Energy drinks


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Energy drinks

  1. 1. Presented by: Polly Dumond Stephanie Kung Giovanna FranciaParisa Mohammadi Shierwin Vigilla
  2. 2. Energy Drinks Energy drink slogans are as different as the drinksthemselves, but they all work to appeal to the idealconsumer crowd. Energy drinks, unlike other beverages,are traditionally marketed to a very small, specificconsumer group. For example, some energy drinkbrands focus on extreme sports enthusiasts, otherscater to students and their energy needs, and still otherstry to attract the video game crowd. Top energy drinksby brand are Red bull in first place, followed by Rockstarand Monster. The target market for energy drinks ismostly male teenagers and young adults.
  3. 3. Summary Energy drinks contain a variety of ingredients, primarily caffeine or guarana and vitamins Industry is driven by health and wellness trends No scientific evidence to prove energy drink claims Energy drinks are primarily consumed by the younger generation, people who are “on-the-go”
  4. 4. Industry History Nearly 20 years old Began in Europe & Asia Red Bull: first in US in 1997 Hansen also based in US in 1997 First became popular with athletes in US - extra energy for workouts & competitions
  5. 5. Industry Sales Currently thought to be the second highest growth sector of the soft drink industry $3.7 billion dollar industry Sales of energy drinks have increased 50% each year since 2001 (total of 516% increase from 2001-2006) Sales are projected to reach $5 billion in 2007 6th largest category in the beverage market
  6. 6. Top Energy Drinks &Beverage Market Growth Top Energy Drinks by Brand % Change % Change Market Brand Dollar Sales Vs. Prior Vs. Prior Share Year Year Red Bull $192,954,700 67.3 57.7 -1.2 Rockstar $30,352,410 105.8 9.1 1.5 Monster $26,137,550 206.9 7.8 3.5 Energy Sobe Adrenaline $18,249,200 31.1 5.5 -1.7 Rush AMP $17,084,970 31.8 5.1 -1.5 Sobe No Fear $13,352,710 91.7 4.0 0.4 Full Throttle $8,886,300 NA 2.7 2.7 HansenÕs $2,252,797 -37.3 0.7 -1.2 Energy HansenÕ Lost s $2,184,804 623.8 0.7 0.5 Energy Rip It $1,803,258 NA 0.5 0.5 Category $334,742,800 70.3 Total Source: Information Resources Inc., Total food, drug and mass merchandise (excluding Wal- Mart) for the 52 weeks ending June 12, 2005
  7. 7. Advertising Expenditures Use distribution as a marketing tool - fashionable night clubs, convenience stores, and gas stations. Red Bull increased it’s advertising expenditures from $2 million in 1998 to more than $40 million in 2003. In 2004, Red Bull spent $600 million Energy drink companies market themselves around extreme sports and adventure. Red Bull supports 240 athletes worldwide to help promote their product Monster is known for its high advertising budget
  8. 8. Competitors Industry is dominated by one product - Red Bull Rockstar is strongest non-Red Bull brand (distributed by Coca-Cola) Followed by Monster (distributed by Hansen) SoBe (distributed by PepsiCo) Xyience first launched energy drinks in 2006
  9. 9. Target Audience Appeals to very specialized market segments Overworked executives/businessmen People “on the go” Truck drivers “Hip”, younger generation  65% of US teenagers (7.6 million teens) say they drink energy drinks  Number of teenage consumers has increased by 3 million over the past 3 years
  10. 10. America’s Most Caffeinated Cities 1. Chicago 2. Tampa 3. Miami 4. Phoenix 5. Atlanta
  11. 11. Red Bull Energy Drinks  Logo: Two charging bulls  Colors: Red, blue, white/silver, yellow  Slogan: “Red Bull gives you wiiiings”  Commercials: Generally cartoons; sometimes spoofs on famous stories (Rapunzel, Frog prince, Aladdin, Adam and Eve, Petrus)
  12. 12. Red Bull Commercial: Rapunzel The prince comes galloping on his horse towards Rapunzel’s tower to save her Rapunzel lets down her hair, but it is too short and the prince cannot reach it Instead, the prince tosses Rapunzel a can of Red Bull, because “Red Bull gives you wiiiings”
  13. 13. Red Bull - Appeals Need to escape  The tower was confining Rapunzel, but the commercial implies that now that she has Red Bull, Rapunzel will be set free  In the original story, Rapunzel is able to free herself with help of the prince and her long hair. However, because her hair is too short in the commercial, she is helpless without the Red Bull. Need for affiliation  This commercial promises that Red Bull can provide the fairy tale ending in which the prince and princess live happily ever after together.  Because Rapunzel will be freed from the tower, she can run off to have a better life with the prince.
