Pest Analysis
Pest Analysis
Political: With the growing demand in the energy drink market and possible side effects due to them because of the high caffeine content, the government of India may come up with the regulations that require the product to be tested clinically to prove its benefits and get the local certification too.
Social: Burn position itself as a youth brand. With India being the country with youth centric demographic, it helps BURN to reap the benefits if it position itself as the right product with right pricing and good promotion. However the youth segment of the country is becoming more and more health conscious. Youth now days prefer to have less calorie drinks. Hence it will help burn if it keeps this changing psychographic in mind and design its drinks with lesser calories ( as of now the presence of caffeine and calorie may present a hindrance). The company needs to position the product with keeping in mind about this changing social trend.
Legal: Energy drinks in India may soon have to drop the word energy and settle for a less glamorous descriptive such as caffeinated beverage or caffeinated drink. If the Food Safety and Standards Authority of India (FSSAI) have its way, they may also be asked to carry a warning. The FSSAI has proposed that the words “Not recommended for children, pregnant or lactating women, persons sensitive to caffeine” be displayed in a bold font on every can of energy drink.
On 21st Sept’2012 FSSAI declared that the drinks with 320ppm caffeine have to be labeled as “Caffeinated Drinks”.
Economic
The energy drinks are premium priced products. It being a non alcoholic beverage has a lot of cheaper alternatives. We know that the sales of such products do get affected during recession. Though recession has almost got over, but its after effects is yet to get over. The policy paralysis is slowly changing for the better but still the its has not reached a stage to control inflation. Higher inflation will lead to lesser consumption
Political: With the growing demand in the energy drink market and possible side effects due to them because of the high caffeine content, the government of India may come up with the regulations that require the product to be tested clinically to prove its benefits and get the local certification too.
Social: Burn position itself as a youth brand. With India being the country with youth centric demographic, it helps BURN to reap the benefits if it position itself as the right product with right pricing and good promotion. However the youth segment of the country is becoming more and more health conscious. Youth now days prefer to have less calorie drinks. Hence it will help burn if it keeps this changing psychographic in mind and design its drinks with lesser calories ( as of now the presence of caffeine and calorie may present a hindrance). The company needs to position the product with keeping in mind about this changing social trend.
Legal: Energy drinks in India may soon have to drop the word energy and settle for a less glamorous descriptive such as caffeinated beverage or caffeinated drink. If the Food Safety and Standards Authority of India (FSSAI) have its way, they may also be asked to carry a warning. The FSSAI has proposed that the words “Not recommended for children, pregnant or lactating women, persons sensitive to caffeine” be displayed in a bold font on every can of energy drink.
On 21st Sept’2012 FSSAI declared that the drinks with 320ppm caffeine have to be labeled as “Caffeinated Drinks”.
Economic
The energy drinks are premium priced products. It being a non alcoholic beverage has a lot of cheaper alternatives. We know that the sales of such products do get affected during recession. Though recession has almost got over, but its after effects is yet to get over. The policy paralysis is slowly changing for the better but still the its has not reached a stage to control inflation. Higher inflation will lead to lesser consumption