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Errickson_MarketAnalysisReport

Market analysis report for Rock Star Energy Drink. This Report outlines a summary, research and key findings and provides recommendations to further advance the networking and overall performance of the establishment through careful analysis.

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Page 1
A Market Analysis for
Rockstar Energy Drink
Bethany Aline Errickson
Full Sail University
Project & Portfolio II: Business and Marketing
October 15th
, 2023
Page 2
EXECUTIVE SUMMARY
This is a market analysis report for one of the worlds most successful energy drink
brands, Rockstar Energy. The Rockstar Energy Drink company is now owned by the parent
company PepsiCo that’s been the known trademarked “Pepsi-Cola” company since 1903 (Union,
2023). Over the course of the century, the well-established brand has expanded and acquired 28
subsidiary companies including Rockstar Energy Drink that was founded in 2001 (PepsiCo,
n.d.). The examination of technological advances, ecological, and other demographics will be
observed in this data analysis report. Recommended innovations and modifications regarding the
revamp of the Rockstar Energy Drink brand and strategy will be provided for the company to
further expand their future network opportunities for distribution, direct to sales outreach, and
partnerships to grow as leaders in energy drink market.
Page 3
OBJECTIVE
This analysis report has been created to demonstrate ways the Rockstar Energy Drink
company can develop more brand awareness and efficient marketing, strategies to enhance the
brand’s overall growth. This report will determine future projections into the energy drink
market and the ranking position of the Rockstar Energy Drink brand. By careful examination of
this data analysis report and modification regarding the innovations necessary to revamp the
Rockstar Energy Drink brand, the company can further expand their future network opportunities
for distribution, direct to sales outreach, and partnerships to grow as leaders in energy drink
market shares.
RESEARCH METHODOLOGY
The information gathered for this report is a compilation of researched data mainly based
from the Statista database, and other related academic resources. The research conducted for this
report are within the year brackets of 2001 to current qualitive, nutritional and statistical
information gathered. This report will also determine future projections into the energy drink
market as a whole.
Page 4
RESEARCH AND KEY FINDINGS
The Rockstar Energy Drink company produces beverages that aim to fuel consumers who
need and love to do-it-all, giving a bold, refreshing boost of energy that are full of benefits and
loaded with a range of flavors to choose from (Przez, 2023). Rockstar Energy Drink is a
company that was founded in 2001 by Russ Weiner who later sold the company to PepsiCo in
2020, in a complete ownership deal that was worth more than $4 billion (Forbes, n.d.). With
PepsiCo as the new parent company, the Rockstar Energy Drink had their entire brand revamped
with over 20 Rockstar Energy products available at convenience and grocery outlets, in over 30
countries but mainly in the Northern and West hemisphere. Ever since the parent company
PepsiCo revamped the Rockstar Energy Drink brand, the product line has been on a stable
incline in sales and total revenue.
Energy drinks have made their way to being one of the most popular energy supplements.
Energy drink marketing aligns with extreme sports, night life, concerts, and the working class
with long hours (The Strategy, 2023). The Rockstar Energy Drink was specifically intended for
the consumption use from men and
women or non-binary individuals
aged 18-34 years old with no
targeted race. Rockstar Energy’s
market targets active individuals
with physical high-performance
levels in exercise or extreme
sports, the business class, working
class, students, nightlife crowd and
Page 5
other people who are passionate about having an adventurous, high-energy lifestyles. About 12%
of ages 12–17-year-old’s have also reported to consume the Rockstar Energy Drinks products
habitually (Gitnux, 2023). Some children as young as three years old are trying energy drinks.
All energy drink companies that contain harmful stimulates are exploiting their followers
and consumers including star athletes when sponsoring them or when using their celebrity
endorsements and partnerships. Energy drinks contain large amounts of sugar, or additives which
aide in tooth decay, weight gain and diabetes (Ginn, 2023). Society is becoming more health-
conscious and there may be a demographic shift in consumer preferences that will deter
consumers away from product lines that contain the unhealthy stimulants that are found in most
energy drinks. It’s noted consumers usually develop symptoms of caffeine intoxication with
symptoms that include anxiety, insomnia, muscle twitching, and restlessness. More serious side
effects have been documented with upsetting an individual’s gastrointestinal and contributing to
triggering ischemic strokes and leading to epileptic seizures. Studies also indicated a strong
relationship between energy drinks and dental erosion. (Alsunni, 2015).
Rockstar Energy is also packaged in aluminum cans which is the most carbon-intense of all
producing materials. Aluminum is responsible for 1.1 billion tons of carbon dioxide which is about
4% of global emissions (Berker, 2022). A recent study by NielsenIQ found that 78 percent of US
consumers expressed the importance of a sustainable lifestyle. More than 60 percent of
Page 6
respondents said they’d pay more for a product with sustainable packaging that Rockstar Energy
has not yet considered. (Am, J. B, 2023). Different governments have the right to implement
stricter health and safety standards for energy drinks due to their high caffeine content which can
enforce the company to reformulate their product to fit their countries standards. This can be in
the form of providing additional
labeling, or even change packaging or
marking strategies to follow the
countries laws and regulations,
including banning product lines
altogether or enforcing age buying
brackets. (Armstrong, 2018).

