Analyzing Energy Drinks Industry - Essay Example

AMP Energy was again in the news in March 2008 with the launch of three new line extensions; AMP Energy Elevate, AMP Energy Relaunch, and AMP Energy Traction. AMP Energy Relaunch is studded with a pinch of orange citrus flavor, Electrolytes, and B vitamins. AMP Energy Traction will provide soothe with grape flavor, Maltodextrin, and D-ribose. Whereas AMP Energy Elevate contains a mixed berry flavor and L-Theanine. These products are available in the stores in the packing of 16 oz. single-serve cans. AMP Energy Relaunch is also available in 16 oz. 4-packs.

CCL Container and Mistic Brands, Inc. came together for the national launch of Mistic RĒ and for the first time, the recyclable aluminum bottle was used. Then onwards, many energy drinks have started using aluminum bottle cans produced by CCL.

Target Market Description

According to Carolyn Green in “Power Up”, the primary consumers of this segment of beverages are below 30-35 years of age and are predominantly male. Teenagers and students are major target market elements for the companies and fall in the age group of 12 to 30 years (Green, 2006). Also, as per the reports, high sugar level energy drinks are comparatively more popular among children and women, contrary to the strong taste and flavor of energy drinks which are preferred mainly by male consumers. Around 65% of the energy drinks market comprises male consumers.

A large number of energy drinks products are available in the market. The first group consists of various tea and coffee with green tea. The next group consists of traditional energy drinks like Red Bull and a few others. Several experiments have been carried out in this emerging segment of the beverage market like the combination of energy drinks with alcohol like “Hair of the Dog”. Also, the combination of energy drinks and smart drinks has struck the market with brands like NOS.

In the U.S., energy drinks were introduced in the year 1997 with the entrance of Red Bull (Malinauskas et. al, 2007). The energy drink market reached around $400[1] million per fiscal year by 2001. The market valuation in 2005 was around $4[2] billion. The entire energy drink concept was created in Japan in the early 1960s with the creation of Lipovitan.

The major market regions of the energy drinks industry, according to a 2004 survey are (Marketing research, Researchwikis):

Geography

Market Share (%)

Asia Pacific

58.1%

North America

14.7%

Marketing Objective and Communication Objective

Dale Earnhardt Jr. is also proved to be beneficial for Amp promotions. His constant performance is acting as the thrust of this brand. Amp has featured him in ads, and limited-edition cans and has also created a promo where around 70,000 consumers can autograph his car.

As per the reports, the soft drink market is worth around $56 billion with the sports drink market of around $4 billion. This segment is recording an annual growth of about 8 percent

Positioning Strategy and Statement

PepsiCo's strategy includes raising the number of its energy drinks. This will cause their ad expenditures in the segment to rise to $20 million. It will consist of initial TV ads for SoBe Adrenaline Rush and support for SoBe No Fear, Mountain Dew Amp, and Starbucks DoubleShot. The novel trend in the energy drink market is smart energy drinks. SmartPower and NOS brands are the products in this segment of the market.

An Australian company, Red Bull gets the credit for creating the energy drink category with the introduction of its trademark brand in Europe in the year 1987. With the growing popularity of energy drinks in the market, Amp Energy drink is becoming more and more popular, competing with the other drinks in the segment.

Creative Plan

The energy drink segment has become an inevitable part of the nonalcoholic beverage market. It will be a hot-selling item in Convenience stores, liquor stores, and bars. Many energy drink companies are eager to acquire a considerable market share but hardly 10 players will survive in the long run.

The only drawback of these energy drinks is that it leaves the consumer more desperate as soon as the energy source gradually finishes off. This is a very common problem with all the energy drinks available in the market.

It is really important to note that the buyers of these energy drinks are young adults in the age range of 18 to 30 years. It’ll be highly beneficial to target Beverages the teens in the age group of 13 to 17 making them spend money on convenience items.

Amp is the only energy drink with MDX5 that helps in generating instant energy. It tastes like Mountain Dew but with a pinch of citrus and green tea. The presentation of this drink should claim even greater physiological benefits. Something like enormous energy packed in a small bottle with an “Amp” tag. This will act as its USP or major selling idea. Usually drinks with sugar and caffeine are often Contempt by health experts, but even this criticism will be unable to decrease the sales growth.

Advertising Slogan

 AMP. Take a Crack with a Hike

Its articulation with hike can turn all heads up as The Mountain Dew Amp haul is hard to dodge. The smudged design of the can make it unprecedented and difficult to keep away from. It not only provides immense power but also aggrandizes charisma.