Case Study - Dr Pepper

• Determine under what conditions each of the “energy drinks” might be useful to the consumer.

Energy drinks are comprised of the following primary ingredients: caffeine, sugar, ginseng, taurine, and guarana. Caffeine is the most commonly used legal drug in the world that does not discriminate among the races, ethnicity, or gender groups. Babu et al. (2008) stated that a lethal dose of caffeine in a healthy adult can range from 5 - 10 g with 9 - 28 mg of caffeine per ounce in an energy drink (Rath, 2012). The human body does not block caffeine. The body acts like a sponge and absorbs caffeine and then quickly distributes it throughout the body (Rath, 2012). Individuals have the tendency to excessively consume caffeine. The caffeine when combined with sugar can cause psychological and physiological effects in people such as mild to moderate euphoria. Drinking one energy drink is not considered excessive. Drinking two or more drinks in a day is considered excessive.

Nos energy drink could be used to provide energy to those who play sports and need the energy, those who need the energy because of lack of sleep, or those who simply enjoy the taste of it.

The third-largest company in the U.S. is Dr. Pepper/ Seven Up, Inc. (DPSU) which consists of 14.7% market share. It is the most famous brands are Dr. Pepper and Seven Up among the Soft Drink Brands. It has been Squirting the market by this company since 1995. The Unit Sales Volume Squirt is $39 million to $54.6 million from the year 1990 to the year 2000.

Despite all the controversy, most people can agree how useful a jolt of extra energy can be some days. Energy drinks can help a doctor be more alert during surgery during a graveyard-shift, help college students get that “A” they have been working towards all semester, or keep police officers vigilant and energized on the job. There’s no way of knowing exactly how many college students that graduated owe their diploma to caffeine, but it sure didn’t hurt to be able to pull all-nighters while being alert. People that enjoy exercise can lift-weights or do cardio way more effectively by drinking one before the work-out. Energy drinks are not only safe but they are making people more effective workers, students, or athletes.

The Affordable Blended Smoothie, Inc. will be producing a healthy non-alcoholic product. As more families and the society continue struggle to maintain healthy lifestyles, the new beverage comes at the right time in remedying the situation. The new energy drink will be suitable to all classes of people regardless of their age, educational level, income, gender, or ethnic affiliation. However, we will be able to employ targeted marketing where the marketing strategies for the company will be directed to rising middle class in Virginia (Wit, 2010).

(Definition) Energy drink: a drink intended to boost mental energy, typically containing sugar and caffeine or other stimulants. (Dictionary.com)

could be geared towards females in an attempt to capture drinkers of Coca Cola’s Tab. In addition, males’ ages 35 to 54 consume energy beverages at a rate slightly lower than males under age 24. An energy beverage with similar stimulant effects as most energy drinks but has other health benefits (i.e. Vitamin Water, Odwalla, Naked) could also attract the abovementioned consumers.

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

Energy drinks are a growing commodity among individuals who desires a boost of energy for various reasons. In today's fast paced society, most people are looking for a way to increase endurance and stamina. Many suffer from a lack of energy to get them through daily responsibilities. This is why many have turned to energy drinks as a means for extra fuel. These quick pick-me-ups promise to give an energy boost that lasts for hours.

The target consumer market that should be chosen for a new energy beverage brand is males between the ages of 15 and 26. Marketing to this age group falls between the 12 to 34 year olds that estimate to make up 70 percent of the energy drink market (Kerin & Peterson, 2010). This would allow them to still market to the heavy users but would be able to narrow it down to a specific age group within the market. Marketing to this group would allow you to focus on groups such as high school & college students, athletes, and young adults entering the work force or newly parents. The students that would be using the energy products can use it for staying up to study or to help wake up and be alert in class. Athletes could use this product for refocusing after a workout or practice so they would crash. Young adults could use this energy drink for staying up in there social life late at night or to make sure they are awake in the morning for that new job to impress the boss. A different market would be the parents of a newborn. Markets like this could be beneficial because parents want to stay up to feed their new born and make sure everything is okay during the day especially after a sleepless night or two. Marketing to specific target markets helps companies clarify what the product is used for and how it can be beneficial instead of having it say we

The type of ingredients used to create the well enjoyed beverages are also factors commonly considered when making the difficult decision of which drink to choose. Caffeineinformer.com explains how the ingredients in energy drinks including: taurine, guarana, B vitamins, ginseng, L-carnitine, antioxidants, sugars, artificial sweeteners, and many more effect on the body. Many doubt the need for

Energy drinks are soda-like beverages that are chemically designed to boost your energy, performance, and increase stamina. Most of these drinks contain caffeine, sugar and many other ingredients including taurine, guarana, and ginseng. These products are generally marketed toward teanagers, students, athletes, and active people in general. As the popularity of these drinks increases so does the amount of reports they are receiving about the dangers of drinking these caffeinated substances. Energy drinks can be dangerous; therefore knowing the how they work and what is in them is key to consuming such substances safely.

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

First let’s understand that an energy drink simply does as its title suggest, gives the consumer energy. This is accomplished most of the time with caffeine from a guarana bean. Some of the other players in this market