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Errickson_MarketAnalysisReport

  • 1. Page 1 A Market Analysis for Rockstar Energy Drink Bethany Aline Errickson Full Sail University Project & Portfolio II: Business and Marketing October 15th , 2023
  • 2. Page 2 EXECUTIVE SUMMARY This is a market analysis report for one of the worlds most successful energy drink brands, Rockstar Energy. The Rockstar Energy Drink company is now owned by the parent company PepsiCo that’s been the known trademarked “Pepsi-Cola” company since 1903 (Union, 2023). Over the course of the century, the well-established brand has expanded and acquired 28 subsidiary companies including Rockstar Energy Drink that was founded in 2001 (PepsiCo, n.d.). The examination of technological advances, ecological, and other demographics will be observed in this data analysis report. Recommended innovations and modifications regarding the revamp of the Rockstar Energy Drink brand and strategy will be provided for the company to further expand their future network opportunities for distribution, direct to sales outreach, and partnerships to grow as leaders in energy drink market.
  • 3. Page 3 OBJECTIVE This analysis report has been created to demonstrate ways the Rockstar Energy Drink company can develop more brand awareness and efficient marketing, strategies to enhance the brand’s overall growth. This report will determine future projections into the energy drink market and the ranking position of the Rockstar Energy Drink brand. By careful examination of this data analysis report and modification regarding the innovations necessary to revamp the Rockstar Energy Drink brand, the company can further expand their future network opportunities for distribution, direct to sales outreach, and partnerships to grow as leaders in energy drink market shares. RESEARCH METHODOLOGY The information gathered for this report is a compilation of researched data mainly based from the Statista database, and other related academic resources. The research conducted for this report are within the year brackets of 2001 to current qualitive, nutritional and statistical information gathered. This report will also determine future projections into the energy drink market as a whole.
  • 4. Page 4 RESEARCH AND KEY FINDINGS The Rockstar Energy Drink company produces beverages that aim to fuel consumers who need and love to do-it-all, giving a bold, refreshing boost of energy that are full of benefits and loaded with a range of flavors to choose from (Przez, 2023). Rockstar Energy Drink is a company that was founded in 2001 by Russ Weiner who later sold the company to PepsiCo in 2020, in a complete ownership deal that was worth more than $4 billion (Forbes, n.d.). With PepsiCo as the new parent company, the Rockstar Energy Drink had their entire brand revamped with over 20 Rockstar Energy products available at convenience and grocery outlets, in over 30 countries but mainly in the Northern and West hemisphere. Ever since the parent company PepsiCo revamped the Rockstar Energy Drink brand, the product line has been on a stable incline in sales and total revenue. Energy drinks have made their way to being one of the most popular energy supplements. Energy drink marketing aligns with extreme sports, night life, concerts, and the working class with long hours (The Strategy, 2023). The Rockstar Energy Drink was specifically intended for the consumption use from men and women or non-binary individuals aged 18-34 years old with no targeted race. Rockstar Energy’s market targets active individuals with physical high-performance levels in exercise or extreme sports, the business class, working class, students, nightlife crowd and
  • 5. Page 5 other people who are passionate about having an adventurous, high-energy lifestyles. About 12% of ages 12–17-year-old’s have also reported to consume the Rockstar Energy Drinks products habitually (Gitnux, 2023). Some children as young as three years old are trying energy drinks. All energy drink companies that contain harmful stimulates are exploiting their followers and consumers including star athletes when sponsoring them or when using their celebrity endorsements and partnerships. Energy drinks contain large amounts of sugar, or additives which aide in tooth decay, weight gain and diabetes (Ginn, 2023). Society is becoming more health- conscious and there may be a demographic shift in consumer preferences that will deter consumers away from product lines that contain the unhealthy stimulants that are found in most energy drinks. It’s noted consumers usually develop symptoms of caffeine intoxication with symptoms that include anxiety, insomnia, muscle twitching, and restlessness. More serious side effects have been documented with upsetting an individual’s gastrointestinal and contributing to triggering ischemic strokes and leading to epileptic seizures. Studies also indicated a strong relationship between energy drinks and dental erosion. (Alsunni, 2015). Rockstar Energy is also packaged in aluminum cans which is the most carbon-intense of all producing materials. Aluminum is responsible for 1.1 billion tons of carbon dioxide which is about 4% of global emissions (Berker, 2022). A recent study by NielsenIQ found that 78 percent of US consumers expressed the importance of a sustainable lifestyle. More than 60 percent of
  • 6. Page 6 respondents said they’d pay more for a product with sustainable packaging that Rockstar Energy has not yet considered. (Am, J. B, 2023). Different governments have the right to implement stricter health and safety standards for energy drinks due to their high caffeine content which can enforce the company to reformulate their product to fit their countries standards. This can be in the form of providing additional labeling, or even change packaging or marking strategies to follow the countries laws and regulations, including banning product lines altogether or enforcing age buying brackets. (Armstrong, 2018).
