Energy Drinks Essay
Super caffeinated beverage has a long history of serving in the United States. It has been in business since the last twenty years serving its customers. The percentages of usage of these beverages have been increasing continuously and statistics by far have shown a consistent growth up till 2009. These energy drinks were first made to compensate the shortages of vitamins through legal stimulants which are suppose to be important for mental and physical development and health.
These stimulants are basically a mixture of daily needs such a sugar, water etc which are combined to form a good and sweet taste; amounts vary though from one beverage to another. The trend of beverages emerged from Newcastle, England back in the early 20th century (1927) when Lucozade, a carbonated energy drink was introduced. It had been made at that time to cure patients suffering from flu and other diseases, and had the same essentials of the everyday beverage used today.
A relatively different drink (un-carbonated) was made by the Japanese in the late 20th century (1960’s), named Lipovitan which was followed by Thailand’s Krating Daeng, which used a similar formula as Lipovitan. The US market faced another type of beverage of its kind in 1985. Jolt Cola, was marketed and distributed all of US and is consumed till today. This was followed by Josta in 1995 which was made by Pepsi Co. At the same time, Redbull, an energy drink was also introduced that used a different approach. It targeted young consumers while using effective marketing strategies, integrating lifestyle and personality to itself.
It also gave itself an active and refreshing look with its catchy taglines. Redbull basically emphasized on perceived value which is the instant energy that consumer’s get and not the monetary value; therefore, the pricing strategy of Redbull is still debatable. With the new Redbull energy shots claiming more energy, the debate will further expand. Loyalty however of Redbull is very high as it has a lot of customer across all over the world. It can found in nearly all colleges and universities. The University of Colorado at Denever statistics shows that one of every five drinks a beverage.
The accessibility is very easy. With this situation in hand, Redbull has also entered the liquor market collaborating with Jagermiester and is promoting its new product mixture with Redbull at live concerts shows, and events which has been quite successful. The fact that Redbull focuses on marketing social aspects of life to itself in advertisements has been a major success. The beverage has understood the wants of the market and has been successful to emerge it out from the unconscious consumer and has been winning consistently; delivering more than what its value perceives to be, thus creating customer delight.
Redbull has been an innovator in its field of work, with many following fans, worldwide sales and promotions. However, despite its popularity, critics have been cursing the brand along with others for their usage of Taurine, a part used in making beverages. The aftermath of additive use of Taurine alone and with caffeine is still unsure and awaits further research. Some leading research institutions however, say that too much caffeine is injurious to health in terms of heart damage. Misuse of drinks and consumption in quantity has spread concerns all over the world about the harmful side effects of beverages such as Redbull.
With a heavy consumption rate of 7. 6 million, students in the United States have been under massive threat. This has caused other governments particularly French, Danish and Norwegians to allow limited access to these beverage companies in their country. Every major drink whether Monster, Redbull, or Rockstar provides a feeling of improved performance at times of stress which is a concern. One of the major beverage brands, Monster, was formed in 2001 by Hansen Natural; a southern California based Beverage Company. This brand has been one of the best sellers in the Hansen Natural total company sales.
The name was introduced in 1997 four years before the official launch and a competitive challenge to Redbull, which started off in near 1995. The brand Monster was selected by a bunch of kids of employees of the company, who were within the target market and suggested the idea through a poll. Another marketing strategy used by Monster was the old strategy used by Pepsi to beat coke in 1934: Monster created 16fl/oz in response to 8fl/oz by Redbull and is selling it at the same price. The marketing strategy of Monster is also vibrant, active, energetic and similar to that of Redbull.
Moreover that, it has also expanded its visions beyond Redbull marketing by additionally portraying skydiving, motocross racing and snowboarding as excitements in advertisements. Sex appeal in form of Monster girls has also been on the advertisement strategies to counter Redbull. This has resulted in making Monster one of the best selling beverage brands out of the three rivals; Monster, Redbull and Rockstar. Profitably though, Monster turns out to be second after Redbull because of the fact that it provides 16ft/oz in comparison to 8ft/oz of Redbull for the same price.
