enrgy drinks mr project

8/12/2019 Enrgy Drinks Mr Project

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M.R.Project

By Barkha Fatnani

Class: T.Y.Bcom

Div: B

Roll no. 188

[MARKET RESEARCH STEPS

FOR ENERGY DRINKS]


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INTRODUCTION

Energy drinks have now become the fastest growing sector within the beverage industry. Energy

drinks are expected to top coke and pepsi sales in the next 10 years. However, there has always

been a health concern over the market leading brands because of their high sugar and caffeine

content.

Red Bull is the industry leader. Red Bull has already occupied a giant market share worldwide

(60% by volume) in energy drink segment. In India, the consumer acceptance growth rate of red

bull is significantly less in comparison with the market share that it has already gained globally

specifically in European and US markets. The positioning of red bull in Indian markets is limited

to the youth especially for BPO people within age limit of 19-28 years.

The research has been conducted on the basis of identifying the reason for limited acceptance for

this brand and exploring the possibility of increasing consumerization level in India for this

brand. Hence the problem statement of the project is: To identify and analyze the reason offailure of red bull energy drink promotion in Indian market and possibility to increase consumer

preference.

When conducting a research study, the process includes a progression of related steps leading to

the final results. While not always linear, the process includes the following steps in this general

order. The questions listed below need to be considered when initiating the research process.

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1. Identifying the Need/Problem

Identifying the need or essentially the reason for conducting research is the key driver for the

rest of the process. The reason or problem initially identified for the research may end up tobe different once this question is reviewed and discussed.

What do you want to know? What problem will the research address, or what need is to be satisfied? How will the research relate to or support specific organizational, operational or

marketing goals?

Energy Drinks: Problem Statement

Sale of energy drink in India not as competitive as international counterparts.

Research ObjectivesAfter detailed review of the research following objectives are to be determined:

i. To understand and identify the energy drink market in India.ii. To understand consumer preference and their consuming habits.

iii. To analyze the market opportunities and drawbacks.


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2. Selecting a Research Professional

Once it is decided to proceed with a research project, who will do it is the next question.

Who will conduct the research? Is the selection process sole source or competitive? Do you need to develop and distribute a Request for Proposal (RFP)? Do you want a proposal for a specific research project or rather only gather

qualifications from a number of suppliers (for future reference or RFP)?

-------------------------------------------------------------------------------------3. Choosing the Appropriate Methodology

This is typically determined by the research professional after discussions to identify thespecific needs the research is to address. It may entail one or a combination of

approaches e-mail/Internet survey telephone on-site intercept one-on-one in-depth interviews focus groups secondary research (from existing resources) Energy Drinks:

Research design

The method used is basic research method (exploratory)

Data collection method: The respondents were asked to fill an online questionnaire

Data collection place: Google drive was chosen to upload the questionnaire through whichlink was generated and forwarded to various respondents. Thus convenient sampling is used

to get the responses.

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4. Developing the survey instrument

What and how many questions are to be asked? Who is to be asked? Survey format; e.g. paper and pencil, hand-held computer, etc. Energy Drinks:Sample Design


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Sampling Method- The sampling method used is stratified sampling (probability sampling

method). As each group has small variation within itself but there is significant variation

between different stratas (groups).

Sample size- As 20-24 crore (source- Business Hindu Line) people drink energy drink in

India. To determine the sample size we have conducted pilot study of 18 respondents. We

found that out of 18 respondents, 3 respondents prefer to have energy drink and 15 people donot prefer to have energy drinks.

-------------------------------------------------------------------------------------5. Conducting the research

This is the research professionals responsibility. An understanding of the interviewingprocess and timing should be clearly delineated within the Proposal.

-------------------------------------------------------------------------------------6. Tabulating and analyzing the results

After the survey response data are collected they are input into a computer andtabulated into an organized detailed table format. The research professional shoulddiscuss various ways to segment, i.e., cross-tabulate the data tables.

The written analysis, performed by the research professional, should be rather detailedand address the initial purpose and goals for the research study. The format should be

specified in the project Proposal.

Summary of key findings recap of the methodology detailed narrative and tabular analysis conclusions and (optional) observations Energy Drinks:

Overall awareness behavior:

Respondents Frequency Percent Valid Percent CumulativePercent

Aware 50 41.67% 41.67% 41.67%

Unaware 70 58.33% 58.33% 100.00%

Total 120 100.00%


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Overall buying behavior:

Respondents Frequency Percent Valid Percent Cumulative

Persent

Buyer 29 23.33% 23.3% 23.33%

Non buyer 91 76.67% 76.67% 100.00%

Total 120 100.00%

42%

58%

Awareness

aware

unaware

24%

76%

Buying Behavior

buyer

non-buyer


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Gender Buyer Analysis:

Gender Frequency Percent Valid Percent Cumulative

Percent

Female 10 34.17% 34.17% 34.17%

Male 19 65.83% 65.83% 65.83%Total 29 100.00%

It was found from the survey that energy drink segment in Indian market is driven by approx

66% of male consumers.

