An Overview of Energy Drinks - Assignment Example

FishFul Thinker What are energy drinks? (An overview of energy drinks) Energy drinks are “beverages that contain, besides calories, caffeine in combination with other presumed energy-enhancing ingredients such as taurine, herbal extracts, and B vitamins” (Heckman, Sherry and Gonzalez de Mejia , par 2). Like sports and nutraceutical drinks, energy drinks fall under the functional beverage category (Weinstein , par 2). The industry leader is Red bull with a 42.6% market share as of 2008 (Heckman et al. , par 7). According to BevNet, there are more than 1,000 small entrants in the industry who were inspired by Red Bull’s success (Helm , par 4). These small players have adapted bold marketing tactics to upstage each other; each one wanting to sponsor activities which are riskier than the last event staged by a competitor. What are the different energy drinks? The different energy drinks are AMP, Full Throttle, Rockstar, Monster, Guru, Hydrive, SoBe Adrenaline Rush, NOS, Sambazon Energy, Venom Energy-Black Mamba, Cranergy, Zola Wildlife and Red Bull. Have these energy drinks sponsored individuals or do they just sponsor events? (If not, will they be able to/willing to sponsor individuals) These energy drinks sponsor sports events such as BMX racing, motocross, skiing, paintball, volleyball and other extreme sports such as bridge jumping or skydiving without a parachute (Helm , par 2). Most of these energy drinks sponsor teams and events rather than individuals. It is questionable whether they will be willing to sponsor individuals since most of them sponsor team sports. Of late however, as the competition for market share is becoming stiffer, some energy drink companies started sponsoring wild stunts of individuals such as bridge jumping and even skydiving without parachutes. An example of this is Red Bull’s backing up a jumper who parachuted off Millau Bridge in France (Helm , par 9) Do they have the funds to do a sponsorship? (Wildlife, Red Bull, Monster) Yes, these companies have the funds to do major sponsorships considering the size of their companies, especially Red Bull and Monster. Wildlife though may have fewer funds for sponsorship as compared to Red Bull and Monster. Will they be around to fulfill a long-term sponsorship? (Mainly Wildlife) Wildlife is only a small player in the industry; one thinks that it may not be able to fulfill a long term sponsorship, compared to the leading energy drinks in the industry such as Red Bull and Monster. The target markets of energy drinks are mostly male teenagers and young adults with ages ranging from 18 to 34 years old whose lifestyle is always on the go (Heckman et al., par 3). Athletes are a major market for energy drinks. How much would they be able to give? The amount that they will be able to give will depend on the company’s allowable budget for sponsorships. Wildlife may not afford to give a huge amount unlike the bigger companies, Red Bull and Monster, but one believes that they can still sponsor Fishful Thinker. Depending on how big the event is, Wildlife can donate as much as 50 cases containing 24 - 16 oz. cans. Each case costs $62.40; therefore, total sponsorship will be $3,120 (Wildlife Outfitters, LLC 1). Wildlife can probably add $380 more and provide for posters and tarpaulins for a total sponsorship of $3,500. These figures were arrived at assuming that there will be 500 expected participants in the event. The amount may decrease or increase depending on the number of attendees and the budget of Wildlife. Will it do regional sponsorships or does he have to be national? Wildlife will do regional sponsorships rather than national because of the size of the company and its probable limited budget for sponsorships. Wildlife has sponsored regional sponsorships such as the banquet of the Kootenai Valley Chapter of Pheasants Forever, the Coastal Conservation Association – Acadiana Chapter banquet, the Rocky Mountain Elk Foundation annual banquet, the Georgia State Duck Calling Contest, the Mississippi Oil Marketers Tradeshow and the MS Fishing Tournament. All these sponsorships are not on a national level but only on a regional level, which means that Wildlife’s prioritizes regional sponsorships. Will the sponsorship increase sales for Wildlife? Yes, the sponsorship will increase the sales for Wildlife because it will generate greater exposure for the product. Furthermore, the Fishful Thinker members and followers are the target market of Wildlife. What are Fishfuls goals/intentions? Fishful Thinker started as an organization who taught group of kids to fish then moved on to give professionally guided fishing. Presently Fishful is reaching a wider audience base through the media. Fishful’s goal is to drive angler days and influence buying decisions. It is their intention to make angler education simple and to promote it as a fun activity which encourages confidence. Does it make sense for Chad to get an energy drink sponsor? Yes, it makes sense for Chad to get an energy drink sponsor because Fishful Thinker is focused on outdoor activities specifically, fishing. An energy drink is essential since fishing is an activity which requires a lot of time outdoors and those engaged in this activity requires a lot of energy. Would beer/alcohol be better? Beer and alcohol is not a good alternative to an energy drink. It does not promote good health and would not energize the person drinking it. They do not promote mental alertness and enhance performance. These products tend to make a person sleepy and not active which is what is required of a fishing event. Beer and alcohol are not appropriate sponsors for sports or outdoor activities. Alcohol dehydrates the body, which is not exactly what Fishful Thinker followers need. Beer and alcohol usually sponsor parties and not outdoor sports events. How much sponsorship can Chad LaChance potentially get? The amount of sponsorship that Chad can get will depend primarily on the budget of the sponsoring energy drink. Another factor which will have an impact on the sponsorship amount is the breakdown of expenses for an event which Chad will present to the company. How does he go about getting an energy drink sponsor? Chad can get an energy drink sponsor buy setting a meeting with the person in charge of sponsorships. He is to discuss what Fishful Thinker is about, its aims, goals, objectives and purpose. Chad must submit a sponsorship proposal to the energy drink company so the company can review it and determine whether they have the right match with Fishful Thinker. It is important that Chad emphasize the number of members and followers of Fishful Thinker to make it worthwhile for the energy drink company to sponsor the event. Works Cited Heckman, M.A., K. Sherry and E. Gonzalez de Mejia. "Energy drinks: An assessment of their market size, consumer demographics, ingredient profile, functionality, and regulations in the United States." 29 April 2010. Wiley Online Library Web site. 1 December 2011 . Helm, Burt. "Energy drinks build their buzz." 5 January 2005. Bloomberg L.P. 4 December 2011 . Weinstein, Mindy. "Energy drinks dominate the functional beverage market in the U.S. ." 30 April 2010. Institute of Food Technologists Web site. 1 December 2011 . Read More