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EXECUTIVE SUMMERY
EXECUTIVE SUMMARY
Nielson ORG-MARG which is pioneer in the field of market research undertook this project TO
STUDY TO ANALYZE MARKET TRENDS AND OPPORTUNITIES FOR ENERGY DRINK.
The main objective was to find out the level of awareness about energy drinks in the market and
examine consumer perception towards energy drinks.
As a category, energy drinks in India is expected to double in size segment to its 1000cr over next two
years from 500 cr in 2009 as host national and international players venture into the country. An
indicator is the rate at which it is growing 50% to 55% annually according to experts, leaving little
room for doubt that potential for the segment exists in India. There is scope for high growth potential in
this market
Which is why from multinationals such as Coca-Cola and PepsiCo to local players such as Mumbaibased Goldwin (makers of Cloud9), quite a few have been rushing to make their presence felt in the
segment, in recent years. For companies such as Coca-Cola, this is the second shot at the category,
which it first entered in the 1990s, with a drink called Shock. Now it is Burn that they have launched.
But it has quite a few rivals to contend with.
The key ones include Red Bull, Cloud9, Sobe (from PepsiCo) and Power horse. Whats more? A new
player is set to join this growing list, say industry insiders. Its called SJ XXX, promoted by the JMJ
group, a diversified Indian conglomerate, which is into manufacturing, healthcare, hospitality etc.
The objectives of this report are to identify how the Energy Drink market is segmented according to
demographic, geographic, psychographic and behavioral variables. The Energy Drink industry which is
dominated by Red Bull Energy drinks is the fastest growing category in the soft drink market.Red Bull
is the market leader in energy drinks and Cloud 9 is doing good recently in the market but has fallen
behind and needs to adopt new and exciting marketing techniques to appeal to the younger
demographic also selected SJ XXX which is very newly introduced brand
The Executive Summary outlines the main findings of the report (market size, market shares and
market forecasts). This report will give u a detailed insight about market size, market share, market
forecasts and market trends in energy drinks segment.
THE NIELSON ORG-MARG, PUNE is located in pune, and duration of project is of 2 months.
This survey would help company to find out preferences and choices of consumer about energy drinks
and also to find out the level of awareness about energy drinks in the market.
The primary information regarding prices, quality of products, availability of product in store etc was
collected by direct survey of respondent.
Research instrument was chosen was questionnaire which was easy to fill and most of questions were
closed & open ended. Numbers of respondents were 50.
After seeing all the observation & finding were helpful in preparing conclusion that people are aware
about energy drink but not prefers energy drink as their regular drink when they go out. Reasons are
like price, taste, not up to what they have positioned. Suggestion for the improvements also, Red Bull
being the no.1 brand worldwide has the maximum market share and cloud9 and other brands are having
very less market share.
To increase the awareness among the consumers the companies should deploy new means for
advertising and promotions. Sponsoring sports events and internet marketing are some of the
recommended media, as youth is more exposed to these media.
My suggestion is to produce the product as per customers requirement and should be middle price
range because now awareness about energy drink is there but people think thrice before spend Rs 90 on
250ml bottle .
All the relevant charts, graphics & analysis of survey have been put in the project to make it more
understandable & meaningful.
Chapter no.2
Project Title A Study to analyze market trends and opportunities for energy drinks
OBJECTIVES
PRIMARY OBJECTIVES
To find out the trends and opportunities for energy drink in market.
SECONDARY OBJECTIVES
To understand the marketing strategy of energy drinks manufactures and try to position the new
industry of energy drinks
For the companies it is important because they can use different marketing strategy and apply
them to market for future growth of company
This study would provide the primary cause for the low market share of other energy drinks in
the city Pune
in the market and this will help us to analyze the market potential and consumer needs.
As energy drinks market is at nascent stage, a detailed insight and extensive research is required
to understand the market better. Energy drinks market is expected to be doubled in next two
years.
Chapter no.3
COMPANY PROFILE
Company profile
GLOBAL INDUSTRY OVERVIEW
Energy drinks is an industry emerging really fast from few years. These drinks have ingredients such as
caffeine & taurine which help to increase concentration, endurance, alertness & reaction. This kind of
drinks are not only designed for sport persons ,it can be used from everyone who wants to get stimulate
& energies mind & body . Different type energy drinks Tea, Coffee. One new section introduced
recently where energy drinks are mixed with alcohol resulting in new products or cocktails. Energy
drinks are beverages non alcohol drink which contain legal stimulants, vitamins, and minerals,
including caffeine, guarana, and taurine, various forms of ginseng, maltodextrin, carnitine, creatine, and
ginkgobiloba. Some may contain high levels of sugar or glucose. It may well have come from
Scotlandinthe form of Iron-Bru, first produced in the form of "IronBrew" in 1901.
