Energy drink Essay

Introduction The marting melt (tool largely intentd by traffickers) is composed of the tactics being essential by a connection in the 4 Ps aras harvest, price, place and promotion, to assist them in pursuing their objectives. These variables come to be cautiously managed by the organisation to meet the need of the defined tar exact group. In this essay, we atomic number 18 going to focus on the fruit variable of the marting mix. Phillip Kotler has defined the output as anything that toilette be offered to a grocery to satisfy a want or need (Philip Kotler, Marketing Management, 2000).The output, nevertheless also its give ear and promotion, bugger off a major impact on the grade localization. They argon fundamental tools in helping the tramp to capture trial and repeat leveraging they be also invaluable to action the desired aw arness levels and to form verificatory attitudes among both customers and perspective customers. completely profitable and attr active (giving the trend that consumers are increasingly looking for comfortable crapulences that boost their nil levels), the goose egg drinkings market is super war-ridden.A Mintels research (Market Trends category analysis, June 2004, www.PreparedFoods. com), found little betray loyalty among consumers of zippo drinks, and a testamentingness to try a new crop if the strike off of survival of the fittest is not accessible. This suggest the possibility that consumer could be swayed by the speak to of an ch allenging package for instance. In this con school text, we will try to analyse, with the help of the example of the cogency drinks, the importance of the naming and case tactics employed by the brands to compare their offer from the ambition (given that the generic attri only(prenominal)es of the efficiency drinks, in terms of small-arm, are quite similar).1 appointee and incase merchandise mix tools of the product 1. 1 The products levels Philip Kotler, in Principles of Marketing, suggested that a product should be viewed in three levels (a division mingled with five products levels has also been identified by the author further in our case, we are going to keep the childlyr dodge of three levels). (source www. learnmerchandising. net/product. htm, 14/09/2004) The core product (level one) represents the core p order of the product, a generic attribute that will be identical to all products on a particular(prenominal) market.For example, the main attribute a customer is willing to find when buying an nothing drink is a smooth which composition will comprise genes that boost his or her susceptibility levels (caffeine, guarana, taurine ) The actual product (level two) involves the brand, the packaging and the possible added features (benefits) that are turn ind to divergentiate the companys product from its contests. In the case of the energy drinks, if all of them genuinely provide a liquid that increase energy levels, both(prenominal) of them are sold in gages, some early(a) in plastic bottles or in aluminium bottles, using opposite designs and rule books.The augmented product (level three) is composed of the different additional non-tangible benefits that the company is offering to the customer. This comprises normally added servings such as after-sales service, warranties, delivery It is difficult for a company providing energy drinks to split up itself from the aspiration through this kind of attributes. This is why we decided to focus on the encourage level of the energy swallows, their find and package. (www. learnmarketing.net/product. htm, 14/09/2004) First, what lies behind the concepts of naming and packaging?1. 2 appellation The naming of the product, service or company is called brand. A brand or name is the label that consumers associate with your product. For this reason, a brand or name should help send the products positioning and its inherent drama for the co nsumer (Roman G. Hiebing Jr and Scott W. Cooper The palmy marketing end, a develop and comprehensive approach 2003).McCarthy, Perreault and Quester define branding as the enjoyment of a name, symbol, design or combination of the three to identify a product and more imageicularly a brand name as a word, letter, or group of words or letters design to identify a product (Basic Marketing, a managerial approach 1997).1. 2. 1 The visual classifiableness of a brand The name is composed of the backing by which the company, product, or service is commonly known and the graphic forms of identification, including symbols, logo flakes or signatures, tag lines, and representative characters (Roman G.Hiebing Jr and Scott W. Cooper The successful marketing plan, a develop and comprehensive approach 2003).Some products, as paper clips, or energy drinks, are poorly differentiated by their physical attributes. One of the marketers tasks will be accordingly to develop the brand in terms of i ts name and its graphic identity (logo), to communicate its differences. Nowadays, the consumers have an awing and increasing array of selection. In parallel, their available date to research products and compel purchase decisions is decreasing.The importance of having a distinctive name is critical to securing competitive advantage, veritable(a) more for the products such as the energy drinks, which core specificities have become insufficient to execute a real difference. Consumers must be able to recognize the company in its name, logo, graphics and brands slogan these must provide immorals of identifying the product as different from that of the competitors, create a visual and verbal distinctiveness. For example, the name and logo of Ralph Lauren (a polo player) have become superior means of recognition for the brand.Coca-cola is one of the best-known label in the world (even the characters type poop be identified and recognize by the customer nowadays). Some companies , which offer different product lines, can use manufacturer brands, a name provided specifically for a product or collection of products that is different from the manufacturers one. For example, Powerade is the sport beverage supplied by Coca-Cola. Pepsi-Co sells a sport drink line under the name Gatorade. If the name is the more classic element of the brand, one mustnt deflect that a brand cant be simply trim down to its name.What is important are the positive associations that are going to be colligate to the brand in the customers mind (Philip Kotler, Marketing Management, 2000). 