report published by the Journal of Analytical Toxicology showed that of ten of the most popular energy drinks had as high as 141 milligrams in one 16-ounce serving. The following 12-ounce energy drinks showed, Monster at 120 milligrams, Red Bull at 116 milligrams, and Amp contained 107 milligrams of caffeine. To give a comparison, look at Coke and Pepsi. They only contain between 34 to 38 milligrams of caffeine. Energy drinks have......

Words: 667 - Pages: 3

Energy Drinks, Sports Drink

...Competition in energy drinks, sports drinks INTRODUCTION Alternative beverages such as sports drinks, energy drinks, and vitamin-enhanced beverages developed into an important competitor for the beverage industry and saw rapid growth in the mid-2000s. Alternative beverages compete on the basis of differentiation from each other in the market and traditional drinks, such as carbonated soft drinks and fruit juices. The largest sellers of alternative beverages are the global food and beverage giants, such as Coca-Cola and PepsiCo., that have already built respected brands in snack foods, carbonated soft drinks, and fruit juices prior to joining the alternative beverage industry. Along with these global giants, companies that utilized the blue ocean strategy, such as Red Bull GmbH and Hansen Natural (now known as Monster Beverage), were able to develop respected brand images and a decent share of the alternative beverage market. Success in this industry is based on companies that exploit innovation, capitalize on consumer trends, and have brand loyalty. IDENTIFICATION When the U.S. saw an economic recession starting in the year 2008, the premium-priced alternative beverage market was hit hard. While the alternative beverage segment of the beverage industry provided opportunities for bottlers, the poor economy decreased demand for higher-priced beverages, with sales of sports drinks declining by 12.3 percent and flavored and vitamin-enhanced water declining by 12.5 percent......

Words: 2629 - Pages: 11

Xs Energy Drink Marketing Plan

...XS Energy Marketing Plan Erin Moller Bryant Johnson Sam Kunjummen Megan Victorson Bryant Johnson Erin Moller Sam Kunjummen Megan Victorson University of Minnesota-Duluth . . . . . . . . . TABLE OF CONTENTS Executive Business Summary 1 Mission Statement History of XS Energy Growth of the Business Market Potential PRODUCTS 2 13 Flavors of XS Energy Drinks Situational Analysis 3 Internal Strengths and Weaknesses External Opportunities and Threats MARKET ANALYSIS 4 Target Market Identification Market Demographics Product Market Grid MARKETING STRATEGIES 5 Product Strategy Price Strategy Promotion Strategy Distribution Strategy FINANCIAL SUMMARY 6 Cost Structure Life Cycle Analysis Break-Even Analysis IMPLEMENTATION PLAN 7 APPENDIX A Competitor Analysis APPENDIX B Survey Results Executive Business Summary 1 Mission Statement The mission of XS Energy is to market an alternative to high sugar energy drinks. Rather than getting energy from sugar and carbohydrates, it’s packed with B-vitamins and amino acids that are healthier and still give you the boost you need. Currently XS Energy drinks are sold independently in cases, but the objective to our marketing plan is to reach a younger demographic by supplying to college campuses and offices, while still maintaining our private status. ] History of XS Energy In 2001, XS Energy Drink was launched into the......

Words: 5453 - Pages: 22

Alcohol and Energy Drinks

... Alcohol and Energy Drinks Abstract The aim of this study was to examine whether alcohol consumption increased when an individual consumed an energy drink. 172 participants completed a two part survey comprising of questions regarding alcohol consumption and completion of the Risk Taking Questionnaire 18. The hypothesis that alcohol consumption in a single sitting would be higher in the high propensity group in comparison the low propensity group was supported. The hypothesis that alcohol mixed with energy drink consumption in a single sitting would be higher than alcohol only consumption in a single sitting was rejected. It was concluded that an individual with a higher pre-disposition for risk-taking behaviour would consume more alcoholic beverages in a single sitting than an individual without the pre-disposition to risk-taking behaviour. Future research should examine the effects alcohol has on energy drinks in comparison to individual consumption in order to truly understand the effects it has. Energy drinks (ED)’s are a relatively new concept in the overall soft-drink market, but are essentially rebranding and reselling caffeine to a different target market with an entire new sense of appeal. This appeal seen by the younger demographic of consumers is being combatted with the potential health risks of consumption, especially combined with the depressant, alcohol (McCusker, Goldberger & Cone, 2006).These energy drinks claim to provide......