In Japan, the energy drink phenomenon dates at least as far back as the early1960s, with the release of
the Lipovitan..
In UK, Lucozade Energy was originally introduced in 1929 as a hospital drink for "aiding the
recovery;"in the early 1980s, it was promoted as an energy drink for "replenishing lost energy."In 1995,
PepsiCo launched Josta, the first energy drink introduced by a major US beverage Company
In Europe, energy drinks were pioneered by Mr. DietrichMateschitz, an Austrian entrepreneur who
developed Red Bull based on the Thai drink KratingDaeng, itself based on Lipovitan. RedBull was
introduced to the US in 1997 and is the dominant brand there, with a market share of approximately
47%.By the year 2001; the US energy drink market had grown to nearly 8per year in retail sales. Over
the last 5 years, it grew an average of over 50% per year, total 80millon over $3 billion in
2005.Diet energy drinks are growing at nearly twice that rate within the category, as are 16-ounce sized
energy drinks. It is estimated to hit nearly 4 billion in 2006, and both Goldman Sachs and Mintel
predict that the energy drink market will hit $10 billion by 2010. Major players such as Pepsi, CocaCola, Molson, and Labatt have tried to match the small companies innovative and different approach,
with marginal success. Energy drinks have also become popular as mixers. Many malt beverages such
as Sparks,3sum and Max capitalized on the effects of caffeine while drinking alcohol.
Globally it is estimated to be a $ 9-billion segment, which is expected to become $14 billion by2012.
Today there are many international brands doing business in different countries which includes brands
like RockStar, RedBull,
Trotle,Nos,Battery,Sting,Rage, SJ
XXX,
RiIt,
Company
Brands
Price(Rs)
RedBull (Austria)
RedBull
250ml- Rs 90
Spitz KG company
PowerHorse
(Imported
by
Maluram
Enterprises for distribution)
250ml-Rs 96
Coca-cola
Burn
250ml- Rs 85
PepsiCo
SoBe
250ml-Rs 75
SJ-XXX
(promoted by the JMJ group)
250ml- Rs85
XXX
(Xperience
Xtreme
Xcitement)
X35
Fighter
250ml-Rs 75
R.M.Indian liqueur
Xtazy
350ml- Rs 85
Cloud9
250ml- Rs90
250ml- Rs 50
10
11
1. Fighter
2. RedBull
3.SoBe (PepsiCo)
7.Burn (Coca-Cola) 8.Xtazy 9.POWERHORSE
4. X35
5.Cloud9
The Nielsen Company (erstwhile ACNielsen) was established in the United States in 1923 by Arthur
C. Nielsen, Sr., one of the founders of the modern marketing research industry. Among many
innovations in consumer-focused marketing and media research, Mr. Nielsen was responsible for
creating a unique retail-measurement technique that gave clients the first reliable, objective
information about competitive performance and the impact of their marketing and sales programs on
revenues and profits. Nielsen information gave practical meaning to the concept of market share and
made it one of the critical measures of corporate performance. Mr. Nielsen also founded the business
known today as Nielsen Media Research, the global leader in television audience measurement and
other media research Services.
ACNielsen opened its first international office in the UK in 1939 and, after World War II,
progressively expanded its operations in Western Europe, Australia and Japan.
In India the company is better known as ACNielsen-ORG-MARG Pvt. Ltd. MARG (Marketing and
Advertising Research Group) started in 1983 is primarily into Customized Research Services (CRS).
ORG (Operations and Research group) that was started by Sarabhai Group in 1962 were into Retail
Measurement Services (RMS). In 1994, ORG and MARG decided to merge and it became ORGMARG Pvt Ltd. It gave 26% stake to the Dutch company VNU. In 2001, ACNielsen became part of
VNU, a world leader in marketing information, media measurement and information and business
media and that is where the name comes ACNielsen-ORG-MARG Pvt Ltd.
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In 2003, VNU announced a new organizational structure for VNU Marketing Information (MI), its
largest business group, to address evolving client needs and to create an enhanced platform for
accelerated growth.
