A clear vision and strategy has been developed for Gatorade’s new energy drink the Drive Energy Drink. With that said, the next step to developing the product is to determine the attributes, the product life cycle, and positioning and price strategy of the product. Knowing the right look and feel of the drink can increase sales and use of the product. How will the product be introduced to the consumers? How long will the product last on the market until new ideas will need to be developed? What position will the drink have in the market and how will it differentiate among its competitors? What prices will the product be sold at to withstand alleviation from the market? These are all questions that must be answered and properly addressed prior to the development of the Drive Energy Drink. Throughout this paper, Learning Team A will comment and strategize the next steps in developing the Drive Energy Drink…
Andrew Barker, brand manager for Snapple beverages at the Dr Pepper Snapple Group, Inc., has been charged with the task of assessing a new market opportunity for the brand. The decision has been made by senior company management to explore a new energy beverage as a part of a corporate business strategy to focus on opportunities in high-growth and high-margin beverage businesses. Barker must determine whether or not a profitable market opportunity exists for a new energy beverage brand to be produced, marketed, and distributed by the company. He must then make a recommendation as to whether or not the company should introduce a new branded product into the energy beverage market. Any proposal to enter into the beverage market requires a marketing strategy for a branded energy drink, including a first-year sales and profit projection. It is important to note that Dr Pepper Snapple Group, Inc. is the only major domestic nonalcoholic beverage company in the United States without a significant branded energy drink of its own. In order to come to an educated conclusion, Barker must assess Dr Pepper Snapple Group, Inc.’s current situational analysis, analyze the energy beverage market in the United States, and consider the market opportunities available to the company. The problem facing the Snapple brand is how to maintain its competitive position given an environmental threat (energy beverages). They must determine whether or not it is strategically effective to enter the energy beverage market, while at the same time preserving profitability and its customer base.…
Hsu provides appropriate support for thesis. Throughout the argument, Hsu cites from six different journals and articles on the subject. The quotes, examples and statistics all support the reasons why Hsu beliefs on the labeling of these energy drinks. In paragraph 2, Hsu provides statistics from “Teens” on the percentage of teenagers that engage in the drinking of energy drinks, which suggest that this thirty-one...…
| * Industry analysts project an average annual growth rate of 10.5% from 2007 to 2011 (down 32% from 2001-2006) which is attributed to market maturity, increased price and packaging competition, and the entrance of hybrid energy beverages, such as energy water, energy fruit drinks, ready-to-drink energy teas, and energy colas * Energy beverage consumers limit their choice to only 1.4 different brands, which suggests brand loyalty in this market * 5 Major brands (Red Bull, Hansen, Pepsi-Cola, Rockstar and Coca-Cola)…
The main brands in the market right this moment is the Red Bull energy drink, Lucozade and the monster. The red bull is highly purchased by adults as Joris Verster and colleagues from Utrecht University concluded that Red Bull Energy Drink reduces driver sleepiness and enhances driving performance during prolonged highway driving so this energy drink helps the elders in many different ways. Whereas, the Lucozade energy drink is UK’s favourite sports drink catering for athletes’ needs during sport and training. In addition, the brand has been extended to…
Monster are two of the most known energy drinks. Another major competitor that Take It Ez Co. faces are the other antienergy…
The energy drink market is very competitive as it has several major brands in play. These brands include Red Bull, Monster Energy, Rockstar, and PepsiCo’s AMP. The major purchases of the energy drinks are made in the convenience stores, supermarkets, and mass merchandisers as they account of 71% of the retail sales compared to 29 percent of sales made in restaurants and night clubs (Kerin & Peterson, 2010). The market for 2007 to 2011 was predicted to have a 10.2 percent growth rate. Red Bull currently dominates the Energy drink as it boasts an estimate of 43% of dollar sales in 2006 while the closest competitor has a 16% of the sales share (Kerin & Peterson, 2010). It is becoming a fad as I have noticed that there are many new energy drink flavors entering the market and I know that my wife is addicted to those as she drinks one a day in lieu of coffee.…
