Preview

Marketing Energy Drinks to Americas Youth

Best Essays
Open Document
Open Document
4122 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Marketing Energy Drinks to Americas Youth
Marketing Energy Drinks

to

Americas Youth

By:

COMM 3172 – 601

Summer Semester I – 2009

Marketing Energy Drinks to Americas Youth

Background:

As I started collecting information for this paper, I soon realized that the energy drink industry is a very small (18 percent) part of the beverage industry, but a very dominant part to say the least. Interestingly, the major players in the industry, Monster Energy, Red Bull, and Rockstar, have intentionally veered away from the conventional mediums used to promote products. They instead have chosen marketing mediums that appeal more to their target markets and the “live life on the edge” lifestyles that they live. Monster for example, shies away from mass market advertising; instead they focus all of their sales efforts and marketing muscle on sponsoring action sports athletes, artists and musical, events and tours. All of this ties in with the company’s overall philosophy that Monster isn’t just a beverage, but a lifestyle brand (Landi). “The key is for us (Monster) to retain what we do best, which is marketing in an unconventional way and keep that feel for the brand,” said Rodney Sacks, CEO of Hansen Natural Corp. “Monster is all about action sports, punk rock music, partying, girls, and living life on the edge” (Landi). The companies that produce energy drinks are using the current popularity of action sports such as motocross, skateboarding, BMX, etc., to showcase their products and to further brand awareness. It’s not coincidental that the demographic that participates in these sports and idolizes its professional athletes are also the same demographic that consumes energy drinks. You’ll see very few TV commercials or print ads promoting energy drinks but when you turn on the ESPN produced X-Games, just about every athlete participating is sponsored by Red Bull, Monster, or Rockstar. John Lee, director of sports marketing for Monster Energy Drink says, “We don’t do print ads or



Bibliography: Campanelli, M. and Lee, J., eMarketingandCommerce.com (2007). “Social Media Tips from Monster Energy” (accessed June 9, 2009) Available at: http://www.emarketingandcommerce.com/view/106 Landi, H., Hall, M., and Sacks, R., Beverage World (2009) “Monster Energy: A Mighty Force” (accessed June 9, 2009) Available at: http://www.beverageworld.com/content/view/35687/ Scribd, BevNet, Research Wikis (2006) “Research Wikis Energy Drink marketing Research” (accessed June 10, 2009) Available at: http://www.scribd.com/doc/3259151/ResearchWikis-Energy-Drinks-Marketing-Research Rajan, A., Reuters (2009) “Hansen’s Monster Takes the Fight to Red Bull’s Turf” (accessed June 10, 2009) Available at: http://www.reuters.com/article/ousiv/idUSTRE5313N320090402 Francella, B., CS News Online (2008) “Energy Drink Sales Growth Running Out of Steam?” (accessed June 10, 2009) Available at: http://www.csnews.com/csn/index.jsp Search: “Energy Drink Sales” Berry, B., Agri-Food Trade Service (2008) “The Energy Drink Segment in North America” (accessed June 11, 2009) Available at: http://www.ats.agr.gc.ca/us/4387_e.htm LeBlanc, P., Austin American Statesman (2008) “The Buzz on Energy Drinks – Energy Drinks Booming in Popularity” (accessed June 11, 2009) Available at: http://www.statesman.com/ Search: “The Buzz on Energy Drinks” Hein, K., and Rohdy, D., Brandweek (2001) “A Bull’s Market – the Marketing of Red Bull Energy Drink” (accessed June 11, 2009) Available at: http://findarticles.com/p/articles/mi_m0BDW/is_22_42/ai_75286777/?tag=content;col1 Moritz, A., Tribune Business News (2008) “Think Before Using an Energy Drink: Colleges” (accessed June 11, 2009) http://apps.isiknowledge.com.jproxy.lib.ecu.edu/summary.do?qid=5&product=WOS&SID=1BONI6HlgO3hemOl6fP&search_mode=GeneralSearch Ness, G., Chief Strategy Officer, Sundog.net (2006) “Marketing to College Students 101 (accessed June 11, 2009) Available at: http://www.sundog.net/sunblog/posts/marketing-to-college-students-101/

You May Also Find These Documents Helpful

  • Good Essays

    The popular demand for energy drinks have placed a certain focus on side effects of consuming these drinks when it comes to children and adolescents. The label reads that children should not consume it, but what defines the term children?…

    • 243 Words
    • 1 Page
    Good Essays
  • Satisfactory Essays

    | Sports drink growing at 15% per year; fastest growing category among beverages; high income group, females are more favorable to GreenOx thus potential market exists, Sport drinks are considered as image building of the store…

