Sports Nutritional Category Executive Summary
Over the past 5 years the market has seen an enormous increase in the sports nutritional product category. These products range from energy drinks and nutritional bars to diet products and nutritional supplements, and each day new products are being introduced into the market. With nutrition and taste being two of the most important aspects of the product, creating and maintaining products in this category is simplified. This has become one of the most exciting new markets not only because it is the beginning of a new wave of a product category but because the market and consumer base is large and ready to be tapped into. The market is increasingly becoming more and more energetic, not because of the energy drinks, but because it is expanding into a new realm in the consumer's life. This is a multibillion-dollar a year industry that at the present time has relatively few competitors, leaving opportunity for new products and brands to enter the market. By assessing how the market looks today, the potential to enter the market, and the outlook of the market in the near future this summary intends to relay appropriate information about this category that may help in product planning.
To begin, only recently has the sports nutritional category become such a strong player in the market. Probably the most recognizable and longest standing product in this category is Gatorade. The nutritional drink has come to be the staple sports nutritional drink on the market. However, within the past five years or so, Gatorade's position as the number one sports nutritional drink has been threatened. Today there are a multitude of companies producing the products in this category. This category of products has become a huge market. As of 2003, the sports nutritional product category topped over $3.1 billion dollars. That is an 11% increase from the $2.9 billion dollars in 2002. Even more exciting is the five-year overall category growth rate. Between the years 1999 and 2003 the market for sports nutritional products has annually grown at a rate of 19% which is very optimistic of the category.
Even more enticing then the annual figures are the percentages of consumers that use sports nutritional products on a regular basis. According to the fall 2003 Simmons Market Research Bureau Data 36.
Fink, Heather Hedrick., Alan E. Mikesky, and Lisa A. Burgoon. (2012). Practical Applications in Sports Nutrition,3rd edition. Sudbury, MA: Jones & Bartlett Learning.
Consuming energy drinks such as Red Bull, Monster and the 5- Hour Energy Shot, which contains caffeine and other additives, is dangerous to an individual’s health and in some cases fatal. Manufacturers of energy drinks claim consumption of their products will improve athletic performance, concentration and reaction time, as well increase basal metabolism. However, manufacturers’ of energy drinks add additional energy-enhancing ingredients such as glucose, taurine, guarana and ginseng. Each of those ingredients has numerous adverse side effects, see table 1 on page 8. Yet, energy drink manufacturers are not required to list the amount or type of additive used in their products. According to the Food and Drug administration (FDA), approval of the FDA is required in order to use additives in conventional foods. Dietary supplements, is considered by the FDA as generally recognizes safe by qualified experts therefore not considered a food additive. Unfortunately, the FDA need not approve adding them to conventional foods such as drinks. Consequently, manufacturers of energy drinks are taking advantages of this by labeling their products as “dietary supplements. “ Therefore, the Food and Drug Administration (FDA) should be in a position to regulate the ingredients added to energy drinks. In addition, the Federal Food, Drug, and Cosmetic Act (FFDCA), which regulates both dietary supplements and conventional foods does not require manufacturers of conventional foods to report serious adverse events (FDA, 2012).
As stated in the case, “the market for energy drinks was growing; between 2010 and 2012, the market for energy drinks had grown by 40%. It was estimated to be $8.5 billion in the United States in 2013 [and] forecasts projected that figure to reach $13.5 billion by 2018” (pg 5). However, much of this market’s revenue -- 85% in fact -- is dominated by five major brands, while the remaining 15% is split between approximately 30 regional and national companies. (pg. 5). With this saturated market, it might not be best for Crescent Pure to enter as a completely new product to the industry, as there is the possibility that it will be squeezed out of the profit shares by more established brands -- especially if it is not properly secure in its identity. In addition, while the market for energy drinks appeared to be growing at an exponential rate compared to the market for sports drinks -- which increased only 9% in five years and would be at approximately 60% of the rate for energy drinks in 2017 (pg 6) -- the consumers appeared to be wary of partaking in the market for several reasons, which would potentially harm the reach of Crescent Pure. These concerns included rising news reports discussing the safety of energy drinks (pg. 5). Taking into consideration the data provided in the case that concerns reasonings of why consumers choose specific drinks over others, there
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.
Gatorade sponsors many different franchises, players and associations, so its advertisements are always seen by many, so when they promote that their drinks are better than water for athletes during games and matches; one has to wonder if it actually is? Most of the time when something so big is advertised in TV commer...