Words: 2430 - Pages: 10

Report on Boost Energy Drink

...culture of consuming energy drink is not only for the western people but also for all over the world. The huge popularity of energy drink brands all over the world is instance. Bangladesh is a developing country. There are different companies who produce local energy drink. There is lots of energy drinks available in Bangladesh like as, Tiger, Red Horse, Speed, Shark, etc. All of these brands are approved by BSTI. But there are some international brands marketed by different companies. Some of them are Red-Bull, BOOST, BAKKAS, 3 Horses, etc. All of these brands are approved by Nuclear Power Commission of Bangladesh (National Nutrition Report, 2002). There is a huge market for energy drink. In today’s mass competitive market each and every company is facing tremendous pressure and challenges to create the brand image and retain the loyal customers. The proper utilization of marketing mix is better solution to the companies. Advertising is one of the best tools of marketing mix. For retaining customers and creating brand image, the full force effort of advertising is now successfully acting in the market. So, to know what is the impact of advertising on energy drink customers, what customers think, does it really works researcher this research. Entitled- ‘‘Advertising impacts on Brand Preference toward energy drink a study on Boost Energy Drink’’ 1.1 Importance of the study Almost all of the media are being used to provide advertisement by the Boost energy drink company......

Words: 4174 - Pages: 17

Energy Drinks

...The effects of consuming energy drinks Woodbury University ISC-TELP program 03/24/2011 Nowadays energy drinks become more and more popular, especially among young people. They drink it because it helps to get rid of fatigue and sleepiness. It is also tasty like any carbonated beverage, what makes it more popular. And influence of advertisement is also high. But people do not care about negative effects of energy drinks such as different diseases and sleeping problems. The only one positive thing is filling the body up with energy. First of all, consuming energy drinks may cause many diseases. One of them is headache. I felt it from my own experience and it was really awful. The second is gastritis. The person can get it because of gases and concentrates which this beverage contains. But this fact does not make people stop to consume it. One more the most dangerous treat is possibility of getting heart diseases. It may become the reason of death, so it is very important to think before drinking any energy beverage. Secondly, consuming energy drinks may cause problems with sleeping, what is also dangerous. If person does not sleep enough he can get stressed and not concentrated. As a consequence may be a resonant problems with studying or important activities. Finally, energy drinks have one positive side. It is giving more energy. It can be very useful during exams or working on important project. Human's...

Words: 310 - Pages: 2

Competition in Energy Drink

...Competition in Energy Drinks, Sports Drinks, and Vitamin-Enhanced Beverages Executive Summary Beverage companies were intent on expanding the market for alternative beverages by introducing energy drinks, sports drinks, and vitamin drinks in more and more emerging international markets. Energy drinks, sports drinks, and vitamin-enhanced beverages were the stars of the beverage industry during the mid-2000s. Rapid growth in the category, coupled with premium prices and high profit margins made alternative beverages an important part of beverage companies' lineup of brands. On the other hand, Fifth consecutive year data show that U.S. consumers had purchased fewer carbonated soft drinks than the year before. Carbonated soft drinks sales would continue to decline as consumers developed preferences for bottled water, sports drinks, fruit juices, readyto-drink tea, vitamin-enhanced beverages, energy drinks, ready-to-drink coffee, and other types of beverages. Even though the global beverage industry was projected to grow from $1.58 trillion in 2009 to nearly $1.78 trillion in 2014 as beverage producers entered new geographic markets, developed new types of beverages, and continued to create demand for popular drinks., beverage producers also were forced to contend with criticism from some that energy drinks, energy shots, and relaxation drinks presented health risks for consumers and that some producers' strategies promoted reckless behavior. Although sports drinks......