Gender Awareness:

Female Frequency Percent Valid Percent Cumulative

Percent

Aware 26 65% 65% 65%

Unaware 14 35% 35% 100%

Total 40 100%

34%

66%

Genderwise Buyer Distribution

female

male


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Male Frequency Percent Valid Percent Cumulativepercent

Aware 54 67.50% 67.50% 67.50%

Unaware 26 32.50% 32.50% 100.00%

total 80 100.00%

It was observed from the study that awareness about the energy drink among the male and

female is almost same.

65%

35%

Awareness among Females

aware

unaware

67%

33%

Awareness among Males

aware

unaware


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Age Group:

Age Group

Awareness

Frequency Percent Valid Percent Cumulative

Percent

1520 1 2.99% 2.99% 2.99%

2025 24 47.76% 47.76% 50.75%2530 21 41.79% 41.79% 92.54%

30 and above 4 7.46% 7.46% 100.00%

Total 50 100.00%

1

24

21

4

0

5

10

15

20

25

30

15-20 20-25 25-30 30&above

Awareness


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Age Group

Buyers

Frequency Percent Valid Percent Cumulative

Percent

1520 1 2.86% 2.86% 2.86%

2025 13 45.71% 45.71% 48.57%

2530 12 40.00% 40.00% 88.57%30 and above 3 11.43% 11.43% 100.00%

Total 29 100.00%

It could be identified that age group 2025 and 2530 respondents are most potentialbuyers and can be considered as target market for positioning any new brand or vice versa.

Income Group:

Income range

Awareness

Frequency Percent Valid percent Cumulative

Percent

Less than 3 lacs 14 28.57% 22.86% 22.86%

35 lacs 17 33.77% 40.00% 62.86%

More than 5 lacs 19 37.66% 37.14% 100%

total 50 100%

1

1312

3

0

2

4

6

8

10

12

14

15-20 21-25 26-30 30 & above

Buyers


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Income range

Buyers

Frequency Percent Valid percent Cumulative

Percent

Less than 3 lacs 6 22.86% 22.86% 22.86%

35 lacs 12 40.00% 40.00% 62.86%

More than 5 lacs 11 37.14% 37.14% 100%

total 29 100%

It can be observed that 3 -5 lac income range people are the main consumer for energy drinkand income range of more than 5 lacs is the potential customer that can be targeted for

positioning the brand.

0

5

10

15

20

less than 3 lacs 3-5 lacs more than 5 lacs

14

17

19

awareness

0

2

4

6

8

10

12

less than 3 lacs 3-5lacs more than 5 lacs

6

1211

buyers


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BEHAVORIAL SEGMENTATION;

Brand preference:

Brands Frequency Percent Valid Percent Cumulative

percent

Red Bull 14 50% 50% 50%

Cloud 9 4 16% 16% 66%Power Horse 1 2% 2% 68%

Rhino 2 8% 8% 76%

Current Bullet 1 2% 2% 78%

Amway XL 3 10% 10% 88%

Pepsi SoBe 1 2% 2% 90%

Gatorade 1 2% 2% 92%

Coca Cola burn 2 8% 8% 100%

Total 29 100% 100%

It is clearly visible that preference for red bull energy drink is predominant over other brands.

Frequency of usage:

14

4

1

2

1

3

1

1

2

0 2 4 6 8 10 12 14 16

Red Bull

Cloud 9

Power horse

Rhino

Current bullet

Amway XL

Pepsi soBe

Gatorade

Coca Cola burn

Brand Preference


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It can be concluded that respondents buying behavior is not regular. Its only occasional as

most of the respondents prefer it during parties, social gathering, etc.

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0

2

4

6

8

10

12

14

16

18

everyday couple of times a

week

once a week couple of times a

month

on occassions like

party, social

gatherings

Frequency

Respondents Frequency Percent Valid Percent CummulativePercent

Everyday 1 3% 3% 3%

A couple of times a

week

2 7% 7% 10%

Once a week 3 10% 10% 205

Couple of times amonth

6 21% 21% 41%

On occasions likesocial gatherings, etc

17 59% 59% 100%

Total 29 100%


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7. Presenting the results...the facts (and a few other points)

An in-person presentation may be part of the project proposal. The client and

researcher should work together to determine the content, format, timing etc.

Energy Drink:Energy drink market in India: it was found that only 23% of the respondents consume energy drink and awareness

level is also very less at around 4% of the total population.

Survey result revealed that energy drink segment in Indian market is driven byapproximately 66% of male consumers though the awareness level is almost same in

both the cases.

It could be identified that age group2025 and 2530 respondents having incomerange 3-5 lacs or above are most potential buyer and can be considered as targetmarket for positioning any new brand or vice versa.

Red Bull market in India:

It was clearly observed that the preference for red bull energy drink is predominantover other brands.

Though Red Bull is market leader, its awareness among people is still less. 32%population never heard about it.

-------------------------------------------------------------------------------------8. Implementation

how can the findings and results be applied to help meet your goals?

Energy Drinks:Recommendations:

Awareness among the people need to be increased to promote energy drink byintroducing proper marketing mix strategy.

An integrated marketing is carried out would minimize the illusion among potentialbuyers about the adverse effect of energy drink on health.

Aggressive marketing strategy if adopted could benefit the placing of brand image inconsumer mind particularly the target group age 20-39 years with an income of 3 lac

plus.

Price can be reduced further to stimulate more buying tendency.------------------------------------------------------------------------------------------------------------------------------------------

enrgy drinks mr project

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