Energy Drink Marketing : Marketing And Consumption Of Energy Drinks

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

Energy drinks didn’t become very popular until the 90s. On the year of 1997, Red Bull was launched and afterward the popularity of energy drinks raised among with other numerous brands. The consumption of energy drinks every year has surpass from “5.8 billion liters” in 2013 in about 160 countries. The predicted total United States retail market profit was about “12.5 billion USD in 2012” and the market raised 56% from 2006 to 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

Red Bull GmbH is a small company, who manufactures “Functional Drinks” or “Energy Drinks” on a

Energy drinks in Australia are one of the most strictly regulated categories in all of the world markets. In Australia, the leading

Business is complex and necessary part of today’s capitalistic society and because of this it is constantly changing having to adapt to the rise of both individuals and organizations globally. The realization of these organizations can be identified through the global corporation Gatorade, who in 1965 revolutionized the world of sports. On a hot summers day at the University of Florida a never before seen drink emerged, with the purpose to assist football players who suffer from heat illness to perform better athletically morphing into the international business we know today. Made for all athletes, on all different skill levels Gatorade claims it will “quench your thirst” claiming it will make you work faster and harder when performing. Since its creation Gatorade has become a house hold name because of how effective it has been fueling athletes of all sports replenishing them with the energy, carbohydrates and salts lost in high intensity workouts. Progressively, Gatorade is available in more than 80 countries in 50 varieties. Consequently, the following will reveal the international product drink of Gatorade and the ramifications of meaning, marketing, and money.

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.

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.

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

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

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.

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

Over the years, energy drinks have been a phenomenon. Since 1997, when Red Bull became a sensation, the consumption of energy drinks has been at an all-time high. Currently, the energy drinks is a billion dollar market, with the U.S sales of Red Bull and Monster beverages totaling 4.5 billion dollars in 2016 (Statista, 2017). Other energy drinks in the market include Rock Star, Cocaine, Amp, Full Throttle, and Rip It. Generally, Malinauskas, Aeby, Overton, Carpenter-Aeby, and Barber-Heidal (2007) note, “A number of energy drinks are designed to give the consumer a “jolt” of energy provided by the combination of stimulants and “energy boosters”, including caffeine, herbal extracts such as guarana, ginseng, and ginkgo

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)

This case study written by Krupa Kansaru on the history of Red Bull and their success in making the sports energy drink market what it is today has shown the key strengths of the company. The obvious strength that the Red Bull company has a unique and early start in the sports energy drink industry. CEO Dietrich Mateschitizin was quoted in the case study, he says that “if we don’t create the market, it doesn’t exists,” this quote parallels with Red Bull as a whole. Starting in the 1980s Red Bull used abstract marketing strategies involving differentiation, “word of mouth”, and buzz marketing to popularize the product instead of using a traditional approach by launching their product and waiting to integrate it into mainstream media. Red Bull thrusted itself into communicating with its customers and fan base by launching events, working closely with event coordinators, and strategic product placement. Red Bull also holds much strength by associating the product and brand with athletics and extreme sports. Targeting a younger generation and portraying the idea of a “fuller and freer life” has proven to truly engage the popular culture and counter culture alike. It is stated in the case study that Red Bull holds a seventy percent market share in over one hundred countries statistics like that show the company’s true strength especially compared to competitors like Monster and Rockstar.