Initially, the product was marketed and distributed at bike shops and events where running and biking were the competition medium. As this new category began to expand, new entrants began to enter the market. These new entrants began to segment the food bar market into several categories. The primary consumers of the food bar market can be separated into three major segments: energy bars, sports bars, and weight loss bars. In the US, the food bar market is dominated by several companies: PowerBar, Balance Bar, Luna, MetRx, and Clif Bar.
The Holland Sweetener Company (HSC) is planning to enter the low-calorie, high-intensity sweetener market which is currently dominated by NutraSweet. Below we first analyze our target industry. Next we look at what kind of response should HSC expect from NutraSweet upon its entry into this market. We will also analyze few likely scenarios that could play out and we will try to estimate the likelihood of each scenario. Based on our analysis, we will give a recommendation for HSC to plan their entry into this market.
Through this evidence, Gatorade is the most essential drink on the planet when it comes to revitalizing and replenishing the body. This is why top athletes in professional sports endorse and use this produce. The commercial for Gatorade ask “Is it in you?” Gatorade and other numerous sports drinks have become a very important part of today’s sports market, and it seems to be with good reason. Research has confirmed that for the most part, the claims made by companies such as Gatorade about the effectiveness of their sports drinks are true. Gatorade is a useful sports drink.
Sport drinks make fluids available to the body and are consequently very effective in preventing dehydration. One tactic sport drinks use in order to accomplish this is by adding sodium and glucose to the drink. These ingredients stimulate fluid consumption by the body, causing the athlete to drink even more, and become rehydrated (Rehrer 45). Another way that sport drinks maintain hydration in the body is by having less than or equal to 10% Carbohydrates (CHO) and small amounts of electrolytes in the beverage. This composition makes fluids available for dilution of body fluids at similar rates, thu...
Competition also presents itself in original sports drinks, such as Gatorade (Pepsi) and Powerade (Coca Cola). Furthermore, premixed alcoholic drinks like the Smirnoff range form part of the competition.
Ever since 1965 Gatorade has been one of the top selling energy drinks in America. Gatorade has come a long way since its start and is now the official drink of several professional sport leagues. The company brings in over three billion dollars worth of revenue every year mostly due to their skill in advertising which is a crucial part of a company of such magnitude and Gatorade is known for their persuasive commercials. In the commercial chosen, several stellar professional athletes give the viewers details of some of their greatest failures. This caused each of them to work harder and become the athlete they are today by training harder and making them more determined. The Gatorade commercial that was chosen is a very effective ad because
In order to perform at peak potential an athlete must fuel their body with nutritious foods. Proteins, carbohydrates, fruits and vegetables; these three-core food groups fuel a winning athlete. Proteins help build, teeth, bones and muscles, and create enzymes, red blood cells, long-term energy, as well, boost the immune system. Its functions are the most diverse of any food group. Protein consists of combinations of structures called amino acids that combine in various ways to make muscles, bone and tissues. They serve other functions as well including nutrient transportation and enzyme production for overall health beneficence. Adequate, regular protein intake is essential because the body does not easily store it. Various foods supply protein in different amounts with the highest quantaty coming mostly from animal products such as meat, fish, and eggs.
Companies utilize different marketing strategies to appeal to their target audience. The methods they use to market their products usually reflects the target audience’s preferences or needs. Gatorade was invented at the University of Florida in 1965 by a team of researchers. They discovered nutrients were not being replenished when the school’s football team competed and formulated a solution to the problem. Today Gatorade primarily targets athletic or physically active individuals, especially professional athletes. Over time, Gatorade has become one of the most popular and leading sports drink companies in the world. Many people recognize what Gatorade is and what they do to help individuals who need the extra replenishment so they can continue
Certain foods can make a difference in sports competition. Conditioning, strength, and speed have been the focal points of athletic training for years; however, the research on nutritional elements indicates their importance to an athlete's optimal performance. Knowing the proper food to eat before, during, and after a physical activity can help an athlete in achieving their desired performance.
The target market will be specifically made up of males and females ranging in ages from 18- 45. This segment was selected as many people younger than this age are still having their meals selected for them whereas those who are older than this bracket are seeking a healthier and more holistic lifestyle. For secondary target markets healthier products should be provided as well as products for children