Words: 721 - Pages: 3

Alcohol Mixed with Energy Drinks

...Abstract This study examined the effects consumption of alcohol mixed with energy drinks (AMED), and gender had on overall alcohol consumption and negative alcohol related consequences. One hundred and seventy two Psychology students from Swinburne Online, (male n =92), completed a two part survey relating to AMED and alcohol consumption, and negative alcohol related consequences. Based on previous research, it was hypothesised that overall alcohol consumption and negative alcohol related consequences would not be increased by the consumption of AMED. It was also predicted that males were more likely than females to consume excess amounts of alcohol and experience more negative alcohol related consequences independent of drink type. Statistical tests supported the hypotheses that related to AMED, and partially supported the hypothesis that these variables were also influenced by gender. Based on survey results and a review of the literature it is advised that, independent of drink type or gender, consumption of alcohol should be limited to a maximum of four standard drinks per session, as advised by The Australian National Health and Medical Research Council safety guidelines. An Investigation into the Effects of Mixing Alcohol with Energy Drinks Over the last decade, there has been an increasing trend in the use of alcohol mixed with energy drinks (AmED), and previous research has raised concern regarding this practice and the possible negative outcomes on health and......

Words: 3213 - Pages: 13

Energy Drinks

...ISLS 4301 - Section 5 Energy Drinks Research By: Maram Balubaid, Rahmah Bukhary, Sara Al Akel, Haifa Al Akel and Basma Salah Energy drinks Energy drinks are drinks that don’t contain alcohol, and often lightly carbonated. They are designed to give the drinker a burst of energy by adding of a number of ingredients, most notably caffeine. They are mostly found in grocery stores, corner stores and gas stations, usually displayed beside the soft drinks, juices and sports drinks. The study, published in the journal Pediatrics, reports that more teens are downing energy drinks; in 2003, 16% regularly consumed the drinks, while in 2008, that percentage jumped to 35%. Another study of college student consumption found 50% of students drank at least one to four energy drinks a month. This year, research documented a jump in energy drink-related emergency room visits; and politicians and consumers called upon the Food and Drug Administration (FDA) to look into deaths associated with the drinks. So, what are the ingreadients that are causing this harm? * Caffeine Which is a stimulant that acts on the nervous system to speed up the messages to and from the brain. it is the main active ingredient in energy drinks . Caffeine can make a person feel more alert and it also has been shown to help exercise endurance. However, it can also have some negative side effects, such as heart palpitations and insomnia in case of overdose. (Laurent, 2000). There is no official recommended......

Words: 2397 - Pages: 10

Energy Drink Case

...reducing their consumption of carbonated soft drinks.   • Coca-Cola, PepsiCo, and other beverage companies were intent on expanding the market for alternative beverages by introducing energy drinks, sports drinks, and vitamin drinks in more and more emerging international markets.   • Beverage producers had made various attempts at increasing the size of the market for alternative beverages by extending existing product lines and developing altogether new products. • Expanding the market for alternatives beverages and increasing sales and market share, beverage producers also were forced to content with criticism from some that energy drinks, energy shots, and relaxation drinks presented health risks for consumers and that some producers’ strategies promoted reckless behavior, the primary concern of most producers of energy drinks, sports drinks, and vitamin-enhanced beverages was how to best improve their competitive standing in the market place. • Rapid growth in the category, coupled with premium prices and high profit margins made alternative beverages an important part of beverage companies’ lineup of brands. (b) How do the economic characteristics of the alternative beverage segment of the industry differ from that of other beverage categories? Explain. The alternative beverage segment help companies to sustain volume growth in mature markets where consumers were reducing their consumption of carbonated soft drinks. Also the alternative beverage industry......

Words: 1613 - Pages: 7