In 2005, VNU attempted to expand into healthcare and pharmaceutical information by acquiring IMS
Health. Although the merger was terminated in the face of shareholder opposition, the two companies
agreed to work together to develop new capabilities.
In 2006, VNU was acquired and taken private by a consortium of six private equity firms. In 2007,
VNU changed its name to The Nielsen Company. This new identity emphasizes its best known brand
name and underscores its commitment to create an integrated, streamlined global organization.
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Client Solution (CS)
Data Acquisition (DA)
Global operations. (GO)
Data Acquisition and Global Operations comes under Global Structure headed by Michael Habib who
sits in New York.
1. CLIENT SOLUTION TEAM:
This team actually interacts with the Client, takes an idea of the Client, briefing is done and then briefs
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BUSINESS
Nielsen tailors research solutions to individual client needs. For common research needs Nielsen has a
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Other research requirements are idiosyncratic and depend on a particular organizations
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AC Nielson offers an integrated suite of market information gathered from a wide range of sources,
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Clients work with Nielsen services to:
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Nielsens consumer panel and consumer research services provide clients with many opportunities and
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controlled
environment
for
examining
motivational
factors.
Nielsens analytical and modeling services provide clients with a range of options to evaluate and
understand why marketing campaigns succeed or fail, and to address specific future marketing
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In many markets, Nielsen offers a suite of consumer-focused consumer research techniques and
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business centers are located in Schaumburg, Illinois; Wavre, Belgium; Hong Kong; Sydney, Australia;
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The Nielsen Code
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SOLUTIONS BY NIELSEN:
17
By Business Issue
Clients work with our services on a daily basis to make fundamental, fact-based decisions about
core business activities.
Brand Dynamics
Category Dynamics
Competition/Competitive
Pricing
Analysis
Consumer Loyalty
Product Opportunities
Promotion Efficiency/Effectiveness
Distribution
Retail Performance
Market Dynamics
3. Promotion Efficiency and Effectiveness - For many companies, promotion costs are their
biggest single area of expenditure, and understanding the impact and worth of that spend is of
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weekly scanning data to evaluate the impact of different promotional tactics. Other information
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sources such as Nielsen | Homes can consumer purchasing information and manufacturer
profitability measures can also be incorporated.
4. Retail Performance :
Formulating effective sales and marketing strategies
A thorough understanding of your retail performance, and how it compares to your competitors, is vital
for formulating an effective sales and marketing strategy. At the very least, you need to be able to
answer the following questions:
What are your strengths and weaknesses within individual retail chains?
How are your brands performing in relation to your competitors? How does this differ by retail
chain?
What are the overall trends in the marketplace in terms of segments, pack size and flavours?
How can you use this information to exploit market opportunities and counter threats?
Industry Expertise
Whatever your business needs, Nielsen professionals have the knowledge and expertise across a variety
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consumer insights to support our clients' growth.
Advertising
Automotive
Financial Services
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Retailing
Telecommunications
Company
Sales in 2009
Growth in %
(million USD)
1
2
3
4
5
6
7
Nielsen Company
Kantar Group
IMS Health Inc.
GfK AG
Ipsos
Synovate
IRI
5,000.0
2,000
1,958.6
1,397.3
1,077.0
739.6
665.0
2.6
2.5
8.9
5.4
6.5
9.5
6.6
Westat
425.8
0.8
Arbitron
400.0
5.9
Nielsens comprehensive coverage permits management to examine key business trends by product,
category, store, chain, or market for one brand or an entire competitive set. From viewing an executive
summary to drilling down through a robust database to the desired level of detail, executives can make
strategic decisions based on accurate, timely information.
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1. Strength:
Commitment to security
21
2. Weakness:
Shortage of place
3. Opportunities:
4. Threats:
Employee turnover
22
Government regulations
Privacy of data
Chapter no.4
23
THEORETICAL
BACKGROUND
24
THEORETICAL BACKGROUND
Energy drinks are non-alcoholic beverages which are intended to provide a quick burst of high energy
to the consumer. These may be prepared with a composition of methylxanthines, caffeine, natural
flavors, some herbal components or specific vitamins including Vitamins B. They may also contain
taurine, guarana, maltodextrin, ginseng, carnitine, inositol, glucuronolactone, creatine and
ginkgobiloba. Most products include artificial sugar. The primary active component is generally
caffeine.
