Energy Drink Essay Example for Free

Energy Drink EssaySince the mid-2000s, demands in the global beverage industry shift from carbonated napped inebriety to alternate beverages. Beca work of this market grows rapidly and gives high profit margins, it present changes in beverage manufacturing and encourage new entrant to focus solely on alternative beverages. preference beverages segment is comprised of energy rackets, sports drink, and flavored or enhanced water. Each segment has different consumer types and different distribution channel.In developed countries, such as USA, this carbonated soft drink market has reached a mature stage but energy drink and ready-to-drink tea is still inclined. However, beverage industry is steady harvest in developing countries. Alternative beverages competed on the basis of differentiation from traditional drinks such as carbonated soft drinks or fruit juices. All energy drink brands attempted to develop brand loyalty based on taste, the energy-boosting properties of their ingredients, and image. The strongest competitive force is buyer because buyer costs to switch brands are low.Consumers will be more prices sensitive and will switch to other product or even other segment. The weakness competitive force is rivalry because of some(prenominal) sellers in this market and diversity in commodities. The high profit margins will make alternative beverage market attract entrants that are more new, also support by rising demand for the alternative beverage. Energy drinks pricing is 400% higher than carbonated soft drinks. In addition, to create an alternative beverage byplay needs medium-high capital investment.The market of global beverage industry is projected to grow from $1. 58 meg in 2009 and forecasted to grow to nearly $1. 78 trillion in 2014 as beverage producers entered new geographic markets, developed new types of beverages, and continued to create demand for popular drinks. It is expect to result from steady growth in the purchasing power of c onsumers in developing countries. In addition, alternative beverages tended to carry high price points, which made them attractive to both new entrants and open up beverage companies.Sport drinks and vitamin-enhanced beverages tended to carry retail prices that were 50 to 75% higher than similar-size carbonated soft drinks and bottled water, while energy drink pricing by strength might be as much as 400% higher than carbonated soft drinks. While the alternative beverage segment of the industry offered opportunities for bottlers, the curt economy had decreased demand for higher-priced beverages, with sales of sports drinks declining by 12. 3%. The Alternative beverages consumer profile varied substantially across the three types of beverages.Then energy drink consumer was a teenage boy, sports drink consumer were purchased by those who engaged in sports, fitness or other strenuous activities. Vitamin-enhanced beverages could substitute for sports drinks but were frequently purchas ed by grownup consumers in increasing their intakes of vitamins. The best position strategic collection map is reasonable price and reasonable quality. The worst position is the low price and quality. this instant people think about health more than in the past, and they still worry about economic crisis.The alternative beverage chose set strategic group map with answer key we are alternative. We found that key factors, which determine the success of alternative beverage producers,have many factors. First, is Productinnovation, Product Innovation can be done by customizing product ingredient, flavor, packaging, or the benefit that product offer to consumer. Second, Focus in one segment can be the best outline like Red Bull. Their focus in energy drink segment make them became the market leader in energy drink.Third, there are many type of channel distributor, like supermarkets, natural foods livestock, wholesale clubs, convenience store, and restaurant. The companyschoose is dep ends on the company resource. Example PepsiCo and Coca Cola were dominating convenience store and special event channel. However, for company with limited resource use third parties channel distribution will has lowest cost in transportation and labor. Fourth, use the right supplier can reduce production cost. The last one is Brand image, the right promotions that really connect with the product image will make the brand and product can penetrate the market.