    • 503 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Redbull Case

    • 5814 Words
    • 24 Pages

    References: CONCLUSION Ultimately, the success of Mateschitz as a sports entrepreneur is in many ways unparalleled. While other entrepreneurs have similarly developed successful businesses, and other sports owners and innovators have perhaps achieved greater success within the sporting realm, few companies rival Red BuU 's innovation and perseverance in utilising sport as a key driver of business and extension of the core brand. Remaining true to the company 's core values and identity, Mateschitz has used sport to further promote and grow the Red Bull brand and reach a broader audience of fans and consumers internationally. By stressing authenticity and establishing the brand as an icon of the extreme sports subculture, the company has pioneered not only the energy drinks market, but also the use of sport as a brand extension. Given the success Red BuU has achieved over the past 25 years, and what is known about entrepreneurship and the role it plays in sport.…

    • 5814 Words
    • 24 Pages
    Powerful Essays
  • Good Essays

    Lululemon Market Research

    • 1064 Words
    • 5 Pages

    We also believe longer-term growth in athletic participation will be reinforced as the aging Baby Boomer generation focuses more on longevity. In addition, we believe consumer purchase decisions are driven by both an actual need for functional products and a desire to create a particular lifestyle perception. As such, we believe the credibility and authenticity of our brand expands our potential market beyond just athletes to those who desire to lead an active, healthy, and balanced life.…

    • 1064 Words
    • 5 Pages
    Good Essays
  • Best Essays

    Advertising to Youth

    • 2677 Words
    • 11 Pages

    As mentioned earlier, youth are incredibly important to the international market, in “The Advertising Age”, Jeff Jensen mentions that in todays youth market “Selling out is not only accepted, it’s considered hip” (Klein, pg. 65) Corporate sponsorships have become a regular occurrence, as a conglomerates advertise during large sport events, concerts and or even host entire contests . This provides for a perfect channel of penetration to a large amount of youth as they are usually key observers of these types of events. An example of this would be the how McDonald’s was a sponser of the Vancouver Olympic Winter Games. Throughout the two week duration of the games, McDonald’s sponsorship was seen everywhere, which was ironic considering that most food offered at McDonald’s is high in fat and cholesterol. Regardless of the facts, the company promoted themselves as a product of healthy active living by having athletes endorse their products. An earlier campaign featured pop icon Justin…

    • 2677 Words
    • 11 Pages
    Best Essays
  • Better Essays

    Rodwan, J. (2005, June). Winning campaigns: Sports marketing in the USA. Soft Drinks International. 34-35.…

    • 982 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Andrew Barker, brand manager for Snapple beverages at the Dr Pepper Snapple Group, Inc., has been charged with the task of assessing a new market opportunity for the brand. The decision has been made by senior company management to explore a new energy beverage as a part of a corporate business strategy to focus on opportunities in high-growth and high-margin beverage businesses. Barker must determine whether or not a profitable market opportunity exists for a new energy beverage brand to be produced, marketed, and distributed by the company. He must then make a recommendation as to whether or not the company should introduce a new branded product into the energy beverage market. Any proposal to enter into the beverage market requires a marketing strategy for a branded energy drink, including a first-year sales and profit projection. It is important to note that Dr Pepper Snapple Group, Inc. is the only major domestic nonalcoholic beverage company in the United States without a significant branded energy drink of its own. In order to come to an educated conclusion, Barker must assess Dr Pepper Snapple Group, Inc.’s current situational analysis, analyze the energy beverage market in the United States, and consider the market opportunities available to the company. The problem facing the Snapple brand is how to maintain its competitive position given an environmental threat (energy beverages). They must determine whether or not it is strategically effective to enter the energy beverage market, while at the same time preserving profitability and its customer base.…

    • 1857 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Our branding strategy is to enter the market by carving a new niche of protein-enriched energizing sports drinks. Our objective is to educate consumers about the new drink, as well as to make a profit and gain market share in the industry. We hope that by being market leaders, our name will become synonymous with the new drink category, and will aid in our sustaining a competitive advantage over the copy-cats that are sure to flock the market after the new products’ introduction and subsequent success.…

    • 2894 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Today’s world is moving faster and faster. Not too often will you find someone drinking coffee to stay awake. Companies today have created a drink that will kick the effect of being tired and feeling drowsy. Energy drinks today come in different sizes and names. They are becoming a growing problem in America today. Coffee is normally considered to be your more older generation not something really suited for a younger crowed like teenagers. But Energy drinks like Monster ,Red Bull, AMP and Rockstar Advertise their product to any one that will drink them . They use movie stars and sports stars to influence consumers. Companies want people to believe that it’s one of the coolest thing to drink on the market. But the labeling and market of these products lack to show the negatives side effects to their product and how it can affect your health. In an article by US news called Are Energy Drinks Really That bad by Anna Medaris Miller. She explains the downsides to all energy drinks today. “Energy drinks aren’t…

