Marketing Plan - Pepsi

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

2. MMBC is ignoring the shift in the consumer segment for beer companies. 21-27 year olds are spending more on liquor and most have not yet developed brand preference.

Social environment are things such as the workplace where a lot of energy drinks are consumed. People that are unemployed will not consume as many since they are not keeping the late nights as the employed. Another factor would be demography. Places where there is a larger population of elderly people will not consume the product. Areas, such as college and university cities have much younger people. They are the ones that will utilize the product and on a regular basis. They have the need for staying awake; not just for work but studies and sometimes

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.

3. What target consumer market should be chosen for a new energy beverage brand? § Seeing as the heaviest users of energy beverages are males between the

C) The key consumer segment is the younger drinker who aged 21 to 27. They were first time drinker that not founded loyalty to any brand yet accounted for large beer consumption. The segment tended to purchase more light beer instead of lager.

To start with, market segment for energy drinks is targeted at group of people in their late teens to early thirties. The age group is determined between 18 to

Red Bull energy drink competes in the Non-alcoholic drink market which could be the overall Food and Beverage market. ‘Red Bulls target market is young, on the go, who enjoy extreme sports and live an active nightlife, anywhere from 18-35’(Swartz,Jon).

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

Through its products, Coopers focuses on various niches, but the principal market for its main product group consists of those drinkers aged over 35 for whom product quality is important and price is not a primary consideration.

Hawaiian Punch has much less control over the sale and distribution of the brand in the direct to store network and sold much less in volume, but does receive very high gross margin contribution after marketing. This network accounts for only eighteen percent of total brand sales but contributes forty-one percent of the gross contribution of the brand. The target market is also different from the finished goods network. In the direct to store model the target market is households with children six to seventeen years old, focusing on teenagers. This needs to continue since this category, carbonated soft drinks, is over twenty-eight percent of the total beverage market and has been growing in both volume and market share. By being in this distribution network, it allows for not only additional sales but the ability to target a different market segment, the teenage; who most likely drank Hawaiian Punch from the juice aisle and now will choose it from the carbonated drinks aisle.

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

The energy drink market was mostly comprised of younger individuals, 18-34 males and parents of young consumers would also often drink such energy drinks. With prices ranging $2-$5 and averaging $2.99 these were the higher priced drinks. The market surveys suggest that the main desire the consumer has is energy enhancement, however over recent years some of the market has started to erode due to health concerns.

In late 2007 the energy beverage category was reaching market maturity and projected to have a slower annual growth rate from 2007 to 2011 (10.5%) than it had between 2001 and 2006 (42.5%). Rising prices, packaging competition, and the introduction of hybrid energy beverages also added to the slower projected growth rate. However in 2007 the market still saw growth of 32%.

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