A Short Note On The Energy Drink Industry

Energy drink is not like normal drink, it have many trace elements to replenish people which they loss. That need high technology to make it, the higher technology the better effect.

The V Fusion + energy drink has potential for growth. In this multi-billion dollar industry, there is room for advancement. Campbell’s has implemented many programs to outperform their competition (Vfusionplusenergy.com). The PESTAL analysis factors are the political, economic, social, technological, ecological and legal influences.

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 consumption of various energy drinks has been increased tremendously over the past few years, with a number of brands coming up (Marketingmagazine.co.uk, 2012).

Harris and Munsell define energy drinks as, “A category of beverages that contain high levels of caffeine plus specialty ingredients not commonly found in sodas and juices” (248). Some of the most popular energy drink brands include Red Bull, Rockstar, Full Throttle, Amp, and Monster (Rath 71). The composition and purpose of energy drinks are unclear making it easy for consumers to confuse them with sports and soft drinks (Ibrahim and Iftikhar 1415). Anyone can purchase energy drinks at almost any establishment that sells beverages.

The energy drink market is, however, quite different from the OSD and the non-OSD drinks the company owns, distributes and sells.

The energy drink industry must have a SWOT Analysis just like any other industry in order to assess the market before entering. The strengths in the energy drink industry are its “quick fix” for consumers; their products serve as a quick burst of energy for their target consumers of people on the go. Other strengths include the high brand awareness and relative attractiveness in the industry. Everyone knows what energy drinks are and the purpose they serve so companies in this industry do not have a problem integrating their product into the energy drink industry; this serves as a critical success factor in the industry. Energy drinks being relatively attractive in the industry is a definite strength in terms of advertising because often energy drinks are portrayed as that “must have” product that the consumer cannot go without.

As I started collecting information for this paper, I soon realized that the energy drink industry is a very small (18 percent) part of the beverage industry, but a very dominant part to say the least. Interestingly, the major players in the industry, Monster Energy, Red Bull, and Rockstar, have intentionally veered away from the conventional mediums used to promote products. They instead have chosen marketing mediums that appeal more to their target markets and the “live life on the edge” lifestyles that they live. Monster for example, shies away from mass market

The market for energy drink has continually been questioned about it health concern. A company can benefit by introducing a healthier option to get energy and have a more active day. When energy drinks first came on the scene they exploded like a new phenomenon, which made consumer feel like new-elevated being. Companies like red bull and rock star brought slogan that increased the energy drinks popularity and made it into a billion dollar industry. With all the scrutiny that has been attacking energy drinks this still has not affected sales according to (Bloomingdale) institute the industry has increase sales 6.7 percent since last year.

The energy and sports drink industry has been around for more than forty years. In those years the industry has gained many competitors. These competitors are competing to be the most innovative and the best among its competition. Although they all may offer something different, the end goal is to be profitable and to continue to grow globally in this industry. Many companies have succeeded and many have failed. However, the demands for these products are increasing and more people are consuming these beverages on an hourly or daily basis.

The use of energy drinks and supplements are getting highly successful within global soft drink market. Energy drink is considered as the niche within the soft drink industry.

The energy beverage segment burst on the scene in the early 2000’s to sky rocket to the top in the fastest growing nonalcoholic segment. The case study of Dr. Pepper Snapple Group’s senior management wanting to enter with their own brand to compete against the competition makes sense to try and capitalize on a growing market that is not demonstrating that it will decline in sales.

In Brazil, there is not as much of a market for energy drinks as there is in places like the United States. Still, introducing 5-hour energy shots to Brazil could cause the desire for energy drinks to grow in that country. That would open up an entirely new market for energy drinks that could make millions or even billions of dollars for companies that manufacture energy drinks throughout the world. In order to clearly understand how marketing will take place in Brazil and the issues that must be addressed, there are four specific areas that will be considered here. These will be the social-cultural environment of Brazil, the economic environment, the political environment, and the technological environment. Since all of those areas play a role in how an energy drink could be marketed and how much success it might have, they all must be discussed before any decisions are made.

While it may not cause pandemics or epidemics, major medias are not typically talking about this issue much. However, it caught my attention several times, and the story I’m about to introduce seems pretty serious in terms of its negative effects to human, and stealthiness of the effects. Since big part of our life style changes due to increasing completeness and higher goal for success, many people looking hard for quick and easy ways to recover their energy level these days. It would be important to know if energy drinks have any benefits to human. On the other hand, what degree in consumption of energy drinks should need extra health warning and a ban on children, adolescents or young adults to drink them? At the end of day, everyone has to take responsibility for their own actions, but how much do we know about energy drinks?

Energy drinks are separate from sports drinks such as Aquarius, 100 plus, etc. The first energy drink was launched in 1929 in UK. The energy drink was introduced as a hospital drink for recovering the energy lost in the body. The energy drinks were developed as a drink for replenishing the loss of energy from the body. Energy drinks are usually made up of caffeine, taurine, sugar, carbohydrates, vitamins, minerals and some other herbs which is typically drink during or after sporting activity or to overcome the tiredness. Caffeine is the main ingredient of energy drink which is also presented in coffee, tea or soft drink. The consumption of the caffeine at a higher dose may lead to adverse effects in the cardiovascular (relating to the heart and blood vessels),