1. 2. 2 Selecting the right name A good brand name can help create brand familiarity (really important in the case of energy drinks). In general, good brand names are short and simple (easy to recognize and remember) easy to pronounce should be able to be enunciate in all languages suggestive of product benefits (but not too generic) vacate any authorizationly undesirable connotation or imag e.(Roman G. Hiebing Jr and Scott W. Cooper The successful marketing plan, a train and comprehensive approach 2003). 1. 3 Packaging 1. 3. 1 Definition For manufacturers, packaging holds and protects the product and assists in communicating the products attributes and image. For retailers and service firms, packaging is the inside and outside environment that houses and dispenses the product/services (stores, offices, etc ), and it helps communicate the companys attributes and image (Roman G. Hiebing Jr and Scott W.Cooper The successful marketing plan, a disciplined and comprehensive approach 2003). Kotler has defined the packaging as the activities of procedure and producing the container for a product (Philip Kotler, Marketing Management, 2000). 1. 3. 2 The functions of packaging Three functions lay behind the concept of packaging protection, facilitating the product usage and communication. At its rudimentary level, the package serves to protect the product (prevent breakage, ex posure to light, exposure to air, spoilage ) and, in some cases, to hold or to contain it.Packaging also plays a role in protecting the consumer as nearly. Then, the package has a facilitative role in the use of the product (shape, size, fact that it can be resealed ). Finally, the products package represents a strong communication tool, at two levels. First, the package will comprise indications on the brand name, the product category definition, the composition, the flavour, warnings, directions Second, packaging also serves an important role in promotion. Its design, size, shape, materials, coloring, text and brand mark should appeal to the target market.For example, yoghurt designated to the women on nutrition will not have the same package than yoghurt targeting the children. Besides, in todays cluttered environment, where tens of thousands of brands are fighting for the shoppers attention, consumers are making more and more purchase decisions at the point of sale. This is w hy the package, through graphics and colours that are attractive, plays an important role in getting the product noticed in the selves (to encourage impulse purchase for instance). (Philip Kotler, Marketing Management, 2000 Roman G.Hiebing Jr and Scott W. Cooper The successful marketing plan, a disciplined and comprehensive approach 2003). 1. 3. 3 The importance of packaging Packaging is a critical marketing tool. It can make an important difference from the emulation by meeting customers needs more effectively. A better box, wrapper, bottle or can may help to emphasize the distinctiveness or novelty of a product or even result in the opening of a new market. It can even improve the product by making it easier or safer to use and then increase its order in the customers mind.Used correctly, the package can then emphasize the brand image, convey qualities such as freshness, fashion and timbre (McCarthy, Perreault & Quester Basic Marketing, a managerial approach 1997). It is impor tant that the packaging elements align with the rest of the marketing scheme to support it (pricing, advertising and other marketing tools). For example, an expensive perfume would sort of be sold in a crystal bottle than in a plastic one, to underline and support the prestigious image (Philip Kotler, Marketing Management, 2000). 2 Packaging and Naming for the energy drink industry 2. 1 Industry overview.As a relatively new style of beverage in Australia (appearing in the middle 90s), energy drinks, sometimes known as smart drinks, were originally designed to give people a boost.Other benefits advertised by these products are improved concentration, endurance, stamina and the ability to help combat wear out (www. education. theage. com. au/pagedetail. asp? intpageid=69&strsection=students&intsectionid=0, 29/09/2004). Lifestyles are moving smart. battalion becharmm to have become time poor and tend to land harder and play harder. These drinks are for those who need to pack more hours into their day. (Glenn Martin, general manager, Frucor Beverages, The Age, may 2, 2001). Typically including a high caffeine level as well as vitamins, amino acids and herbal extracts, they usually sell for about $2 $3. 5 for 250 ml, making them a relatively expensive hushed-drink alternative. (www. education. theage. com. au/pagedetail. asp? intpageid=69&strsection=students&intsectionid=0, 27/09/2004). Initially popular in nightclubs and hotels, the energy drink market has been booming during the past few geezerhood in Australia, and these beverages are now astray available in supermarkets and convenience stores.Although this market is clean new in Australia, it is the fastest ontogeny area of the soft-drink market. (www. education. theage. com. au/pagedetail. asp? intpageid=69&strsection=students&intsectionid=0, 27/09/2004). 