Energy drinks

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  • This is absolutely brilliant presentation . Shoumitro there could be some synergies in our work . can you email me sanjay.uk@gmail.com I am currently based in UK.
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Energy drinks

  1. 1. ENERGY DRINKS MARKET SCENARIO INDIA Prepared by Shoumitro Gupta
  2. 2. Indian Market <ul><li>1.5 million cases consumption per annum </li></ul><ul><li>250 ml cans priced between Rs. 70-Rs.85/-per can </li></ul><ul><li>Energy value = 112.5 kilo calories </li></ul><ul><li>Growth potential - 50% year on year </li></ul>
  3. 3. Indian Market Drivers <ul><li>New energy drinks entering Indian market regularly - imported or domestic produced. </li></ul><ul><li>Imported brands entering market are establishing themselves as a safe & healthy alternative to cola drinks. </li></ul><ul><li>Teenagers who are below 18 years prefer energy drinks to get “kick” rather than consuming hard liquor. </li></ul>
  4. 4. Target Groups <ul><li>School going teenagers below 18 years - affordability and parental approval factors; </li></ul><ul><li>College students – alternative to hard liquor and price factor. Also some religions prohibit liquor consumption; </li></ul><ul><li>Young working adults – prefer non alcoholic beverages to boost stamina, get over high work stress and cope with fast paced lifestyle. </li></ul>
  5. 5. Target Markets <ul><li>Social and Sports clubs </li></ul><ul><li>Health Centers </li></ul><ul><li>Spas </li></ul><ul><li>Gyms </li></ul><ul><li>Youth Events, College annual festivals; </li></ul><ul><li>Music concerts, Rock shows; </li></ul><ul><li>Lounge Bars, Discotheques, Restaurants; </li></ul><ul><li>School and College canteens; </li></ul><ul><li>Sports events like Bike races, Car races etc. </li></ul><ul><li>Department stores, hypermarkets, supermarkets </li></ul>
  6. 6. Market realities <ul><li>Positive response from trade partners and consumers and market witnessing growth; </li></ul><ul><li>Energy drinks new buzzword for party-goers, also used as a mixer; </li></ul><ul><li>70% of crowd coming into bars orders energy drinks making alcohol a second choice; </li></ul><ul><li>People lead hectic lifestyle, packing in 25 hours a day, limit to what body can take, which is the reason for growing demand for energy drinks in India. </li></ul>
  7. 7. Market scenario <ul><li>Market for energy drinks growing fast for last 5 years; </li></ul><ul><li>Incredible rise in products being launched with innovative new ingredients, claims and consumer targets; </li></ul><ul><li>Events and right kind of promotions most vital aspect in this business; </li></ul><ul><li>Celebrity endorsements makes the drinks all the more appealing for the younger generation; </li></ul><ul><li>Cans and bottles designed to identify with consumers to make them buy and come back for more; </li></ul><ul><li>Some manufacturers creating “niche” customers like targeting high performing adults rather than teenagers; </li></ul><ul><li>Others formulating their product with NPR which lessens urge to smoke and provides long term health benefits. </li></ul>
  8. 8. Product details <ul><li>Most drinks prepared with composition of methylxanthines, caffeine, natural flavors, herbal components or specific vitamins like vitamin B. </li></ul><ul><li>May also contain addictive ingredients like taurine, guarana, maltodextrin, ginseng, carnitine, inositol, glucuronolactone and ginkgobiloba. </li></ul><ul><li>Most also include artificial sugar; </li></ul><ul><li>Primary active component is generally caffeine. </li></ul><ul><li>Product differentiated from sports drinks, like Gatorade which replenishes body fluids, by aiming to boost energy </li></ul>
  9. 9. Current Players <ul><li>Power Horse- “Free your energy” targets high performing adults instead of teenagers; </li></ul><ul><li>Pepsi’s – “AMP” under the Mountain Dew brand; </li></ul><ul><li>Arizona Beverages – “Extreme Energy” launched earlier; </li></ul><ul><li>“ XXX” Energy drink launched during IPL 2 through Kolkata Knight Riders cricket team ;imported from Dubai </li></ul><ul><li>“ Icecool Energy” imported from Hamburg, Germany, marketed from Kolkata. </li></ul><ul><li>Red Bull imported from Dubai, launched 2003. </li></ul>
  10. 10. Market Players <ul><li>Austria’s Red Bull market leader in India today since launch in 2003; </li></ul><ul><li>Has captured 70% market share; </li></ul><ul><li>Price leader with 335 ml can priced at Rs.110 per serving; 250 ml can @ Rs.85/- & 250ml x 4 pack @ Rs. 299/- </li></ul><ul><li>Major marketing event lined up in 2011 is the Formula One Indian Grand Prix to be held on 30 th October, 2011 near New Delhi; </li></ul><ul><li>Leverage focusing on own “Red Bull Racing” Team which will give huge visibility after June.2011. </li></ul>
  11. 11. Market Players <ul><li>“ SJ XXX” launched by Rs.1000 cr JMJ Group, based in Mumbai recently with 2 variants – Rejuve and Nicofix (formulated with NPR which lessens the urge for nicotine); priced @ Rs. 75/- per 250 ml can. </li></ul><ul><li>“ Xperience Xtreme Xcitement” doing more than providing instantaneous energy, also serving to cater to long term health benefits; </li></ul><ul><li>Aims at reaching sales target of 750,000 cans per month from current sales of 250,000 cans per month; Manufactured at Jebel Ali Zone, Dubai </li></ul><ul><li>Looking to garner annual sales of Rs. 100 crores by 2015. </li></ul>
  12. 12. Market Players <ul><li>Imported & exclusively marketed by Kolkata based Company EKO VIT has launched “ICE COOL” Energy drink priced at Rs. 69/- per 250 ml can; </li></ul><ul><li>Manufactured and exported by Indo- Japan Aussenhandel, Hamburg, Germany; </li></ul><ul><li>This product is giving Red Bull and SJ XXX good competition in the market. </li></ul>
  13. 13. New Launches <ul><li>Luxembourg based “Calidris 28” has announced launch of premium energy drink in 2 flavors – “28 Black & 28 White” with investment of Euros 5 million in India; </li></ul><ul><li>Shall initially launch in Delhi, Mumbai, Kolkata, Bangalore & Hyderabad; </li></ul><ul><li>Spread to Tier II & III cities within 2-3 years with further investment of Euros 3 million. </li></ul>
  14. 14. New Launches <ul><li>Gurgaon based “Hector Beverages” energy drink maker selling a lemon flavored energy drink – “Tzinga” launched with Rs. 6 crores investment; </li></ul><ul><li>Tzinga is selling at an affordable price point of Rs. 20 for a 200 ml pack in this non- alcoholic, ready- to- drink category where most beverages cost Rs.80 per can. </li></ul>
  15. 15. Other Players <ul><li>Amul India has launched India’s first domestically produced energy sports drink – “Stamina”; </li></ul><ul><li>Rasna Beverages, soft drink concentrate maker has launched “ Rasna Glucose – D” fortified with glucose and vitamins at four price points – Rs. 3/-, 5/-, 10/- and Rs. 30/-per pack size. </li></ul>
  16. 16. Opportunities <ul><li>The Energy drinks segment is projected to lead in the beverages sector in growth in per capita purchases, volume consumption and total value sales over the next decade; </li></ul><ul><li>The recent announcements by the Delhi and Maharashtra Governments to raise the permissible age of drinking to 25 years minimum will boost sales of energy drinks. </li></ul>

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