NapNock energy shot


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NapNock energy shot

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NapNock energy shot

  1. 2. Energy Shots <ul><li>Energy shots offer a simple proposition: from a concentrated potion of caffeine, vitamins and amino acids, consumers get the functional “bang” that they receive from an energy drink but without having to drink all the liquid of a whole energy beverage. </li></ul><ul><li>Small portable bottles </li></ul><ul><li>Fast and strong effect </li></ul><ul><li>Wide application </li></ul><ul><li>Daily consumption </li></ul>
  2. 3. Energy shots vs. substitutes Energy Drinks: diluted - high volume of liquids (usually) high in sugar big bottle - less convenient perceived as a drink for teenagers Coffee: time consuming lower effect (usually) not portable unhealthy
  3. 4. Case study - USA <ul><li>The first energy shot was launched in 2004 </li></ul><ul><li>Supported by an educational campaign from the leading brand, the market size reached $340m in three years and an estimated $1.2b in 2010 </li></ul><ul><li>According to New Nutrition Business*, the market will continue to expand at 40-50% in the short term and will reach as much as $2.5b in 2012 </li></ul><ul><li>With the price/litre around 5x higher than for the conventional energy drink (see next slide), and the price per portion 50% higher, the energy shot segment offers uniquely profitable growth opportunity </li></ul><ul><li>* - New Nutrition Business, </li></ul>
  4. 5. Caste study - USA * Source: NNB Surveys in Wal-Mart, Albertsons
  5. 6. Caste study – EU <ul><li>Sales rose from 150$ million to 350$ million from 2009 to 2010 and still growing. Projected market size in 2012 is 1$ billion </li></ul><ul><li>Similar to the US market, price per portion is 40-50% higher for the energy shots vs energy drinks </li></ul><ul><li>UK market is more advanced compared to the mainland Europe and has the market structure similar to the US </li></ul><ul><li>Other EU markets are fragmented and lack a clear market leader </li></ul><ul><li>Per capital consumption in Europe is almost three times lower than in US </li></ul><ul><li>* - New Nutrition Business, </li></ul>
  6. 7. The dynamics of US and EU market size for energy shots * -
  7. 8. Potential marketplace analysis <ul><li>We have selected the most promising markets by analyzing a number of metrics: </li></ul><ul><li>total population </li></ul><ul><li>target market size (24-35 years old) </li></ul><ul><li>working hours per week </li></ul><ul><li>original NapNock rating* </li></ul><ul><li>Conclusion : top countries for energy shots are Germany, UK, France, and Italy </li></ul><ul><li>* Attached in the appendix </li></ul>
  8. 9. Marketplace rating * NapNock includes with rating of individualism, uncertainty, masculinity, working hours, population, road network, students, price level in each EU country. Countries Population Target market size Working hours Original NN rating* Germany 82m 9m 52 3 U.K. 62m 7.6m 55 1 France 65m 7.8m 52 4 Poland 38m 6.6m 56 11 Italy 60m 7.2m 55 2
  9. 10. Is there still any potential in EU? <ul><li>EU energy DRINKS market size amounts to €6 billion* and is still growing 6-8% annually </li></ul><ul><li>Western Europe usually lags 2-3 years from the US </li></ul><ul><li>EU energy SHOT market is growing 50%-60% annually </li></ul><ul><li>There is still no clear market leader in the mainland Europe </li></ul>
  10. 11. Why Red Bull is not successful? <ul><li>No clear and distinctive marketing strategy - 0.25l can is not the same as 60ml bottle </li></ul><ul><li>They continue to target 14-23 year olds, whereas, in our opinion, the biggest potential is in a more mature 25+ segment </li></ul><ul><li>RedBull exited the US energy shot market in 2011 because of low sales (only 10-15% market share 2010)* </li></ul><ul><li>* - </li></ul>
  11. 12. NapNock energy shot <ul><li>60 ml energy shot </li></ul><ul><li>Ginseng and g inkgo b iloba combo reduces negative impact on the heart </li></ul><ul><li>No sugar – no crash </li></ul><ul><li>Long lasting effect (4 - 5 hours) </li></ul><ul><li>Innovative taste with green tea and lemon </li></ul>
