Section V - Competitive Analysis

1 - Direct Competitors

Currently the biggest competitor to Ener-Ade is Boom energy drink. Boom energy drink is the

leading local energy drink brand with a market share of 36%, while other energy drink brands

which are in competition are Red Bull with 20%, Monster 6%, and Lucozade 8%. Since the

entrance of Boom energy drink to the Jamaican market by Wisynco, they have captivated the

Jamaican public. Boom energy drink is distributed island wide and provides energy drink lovers

with the maximum power for every hour.

SWOT Analysis on Direct Competitor-Boom energy drink

Strengths, weaknesses, opportunities and threats for Boom energy drink.

Strengths Weaknesses

Strong brand name Lethal if consumed heavily

Financially strong Reduced advertisement

Leading energy drink brand Unattractive bottle

Innovative Marketing campaigns

Unique flavours & Affordability

STRENGTHS

Since Boom energy drinks is distributed island wide, they have a strong brand name. People buy it

because it looks trendy, its taste is enjoyable and its affordable. They have captivated the mass with a

proactive identity which matches to the attitudes of their customers. The company has a very strong

network so they are financially strong. Boom energy drink is considered to be the biggest brand in the

local market and they always show their innovation through their promotion methods. Boom has a unique

flavour as it is not as fizzy as some of the other energy drinks and it tastes better than the other

brands on the market. Boom product is reasonably priced and is one of the most affordable

energy drinks on the market.

WEAKNESSESS

Although Boom energy drink is a leading local brand; it still has weaknesses. While promoting their

products; Boom relies on the mouth to mouth publicity by doing promotional events. They do promote

too little on TV, Radio, Social network sites and in print medias as well. The major problem with Boom

drink is that it is lethal if consumed heavily. Since it contains caffeine, its lethal for those who have heart

problems. The boom bottle is different, so its easily recognisable but the bottle is unattractive

compared to other energy drinks Monster, Red Bull and may not initially entice persons at first

glance at it to drink it.

2 - Indirect Competitors for Ener-Ade Energy drink

Ener-Ade Energy drink is in competition with several other indirect competitors products as

these products aim to provide energy for their consumers. The indirect competitors would be as

follows:

Fizzy soft drinks: These brands would be Pepsi, D&G, Coca-Cola, and Schweppes

among others.

Soft drinks (especially because they can replace energy drink when people mix it with

alcohol): Orange Juice, Apple Juice, and Cranberry Juice.

Products containing some caffeine: Coffee (Nescafe, Blue Mountain) and tea (green

tea, iced teas)

Energetic product: energetic chewing gum, energetic powders, energetic drink

Flavoured milk (Milo)

Flavoured water & Water (Vita water, Catherine Peaks, Wata)

Diet Beverages (diet Coke, diet Pepsi)

Sports drink (Gatorade and Lucozade)

Carbonated Drinks:

Competitor Name Strengths Weaknesses

Coca Cola 1. High Availability 1. High Carbon Di Oxide

Pepsi 2. Excellent Distribution Content

Sprite channel 2. Not preferred by Health

Fanta 3. Low Price Conscious

D&G 4. Taste Good 3. Imaged as non healthy drink

5. Variety in Flavour

6. Variety in Size

7. High Advertisement

Diet Drinks:

Competitor Name Strengths Weakness

Diet Coke 1. Medium Availability 1. High Carbon Di Oxide

Diet Pepsi 2. Good Distribution channel Content

3. Medium Price 2. Doubts on Actual Results

4. Taste Good

5. Variety in Flavour

6. Variety in Size

7. Health Conscious

8. Sugar Free & low calorie

Sports Drinks:

Competitor Name Strengths Weakness

Gatorade 1. Medium Price 1. Moderate Taste

Lucozade 2. Variety in Flavour

Sport 3. Variety in Size

4. Health Conscious

5. Athlete Drink

Energy Drinks:

Competitor Name Strengths Weakness

Milo 1. Health Conscious 1. High Price

Coffee 2. High Energy Content 2. Doubts on Actual Results

Tea 3. Keeps you awake

Natural juice

All these categories serves as indirect competitors which threaten the Ener-Ade Energy drink

market. Tea, Coffee, Ready to Drink Juices, Sports drinks, Diet and carbonated drinks serve the

purpose of keeping consumers awake for some time. These products are used by people because

of their easy availability, low prices and ease to make at home. These are the proxy products
which eat into the market, but Ener-Ade Energy drink is not directly competing with in the

market.

3 Competitive Advantages & SWOT Analysis

Ener-Ade Energy drink business strategy is product differentiation as a premium energy drink at

an affordable price which enhances mental and physical performance.

Ener-Ade Energy drink competitive advantages rely on the following points against both direct

and indirect competitors:

1. First mover advantage in the energy drink sector in developed countries. Red Bull

founder Dietrich Mateschitz was the first to introduce energy drinks to the west by

adjusting the taste of Thai drink Krating Daeng.

2. Unique and sweet taste of the energy drink. The Red Bull flavouring is still produced

in Bangkok and exported into manufacturing plants internationally.

3. An appealing brand image associated with extreme sports. The company owns a

number of sports teams such as RB Leipzig,FC Red Bull Salzburg, Red Bull Brasil and

New York Red Bulls to reinforce the brand image.

4. Effective marketing strategy. This integrates Red Bull TV online channel, The Red

Bulleting online magazine and about 150 people employed for content marketing and

media strategy[1]
It has to be noted that Red Bull GmbH is increasingly becoming a media company with the

launch and acquisitions of increasing numbers of media businesses. This strategy serves to

further strengthen Red Bull brand image via communicating relevant marketing messages to the

target customer segment.

Unlike of many companies of similar sizes, Red Bull is a private company, not a corporation. As

such, the management is free from shareholder pressure for short-term profitability and the

companys strategy can be directed towards achieving long-term growth of the business.

Red Bull GmbH Report contains more detailed discussion of Red Bull business strategy. The

report also illustrates the application of the major analytical strategic frameworks in business

studies such as SWOT, PESTEL, Porters Five Forces, Value

SWOT Analysis for Ener-Ade

Strengths

Provides energy while revitalizing your body

Contains low sugar content, with electrolytes such as potassium and sodium, B

vitamins and amino acid taurine.

Appeal to the mass due to affordability and cutting edge Formulae

Weakness

Too much consuming can bring bad health

Hard to find place for adversting when starting out

Can become addictive

Opportunities

To became the number one on the market

Make their drink have a speacil unique selling point

Make a cheaper varation making more money and also attraing morw customers

Threats

Competition from direct and indireact products

Price

Regulation on energy drink

Expensive