Energy Drink Marketing Report

3887 Words Dec 25th, 2012 16 Pages
Executive summary

This report provides analyses of the fast growing energy drink market and the top two companies of this sector, they are: Red Bull GmbH and Hansen Natural. The two companies sell Red Bull and Monster Energy drinks respectively. We will explore both company’s background information and their strategic marketing of differentiating from traditional soft drink industry and within the energy drink market itself. We found that the macro and micro environment of the industry and company is influenced by the changing household structure, the health focus of the customer, power of distributors, competitors and regulations. Furthermore, we find that core market segments of the two companies are different. Red Bull focus on a
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Its main energy drink product line is the Monster Energy, it is the number two energy drink brand globally and was recently launched in Australia in 2011 (“About us,” 2011). Hansen Natural also produces a wide range of juices, soda, drink mixers, health focused beverages and energy drinks. It employees over 1000 staff mostly based in America and its 2010 revenue is 1.3 billion USD, a 14.10% increase over the 2009 level (“Hansen Natural,” 2011).

Product Overview

The Redbull Energy drink is based on Thailand version of Red Bull called “Krating Daeng”. It and its variations contain ingredients such as taurine, caffeine and B vitamins (“Red Bull”, 2011). Its packaging of blue and silver can with the twin bull logo is widely recognised thanks to its marketing, endorsement and sponsorship efforts. The catchphrase for the product is “Red bull gives you wiings” (“Company figures,” 2011). It also comes in the forms of Red Bull Sugarfree and Red bull energy shots. It is a sweet drink with a hint of sour medicinal tastes with the claim it can vitalize body and mind. Globally Red Bull product line amounts for roughly 40% of the energy drink market share with over 4 billion cans sold in 2010, which is a 7.6% increase over the previous year’s figure (“Company figures,” 2011). Red bull was first produced in 1987 and entered Australian market in 1997.

Monster Energy line of energy drinks is different from the Red
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