  • 7. Page 7 There’s no challenge with celebrity endorsements considering the establishment’s parent company has the ability to provide generous sponsorship with extreme lifestyles in sporting events, concerts, and the like. The company has attracted 19 % of energy drink consumers in the United States. Only 16 % of energy drink consumers in the United States say they are likely to use Rockstar Energy Drink again (Kunst, 2023). By analyzing brand awareness, brand usage, and the loyalty of energy drink brand consumers, reports indicated that the Rockstar Energy Drink company ranked fourth place in the energy drink market industry in sales (Sabetta, 2023). So, the question arises, how does the Rockstar Energy company start attracting the unswerving, loyal fans of its long-standing competitors?
  • 8. Page 8 The Rockstar Energy Drink company excels by having a tremendous variety in their product line, where their advertising and marketing strategy requires improvement. Rockstar Energy is in good financial health with PepsiCo being their parent company and having numerous celebrity and extreme sporting event endorsements. This aides in the company’s strong ability to grow partnerships. PepsiCo’s Rockstar Energy brand has partnered with Spotify to launch a new global platform called Press Play in Europe and the Middle East. Press Play gives an app-embedded concert experience on Spotify by allowing users to tune in to live music events! The new launch is expected to encompass partnerships with several chart-topping artists (Smith, 2023). Rockstar Energy is also entering the Augmented Reality (AR) and Virtual Reality (VR) world providing interactive events that are only available through online streaming, using the latest technology. Being associated with extreme sports and concert events, this innovation provides immersive experiences for its audience (The Strategy, 2023). Rockstar Energy Drink has also created a National Spotlight Tour in the US where its sales are primarily distributed. Each national event of the Rockstar Energy Spotlight Tour will feature live music performances from the respective artists alongside other local opening acts (PepsiCo, 2020). This social marketing campaign strategy stimulates the local entertainment economy by creating more opportunities for new, local upcoming artists and as well as bringing brand awareness with the excitement of well-known artists headlining on the tour.
  • 9. Page 9 A country’s economic prosperity is directly linked with disposable income and the spending analytics on nonessential products. Inflation can negatively affect sales due to the increase the costs of raw materials which ultimately transfers to the consumer resulting in higher prices. With payment methods evolving, and trends like digital wallets, cryptocurrencies, and contactless payments becoming popular, there are ways to earn direct to customer sales and make purchasing easier. Loyalty programs are another creative way for companies to gain customer retention. Data shows that customers spend 67% more when they’re part of a customer loyalty program (AnnexCloud, 2023). Brand affinity mainly focuses on engagement and longevity but once mastered can be another innovative way to sell their products using technology and loyalty programs to their advantage in direct-to-consumer sales online. As more consumers shop online, Rockstar Energy Drinks are growing popular in e-commerce platforms and direct sales (The Strategy, 2023).
  • 10. Page 10 CONCLUSIONS Rockstar Energy Drink company has maintained a steady incline in sales since its revamp in 2020 but is consistently trailing behind its main competitors. All energy drink brand competitors are projecting an unstable market within the next decade as there have been numerous reports of the negative long-term effects when consuming energy drinks. As nations across the globe are growing more health conscious, society may be making a demographic shift in consumer preferences that turn consumers away from product lines that contain the unhealthy stimulants that are found in most energy drinks (Alsunni). The alterable government regulations and standards within different countries are subject to change at any time. If laws regarding product standards change and deem a ban on any of these harmful factors, including packaging, it would indefinitely affect the future of product margin sales and overall revenue. With the Rockstar Energy Drink’s remarkable variety of flavors and health options in beverages, there are still areas for improvement regarding the use of their strong resources and advertising campaigns. RECOMMENDATIONS As the world is growing more health conscious, society may be making a demographic shift in consumer preferences that seek more organic sources of energy. There are a number of alternatives; natural sources of energy that are plant based or healthier drink options. Some new goals the Rockstar Energy Drink company need to consider are their resources to make their product overall more environmentally safe at the most efficient cost. Considerations on the long- term health effects should motivate the brand to enhance a safer formula for consumption by their target market to avoid a future epidemic crisis or any legal repercussions. Perhaps the
  • 11. Page 11 Rockstar Energy Drink brand should become one of the first eco-friendly, ethical brands and raise awareness in their new marketing strategy before its rivals. The Rockstar Energy brand needs to stay consistent with their technological advances and start a reward and loyalty program with their customers. The company has now earned its position as a long-standing seller in the market to affirm brand affinity. Direct to consumer sales could be considered in addition to creating innovative ways to sell their products with their live streaming partnered platforms to increase overall revenue. Crowdsourcing is a marketing promotional strategy that involves collecting included ideas or voting from the general public to guide a company's product development and advertising efforts (Indeed, 2022). This is fun strategy proposal to gain both customer engagement and loyalty to kickstart a new rewards program by the spring of 2024. In order to progress as a lead seller in the market, the company should be focusing on healthier products and creating brand partnerships by utilizing their many endorsements as part of their advertisement strategies to gain more new and loyal consumers.
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