energydrinks

8/8/2019 EnergyDrinks

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Energy DrinksEnergy drink slogans are as different as the drinks

themselves, but they all work to appeal to the idealconsumer crowd. Energy drinks, unlike other beverages,

are traditionally marketed to a very small, specificconsumer group. For example, some energy drinkbrands focus on extreme sports enthusiasts, otherscater to students and their energy needs, and still others

try to attract the video game crowd. Top energy drinksby brand are Red bull in first place, followed by Rockstarand Monster. The target market for energy drinks ismostly male teenagers and young adults.


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Summary

Energy drinks contain a variety of ingredients,primarily caffeine or guarana and vitamins

Industry is driven by health and wellness trends No scientific evidence to prove energy drink

claims Energy drinks are primarily consumed by the

younger generation, people who are on-the-go


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Industry History

Nearly 20 years old Began in Europe & Asia Red Bull: first in US in

1997 Hansen also based in US

in 1997 First became popular with

athletes in US - extraenergy for workouts &competitions


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Industry Sales Currently thought to be the second highest

growth sector of the soft drink industry

$3.7 billion dollar industry Sales of energy drinks have increased 50%

each year since 2001 (total of 516% increasefrom 2001-2006)

Sales are projected to reach $5 billion in 2007 6th largest category in the beverage market


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Top Energy Drinks by Brand

Brand Dollar Sales% ChangeVs. PriorYear

Marke tShare

% ChangeVs. PriorYear

Red Bull $192,954,700 67.3 57.7 -1.2

Rockstar $30,352,410 105.8 9.1 1.5

MonsterEnergy

$26,137,550 206.9 7.8 3.5

SobeAdrenalineRush

$18,249,200 31.1 5.5 -1.7

AMP $17,084,970 31.8 5.1 -1.5

Sobe No Fear $13,352,710 91.7 4.0 0.4

Full Throttle $8,886,300 NA 2.7 2.7

HansensEnergy

$2,252,797 -37.3 0.7 -1.2

Hansens LostEnergy

$2,184,804 623.8 0.7 0.5

Rip It $1,803,258 NA 0.5 0.5

Catego ryTotal

$334,742,800 70.3

Source: Informati on Resources Inc., Total food, drug a nd mass merchand ise (excluding W al-

Mart) for the 52 weeks ending June 12, 2005

Top Energy Drinks&

Beverage Market Growth


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Advertising Expenditures

Use distribution as a marketing tool - fashionablenight clubs, convenience stores, and gas stations.

Red Bull increased its advertising expendituresfrom $2 million in 1998 to more than $40 million in2003. In 2004, Red Bull spent $600 million

Energy drink companies market themselvesaround extreme sports and adventure. Red Bull

supports 240 athletes worldwide to help promotetheir product

Monster is known for its high advertising budget


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Competitors

Industry is dominated by one product - RedBull

Rockstar is strongest non-Red Bull brand(distributed by Coca-Cola)

Followed by Monster (distributed by Hansen)

SoBe (distributed by PepsiCo) Xyience first launched energy drinks in 2006


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Target Audience Appeals to very specialized market segments Overworked executives/businessmen

People on the go Truck drivers Hip, younger generation

65% of US teenagers (7.6 million teens) say they

drink energy drinks Number of teenage consumers has increased by 3

million over the past 3 years


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Americas Most Caffeinated Cities 1. Chicago

2. Tampa

3. Miami 4. Phoenix

5. Atlanta


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Red Bull Energy Drinks Logo: Two charging bulls Colors: Red, blue,

white/silver, yellow

Slogan: Red Bull givesyou wiiiings

Commercials: Generallycartoons; sometimesspoofs on famous stories

(Rapunzel, Frog prince,Aladdin, Adam and Eve,Petrus)


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Red BullCommercial:Rapunzel The prince comes

galloping on his horsetowards Rapunzels tower

to save her Rapunzel lets down her

hair, but it is too short andthe prince cannot reach it

Instead, the prince tosses

Rapunzel a can of RedBull, because Red Bullgives you wiiiings


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Red Bull - Appeals Need to escape

The tower was confining Rapunzel, but the commercial impliesthat now that she has Red Bull, Rapunzel will be set free

In the original story, Rapunzel is able to free herself with help ofthe prince and her long hair. However, because her hair is tooshort in the commercial, she is helpless without the Red Bull.

Need for affiliation This commercial promises that Red Bull can provide the fairy tale

ending in which the prince and princess live happily ever aftertogether.

