Sports Drinks Industry Analysis

2887 Words Apr 22nd, 2010 12 Pages
Executive Summary

We have noticed an increasing number of businesses catering to the recent rise of a new target market: the health-conscious consumer. At Nike, our goal has always been to give consumers what they want now, as well as to anticipate their future tastes, and to thus tailor our strategy to accommodate those tastes. We have recognized an unfilled market potential in the non-carbonated energizing sports drink arena, thus developing an entirely new product category.

Our branding strategy is to enter the market by carving a new niche of protein-enriched energizing sports drinks. Our objective is to educate consumers about the new drink, as well as to make a profit and gain market share in the industry. We hope that by
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As a result of these trends, consumption of youth-oriented products has grown as people strive to be in good shape. The Nike Motion energizing sports drink will provide the energy these people need to accomplish their objectives.

Ethnic trends are likewise changing, with baby boomers retiring, and an increasing young Latino population emerging, along with an influx of Asians. The Hispanic population, becoming the largest minority segment in 2002, has grown 70 percent over the past decade to approximately 37 million (14.1 percent of the U.S. population).1 These youths lead fast-paced lifestyles, frequently juggling school, work, and personal lives. For the younger generation, regardless of ethnic background, feeling tired is not an option. The popularity of the sports and energy drinks has proven this fact. We at Nike thus believe that Nike Motion will be a tremendous success, appealing to a health-conscious population with our alluring natural ingredients, while simultaneously satisfying the increasing need for energizing products.

Political and Legal Environment:

The political environment could have a significant effect on us if we were to market Nike Motion in foreign countries. Constant changes in exchange rates and political systems are important to keep in mind. As to the legal environment, each and every firm
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