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Energy drinks consumed on a regular basis essay
Opportunities in energy drinks
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Hgghcompany is looking to expand their portfolio into the energy drink market. Energy drinks were still a new concept at the time and were just what Dr. Pepper Snapple Group, Inc. needed to grow business. The expansion idea originated as part of a corporate business strategy to focus on opportunities in high-growth and high-margin businesses (Kerin 91). Expanding into other areas of thirst quenching will effectively increase growth and the presence of the company. Entering a new product under the company name can have some adverse effects on the company. To develop a new product concentration and resources from other thriving brands will be diminished to produce another drink that may or may not do well. Red Bull was the first energy drink to be developed in the beverage market. After seeing the success of Red Bull other companies attempted to reinvent the wheel but are still not as successful as the pioneer for energy drinks Red Bull.
To market the new energy drink Dr Pepper Snapple Group Inc. has to pinpoint who the target audience the product will attract and how to reach the consumers. This time and effort would not come as a lack luster attempt to increase the value of the company. To develop an advertising campaign the company would need to scrap resources for proper media exposure. There are an estimated 43 million energy drink users in the United States (Kerin 100) to put the competitors products out the minds of the consumer, which no other company that copied Red Bull’s innovative business move has. To reach the hearts of the consumer the product must be reasonable priced but attempting to be the low cost leader could project the notions of a cheap product.
Alternatively Dr. Pepper Snapple Group Inc. could redirec...
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.... The ingredients in the energy drinks raise health concerns for the public. Energy drinks have been known to leave users with impaired cognition and a sense of dependency (livescience). Students often drink the energy beverages to help study for exams and once they see how the flavored energy booster helped them stay awake to meet a deadline they tend to return to energy drinks the next time they are faced with a tough work schedule. Should Dr. Pepper Snapple Group Inc. successfully introduce a healthy energy drink that provides the body with chemicals that help restore wellness? The answer is yes this would be the new innovation the company was looking for to better their brands and send the company to the next level above the competitors. These days everyone is consumed with being healthy because they lack energy if the body is not receiving physical activity.
I have chosen to assess Gatorade’s new G Series campaign. It consists of three separate products that are each to be used at a certain point in athletic activity. The first is 01PRIME (Gatorade.com, pictured to the right), it is to be taken 15 minutes prior to activity and has components very similar to an energy drink. It is high in B-vitamins and electrolytes, it’s meant to give a burst of energy right before a workout or competition. The second product is 02PERFORM (Gatorade.com, pictured to the left), which is their original product they’ve been selling for 40 years. It is meant to be consumed during an activity. The only changes are the fancy new name and updated packaging. The third is 03RECOVER (Gatorade.com, pictured below), it is to be taken post-exercise. The product is high in protein and helps the body recover from its exertion. It is comparable to many other post-exercise protein drinks but it also claims to be the first of which that actually quenches your thirst. The audience Gatorade is trying to reach is athletes that want to maximize their effectiveness at their given sport. They are also trying to aggressively penetrate two new markets, energy drinks and post-exercise protein drinks, that they have not previously thrived in, using their flagship beverage as part of the campaign. This campaign is currently running and has been for most of 2010.
The small drink that promises big energy and alertness without have jitters plays a role in most teenage and adult lives. This 5- Hour Energy’s audience is multitasking, working professionals. The market demand has increased a tremendous amount since the product had hit the store shelves in the year 2004.
Red bull has been the forefront of the energy drink industry because of its well-developed marketing and advertising plans. Red Bull earns their competitive advantage by using lifestyle, music, and culture to their advantage, mentions the ARC. Red Bull is the energy drink trendsetters in my opinion, they are the leaders in their industry leaving others to follow. They also use their branding as a great selling point. Their products have a sleek design, and they also use relate-able people to give samples to potential consumers. Strategies such as these keep them ahead of competitors.
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten brands sold. Colas are the dominant flavor in the U.S carbonated soft drink industry; however, popularity for flavored soft drinks has grown in recent years. The changing demographics of the U.S population have been an important factor in the growing popularity of these flavored soft drinks. The possible impact of this factor will be addressed later in the case.
An interview held on April 10, 2013 with a customer who is not a fan of energy drinks described the logo as being clever in design and the overall appearance as colourful. Interviewee also stated that the oval appearance of the can design with graphics is very creative, appealing to the m...
