Energy Drink Is A Promising Business Niche Essay

In today's world, the name Red Bull and the slogan "Red Bull Gives You Wings has been inscribed into the minds of consumers around the globe. The popular energy drink, which seems to have sky-rocketed in US as well as world-wide sales is no miracle drug, although it does seem that way by the overflowing demand. Known to many as a coffee substitute, Red Bull is able to give its buyers that extra push or burst of energy to keep their day going due to its increased amounts of caffeine, without the nasty aftertaste of coffee. No doubt its marketing strategies have made a massive impact on its increased sales, but at its start, it is no lie to call Red Bull a self-made success. In a time where everyone is

Over the last decade, drinks containing high amounts of caffeine, sugar, and other ingredients that increase energy have been rapidly growing in popularity. Clearly these beverages are known as energy drinks. Energy drinks have gotten so popular that it is extremely rare to find a convenience store that doesn’t sell a variety of them. Students use energy drinks to cram the night before a test, athletes use them to exercise, party animals mix them with alcohol to drink more than humanly possible, and some people just drink them to stay awake at work after a sleepless night. Red Bull, one of the most popular energy drinks in the market, claim to enhance

Red Bull is the pioneer in the energy drink category worldwide. Founded in 1984 by Dietrich Mateschitz in Austria, the product was formally launched in 1987. Mateschitz originally became aware of products called “tonic drinks”, which enjoyed wide popularity in Asia. He brought this effective product in Austria and developed a unique marketing strategy. The drink mainly targets young students and urban professionals. It is exclusively produced in Austria and then distributed around the world via a network of local subsidiaries and external importers and distributors.

The survey found that the most commonly consumed energy drink brands were; Rockstr Energy Drink, Monster Energy, Red Bull Energy Drink, Redline Extreme Energy, and Amp Energy Boost Original Sugar Free. These energy drinks all have similar ingredients with varying amounts of caffeine and “blend” combinations.

This document is part of the requirements of the Foundations of marketing course, the University of Newcastle. It is the first part of the marketing plan for Red Bull, the leader of energy drinks market.

Energy drinks are used throughout the whole world. 30-50% of adolescents use energy drinks, they are not regulated by the FDA. Energy drinks are mostly a combination of glucose and caffeine. They also contain a chemical called Dopamine. Dopamine is a major chemical responsible for making us happy. When caffeine effects were off your body’s amount of adrenaline slows down as well. Once you stop taking caffeine your body’s amount of Dopamine slows down. Glucose is a sugar that your body uses directly as energy for basic body functions and activity. Too much glucose can lead to high cholesterol levels and fat production. Most of the sugar in energy drinks is fructose (high fructose). But caffeine has a stronger effect than sugar in energy

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

However, there is a large market for it and reputable brands like DPSGs’ with their bottling and distribution network which covers 80% of the US energy beverage market could gain a small share of the market. As the above quote eluded to, manufacturers with an extensive product offering and distribution network can gain shelf space in the off-premise retail channels.

Main Idea II: What ingredients do energy drinks

With the high increase of energy drinks being bought, energy drink brands have grossed $3.5 billion yearly. However; over 30% of adolescents consume energy drinks. This is why adolescents need to know the pharmacology and toxicology of caffeine. One of the major ingredients in energy drinks is caffeine, along with amino acids, B vitamins and herbal supplements (Babu et al., 2008). According to the FDA, caffeine is limited to at least 65mg per 12oz when it comes to sodas. When it comes to energy drinks, they have a bit less than that. Their caffeine concentration is slightly higher in volume compare to sodas. Concluding that there is an increase in caffeine intake. The three main ingredients to focus on when it comes to energy drinks is taurine,

This report was written to assess the company Red Bull and their energy drink Red Bull Energy Drink, in a manner in which the market/industry, environment, competitors, customers, and the brand were all analysed by using secondary research. A SWOT analysis was also conducted. Through this research and analysing, it was found that Red Bull is the dominating leader in the energy drink market and sells the most units of its product worldwide. However the company does have close competitors in Monster Energy Drink and Rock star Energy Drink. Although Red Bull has massive internal strengths in being leader in the market share and sponsorship of events, it also has weaknesses in lack of innovation and diversity. Their

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

If one has to analyze the profitability scheme of Red Bull Energy Drink, perhaps it can be safely said that it is in a very uncompromising situation. First and foremost, the stiff competition have paved the way for the emergence of many small time players (Helm 2005). With every bottled drink that aims to steal the limelight nowadays, Red Bull should capitalize more on its creativity and ingenuity—this is of course, in relation to advertising and marketing. The company should never disregard that Coca Cola and Pepsi are still top competitors (Helm 2005). More so, even if the two share equally different components as with Red Bull, still, it is evident that the two continue to partake into the market share. Meanwhile, the notion that energy drinks offers no variety in taste is an important marketing aspect that the company should take into full consideration (Laing 2005). In 2001, Pepsi had already released AMP Energy Drink (“Amp Energy Drink” n.d). It is the company’s maidens venture into the energy drink arena. Evidently, AMP’s raison d’ etre is to capitalize on Mountain Dew’s established image. The concept would be to introduce something new, yet very familiar (“Amp Energy Drink” n.d).

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

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