The best opportunity for the company to gain market share is to target adult energy drinkers from ages 35 to 54 since none of the competitors are catering towards this segment. Bottlers, distributors, and retailers are unlikely to produce and stock more than two SKUs of a new energy drink brand so it would be best to introduce a regular 16ounce single-serve package that consists of two different flavors. Since regular energy beverages hold 80% share of the market selecting regular is best, and since the 16ounce energy drinks represent 50% of case sales in convenience stores and want a high turnover to maintain prevalence in convenience stores its best to go with a 16ounce size. Also having two different flavors to choose from will help increase chance of trial rather than have only one flavor and have regular and sugar free or have one flavor and two different sizes. In positioning the brand the company should differentiate the energy drink from competitors by basis of packaging and select the 16.9ounce single-serve aluminum bottle with a resealable screw cap, and also by ingredients in having lower carbohydrates in the formulation. The energy brand should be distributed to all types of off-premise retailers where beverages are sold for maximum sales.…
The company focuses on their athletic reputation because their fans are also in favor of the same sports that it sponsors. Monster has synergized the idea that energy drinks are a compliment to sports, which seems to be a very accurate summary. Monster is full of valuable benefits, mostly the benefits that it provides to its drinkers. They keep a very open and team-oriented stance with its consumers, making sure that Monster gear and clothing are available as a brand name to everyone (not just its employees) and even allowing opportunities for sponsorship for those who follow and qualify. Monsters continually visits events to share its tasty energy drink, and will almost always be seen on the back of a competing candidate in a sports race. Another great value it keeps up with is its fan sites. With websites to visit like Monsterarmy.com, fans, consumers, and future sponsors are able to keep up to date with upcoming events, win free things, enjoy music, watch videos of Monster-sponsored events, and even apply to be sponsored. Monster also has Facebook and Twitter accounts that are daily kept up. There are many different ways to reach Monster, which cannot be said for other energy drinks who aren’t reaching out to its target market as strongly. This brings us to our situational analysis, which explains the great things about Monster Energy, and also the things…
The energy beverage category was the fourth largest nonalcoholic beverage category in America during 2006. While it wasn’t among the top three, it was the fastest growing beverage category. The energy beverage market is primarily led by three big name brands including Red Bull, Monster Energy, and Rockstar. This market also encompasses over a few hundred smaller name brands that position themselves very similarly to the top name brands. All of these brands together proudly boasted estimated retail dollar sales of over $6 billion…
Gatorade and Powerade have always been at battle with each other for the top energy drink brand in the world. The high demand for these great products has only increased the competitive sprit. To get consumers to buy their products and convince that their product is better than the opposing opponents product, they must shows different slogans, Ads and celebrity spokesmen to sell their products.…
It is important for everyone to do their part to conserve energy. Our resources, such as water, natural gas, oil, coal and the water species are limited. We have to save some for the future. Another reason is that some of these resources pollute the environment. We have to be careful since it causes damage to the environment.…
| Sports drink growing at 15% per year; fastest growing category among beverages; high income group, females are more favorable to GreenOx thus potential market exists, Sport drinks are considered as image building of the store…
To understand how alcoholic energy drinks are marketed, it is critical to examine the popularity of nonalcoholic energy drinks among youth. Teenagers and young adults are thecore consumer group for these products. Thirty-one percent of 12- to 17-year-olds and 34 percent of 18- to 24-year-olds report regular consumption of energy drinks. Nonalcoholic energy drink producers promote youth consumption using “grassroots” level marketing strategies, as opposed to traditional channels (such as television, radio, magazine, and outdoor advertising). Companies are looking for “one-on-one relationships” gained through events, extreme sports sponsorships, Internet interactions, text messaging, and communication among users on Internet sites such as MySpace and Facebook. Alcoholic energy drink producers have built on the popularity of nonalcoholic energy drinks in two ways:…
All though I knew energy drinks were bad, little did I know, “Health professionals believe the boost that energy drinks provide comes from the high levels of caffeine in each drink. Caffeine is the most commonly consumed drug in the world. It can be found naturally in plants or can be artificially manufactured and added to food and beverage”. (Crane) Today as I observe high school and college students, they have their hand clutched to an energy drink. The reason why I drink energy drinks in the morning and during the day is to wake up. I usually grab a monster a sixteen ounce can, and I finish it in my morning classes. By my own observations monster do give off that energy of alertness and I’m more awake. As…