Because Rapunzel will be freed from the tower, she can run off tohave a better life with the prince.


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Red Bull - Symbolism The product name, Red Bull, implies dominance

and aggression. Many people are drawn to thisidea and believe that the energy drink can satisfy

their lack of these attributes in their lives. Red: energy, strength, and power Yellow: energy Blue: confidence White: perfection All four of these vibrant colors combine to form an

energetic and powerful image for Red Bull


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Product Promotion Techniques Utilizing familiar stories with new twists

implies that Red Bull can improve the

original image of the consumer to be better,cooler, and more modern.

Humor is used to connect to the audienceto imply that the product is fun and exciting.


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Underlying MessageRed Bull is essential to having a fulfilling

life, because it can make your life exciting

and fun. With the energy drink, anyone canconquer things that were never possiblebefore.


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Rockstar Energy Drinks Logo: Star

Colors: Gold, Black, Red,White

Slogan: Party Like ARockstar

Ads: Typically withattractive girls in bikinis and

projecting a party image


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RockstarAdvertisement Ad setting is in a Jacuzzi

during the evening Two hot females in bikinis,

one calling up people tocome over for a party andthe other pouring herself arockstar drink in achampagne glass.

Rockstar is being chilled in

the ice chest, replacing whatwould normally be alcohol.


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Rockstar - Appeals Need for sex

Women are in bikinis and projecting the Party like a Rockstarimage in a Jacuzzi. By having the Jacuzzi in the ad it shows amore sexy/intimate way to party.

The woman in the white bikini is on the phone, calling up guysand inviting them to come and get the party started. The otherwoman in the bikini has already started to Rockstar it. TheRockstar drinks are chilling in a ice chest where you wouldnormally see alcohol. By using the Rockstar in place of thealcohol, a sexier image like those seen in alcoholadvertisements is projected.


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Rockstar - Appeals Cont. Need for affiliation

Party like a Rockstar gives off an image toconsumers that admire celebrities and want tosocialize with or be like them. Many celebritiesare known to party like rock stars and manyconsumers feel compelled to imitate the imagesthey see.

Using sexy women in the ads attract men. Thecommercial implies that with Rockstar, anyonecan attract sexy women like the women in the ad.


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Product Promotion Techniques Marketing ads with hip hop artists, famous

athletes, actors and actresses, sexy

women and men Hiring sexy models to promote their

products at clubs, sporting events,concerts, and parties


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Rockstar - Message

Literal meaning: Rockstar will make youcool, sexy, wealthy, famous, and powerful

Drinking Rockstar will make you feelenergized, healthy, and strong. If youdrink Rockstar, it will also help you looksexy, stay in shape, and feel good all day.

Hidden Subtext: Buy our product and youwill live, feel, and act like a Rockstar.


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Xyience Energy Drinks Logo: Large circle in the

center with smaller circle onthe left ofit.

Colors: Each drink has aspecific color that representsits flavor.

Slogan: Xtreme sciencefor your active lifestyle

Commercial: Attractivewoman drinking it anddancing with energy.


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Xyience -

Commercial

Attractive womanslouching in chair withobviously no energy tomove

The woman picks up a canofXyience energy drinkand takes a sip

Immediately gains energyand begins dancing

Followed by alargeexplosion in thebackground


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Xyience -

Appeals

The need for sex the Xyience add oozes sex appealand is directlyaimed at male population, which is the target audience for energydrinks. Sex appeal is clearly seen throughout the ad, but especiallywhen the model kisses the can at the end ofthe ad. Also, the clothes(ormore accurately, the lack ofclothes) in the ad easily capture theattention ofmale viewers.

The need for escape the illusion that ifyou drink this energydrink, you could potentially have this woman. Xyience presents anopportunity to escape froman unfulfilling life without the women

in the Xyience advertisements. Furthermore, the company plays upthe chance to have the woman in the ad by providing desktop

photos, etc.


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Xyience -

Appeals

Cont.

The need to dominate Xyience promises the consumer power,

the ability to go from having absolutely no energy to having full

energy, and to possibility to dominate in any situation. Xyience

is also the office sports drink ofUltimate FightingChampionship (UFC) which also implies dominance over the

weak who do not drinkXyience.


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Xyience - Symbolism

The subtext ofthe commercial insinuates that Xyience energy

drinks willmake any person more desirable which is portrayed

by the woman in the commercialand the effect the drink had on

her. Black: power, mystery

Red: Energy, Strength


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Methods used to promote product The music that is used throughout the video clip

is amodern genre and most appealing to theyounger generation oftodays world.