MARKET SIZE:
Market size is the measure of the total value or volume of a particular product sold in a particular
length of time. In our case it is the total amount of the market covered by a title in the last whole year.
The aim of the report is to tell how much of the product was consumed in the country discussed by
value and by volume.
MARKET SEGMENTATION:
Dividing market into smaller groups of buyer with distinct needs, characteristics or behaviors who
requesting mixes. Company identifies different ways to segment the market and develop profiles of the
resulting market segment
Four major segmentation bases for consumer markets will be:
Geographic segmentation
Demographic segmentation
Psycho-graphic segmentation
Behavioral segmentation
c. Psycho graphic segmentation: T his segmentation divides buyers into different groups based
on social class, life cycle or personality characteristic .people in the same demographic group
can have different psycho graphic makeup..So psycho graphic segmentation helps the marketer
in examining attributes relate to how a person thinks, feels, and behaves.
d. Behavioral segmentation: it divides buyers o groups based on their knowledge, attitudes, uses
or responses to a product.
TARGETING: Selecting one or more segment & delivering product to provide there requirement
POSITIONING: Create distinct image of product/ service brand or organization in the mind of
customer . it is relative competitive comparison their product occupies in a given market as perceived
by the target market . e.g. Tide (mehkati safedi ) conveys 2 benefits
PRODUCT LIFE CYCLE: The stages of a product goes through from its introduction , to its growth
and maturity to its eventual decline and death ( withdrawal from the market or deletion from the
companies offerings ) , includes
-
Introduction stage
Growth stage
Maturity stage
Decline stage
new products
Market penetration{EM}
Product
Market
{EM}
Diversification {NM}
development
development{NM}
EM= Existing Market , NM= New Market
a. Market penetration: :-A strategy for company growth by increasing sales of current products
to current market segments without changing the product.
b. Market development :-A strategy for company growth by identifying and developing new
market segments for current company products.
26
c. Product development:- A strategy for company growth by offering modified or new products
to currents market segments.
d. Diversification: a strategy for company growth through starting up or acquiring businesses outside the companys current products and markets.
NEW PRODUCT DEVELOPMENT: The Development of original products, product improvement,
product modification, and new brands through the firms own R & D efforts.
MARKET SHARE:
Market Share is the share of each competitor in the market place and can be expressed in value or
volume terms.
Market Share by Volume - each competitors share of the total Market Volume
Market Share by Value - each competitors share of the total Market Value
DISTRIBUTION:
This measure of the market relates to the different distribution channels to market for each product. The
distribution channels
Example:
-
level
level
level
level
FORECASTS:
All market forecasts are based on statistical forecasting techniques based on historic performance
(linear extrapolation of the market size, based on the five-year historical growth). These statistical tools
are supplemented with qualitative parameters such as: industry expectation/opinion. Socio-economic
drivers, new product development, technological advances, expected levels of market saturation etc.
Please find below an explanation of general terms used throughout reports:
27
Market Value = All market values are expressed at either retail selling prices (RSP) or other measures
as specified in the reports.
Market Volume = All market volumes are expressed in the unit relevant to the market researched (i.e.
kg, liters etc.)
28
Chapter no.5
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. Research is an Endeavour to discover
answers to problems (intellectual and practical) through the application of scientific method to the
knowable universe.
It comprises defining and re-defining problems, formulating hypothesis or suggested solutions,
collecting, organizing and evaluating data, making deductions and making conclusions and at last,
carefully testing the conclusions to determine whether they fit the formulated hypothesis.
Clifford Woody defines research as, the process which includes defining and re-defining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making
deductions and reaching conclusions and at last carefully testing the conclusions to determine whether
they fit the formulating hypothesis.
RESEARCH OBJECTIVE :
The main objective of the research was to determine the impact of sale and promotion offer on the
buying behavior of the consumer of energy drinks. Information based on previous information is
research.
Research is the search or find out new information based on previous information.
Research is a scientific and systematic search for pertinent information on a specific topic.
Research is a careful investigation or inquiry especially through search for new facts in any
branch of knowledge.
