5 Hour Energy Shot Business Proposal for the United Kingdom Expansion

Over 55,000 cases were sold within the first three weeks of distributing through IBO’s. According to BevNET, within the first year of business with Quixtar, XS Energy Drink became the second best selling energy drink in North America. They have shown their potential to make a bold statement in a constantly growing market, not only in the U.S., but also in world markets.

Introduction, growth, maturity and decline are the four stages of a product’s life cycle. Energy drink manufacturers are seeing increased sales and market share for their products in the larger non-alcoholic beverage marketplace. The energy drink industry, as a collection of drink and smaller energy shot products, also is fighting lawsuits related to adverse effects, Food and Drug Administration

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

The present technologies of our invention are energy drinks such as 5-hour ENERGY®, and coffee. 5-hour ENERGY® is a shot full of caffeine to help people stay awake and be more energetic for at least five hours. Energy drinks such as Monster, Rockstar, and Red Bull are full of sugar to keep you from getting tired but it does not have a long lasting effect. Coffee is a drink made of roasted and ground coffee beans, usually also filled with caffeine which helps you stay awake.

The world is moving faster and faster. A lot of people today drink coffee to stay awake, and sometimes it still isn’t enough. Companies have created a drink that will kick the effect of being tired and feeling drowsy. Energy drinks come in many sizes with different names. They are becoming a growing problem in America. The one drink that is talked about the most is called Monster energy drinks. It’s one of the number one energy drinks on the market today. Just like any other company on the market, Monster Energy drinks can advertise their product however they see fit. Compared to a tobacco company, energy drinks can be advertised to any one that can get ahold of them. The multimillion dollar corporation uses movie stars and sports stars to influence its consumers. In an article by US news titled, “Are Energy Drinks Really That bad”, by Anna Medaris Miller. In her article, she explains all the downsides about energy that are currently on the market. In her essay, she explains

“The world is facing some huge problems. There is a lot of talk about how to solve them. But talk does not reduce pollution, or grow food, or heal the sick. That takes doing,” says Manoj Bhargava, the founder and CEO of the 5-Hour Energy Drink.

The barriers to enter these industries are quite high. It seems very difficult for potential competitors to implement themselves in these markets because there are already many big companies offering large range of products all over the world and these companies benefit from very strong brand image.

1. Think about size, growth, locational aspects and segmentation 2. Market Structure 3. Performance metrics used 4. Trends

There are (3) reasons why I have chosen energy drinks as my NAB. First off, there is a growing market for energy drinks. Red Bull and Monster Beverage Corporation, together, form over 80% of domestic energy drinks volumes by estimates. Dollar sales for energy drinks grew almost 6% to $6.67 Billion in measured channels in 2013, which propelled sales growth for convenience stores (Team, 2014). A growing thirst for caffeinated “energy” drinks, which include the likes of Red Bull, Monster, and Rock star, has spurred a heart-thumping surge in sales. Globally, the energy drink industry has gone from a $3.8-billion business in 1999, to a $27.5-billion

A slow growing market is a great way to characterize the energy beverage category in late 2007. This industry was increasing in profits still but was not increasing in profits as quickly due to factors such as market maturity, increasing in prices, competition and new hybrid products (Kerin & Peterson, 2010). The market was still very small but was dominated by Red Bull due to it being one of the first energy drinks, which caused it to dictate the market and have more of an advantage than the other energy beverages. So in late 2007 the market for energy drinks was still

The energy drink market was mostly comprised of younger individuals, 18-34 males and parents of young consumers would also often drink such energy drinks. With prices ranging $2-$5 and averaging $2.99 these were the higher priced drinks. The market surveys suggest that the main desire the consumer has is energy enhancement, however over recent years some of the market has started to erode due to health concerns.

Energy drinks have outperformed the growth in carbonates in the last few years, and present a substantial opportunity for beverage manufacturers to extract further growth from their sales. There are many driving forces of change and critical success factors in the energy drink industry. Companies such as Coke Cola and Pepsi contend with criticism from health officials due to the excessive caffeine in most high-energy drinks. However, before the 2000’s consumers were accustomed to carbonated soft drinks as the traditional beverage. The shift to an energy drink, sports drink, and vitamin enhanced waters increased sales while becoming an alternative beverage choice for a fast-paced mobile society. Therefore, this industry endures many

In Energy was originally introduced in 1929 as a hospital drink for aiding the recovery in the early 1980s, it was promoted as an energy drink for replenishing lost energy. One of the first post-Forty Barrels energy drinks introduced by Dr. Enuf in America as aiding recovery medication. In recent years’ younger people have increased their beginning of energy drinks containing caffeine and other stimulant ingredients, as many teenagers doesn’t believe that drinking energy drinks do not harm whether energy drink could be harmful for teenagers or not, as the ones who drinks them most and that the concerns of parents and teachers are unnecessary.

The energy drink industry is a fairly new market, with the top products being little under 30 years old. There are several strengths, weaknesses, opportunities and threats in the sector that are unique to this particular industry. Through a SWOT analysis, I will analyze this markets’ main components.

Both rising living standards, especially in urban India, and easy access to consumer finance have fuelled the demand for consumer durables in the country. Also, the entry of a