Energy Drinks Market
Introduction
The objectives of this report are to identify how the Energy Drink market is segmented according to demographic, geographic, psychographic and behavioral variables. The Energy Drink industry which is dominated by Red Bull and V energy drinks is worth 151 million dollars and is growing by 47% per year. Energy drinks is the fastest growing category in the soft drink market. I have chosen three different companies in this report to analysis which segments they target, Powerade, Red Bull and Coca Cola. Red Bull is the market leader in energy drinks and Coca Cola which is very good at mass marketing has fallen behind and needs to adopt new and exciting marketing techniques to appeal to the younger demographic. I have also selected three different sub-brands to explain how the product is positioned. I have chosen Powerade Energy Edge, Red Bull Sugar Free and Coca Cola’s new carbonated green tea drink Enviga.
Demographic
Demographic segmentation consists of certain variables such as age, gender, income, ethnic background and family life cycle. Energy drinks are targeted to the 20-34 age brackets. Energy drinks target generation y and generation x by using modern labels and exciting ads with dance music, and extreme sports. The older generations such a baby boomer would be more inclined to stick with coffee for a quick pick me up. There is more emphasis on marketing to males but lately there has been an increased interest in marketing to females by producing low calorie, low sugar energy drinks. Income of the consumer is not an important characteristic because of the low price of energy drinks.
Geographic
Geographic segmentation describes segmenting markets by part of the world, region of the country, market density, market size or climate. Energy drinks practice geographic segmentation by advertising higher in more fast paced, high density urban areas rather than sleep country town. This has to do with the hectic lifestyles most people live that work
The objectives of this report are to identify how the Energy Drink market is segmented according to demographic, geographic, psychographic and behavioral variables. The Energy Drink industry which is dominated by Red Bull and V energy drinks is worth 151 million dollars and is growing by 47% per year. Energy drinks is the fastest growing category in the soft drink market. I have chosen three different companies in this report to analysis which segments they target, Powerade, Red Bull and Coca Cola. Red Bull is the market leader in energy drinks and Coca Cola which is very good at mass marketing has fallen behind and needs to adopt new and exciting marketing techniques to appeal to the younger demographic. I have also selected three different sub-brands to explain how the product is positioned. I have chosen Powerade Energy Edge, Red Bull Sugar Free and Coca Cola’s new carbonated green tea drink Enviga.
Demographic
Demographic segmentation consists of certain variables such as age, gender, income, ethnic background and family life cycle. Energy drinks are targeted to the 20-34 age brackets. Energy drinks target generation y and generation x by using modern labels and exciting ads with dance music, and extreme sports. The older generations such a baby boomer would be more inclined to stick with coffee for a quick pick me up. There is more emphasis on marketing to males but lately there has been an increased interest in marketing to females by producing low calorie, low sugar energy drinks. Income of the consumer is not an important characteristic because of the low price of energy drinks.
Geographic
Geographic segmentation describes segmenting markets by part of the world, region of the country, market density, market size or climate. Energy drinks practice geographic segmentation by advertising higher in more fast paced, high density urban areas rather than sleep country town. This has to do with the hectic lifestyles most people live that work