Research comprises defining and redefining problems, formulating hypothesis or suggested solutions:
collecting, organizing and evaluating data; making deductions and reaching conclusions; and last
carefully testing the conclusions to determine whether they fit the formulating hypothesis
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Questionnaire:-
It is one of the important sources of collecting information. A list of questions are prepared for the
specific subject as the name indicates there is a set of selected question whose answer the investigator
seeks from respondents in order to get knowledge about the matter. Structured questionnaire is prepared
with the data concern and guidance of the management of company. The same questionnaire was used
for the entire consumer.
Interview:-
The interview method of collecting data involves collecting presentation of oral, verbal stimulus
and
reply in terms of oral and verbal responses .it is one of the best methods of investigation and the
investigator gets direct contact to get accurate information.
Method varies from person to person. It depends on our aim and objective.
Based on some selective question. Ask a particular person about a particular subject.
SECONDARY DATA :
Secondary data refers to data collected from books and articles. The secondary data are those which
already have been published earlier in Journal or Paper or Thesis or Books or Report, newspaper etc i.e.
any form of publication.
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Pie chart
This is very useful diagram to represent data, which are divided into a number of
Categories. The diagram bar chart can make comparison among the various Components
or between a part and a whole of data
Bar chart
As the name implies, It consist of a number of whispered bar, which originated from a common
base line and are equal widths, the lengths of the bars are proportional to the value they
represent.
32
Chapter no.6
DATA ANALYSIS
33
7.1 No. of respondents, who are actually aware about energy drinks, in percentage out of total 50
respondents:
Table no. 1
Response
No. Of Respondents
Percentage
Aware
42
86%
Not
14%
aware
Analysis:
From the above figure it can be interpreted that only 86% of the consumers know the presence of
energy drinks in the market and 14% of the consumers had never heard of it before. From the above
analysis it can interpreted that majority of consumers have heard about energy drinks
7.2 Below mentioned is the no. of respondents, who have actually tasted energy drinks, in percentage
out of total 50 respondents:
Table No. 2
34
Sr. no
No. Of Respondents
Percentage
Tried
32
64%
Not
18
36%
50
100%
tried
Total
No.
18; 36%
Tried
32; 64%
Not tried
Analysis:
From the above figure it can be interpreted that 64% of the previous respondents have said they have
tasted energy drinks and 36% of the respondents said that they had heard about it but not tasted yet.
Majority of consumers they tested energy drinks.
35
Options
Respondents
Percentage
0%
week
1-2 times a month
12%
Rare
25
59%
Never
12
29%
12; 29%
5; 12%
25; 60%
Analysis:
From the above figure it can be interpreted that out of 42 aware people of energy drink , 61%% prefer
to drink energy drinks rarely, 29% aware about energy drink but never tried .
From this we can make out that comparatively this consumption level is far too less than soft drinks.
Table no. 4
Sr. no
No.
Of
Respondents
Local shops
18
Night clubs
10
Multiplexes
Total
32
Series 1
20
18
18
16
14
12
Series 1
10
10
8
6
4
2
0
local shops
clubs
Multiplexes
Analysis:
From the graph we can interpret that majority of consumers consume energy drinks at local shops and
night clubs because energy drinks are considered to be good mixers with alcohols. Moreover large
amount of energy drinks are sold at local shops
37
7.5 What are the factors you dont consume energy drinks?
Table no. 5
Options
Respondents
Percentage
High prize
18
52%
29%
Taste
10
0%
Packaging
Caffeine contents
14%
unavailability
5%
2; 5%
High prize
Taste
22; 52%
12; 29%
packaging
Caffeine contents
unavailability
Analysis:
Above question was asked to the consumers who were aware about energy drinks but did not consume
it. Majority ( 52%) of them answered that due to comparatively high prices of energy drinks they prefer
other soft drinks over energy drinks. 29% of them avoid energy drinks because of Taste .8% of them
avoid energy drinks because of caffeine contents.
38
No. Of Respondents
RedBull
42 / 42
Cloud9
32 / 42
Others
2 / 42
Brand Awareness
45
42
40
35
32
30
Advertising Awareness
25
20
15
10
5
0
Redbull
Cloud9
Others
Analysis:
Above graph tells us that Red Bull enjoys the highest top of the mind awareness. And 32 / 42 of the
total respondents have Cloud 9 as TOMA. Whereas, top of the mind awareness for others (Sobe, burn,
XXX) is almost negligible.