    • 943 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Snapple/Dr Pepper Study

    • 766 Words
    • 4 Pages

    The energy drink market is very competitive as it has several major brands in play. These brands include Red Bull, Monster Energy, Rockstar, and PepsiCo’s AMP. The major purchases of the energy drinks are made in the convenience stores, supermarkets, and mass merchandisers as they account of 71% of the retail sales compared to 29 percent of sales made in restaurants and night clubs (Kerin & Peterson, 2010). The market for 2007 to 2011 was predicted to have a 10.2 percent growth rate. Red Bull currently dominates the Energy drink as it boasts an estimate of 43% of dollar sales in 2006 while the closest competitor has a 16% of the sales share (Kerin & Peterson, 2010). It is becoming a fad as I have noticed that there are many new energy drink flavors entering the market and I know that my wife is addicted to those as she drinks one a day in lieu of coffee.…

    • 766 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    The likely decision process of this target market is a simple one. In most economies and markets buying a sport drink would be identified as a limited problem solving decision; as Solomon (2004) describes LPS as having low risk and low involvement from the consumer. However, in some cases it could be perceived as more of a routine problem solving (RPS) decision due to their being few alternatives on the market to choose from, and thus consumers become easily attached to one brand. Another case in point is that it could also been seen as an extended problem solving decision as certain sportspersons will want to know exactly what ingredients and benefits the sports drink offers and will therefore deliberate for quite some time over the alternatives (Hawkins, 1995).…

    • 496 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Sports and Energy drink market is amazingly growing hence consumers and businessmen have started showing interests in this market. Energy drink market has increased because people are working almost 24 hours in a day just to make a livelihood, so it’s difficult to work hard without sleep, rest or energy source. This is one of the reason people made energy drinks as part of their life relying on energy from energy drinks, ultimately contributing to rising energy drinks market. Market players are concerned in improving their ingredients and contents for extra stamina to work without experiencing fatigue.…

    • 327 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Dr Pepper Snapple Case

    • 1423 Words
    • 6 Pages

    In early September 2007, Andrew Barker emerged from a lengthy discussion on the energy beverage market in the United States. As a brand manager for Snapple beverages at the Dr Pepper Snapple Group, Inc., he was charged with assessing whether or not a profitable market opportunity existed for a new energy beverage brand to be produced, marketed, and distributed by the company in 2008. Dr Pepper Snapple Group, Inc. was the only major domestic nonalcoholic beverage company in the United States without a significant branded energy drink of its own. The decision to explore a new energy beverage was made by senior company management as part of a corporate business strategy to focus on opportunities in high-growth and high-margin beverage businesses. After launching a ready-to-drink sports drink, the Dr Pepper Snapple Group, Inc. believed they should put into consideration of introducing a new energy drink beverage.…

    • 1423 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Growing up there was one brand that all professional athletes used in my eyes, Nike. The Swoosh, was the icon that all kids had to have, and why not? All the big time players not only had it, but endorsed it. Ads, which had Michael “Air” Jordan, Bo Jackson, or Wayne Gretsky “The Great One” doing amazing physical feats, always, motivated the crowds. The Nike company new this, and blasted it marketing campaign through all sorts of media. In this essay I will break down this multi-billion dollar company’s marketing techniques in the areas of: customer value, promotional items, marketing’s four p’s of the marketing mix, the segmentation, targeting, and positioning (STP) approach to market the product, Customer Relationship Management (CRM), environmental trends, the largest customer base, its competitors, and ethical marketing for this corporation both stateside…

    • 2640 Words
    • 11 Pages
    Better Essays
  • Good Essays

    The first time I flipped through a Thrasher magazine, I was drawn to the artwork and imagery of the ads as equally as the skateboarding itself. Skateboarding was unlike any other sport I had played up to that point. It was more like art than a sport, with each brand portraying a unique identity and style. And unlike a team name or logo in other sports, the artwork and messaging of each brand was intentionally reflected the background, the interests, and beliefs of the riders on the team and the people behind it. Later through studying art and design I learned that wasn’t a new idea skateboard brands invented, but it was those brands that introduced me to the real power of branding and piqued my interest in it. Now in my career as a designer thus far, no matter what the nature of the project, I’ve strived to communicate a story about each product or brand that is unique and engaging. Just like the great designers I admire and those skateboard brands I idolized growing up. Additionally, majority of my personal design work uses artwork, visual references and typography with historical and cultural significance to communicate the intended…

    • 445 Words
    • 2 Pages
    Good Essays

Related Topics