5 Hour Energy Marketing Analysis

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Dissecting A Marketing Strategy: 5 Hour Energy As he returned from a natural products trade show, Manoj Bhargava wondered to himself, “If I’m tired, do I also have to be thirsty?” As he contemplated this realization, he began to process it as a comparison of treatment of both a stomachache and a headache. Six months later he was entering one of the most saturated markets in the country, with a revolutionary product and a marketing plan that evolved from the placeholder name it still bears on the 3.5 million units sold each year. 5-Hour Energy grossed north of $600 million last year and currently holds a 90% market share in the energy-shot business. Much of the company’s success can be attributed to a stringent customer-focused…show more content…
This was the first major evolution toward becoming a demand-marketed product. Simple observation of the advertising efforts of popular energy drinks will lead you to the target demographic that energy drink producers hope their product will attract. If you have ever seen ESPN’s extreme sports competition, the X Games, the percentage odds are that you are a 13-17 year old boy. Even if you don’t happen to fall into that category, it would be glaringly obvious that energy drinks have deemed this demographic as their primary consumer targets. Nearly every competitor’s outerwear is littered with red-winged patches and most are promptly provided with a post-competition energy drink, logo facing outwards, at the conclusion of their “extreme” event. 5-Hour Energy’s marketing team consequently posed the question following their research results: “Are teens the only people in this world who are looking for extra energy?” After all, it might be said that young boys have plenty of energy without caffeinated encouragement. Living Essential now had its’ second major point of differentiation on which to launch a marketing campaign. Seeking a niche that would give access to the energy drink market, Living Essential positioned itself as a product focused on individuals who work long hours, maintain non-traditional schedules and hold alertness-critical positions. Contrary to their competition, 5-Hour
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