  14. 14. Red Bull - Symbolism The product name, Red Bull, implies dominance and aggression. Many people are drawn to this idea and believe that the energy drink can satisfy their lack of these attributes in their lives. Red: energy, strength, and power Yellow: energy Blue: confidence White: perfection All four of these vibrant colors combine to form an energetic and powerful image for Red Bull
  15. 15. Product Promotion Techniques Utilizing familiar stories with new twists implies that Red Bull can improve the original image of the consumer to be better, cooler, and more modern. Humor is used to connect to the audience to imply that the product is fun and exciting.
  16. 16. Underlying Message Red Bull is essential to having a fulfillinglife, because it can make your life excitingand fun. With the energy drink, anyone canconquer things that were never possiblebefore.
  17. 17. Rockstar Energy Drinks Logo: Star Colors: Gold, Black, Red, White Slogan: “Party Like A Rockstar” Ads: Typically with attractive girls in bikinis and projecting a party image
  18. 18. Rockstar Advertisement  Ad setting is in a Jacuzzi during the evening  Two hot females in bikinis, one calling up people to come over for a party and the other pouring herself a rockstar drink in a champagne glass.  Rockstar is being chilled in the ice chest, replacing what would normally be alcohol.
  19. 19. Rockstar - Appeals Need for sex  Women are in bikinis and projecting the “Party like a Rockstar image” in a Jacuzzi. By having the Jacuzzi in the ad it shows a more sexy/intimate way to party.  The woman in the white bikini is on the phone, calling up guys and inviting them to come and get the party started. The other woman in the bikini has already started to “Rockstar it”. The Rockstar drinks are chilling in a ice chest where you would normally see alcohol. By using the Rockstar in place of the alcohol, a sexier image like those seen in alcohol advertisements is projected.
  20. 20. Rockstar - Appeals Cont. Need for affiliation  “Party like a Rockstar” gives off an image to consumers that admire celebrities and want to socialize with or be like them. Many celebrities are known to party like rock stars and many consumers feel compelled to imitate the images they see.  Using sexy women in the ads attract men. The commercial implies that with Rockstar, anyone can attract sexy women like the women in the ad.
  21. 21. Product Promotion Techniques Marketing ads with hip hop artists, famous athletes, actors and actresses, sexy women and men Hiring sexy models to promote their products at clubs, sporting events, concerts, and parties
  22. 22. Rockstar - Message Literal meaning: Rockstar will make you cool, sexy, wealthy, famous, and powerful Drinking Rockstar will make you feel energized, healthy, and strong. If you drink Rockstar, it will also help you look sexy, stay in shape, and feel good all day. Hidden Subtext: Buy our product and you will live, feel, and act like a Rockstar.
  23. 23. Xyience Energy Drinks  Logo: Large circle in the center with smaller circle on the left of it.  Colors: Each drink has a specific color that represents its flavor.  Slogan: “Xtreme science for your active lifestyle”  Commercial: Attractive woman drinking it and dancing with energy.
  24. 24. Xyience - Commercial Attractive woman slouching in chair with obviously no energy to move The woman picks up a can of Xyience energy drink and takes a sip Immediately gains energy and begins dancing Followed by a large explosion in the background
  25. 25. Xyience - Appeals The need for sex – the Xyience add oozes sex appeal and is directly aimed at male population, which is the target audience for energy drinks. Sex appeal is clearly seen throughout the ad, but especially when the model kisses the can at the end of the ad. Also, the clothes (or more accurately, the lack of clothes) in the ad easily capture the attention of male viewers. The need for escape – the illusion that if you drink this energy drink, you could potentially have this woman. Xyience presents an opportunity to escape from an unfulfilling life without the women in the Xyience advertisements. Furthermore, the company plays up the chance to “have” the woman in the ad by providing desktop photos, etc.
