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Energy Drink Summery

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Energy Drink Summery

Chapter 1 Executive Summary

• Scope

• Methodology

• Market Size and Growth

o Total Market for Energy Drinks Reaches $5.4 Billion

o Figure 1-1 Total U.S. Retail Market Value for Energy Drinks, 2002-2006 (in billion $)

o IRI-tracked Sales Grow 45% in 2006

o Figure 1-2 IRI-tracked Sales for Energy Drinks, 2002-2006 (in million $)

o Energy Drinks and the Non-Alcoholic Beverage Market

o Figure 1-3 Market Share of Energy Drinks vs. All Other Non-Alcoholic Beverages by IRI-tracked Sales, 2006 (%)

o Red Bull Remains #1 Energy Drink Marketer

o Table 1-1 Top U.S. Energy Drink Marketers by IRI-tracked Sales, 2002-2006 (in million $)

o New Brands Nip at Red Bull’s Lead

o Table 1-2 Top U.S. Energy Drink Brands by IRI-tracked Sales, 2002-2006 (in million $)

• Energy Drinks Market Forecast

o Factors to Growth

o Total Retail Value to Reach $9.3 Billion by 2011

o Figure 1-4 Projected Total U.S. Retail Market Value for Energy Drinks, 2006-2011 (in billion $)

• Market Trends

o Energy Not Necessarily Tied to Heavy Activity

o Rising Competition Pushes Differentiation

o Old-School Energy Boosters: Caffeine and Alcohol

o Natural and Organic

o Private Label May Energize

o Nanotechnology and Microencapsulation

o Core Company Values and Commitment Important

o Energy Drink Introductions Hit Adrenaline Surge

o Cost of Entry: Single Serve and Vitamins

o Health Innovation: Antioxidants & Omega-3 Fatty Acids

o Category Crossing Creates New Opportunities

o Kaleidoscopic Flavors Spurred by Superfruits

• Advertising and Retail

o Consumer Advertising Expenditures

o Red Bull Dominates in Advertising Spend

o Evolving Media Consumption and Opportunities

o Sport and Celebrity Branding

o Lasting Ties to Music Industry

o Bloom Reaches Out to Women

o Diet Pepsi Shows Marketing Strength with MAX Launch

o Grabbing Consumer Attention at Bottle

o Retail Distribution Varied

o Convenience Stores Growing in Importance

o Specialty Outlets and Non-traditional

o Start Small to Go Big

o Nimble Enough for Special Relationships

• The Consumer

o Energy Drink Usage Penetration

o Energy Drink User Demographic Characteristics

o Energy Drink Consumption Lower for Women

o Brand Usage Rates Suffer From Fragmentation

Chapter 2 The Market

• Scope

• Methodology

• Market Size and Growth

o Total Market for Energy Drinks Reaches $5.4 Billion

o Figure 2-1 Total U.S. Retail Market Value for Energy Drinks, 2002-2006 (in billion $)

o Table 2-1 U.S. Retail Sales and Year-over-Year Percentage Change for Energy Drinks, 2002-2006 (in million $)

o Global Context

o IRI-tracked Sales Grow 45% in 2006

o Figure 2-2 IRI-tracked Sales for Energy Drinks, 2002-2006 (in

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