39
No. Of Respondents
RedBull
42 / 42
Cloud9
32 / 42
Others
2 / 42
Advertising Awareness
3%
Redbull
42%
55%
Cloud9
Others
Analysis:
From the graph we can clearly state that Red Bull promotes itself effectively. Recently Red Bull has
come up with an ad campaign it gives you wings which clicked very well among youth. Consumers
actually are able to recall the ads more over Red Bull does promotion by sponsoring sports events; it
also uses outdoor media effectively for promotion. This is why the advertisement awareness for red bull
among energy drink consumer is so high. On the other hand cloud 9 is only focusing on outdoor media
advertisements; its ad awareness level is less. Others like sobe, Burn, XXX etc advertisement
awareness level is pretty low.
40
No. Of Respondents
Percentage
RedBull
24
75%
Cloud9
25%
Brand consumption
25%
RedBull
cloud9
75%
Analysis:
From the findings we can says that RedBull is king in market with largest market share 75% and cloud
9 has market share of 25% only even they have good brand awareness recently after world cup.
41
7.9 Which drink you normally consume (particularly when you are out)?
Table no. 9
Options
Respondents Percentage
Tea
25
50%
Juices
05
10%
Alcohol
05
10%
Soft drink
15
30%
Tea
Juices
30%
Alcohol
50%
Soft Drink
10%
10%
Analysis:
The above pie chart depicts that energy drink has long way to go as it has many substitutes. Traditional
drinks and soft drinks still continue to dominate; each of them has 50% and 30% shares respectively in
42
Indian beverage market. Energy drinks on the other hand is catching up slowly, because of high cost
and taste is not suitable to Indian consumer
7.10 What will attract you to try a/an (new) energy drink?
Table no. 10
Chart Title
35%
30%
25%
20%
influence level
32%
15%
26%
10%
13%
5%
0%
3%
2%
9%
11%
4%
Analysis:
From the analysis we come to know that price and taste plays big role to purchase of energy drink.
RedBull 250ml = Rs 90, so middle class n higher middleclass people always thinks twice before
purchase. Recommendations by friends and peer group also influence people to buy it.
Even advertising & promotions also played role to taste / buy it.
43
No. of user
8%
8%
31%
12%
gooogle
youtube
orkut
19%
30; 23%
tweeter
yahoo
Analysis:
The above question was introduced in questionnaire in order to understand the usage and popularity of
commonly used internet websites. We found that Facebook, Google search, Gmail are largely used sites
with large usage rate which is followed by, YouTube, orkut yahoo, twitter, respectively. Trend of youth
is more to use of social network sites, so we can use this data to online advertising and Brand
awareness.
44
7.12 Demographics:
Table no. 12
Sr. no
Response
Male
40
Female
10
Gender of respondant
45
40
35
30
Gender of respondant
25
20
15
10
5
0
Male
Female
Analysis:
As the sample size for this research was 50. Out of 50 individuals 40 were males and 10 were females.
It has been observed that males are more intended towards energy drinks consumption. A few females
seemed to aware of energy drink but they avoid energy drinks .
45
Respondent
s
9
Percentage
NO
10%
90%
Awareness
10%
Yes
NO
90%
Analysis:
From the above figure it can be interpreted that 90% of the retailers know the presence of energy drinks
in the market and 10% of the retailers had never heard of it before. From the above analysis it can
interpreted that majority of retailers have heard about energy drinks.
Respondent
s
6
Percentage
60%
46
NO
40%
Q3. Which age group of customer buys this product from your shop?
Age G
Percentage
16-20
17%
20-25
50%
25-30
33%
16-20
20-25
25-30
50%
Analysis:
From the above figure it can be interpreted that most of the customers are from age group of 20-25 and
25-30 year old.
47
Q5. In future will you keep energy drink on the shelves of your shop?
Response
s
Yes
Respondent
s
3
Percentage
NO
25%
75%
25%
yes
no
75%
Analysis:
48
From the above figure it can be interpreted that those retailer are currently aware of Energy drinks
products like RedBull, Cloud9 etc. Because currently trend of youth is changing from soft drinks to
Different energy drinks so Retailers also are positive to keep Energy drinks in Shop.
Chapter no.7
FINDINGS
49
FINDINGS:
Red Bull being the no.1 brand worldwide has the maximum market share.
In the cities like Pune consumers are mostly modern, young, Adventurous, ready to spend quite
sum of amount and full of excitement. This is what needed by the energy drink makers to
customers.
Whenever there is any occasion where the consumer wants to buy the energy drink, the first
and energy drinks altogether have good future of success in this market.