For Red Bull, competition in the energy drink industry is minimal. Red Bull competes with brands such as Monster, Rockstar, NOS and Amp. Among these brands, Red bull comes out to be the industry leader, with a market share of 43%. (Time 2015) Following behind the popular brand, is Monster, which is Red Bull’s largest competitor. This brand, who now has a long term partnership with Coca-Cola, (Time 2014) has a 39% market share (Time 2015) Other less popular brands fall in with lesser market share success. Rockstar is another competitive brand that markets to a similar target market. They enjoy only 10% of the market share (Time 2015) Red Bull also faces Nos, a brand owed by Coca-Cola. The product is named after nitrous oxide. NOS’ market share
Red Bull has becoming hugely successful and operates within the global soft drink marketplace. Within the soft drink industry its niche is the ‘energy drink’ market, of which Mateschitz was largely responsible for creating. Red Bull currently is the leading energy drink across the entire globe. It holds 70% of the market worldwide (Gschwandtner, 2004). Once the drink was passed by health ministries, Red Bull entered the Austrian market, soon thereafter then moved into Germany, United Kingdom and the USA by 1997.
The following plan is intended to provide a basic marketing communications plan for a fictitious company. The company in question operates in China and produces soft drinks, particularly adult soft drinks. The information in the plan has been sourced from various textbooks and online research including the National Bureau of Statistics China.
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
Dr Pepper Company is the oldest major manufacturer of soft drink concentrates and syrups in the United States. Dr Pepper is the company's principal brand. Cadbury Schweppes PLC acquired Dr Pepper/Seven-Up Cos. Inc. in March 1995. The new business will be called the Dr Pepper Company, which will focus on the Dr Pepper brand by handling all beverage system sales, which account for 75 percent of its business, in addition to related independent bottlers. The second operating group will be Cadbury Beverages/Seven Up Co., which will service independent bottlers not carrying Dr Pepper. Dr Pepper/Seven Up soft drink brands now hold about 16 percent of the U.S. market. Dr Pepper and Seven-Up are among the top 10 carbonated soft drinks, with Dr Pepper being the top non-cola soft drink. Other soft drink include: A&W Root Beer, Canada Dry, Schweppes, Welch's, Sunkist, Squirt, Crush and Hires (Levy 1999). According to the soft drink industry report, there is large sales growth recently in non-colas. Dr Pepper was number three in the industry. The reason is because non-colas have above-average caffeine level, and will be aimed at the 12-to 21-year-old market. Obviously, management sees this product as an opportunity to more fully participate in the growing popularity of non-colas.
In order for PepsiCo to be successful in selling Pepsi Platinum, the company must research the marketing community. The best way to create a strategic marketing plan is to understand the target market in the beverage and sports drink business. PepsiCo must ask, “What is the demographic of this market, what are psychographics and behaviors of the specific market that PepsiCo, in regards of selling this brand, desires to reach?” Understanding our customer needs, and competitors offerings will help PepsiCo create a strategically integrated marketing plan. The principal to any successful marketing strategy is to understand the customers and their needs. The ability to satisfy customers' needs better than the competitors, will first be, that PepsiCo build customer loyalty and increase sales (Business Link, 2007). Marketing research uses many methods to obtain its results. PepsiCo will use external census data and marketing survey data collected by outside marketing research firms, as a method of understanding customer wants and needs. Computer-aided methodologies will also be used to collect data on the competitors of PepsiCo such as Coca Cola, Jones Soda, and Mo...
Energy drinks are thought to help enhance performance, boost mental alertness, improve endurance and energy, decrease fatigue, enhance metabolism, and improve overall performance. Energy drinks are also used because of short term health benefits, taste, energy boost, improved performance, and to justify or improve poor dietary habits (Rath). But, drinking energy drinks come with so much more along with a list of health problems and possibly
“The term energy drink refers to a beverage that contains caffeine in a combination with other ingredients such as taurine, guarana, and B vitamins, and that
1.Red Bull differentiates itself in not only the soft drink industry by focusing on energy drinks solely, but also in the business industry, seeing how their strengths, weaknesses, opportunities for improvement, and threats all seem to blur together . The fact that Red Bull is seen as a luxury and sports drink is a strength, weakness, opportunity, and threat within itself (Kansara, 2); being labeled as such sets Red Bull apart from their competitors, pushing them into one field and industry to prosper in and be associated with, leaving them opportunity to determine the way that industry will grow as they are the pioneers but also threatening their hopes for expansion. In a nutshell, in order for Red Bull to truly work towards their mission
There are a variety of beverages available to us today with a wide range of differences, some are flavored, carbonated, low calorie, energy boosters, and just plain water. When it comes down to carbonated drinks there are two major rivalry soda companies dominating the market. Coca Cola and Pepsi are two well know cola distributors with very credible history, but the question still remains one is America’s favorite? With the ongoing competition between Coca-Cola and Pepsi, each company is incorporating new strategies for marketing and advertising there brands. When comparing an advertisement from each of the companies, we will review how they appeal to consumers.