Presented by:

Polly Dumond Stephanie Kung Giovanna Francia Parisa Mohammadi Shierwin Vigilla

Energy Drinks
Energy drink slogans are as different as the drinks themselves, but they all work to appeal to the ideal consumer crowd. Energy drinks, unlike other beverages, are traditionally marketed to a very small, specific consumer group. For example, some energy drink brands focus on extreme sports enthusiasts, others cater to students and their energy needs, and still others try to attract the video game crowd. Top energy drinks by brand are Red bull in first place, followed by Rockstar and Monster. The target market for energy drinks is mostly male teenagers and young adults.

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

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 - extra energy for workouts & competitions

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% increase from 2001-2006) Sales are projected to reach $5 billion in 2007 6th largest category in the beverage market

Top Energy Drinks & Beverage Market Growth

Top Ene rgy Drinks by Brand
Brand
Red Bull Rockstar Monster Energy Sobe Adrenaline Rush AMP Sobe No Fear Full Throttle Hanse n s Energy Hanse n Lost s Energy Rip It

Do llar Sales
$192,954,700 $30,352,410 $26,137,550

% Change Vs. Prior Year

67.3 105.8 206.9

Market Share
57.7 9.1 7.8

% Change Vs. Prior Year

-1.2 1.5 3.5

$18,249,200 $17,084,970 $13,352,710 $8,886,300 $2,252,797 $2,184,804 $1,803,258

31.1 31.8 91.7 NA -37.3 623.8 NA

5.5 5.1 4.0 2.7 0.7 0.7 0.5

-1.7 -1.5 0.4 2.7 -1.2 0.5 0.5

Category Total

$334,742,800

70.3

Source: Inform ati on Resources Inc., Total food, drug a nd m ass m ercha nd ise (excluding WalMart) for the 52 weeks ending June 12, 2005

Advertising Expenditures

Use distribution as a marketing tool - fashionable night clubs, convenience stores, and gas stations. Red Bull increased its advertising expenditures from $2 million in 1998 to more than $40 million in 2003. In 2004, Red Bull spent $600 million Energy drink companies market themselves around extreme sports and adventure. Red Bull supports 240 athletes worldwide to help promote their product Monster is known for its high advertising budget

Competitors

Industry is dominated by one product - Red Bull 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

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

Americas Most Caffeinated Cities

1. Chicago 2. Tampa 3. Miami 4. Phoenix 5. Atlanta

Red Bull Energy Drinks

Logo: Two charging bulls Colors: Red, blue, white/silver, yellow Slogan: Red Bull gives you wiiiings Commercials: Generally cartoons; sometimes spoofs on famous stories (Rapunzel, Frog prince, Aladdin, Adam and Eve, Petrus)

Red Bull Commercial: Rapunzel

The prince comes galloping on his horse towards Rapunzels tower to save her Rapunzel lets down her hair, but it is too short and the prince cannot reach it Instead, the prince tosses Rapunzel a can of Red Bull, because Red Bull gives you wiiiings

Red Bull - Appeals

Need to escape The tower was confining Rapunzel, but the commercial implies that now that she has Red Bull, Rapunzel will be set free In the original story, Rapunzel is able to free herself with help of the prince and her long hair. However, because her hair is too short 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 after together. Because Rapunzel will be freed from the tower, she can run off to have a better life with the prince.

Red Bull - Symbolism

The product name, Red Bull, implies dominance and aggression. Many people are drawn to this idea 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

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 audience to imply that the product is fun and exciting.

Underlying Message
Red Bull is essential to having a fulfilling life, because it can make your life exciting and fun. With the energy drink, anyone can conquer things that were never possible before.

Rockstar Energy Drinks

Logo: Star Colors: Gold, Black, Red, White Slogan: Party Like A Rockstar Ads: Typically with attractive girls in bikinis and projecting a party image

Rockstar Advertisement

Ad setting is in a Jacuzzi during the evening Two hot females in bikinis, one calling up people to come over for a party and the other pouring herself a rockstar drink in a champagne glass. Rockstar is being chilled in the ice chest, replacing what would normally be alcohol.

Rockstar - Appeals

Need for sex

Women are in bikinis and projecting the Party like a Rockstar image in a Jacuzzi. By having the Jacuzzi in the ad it shows a more sexy/intimate way to party. The woman in the white bikini is on the phone, calling up guys and inviting them to come and get the party started. The other woman in the bikini has already started to Rockstar it. The Rockstar drinks are chilling in a ice chest where you would normally see alcohol. By using the Rockstar in place of the alcohol, a sexier image like those seen in alcohol advertisements is projected.

