Energy Drink Executive Summary

Red Bull targets only a particular segment of market and therefore makes its product only available at those places where the target can be reached. The energy drink can be bought at colleges, supermarkets and is mainly associated to extreme sports. In particular, the energy drink has also known a tremendous success in India, where the segment is the fastest growing in the category, due to India’s youth centric population and fast urbanization. Red Bull was actually the brand that created energy drink category in India (Docstoc, April 2012).

The beverage V Fusion + Energy is committed to its customers by providing flavors that set it apart from competition and is made for the youth, especially teenagers and college students who explore an extreme lifestyle of sports and action. Therefore, the brand has created appeal to the target group’s natural desires and ambitions and seeks to fulfil that quest. The drink capitalizes on its different flavors and nutritive value to appeal to different consumer markets and target groups. The beverage is up in competition against established brands, such as Monster, Red Bull, Rock Star, Lucozade, and Burn who command a huge chunk of the market share.

According to recent studies, the age group of 25-40 year old males and females purchase a reliable amount of small appliance to bring in this product. A household income of $40,000 a year is enough purchasing power for a household to afford this product. Through recent studies, it has shown that cocktails are mostly popular with individuals that like to share their experience with others and go to bars and restaurants because of the specialty cocktails that are offered. The United States has been chosen as the target location because of Company G’s location.

Text shows that nearly 2 in 3 people wish they had more energy, but 40% of consumers do not believe energy drinks are healthy for them (South University Online. 2015). The Campbell Soup Company is expanding into the energy category through the V8 brand with the introduction of V8 V-Fusion + Energy drinks. V-Fusion + Energy are refreshing and energizing beverages made with a blend of vegetable and fruit juices and powered naturally by green tea. This product would be the first of its kind in the market, one of the major advantages of the drink is user get energy without the harsh effects of caffeine. V8 V-Fusion + Energy drinks provide people with a healthier alternative to most energy drinks on the market today. Each single-serving can contains one combined serving of vegetables and fruit (1 serving = 1/4 cup of vegetables and 1/4 cup of fruit), and provides an "excellent source" of B vitamins.

The V Fusion + energy drink has potential for growth. In this multi-billion dollar industry, there is room for advancement. Campbell’s has implemented many programs to outperform their competition (Vfusionplusenergy.com). The PESTAL analysis factors are the political, economic, social, technological, ecological and legal influences.

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

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

Natural Vitality Energy Drink Sole purpose is to help increase the energy level of busy and athletic individuals in today’s society. With the busy lives of most people, we are all looking for a quick boost of energy to help get us through those last couple of hours at work or those late nights of cramming for a test, but we should take consider a healthy alternative to the popular energy drinks on the market today. Natural Vitality Energy Drink is for the health conscious individuals who are concerned with the ingredients that they consume. Natural Vitality Energy Drink, that is manufactured by Starrs to the Skye Manufacturing

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).

Both competition and market size are of major importance when one explores the positioning of a product. In the case of Crescent Pure, this is vital as Ryan must determine the level of competition that will be faced if the product is marketed as either an energy or sport drink. In the case of an energy product, it should be noticed that there is heavy market dominance by Together, Freight, Razor, Torque and Steller, as they account for roughly 85% of the market. Despite this, it should be seen that the average price point for a 5oz can is $2.99 which is notably higher than Crescent’s $2.75 pricing. Additionally, the market size for sport drinks is of particular interest as it is estimated to grow to $8.5 billion by the year 2013. This, coupled with the fact that the market had grown 40% between the period 2010 – 2012, makes this sector of particular interest to PDB.

The target consumer market that should be chosen for a new energy beverage brand is males between the ages of 15 and 26. Marketing to this age group falls between the 12 to 34 year olds that estimate to make up 70 percent of the energy drink market (Kerin & Peterson, 2010). This would allow them to still market to the heavy users but would be able to narrow it down to a specific age group within the market. Marketing to this group would allow you to focus on groups such as high school & college students, athletes, and young adults entering the work force or newly parents. The students that would be using the energy products can use it for staying up to study or to help wake up and be alert in class. Athletes could use this product for refocusing after a workout or practice so they would crash. Young adults could use this energy drink for staying up in there social life late at night or to make sure they are awake in the morning for that new job to impress the boss. A different market would be the parents of a newborn. Markets like this could be beneficial because parents want to stay up to feed their new born and make sure everything is okay during the day especially after a sleepless night or two. Marketing to specific target markets helps companies clarify what the product is used for and how it can be beneficial instead of having it say we

In Brazil, there is not as much of a market for energy drinks as there is in places like the United States. Still, introducing 5-hour energy shots to Brazil could cause the desire for energy drinks to grow in that country. That would open up an entirely new market for energy drinks that could make millions or even billions of dollars for companies that manufacture energy drinks throughout the world. In order to clearly understand how marketing will take place in Brazil and the issues that must be addressed, there are four specific areas that will be considered here. These will be the social-cultural environment of Brazil, the economic environment, the political environment, and the technological environment. Since all of those areas play a role in how an energy drink could be marketed and how much success it might have, they all must be discussed before any decisions are made.

This report will critically be discussing the marketing strategy, position and the marketing mix employed by LUCOZADE and the use of some principles. Therefore, the analysis will help to identify how brand is positioned in the energy drinks market and how company promotes its product. After analysing existing marketing strategies, recommended future strategies will be given to advice companies of where the brands are leading to and how they will get there.

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)