A tool ofpersuasion we see being used here isan attractive woman presenting afake image ofwhat the energy drinkmay turn a person into.


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Underlying Message

Xyience will give you explosive energy even

when youare exhausted.

Xyience willmake you sexy and bringexcitement to yourlife.

Xyience is ablessing to have in yourlife

(expressed when the model kisses the can at theend)


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Monster Energy Drinks Logo: Big creepy M looks

like its been slashed orclawed as if a Monster hascreated it.

Colors: Green and Whitefor main logo. Colors oflogos on cans are differentdepending on the product

Slogan: Unleash theBeast! Commercials: Usually ad

prints or internet ads


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MonsterP

rintA

d Ad has a race car driver,

presuming someonefamous and driver of theMonsterEnergy race care

Slogan is on the upper lefthand side Unleash theBeast! in standardMonster green color

Race car is center of shotand has flames comingout of it


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Monster -Appeals

Need to Affiliation

Race carfans and clubs many people, alarge majority ofthe men, want to be affiliated with racing

Need to escape

The dream ofdriving a race car; getting to go fast

Need to aggress

Racing is an aggressive sport

The flames in the ad also hint at aggression


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Monster -Appeals

Cont.

Need for prominence

Being associated and therefore having the same

prominence as the Monster race car driverbecausethe consumer is drinking Monsteras well

Need for Drink

Monster provides abasic need drinkandpromises to deliver energy as well


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Product

Promotion Techniques

Known for their high advertising budget

Mainly distribution channels bars/clubs, gas

stations, convenience stores Extreme sports/events promotions

Race Car sponsorship

Athlete and Celebrity endorsement Internet website and advertisements

Attracts fan mail on MySpace pages


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Monster - Symbolism The product uses a logo that appears to have

been created by a monster.

Logo is slashed or clawed and the background isgreen on the primary logo

Monster uses various logo colors depending onthe product in which theyre placed

The primary logo color of green gives off eeriemonster vibe


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Underlying Message

Product messages are definitely slanted towardsmales their target audience. Unleash theBeast! really aims to convenience the consumerthat their product will give them a real increase ofenergy and make them tougher, boosts athleticperformance or powers of concentration thiscould be why it appeals to the extreme sports

fans.


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Conclusion

The energy drink industry is a smart industry that is continually developing, expanding, and usinginnovative marketing techniques. As a whole, the industry caters to a younger market, and someenergy drink brands aim their products at a health-conscious crowd.

With today's health conscious trends, energy drinks have the potential to surpass soft drinks as

the reigning market leader. However, they need to continue to expand their target market andincrease their distribution. If the energy drink companies can obtain some scientific support fortheir claims this might also help to boost sales.

Currently the primary target for the majority of energy drink companies is male teenagers andyoung people. These products are designed for a younger generation concerned more aboutinstant satisfaction and fast results than something more long lasting. These attractive claimsappeal to this group of consumers because they are flashy and funny, not because they impartdefinite truth or wisdom.

With increasing advertising spend and greater product recognition, energy drink companies arepositioning themselves to become a beverage staple in many homes world-wide.


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Resources and

Links

A Drink for Today: History of the Energy Craze

http://energydrinks.factexpert.com/889-energy-drink-history.php

Vemma Verve

http://vemma-verve.com/

Marketing Profs Knowledge Exchange : Energy Drink Marketshttp://www.marketingprofs.com/ea/qst_question.asp?qstID=12178

Sports Energy Drink-Makers

http://www.bevindustry.com/content.php?s=BI/2004/09&p=9

Energy Fiend : America's Most Caffeinated Cities

http://www.energyfiend.com/category/news/


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Resources and

Links

Cont.

Energy Drink Wikipedia, the free encyclopedia

http://en.wikipedia.org/wiki/Energy_drink

The Soda With Buzz

http://www.forbes.com/forbes/2005/0328/126_print.html

Double-digit growth health is the main market driverhttp://www.beveragemarketing.com/dilworthcsdgrowth.html

http://www.color-wheel-pro.com/color-meaning.html

www.redbull.com/#page=LandingPage.1143632066244-92676986

http://www.rockstar69.com/galleriesP.php?custom=Rockstar%20Mansion%20Shoot

http://www.xyience.com/c-584-video-gallery.aspx

http://www.monsterenergy.com

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