Rockstar - Appeals Cont.

Need for affiliation

Party like a Rockstar gives off an image to consumers that admire celebrities and want to socialize with or be like them. Many celebrities are known to party like rock stars and many consumers feel compelled to imitate the images they see. Using sexy women in the ads attract men. The commercial implies that with Rockstar, anyone can attract sexy women like the women in the ad.

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

Rockstar - Message
Literal meaning: Rockstar will make you cool, sexy, wealthy, famous, and powerful Drinking Rockstar will make you feel energized, healthy, and strong. If you drink Rockstar, it will also help you look sexy, stay in shape, and feel good all day. Hidden Subtext: Buy our product and you will live, feel, and act like a Rockstar.

Xyience Energy Drinks

Logo: Large circle in the center with smaller circle on the left of it. Colors: Each drink has a specific color that represents its flavor. Slogan: Xtreme science for your active lifestyle Commercial: Attractive woman drinking it and dancing with energy.

Xyience - Commercial

Attractive woman slouching in chair with obviously no energy to move The woman picks up a can of Xyience energy drink and takes a sip Immediately gains energy and begins dancing Followed by a large explosion in the background

Xyience - Appeals

The need for sex the Xyience add oozes sex appeal and is directly aimed at male population, which is the target audience for energy drinks. Sex appeal is clearly seen throughout the ad, but especially when the model kisses the can at the end of the ad. Also, the clothes (or more accurately, the lack of clothes) in the ad easily capture the attention of male viewers. The need for escape the illusion that if you drink this energy drink, you could potentially have this woman. Xyience presents an opportunity to escape from an unfulfilling life without the women in the Xyience advertisements. Furthermore, the company plays up the chance to have the woman in the ad by providing desktop photos, etc.

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 of Ultimate Fighting Championship (UFC) which also implies dominance over the weak who do not drink Xyience.

Xyience - Symbolism

The subtext of the commercial insinuates that Xyience energy drinks will make any person more desirable which is portrayed by the woman in the commercial and the effect the drink had on her. Black: power, mystery Red: Energy, Strength

Methods used to promote product

The music that is used throughout the video clip is a modern genre and most appealing to the younger generation of todays world. A tool of persuasion we see being used here is an attractive woman presenting a fake image of what the energy drink may turn a person into.

Underlying Message

Xyience will give you explosive energy even when you are exhausted. Xyience will make you sexy and bring excitement to your life. Xyience is a blessing to have in your life (expressed when the model kisses the can at the end)

Monster Energy Drinks

Logo: Big creepy M looks like its been slashed or clawed as if a Monster has created it. Colors: Green and White for main logo. Colors of logos on cans are different depending on the product Slogan: Unleash the Beast! Commercials: Usually ad prints or internet ads

Monster Print Ad

Ad has a race car driver, presuming someone famous and driver of the Monster Energy race care
Slogan is on the upper left hand side Unleash the Beast! in standard Monster green color Race car is center of shot and has flames coming out of it

Monster - Appeals

Need to Affiliation Race car fans and clubs many people, a large majority of the men, want to be affiliated with racing
Need to escape

The dream of driving a race car; getting to go fast

Need to aggress

Racing is an aggressive sport The flames in the ad also hint at aggression

Monster - Appeals Cont.

Need for prominence

Being associated and therefore having the same prominence as the Monster race car driver because the consumer is drinking Monster as well Monster provides a basic need drink and promises to deliver energy as well

Need for Drink

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

Monster - Symbolism

The product uses a logo that appears to have been created by a monster.
Logo is slashed or clawed and the background is green on the primary logo Monster uses various logo colors depending on the product in which theyre placed The primary logo color of green gives off eerie monster vibe

Underlying Message
Product messages are definitely slanted towards males their target audience. Unleash the Beast! really aims to convenience the consumer that their product will give them a real increase of energy and make them tougher, boosts athletic performance or powers of concentration this could be why it appeals to the extreme sports fans.

Conclusion
The energy drink industry is a smart industry that is continually developing, expanding, and using innovative marketing techniques. As a whole, the industry caters to a younger market, and some energy 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 and increase their distribution. If the energy drink companies can obtain some scientific support for their claims this might also help to boost sales. Currently the primary target for the majority of energy drink companies is male teenagers and young people. These products are designed for a younger generation concerned more about instant satisfaction and fast results than something more long lasting. These attractive claims appeal to this group of consumers because they are flashy and funny, not because they impart definite truth or wisdom. With increasing advertising spend and greater product recognition, energy drink companies are positioning themselves to become a beverage staple in many homes world-wide.

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 Markets http://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/

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 driver http://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