Also, Redbull has affiliations with the alcohol industry and has been successfully gaining share of the alcohol market, expanding its market share and target customers. In response to that Monster is trying to expand through making new products for new demographics. It has been doing diversification in Java and juice products: it has been targeting old generation and health conscious with juice beverages in an attempt to increase profitability through expanding market share. However, it has not been very much active in advertising about its products through television and radios even though it tends to increase its market share.
Monster has only been promoting its product in colleges, universities and sponsoring sport event to reach its target market which is a major difference between marketing strategy of Monster and Redbull. Off course Monster also takes into account Rockstar, which is one of the competitors formed by a private liquor company in 2001. Rockstar has a target market of 72 million adults and teenagers particularly in generation Y (Kotler & Armstrong, 2008). Those who run this brand are a group of young individuals that lack focus and needs more assistance.
The backend authority of Rockstar is young teenagers who sought to have to clear dedication yet in working properly and thus neglect in skills required to work in a corporate world. Even though sales had declined 10% in 2008 due to recession, Rockstar had shown 14% market share which was a tremendous performance. Rockstar had also signed in an agreement with Pepsi Co. in 2008 in order to try to become a leader in energy drinks but in order to do that Rockstar needs to be dealing with new trends such as energy shot beverages. This is because Rockstar market is age of 12 and 30.
However, those who want to experience a change are more. Many consumers of Rockstar are of age 35 with females. Imitating a fun loving and extra ordinary life, Rockstars’ unruly consumers who want to enjoy life just like movies are buying it. Even though it seems that marketing campaigns of Rockstar are similar as of Monster, they differ completely: they follow more for the same strategy and add in 100% Gluten free factor that might attract in health conscious people. Also, they claim that its milk potent thistle is the best of its kind and has a competitive edge.
They also try to uplift the customer price conscious nature which by keeping the price half as that of Monster. While Rockstar tries to increase its share by marketing campaigns, many followers ask about the reasons that are leading Rockstar to a lower rank of third level. Firstly, it might be that they are not communicating well with the customers who may not be aware of the benefits of Rockstar. Secondly, lack of shelf space in leading stores is causing much of a hassle for the brand and is not providing enough boosts to sales; much of the space is taken over by Redbull and Monster.
Thirdly, advertising campaigns are not in effect and the brand is dependent on word of mouth. Moreover, slogans like other beverage companies have made can really help in familiarizing the name among masses that might get prompted to buy the product after listening to its slogan. Colorful cans are also another option which would attract customers, particularly females to buy the product. Because of the marketing inefficiencies, Rockstar has been low in promoting its product. The matter of fact is that many of the customers don’t even know about the offering of Rockstar in eleven flavors.
Its focus restricted to only thrill seeking segment has not been effective and now in a attempt to make itself a leader in industry, its dealings with Pepsi Co. has given yet another chance to save itself. However, it would have to give up portion of the management of product to Pepsi Co. in order to market Rockstar completely.
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C. 3. “Red Bull International. ” Red Bull. Online. 1 www. RedBull. com June 30 2009. 4. “One Can of Red Bull May Increase Risk of Hear Damage, Study says. ” fox news. com. August 15, 2008. July 2 2009. http://www. foxnews. com/printer_priendly_story/0,3566,404261,00. html 5. “Teen Abusing Energy Drinks, Doctor Fear” Fox News. com. October 31, 2006, June 27, 2009. http://www. foxnews. com/printerfriendly_story/0,3566,226223,00. thml 6. Hein, K. (2009, February 19). PepsiCo Signs Rockstar to Distribution Deal. Retrieved July 4, 2009, from Brandweek: http://www.
brandweek. com/bw/content_display/news-and-features/direct/e3i120e70a153d46e4bf6f9cb975981bbcc? imw=Y 7. In Another Sign of Sludgy Economy, Energy Drink Growth Stalls. (2008, August 10). Retrieved July 4, 2009, from Media Buyer Planner: http://www. mediabuyerplanner. com/entry/33723/in-another-sign-of-sludgy-economy-energy-drink-growth-stalls/ 8. Kotler, P. , & Armstrong, G. (2008). Principles of Marketing (12th ed. ed. ). Upper Saddle River, New Jersey: Pearson Prentice Hall. 9. McKay, B. (2009, February 20). Pepsi Fortifies Position in Energy-Drink Market.
Subject: Energy Drinks,
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 25 December 2016
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