  26. 26. Xyience - Appeals Cont. The need to dominate – Xyience promises the consumer power, the ability to go from having absolutely no energy to having full energy, and to possibility to dominate in any situation. Xyience is also the office sports drink of Ultimate Fighting Championship (UFC) which also implies dominance over the weak who do not drink Xyience.
  27. 27. Xyience - Symbolism The subtext of the commercial insinuates that Xyience energy drinks will make any person more desirable which is portrayed by the woman in the commercial and the effect the drink had on her. Black: power, mystery Red: Energy, Strength
  28. 28. Methods used to promote product The music that is used throughout the video clip is a modern genre and most appealing to the younger generation of today’s world. A tool of persuasion we see being used here is an attractive woman presenting a fake image of what the energy drink may turn a person into.
  29. 29. Underlying Message Xyience will give you explosive energy even when you are exhausted. Xyience will make you sexy and bring excitement to your life. Xyience is a blessing to have in your life (expressed when the model kisses the can at the end)
  30. 30. Monster Energy Drinks Logo: Big “creepy” M looks like it’s been slashed or clawed as if a Monster has created it. Colors: Green and White for main logo. Colors of logos on cans are different depending on the product Slogan: “Unleash the Beast!” Commercials: Usually ad prints or internet ads
  31. 31. Monster Print Ad Ad has a race car driver, presuming someone famous and driver of the Monster Energy race care Slogan is on the upper left hand side “Unleash the Beast!” in standard Monster green color Race car is center of shot and has flames coming out of it
  32. 32. Monster - Appeals Need to Affiliation  Race car fans and clubs – many people, a large majority of the men, want to be affiliated with racing Need to escape  The dream of driving a race car; getting to go fast Need to aggress  Racing is an aggressive sport  The flames in the ad also hint at aggression
  33. 33. Monster - Appeals Cont. Need for prominence  Being associated and therefore having the same prominence as the Monster race car driver because the consumer is drinking Monster as well Need for Drink  Monster provides a basic need – drink and promises to deliver energy as well
  34. 34. Product Promotion Techniques Known for their high advertising budget Mainly distribution channels – bars/clubs, gas stations, convenience stores Extreme sports/events promotions Race Car sponsorship Athlete and Celebrity endorsement Internet website and advertisements Attracts fan mail on MySpace pages
  35. 35. Monster - Symbolism The product uses a logo that appears to have been created by a “monster.” Logo is slashed or clawed and the background is green on the primary logo Monster uses various logo colors depending on the product in which they’re placed The primary logo color of green gives off eerie monster vibe
  36. 36. Underlying MessageProduct messages are definitely slanted towardsmales – their target audience. “Unleash theBeast!” really aims to convenience the consumerthat their product will give them a real increase ofenergy and make them tougher, boosts athleticperformance or powers of concentration – thiscould be why it appeals to the extreme sportsfans.
  37. 37. ConclusionThe energy drink industry is a smart industry that is continually developing, expanding, andusing innovative marketing techniques. As a whole, the industry caters to a younger market, andsome energy drink brands aim their products at a health-conscious crowd.With todays health conscious trends, energy drinks have the potential to surpass soft drinks asthe reigning market leader. However, they need to continue to expand their target market andincrease their distribution. If the energy drink companies can obtain some scientific support fortheir claims this might also help to boost sales.Currently the primary target for the majority of energy drink companies is male teenagers andyoung people. These products are designed for a younger generation concerned more aboutinstant satisfaction and fast results than something more long lasting. These attractive claimsappeal to this group of consumers because they are flashy and funny, not because they impartdefinite truth or wisdom.With increasing advertising spend and greater product recognition, energy drink companies arepositioning themselves to become a beverage staple in many homes world-wide.
  38. 38. Resources and Links A Drink for Today: History of the Energy Craze Vemma Verve Marketing Profs Knowledge Exchange : Energy Drink Markets Sports Energy Drink-Makers Energy Fiend : Americas Most Caffeinated Cities
  39. 39. Resources and Links Cont. Energy Drink – Wikipedia, the free encyclopedia The Soda With Buzz ·Double-digit growth – health is the main market driver