7/27/2019 Category Analysis - Energy Drinks

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Category: Functional Drinks Sub category Energy Drinks

Primary Ingredients: Taurine (benefits the muscles. stimulant), Guarana (Stimulant, twice thecaffeine in coffee), ginseng (may act as a stimulant), caffeine (same as coffee) (There are more

ingredients, but these are the main onesapart from soda, sugar etc)

SWOT Analysis:

Strength:

Fashionable Different taste when compared to the soft drinks Help maintain alertness during late night work or partying Strong flavours might aid its use as a mixer for alcoholWeakness:

Low entry barriersingredients are commonly available and easy to source Expensive (Rs.70-85 range with almost no exceptions) No patent on recipesOpportunities:

Increasing awareness and penchant for physical activity among the affluent Rising affluence usually leads to more expensive purchases Rising population of young people (15-30?) who want an alternative to soft drinksThreats:

Governments threatening to ban energy drinks in many countries (or atleast ban sale to minors) High sugar content might discourage affluent health conscious people from energy drinks Reports of adverse health effects in consumer magazines

Key Players:

Red Bull, XXX, Monster, Cloud 9, Burn

Redbull: (Tag line: It gives you wings)

1. Owned by Red Bull GmbH is an Austrian company created in 1987. It is the most popularenergy drink in the world.

2. They have associations with F1 and many extreme sports. They also own a few football clubs3. The target group are young males

Major Ad Campaigns:

1. Red Bull gives you wings is their primary tag line with the spot being a cartoon with the redbull drinker flying away after drinking red bull.

7/27/2019 Category Analysis - Energy Drinks

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2. Pick-up trucks in the Red-Bull colours and logos drive around cities. They stop at locationslike malls or events and hand out free samples to onlookers. These also act as mobile

displays.

3. They also tie up with schools and colleges during events to promote Red-Bull. A lady toting aRed-Bull can shaped bag hands out the cans during the event to onlookers

4. One of their major publicity events was getting David Coulthard to drive on the Bandra WorliSea Link in Mumbai (2009) (David Coulthard then used to drive for Red Bull)

XXX: (Tagline: Xperience Xtreme Xcitement)

1. Owned by GT&T India Pvt Ltd, XXX is the brainchild of Sachiin Joshi (spelled with 2 is on thewebsite)

2. Launched on 23rdDecember 2009Alliances

1. Tie-up with Kolkata Knight Riders2. Parties (From the looks of it)3. Tie up with Coffee Day to sell XXX energy drinks

Cloud 9: (Tag: Get high everytime you drink)

1. Owned by Goldwin Healthcare Pvt Ltd. MD Mr. Priyesh Ganatra2. Claims of a healthy energy drink3. Has plans of diversifying into other areas such as tonic water etc

Ad Campaigns:1. Apart from usual Ads, cant seem to find anything

Burn: (Tagline Can you take the heat?)

1. Owned by Coca Cola2. 2ndentry by Coke into energy drinks market in India3. Target youngster and socially active adults regulars at pubs, clubs, resto-bars and discos4. Presence in more than 75 countries5. Launched in 2009

Ad Campaigns:

1. Presents DJ Sasha (2011)http://www.theresearchpedia.com/research-articles/india-energy-drinks-market-facts-trends-and-

opportunities

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