Based on data obtained from limited English sources dated 2005 to 2010, energy drinks have become more popular among teenagers and young adults (Rath, 2012). SixWise.com’s (2008) article “What is really in a hot dog?” provided evidence that just because the product is purchased by the public does not automatically mean it is beneficial long term (Wyrick). This new craze of energy drinks has the world consuming them at a staggering rate. The debates concerning the effects among energy drink consumption in all age groups are real and impacts most of us in some shape or form. Some people will argue there are benefits found in some of the ingredients that enhance the psychological and physiological mental and cognitive performances such as
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.
The success of any organisation depends on efficient and effective communications, it is important for building and maintaining personal and working relationships within the organisation and with service providers and customers.
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
The effects of this emphasis on such a target market can be seen in the advertising campaigns of the energy drinks. Many of the names of the beverages, such as ‘Crunk’ or ‘GoFast!’, appeal to these specific consumers and the marketing strategies that revolve around sponsoring public events, such as ‘Red Bull’ and the Australian Grand Prix, or celebrity endorsements reflect this focus.
Sodas, sports drinks, and energy drinks are being increasingly consumed as they become less expensive yet continue to stay addicting due to their high sugar content. In fact, since the 1950s, the American consumption of sugary carbonated beverages has tripled (“The Real Bears”). Today, carbonated beverages account for 7% of the total calories consumed in America, more than any other food item. These facts are clearly stark indicators of America’s obesity problems, and have accordingly convinced many people to limit their soda intake or stop drinking soda entirely. In my own personal experience, I am meeting more and more people even my own age who refuse to drink soda, and I myself do not drink soda either. This causes quite a dilemma for the
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).
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 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
The strategic role of V energy drink will be centred on four objectives: Firstly, to have 40% market share in Auckland, New Zealand, Secondly, to be the brand icon of extreme sports and music not only in Australia but also in New Zealand, to gain 50 percent brand awareness and to have a strong community relations among consumers. V energy will use some strategies to reach these objectives through communications, promotions, and distribution strategies.
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.
Energy drinks consumers are generally bellow 35 years of age. The industry targets teenagers, young adults and athletes. Workers are also included in the market segment for this product. As regards to customers description, recent studies has pointed out that 65% of energy markets are male (Energy Drinks Market, n.d).Consumers are usually single with an average income (Central Information Organization, 2009, p.8). Nowadays, energy drinks are very popular among teenager students. As confirmed by Bahrain Central Information Organization webpage (CIO), students’ rate is 174.98 per 1000 population. This is a large percent taking into account the very small population of Bahrain. Furthermore, people
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
This is why we decided to focus on the second level of the energy beverages, their name and package. (www.learnmarketing.net/product.htm, 14/09/2004)