  12. 13. Competitive advantages over RedBull , Burn and Monster <ul><li>Natural ingredients: ginkgo biloba and ginseng </li></ul><ul><li>Longer lasting effect because of ginkgo biloba and higher dose of caffeine </li></ul><ul><li>Healthier: lower impact on the heart </li></ul><ul><li>Target market 24-35 (careerists) </li></ul><ul><li>Independent energy shot brand </li></ul><ul><li>Guerilla marketing campaign </li></ul>
  13. 14. NapNock consumer <ul><li>Age: 24-35 years </li></ul><ul><li>Workaholic careerist </li></ul><ul><li>Self confident </li></ul><ul><li>Prefers quality goods </li></ul><ul><li>Social life: loves to travel, party, socializing </li></ul><ul><li>Moto: “Work hard, party harder” </li></ul><ul><li>Features: bold, vibrant, imaginative </li></ul><ul><li>Competence: reliable, efficient </li></ul>
  14. 15. NapNock marketing campaign <ul><li>The NapNock TRIP to ASIA </li></ul><ul><li>NapNock 48 hours trip (without any sleep) </li></ul><ul><li>NapNock flashmob </li></ul><ul><li>Guerilla marketing video </li></ul><ul><li>POS material (aggressive posters, fake money, t-shirts etc.) </li></ul><ul><li>WEB (beverage industry webpages, travelling webpages) </li></ul>
  15. 16. Appendix
  16. 17. Energy shots vs. substitutes Product Strenghts Weaknesses Energy Shot <ul><li>Convenient and portable packaging </li></ul><ul><li>Quick and easy to consume </li></ul><ul><li>Price-premium value for money </li></ul><ul><li>Long lasting effect </li></ul><ul><li>The need to place it near the cash desk </li></ul><ul><li>High price (education of consumers) </li></ul>Energy Drink <ul><li>Refreshment and stimulation drink </li></ul><ul><li>Low cost </li></ul><ul><li>H igh amou n t </li></ul><ul><li>Can not close the can </li></ul><ul><li>Target market - younger people (16-21) </li></ul><ul><li>Not portable </li></ul>Coffee <ul><li>Low cost </li></ul><ul><li>Lifestyle </li></ul><ul><li>Wide market </li></ul><ul><li>Older consumers </li></ul><ul><li>Time consuming </li></ul><ul><li>Lower effect </li></ul><ul><li>No additional ingredients </li></ul><ul><li>Not portable </li></ul><ul><li>Bad for teeth </li></ul>
  17. 18. Competitor analysis Brand Target market Slogan A. Ingredients Pricing Quick energy 30-45 Small But Powerful Caffeine 175mg Taurine 2.25 EUR 5 hour energy shot 30-45 Drink it in seconds. Feel it in minutes. Lasts for hours. Caffeine 138mg Taurine Glucoronolactone Citicoline Tyrosine 2.13 EUR Burn energy shot 18-24 Burn. Fire to drink. (same as e.d.) Caffeine 80mg Taurine 200mg Glucoronolactone 70mg 1.99 EUR Ubershot 18-25 Energy for life with no lows Caffeine 210mg Taurine 1050mg Glucoronolactone 210mg 2.15 EUR On Go shot - Shot it in seconds. Feel it for hours. Caffeine 177mg Taurine Glucoronolactone Ginseng 2.13 EUR
  18. 19. Active Ingredients <ul><li>Ginkgo Biloba – natural ingredient which increases mental activity and metabolism </li></ul><ul><li>Ginseng – natural ingredient with a unique ability to increase human endurance and mental strength </li></ul><ul><li>Glucoronolactone – provides fast recovery from fatigue cause by exercise </li></ul><ul><li>Caffeine – psychoactive stimulant which increases energy </li></ul><ul><li>Taurine – helps to rebuild stamina </li></ul>
  19. 20. Health Focus International’s study (32 countries)
  20. 21. Statistics: Targegt by age Source: Country Population 20-35 age Percentage United Kingdom 62,262,000 14,000,000 22% France 63,136,180 12,283,012 19% Germany 82,329,758 0% Ireland 4,581,269 1,320,551 29% Sweden 9,354,462 1,918,156 21% Norway 4,973,200 958,214 19% Netherlands 16,683,400 3,125,100 19% Poland 38,186,860 0%
  21. 22. Statistics: Students Country Students (thousands) Ranking Germany 2500 1 UK 2415 2 France 2200 3 Poland 2150 4 Italy 2000 5 Spain 1800 6 Russia 1500 7 Greece 637.6 8 Netherlands 618 9 Belgium 425 10 Sweden 422 11 Czech 416 12 Country Students (thousands) Ranking Hungary 397 13 Portugal 373 14 Austria 308 15 Finland 296 16 Slovakia 235 17 Denmark 234 18 Swithzerland 233 19 Norway 219 20 Lithuanian 210 21 Ireland 182.6 22 Estonia 68.4 23
  22. 23. Statistics: Working hours Country Working hours per week Rating Portugal 62 1 Estonia 60 2 Austria 59 3 Sweden 58 4 Hungary 56 5 Ireland 56 6 Poland 56 7 Italy 55 8 UK 55 9 Spain 55 10 Czech 53 11 Finland 53 12 Country Working hours per week Rating Netherlands 53 13 Norway 53 14 Denmark 52 15 France 52 16 Germany 52 17 Swithzerland 52 18 Greece 51 19 Lithuanian 51 20 Belgium 50 21 Russia 50 22 Slovakia 49 23