Overall it is clear that the consumers from Pune have shown low response for other Energy
drink.
The consumers here are mostly not aware of SJ XXX, Sobe, Burn brand, resulting in low sales.
On the other hand majority of the consumers think that Energy Drinks are good for health but
Price has been rated the most important product attributes by the customer. Price point is the
final factor which either makes or breaks a sale. Product and Pricing go hand in hand; the price
should be apt to the product attributes. The most important factor for low sales of energy drinks
is its high price. Energy drinks are priced high compared to other beverages available in the
market.
50
use of social network sites, so we can use this data to online advertising and Brand awareness.
It has been observed that males are more intended towards energy drinks consumption. A few
females seemed to aware of energy drink but they avoid energy drinks but some of them used it
drinks.
From th e retailers feedbackt it can be interpreted that most of the customers are from age group
Shop.
Out of 4/10 retailer those dont sale energy drink ,are ready to keep this product in future.
51
Chapter no.8
RECOMMENDATION
RECOMMENDATION:
Most of the consumers stated that price is the main factor for not preferring energy drinks. So
the companies should try to curb down on the price in order to attract more customers
52
In order to make the product available in every nook and corner, the companies should opt for
help in knowing the activities of the distributors as well as help in Promoting the business.
Companies should focus its attention to the untapped market where it can considerably increase
of retailers and the problem they are facing, advertise more to support sale of retailers.
The attention should be paid to the consumer Perception.
Advertisement and publicity in the untapped market by way of signage, racks, paintings,
of the market.
Survey by the top officials should be made in the untapped areas to access the real situation and
53
Chapter no.9
LIMITATIONS
LIMITATIONS:
54
The project study carried out and the information collected to some extent is based on the
information given by the people and hence it is based on what they feel, and may not
necessarily exist.
Time limitation the research was done over a period of three weeks
Geographic Limitations
Every individual has a unique idea, preference and perception, thus the opinions cannot be
generalized.
Budget constraints
55
Chapter no.10
CONCLUSION
CONCLUSION
TREND IN THE INDIAN ENERGY DRINK MARKET: The explosion of energy shots proves that
this niche market boom is expected to build over a period of time. In 2008, sales of this specific sector
56
of the market continue to grow. The extreme energy per shot with 5-Hour Energy leading the pack in
sales and popularity.
HEATING UP OF CONSUMPTION: A few years ago red Bull was the only know energy drink in
India but in last few years have seen multiple brand launches in the category. Cloud 9 was the first
Indian energy drink, XXX was launched in 2009, Coca-cola launched Burn in 2010. In 2011, Red Bull
Company is market leader and is closely associated with energy drinks Coca-cola Burn, Goldwin
Healthcare Pvt Cloud9, JMJ Group XXX.
1. The target buyers for energy drinks continue to be the young and working Indian population.
They are often associated with partying and essential for leading an active lifestyle in middle of
tiring and stressful work life.
2. Energy drinks are urban phenomena and supermarkets are the primary channels of their sales.
Apart from retail sales, energy drinks are sold in bars and pubs along with alcohol.
Trends show that awareness about energy dink is increasing and target customer are ready to pay
prize for them prize / taste doesnt matter but energy from it matters lot .It is saw the emergence of
energy powders and tablets marketed as the more convenient and portable form of energy for athletes
and people on the go. I think In a country where everyone grows up drinking tea that's high in
caffeine, taking to energy drinks is an easy and exciting transition,"
expected to double in size segment to its 1000cr over next two years from 500 cr in 2009 as host
national and international players venture into the country. An indicator is the rate at which it is
growing 50% to 55% annually according to experts, leaving little room for doubt that potential for
the segment exists in India. There is scope for high growth potential in this market
57
Though dominated by Red Bull, there exists opportunities in Indian energy drinks market by using
innovative business models:
Point of sale: Traditionally energy drinks are sold through supermarkets, but another channel
can be collaborating with cafes, restaurants, sports centre, fitness centers, etc. for both
promotion and sales
Price points: All energy drinks in India are very expensive as compared to carbonated drinks
and juices, thus limiting their market. Cost reduction can open up the market; one such
innovation is tried by Hector Beverages (their product Frissia) where they plan to provide
energy drinks at affordable prices (as less as one-fourth prices of large players).
