Energy Drinks Executive Summary

Explicitly, the market for energy drinks is highly competitive. The main drawback is the negative effects of the ingredients utilized in the energy drinks. The organic energy drink will offer the same essential benefits as the other top competitors in the industry without the harmful ingredients. In order to market this product successfully we must provide an energy drink with all organic ingredients, at a competitive price, distributed to various venues storming the target markets.

Specifically, this Product will offer all organic ingredients boosting energy while maintaining health as a top priority. Non-organic energy drinks contain 1g of guarana which is the equivalent of 40 mg of caffeine (Gaille, 2015). Countless individuals do not

Fierce competition in a mature market such as the energy drink industry will be a primary concern. Mature industries have refined their costs and eliminated weak competitors enjoying high profit levels. Entering this market requires (our product name) slightly below the level of the top competitors. A cost differentiation strategy is essential to gain market share and invade the energy drink industry. Traditional energy drinks companies such as Monster and Redbull our reaping high margins of around 30-40% operating profit (Cooper, 2014). At this level it is relatively easy to slash pricing and undercut the competitor. If an organic energy drink is 15-20% less expensive than the competitor it will be a strong incentive for capturing market share. In the short term, a low pricing strategy will be essential and after the organic energy drink has a strong market share and customer loyalty prices can slowly creep up improving profits for long term

In comparison, Monster energy drinks relies heavily on supermarkets, grocery stores, party stores and wholesale clubs for over 60% of their revenues (Bailey, 2015). In order to successfully attract and retain customers strategic distribution is required. Understanding the market insights will assist in developing a distribution strategy. Selling the product in stores that attract the target market will be key. Entering the industry as a late entry competitor will require marketing excellence. Initially, the most cost effective method for promoting (our product) will be at convenience stores such as 7-eleven, Rite Aid, or CVS. The product will be sold individually limiting the factor of risk or uncertainty for the consumer. After solid revenues have been established at the convience stores, selling this product in bulk at retail grocers, entertainment venues, airports, gyms, and club stores will be the next step to improving sustainable profitability. The opportunity is endless for distribution. The key factor is to have a steady stream of revenue with a single distribution source before flooding the market without any stable revenue. Numerous products fail from rapid growth especially if stable revenues are not established to support marketing expenses. The overall objective will be to distribute this product across multiple venues ensuring that it is readily available. Successful product