Retailer have positive approach to keep this product on the shelves, those who havent this product on
the shelves are ready if they get good margin on because trend is changing, sale increased.
58
Chapter no.11
BIBLOGRAPHY
BIBLOGRAPHY
59
Web reference:
http://www.energyvault.com
http://www.redbull.com
http://www.cloud9.com
http://www.leammarketing.com
http://www.theydeserveit.com
http://www.energydrinks.bfxmedia.com
http://www.lifestyle.iloveindia.com
http://www.citeman.com/market-size-for-energy-drinks
http://www.foodindustryindia.com
Books:
Dennis Adcock, Ray Brad field (1995) marketing principles and practices Second Edition,
Pitman Publishing.
60
Chapter no.12
ANNEXURE
A. ANNEXURE: To Consumer
QUESTIONNAIRE:
Respondents
name:
________________________________________________City:____________
61
Respondents email-id:_______________________________________________
Interceptors name: ________________________________________________ Date:
/ /
local shops
Restaurants
Canteens
Night clubs
Multiplexes/malls
Others______________
At parties
At work
62
Others_______________
Q6. How satisfied are you with your energy drink of choice?
Very unsatisfied
very satisfied
Q7. (Ask only if coded never in Q2.) What are the factors you dont drink energy drinks?
1. High price
2. Taste
3. Packaging
63
4. Caffeine contents
5. Health issues
6. Unavailability
7. Others___________
Tin can
Glass bottle
Plastic bottle
Tetra pack
Q9. Please evaluate your energy drink of choice: (dont ask if coded never in Q2)
(Very poor) 1
5 (excellent)
Taste
Price
Packaging
Flavors
Advertising
Availability
Brand image
Energy boost
64
others
Sobe
Burn
Cloud 9
Red bull
10
10
10
10
10
XXX
XL
X35
Power horse
Others_________
None
65
Most often
cosider
regularly
Sobe
Burn
Cloud 9
Red bull
XXX
XL
X35
Power horse
Others___________
None
10
10
10
Sobe
Ad
News
magaz
aware
paper
ines
TV
theatres
hoardin
interne
Cant
gs
recall
66
Burn
Cloud 9
Red bull
10
10
10
10
10
10
10
10
Bullet
XXX
XL
X35
Power horse
Others_________
Q13. Which drinks do you normally consume (Particularly when you are out)? Note first five ranks:
consume
rank
Tea
__
Coffee
__
Juices
__
67
Nimbupani
__
Soft drinks
__
Health drinks
__
Lassi
__
Alcoholic drinks
__
Energy drinks
__
Others__________
10
__
Q14. What will attract you to try a/an (new) energy drink?
1. Brand
2. Price
3. Packaging
4. Energy boost
5. Good taste
6. Flavors
7. Nutrients (vitamins)
8. Low calories
9. Recommendation of friends
10. Advertisings and promotions
11. Celebrities
12. Others_______________
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Disagree Neither
disagree
Agree
agree
nor
Strongl
y agree
disagree
I like to try new things
I go to bed early
I like sports
At least At
everyday
once
week
a once
month
least Less
never
a than
once a
month
Reading newspaper
69
Reading magazines
Listening to music
Using internet
Going to cinemas
Drinking alcohol
Smoking
Doing sports
Q17. Please tell me what internet services and social networks do you use at least once a week?
1. Orkut
6. Rediff
11. AOL
2. face book
7. YouTube
12.others__________
3. MySpace
8. Gmail
4. Twitter
9. Hotmail
5. Yahoo
10. MSN
Demographics:
70
Q. 18Record gender:
male
female
student
employed
unemployed
middle school
high school
university
post
graduate
Q22. What is your approximate monthly pocket money/ income amount?
1 pocket money___________
2.income_____________
Thank you
____________________
____________________
Respondents signature
71
/ /
Questionnaire :( To Study analyze market trends and opportunities for energy drinks)
Q1 are you aware of energy drink?
1. Yes
2. No
Q2. Do you keep Energy drink in your shop? ( if answered NO ,go to Q 5)
1. Yes
2. No
Q3. Which age group of customer buys this product from your shop?
1.
16-20
2.
20-25
3.
25-30
4. Above 30
Q4. Which energy drinks do you sell in your shop?
1. RedBull
2. Cloudd9
3. Powerhorse
4 . Others
Q5. In future will you keep energy drink on the shelves of your shop?
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1. Yes
2. No
73