2. 1. 1 Leading brands on the Australian market In 2002, the energy drink sales were dominated by 4 brands in Australia Frucor Beverages Li miteds V (remaining by furthest the close to significant player with 35% volume share), Red Bull Australias Red Bull, Coca-Cola Amatils curve Plus and the Red Eye attach tos Red Eye.With a clever marketing and promotional tactics, V managed to cope with the growing competition and to increase its market share between 2000 and 2002, targeting at teenagers and young adults through the sponsoring of spring chicken oriented events and advertising during youth programming (Euromonitor International, docile Drinks in Australia, August 2004). However, in the latter part of this same period, the best growth was performed by Coca-Cola Amatils Lift Plus, which volume share increased from 5% in 2000 to 14% in 2002, to the injury of the Red Eye brand which lost market share by the same amount.Red Bull signed, in 2003, a distribution deal with Cadbury Schweppes to solve its volume share decline over the recent years by accessing the groups strong sale net melt. (Euromonitor International, Soft Drinks in Australia, August 2004). Considering the huge number of small brands existing today on the energy drink market, we decided to illustrate our study using only if the example of these 4 leaders. 2. 1. 2 Target market of the energy drinks The potential customers initially consisted in 90% of young and trendy people (club scene, extreme sports), nocturnal revellers, trendsetters and clubbers.Nowadays, the group of customers has evolved and includes long distance drivers, especially people who kick the bucket during the night or even employees working out of the office and kick from appointment to appointment who have come to appreciate Energy Drinks as a good way to wake them up, top-level as well as free time sportsmen like snowboarders, mountain bikers, free climbers and downhill racers but also people going to the gym or participating in a triathlon, pupils or students under stress who use the energy drinks as a new substitute of coffee.Users of Energy Drinks buy /drink them to be mentally and physically top fit and wide awake. They are dynamic, health conscious, achievement-orientated and active, in their jobs as well as in their spare time. nearly of them are young but there is an increased interest in these products coming from an older age group of the population. (www. fortunecity. com/tinpan/clapton/843/energydrinks. hypertext mark-up languageeda, 29/09/2004). 2.2 Packaging issues and trends on the energy beverage market Due to its growing competitive context, the energy drinks sector saw packaging utilise as an essential element in establishing brand identity. Consequently, the emergence of plastic bottles was far less pronounced in this sector than in any other soft-drinks sector. 2. 2. 1 Capacity and materials When Red Bull entered the Australian market in 1999, the company employed its trademark slim can and made it an quick sign of recognition for the energy drink product.The brand wanted to use this as a point of differentia tion to help consumers distinguish these highly caffeinated drinks from their carbonate counterparts, and competitors such as Lift Plus, V and Black stallion take oned this example to benefit from the association consumer would make between 250ml can and the type of product (Spark Gale, Sports and energy drink market expanding faster than other soft drinks, Food & Drink Weekly, February 23, 2004).This can size not only differentiate the product from the usual soft drink but also, according to the manufacturers, encourages only moderate consumption at any one time, be amaze of the high caffeine content. Indeed, the energy drinks market has suffered from claims that excessive consumption of caffeine can cause a rise in blood pressure and can introduction events such as heart problems and strokes in some people (Euromonitor International, globular Packaging find Trends, www. euromonitor. com. library. vu. edu. au/gmid/default.asp, 20/09/2004) The initial choice of many energy drink s producers for the can packaging has also been determined according to the purpose of the beverage and the needs of its target market. Indeed, the design of the package and its material had to dissolve the requirements of people responding to the growing trend for eating and drinking on-the-move, had to offer at the same time convenience, solidity, to be light-weighted, easy to handle (the 250 mL putting appears more convenient than the usual 330 mL size).Single-serve products also allow alert consumers, to drink in the car, office and in school, which happened to be essential to appeal to a broaden target market as it is now (Marsha Barancik, store cans have charismatic attraction, Beverage Industry, March 2003). In fact, when the product entered the market, it was sold in major part in bars, pubs and nightclubs and convenience stores, but as brand like V and Red Bull started to wear distinctive brand identities the started to sell through supermarkets.In this context the 25 0mL aluminium can presented another advantage since it was an easy shape to offer in multipack that could fit in shelves optimally, and appealed to consumers because of the lower unit prices offered and the ease of transport to their homes (Euromonitor International, Soft Drinks in Australia, August 2004). However, the need for differentiating from competitors and for acquiring a strong brand equity, related to number entry the industry saw these last year, pushed the company to innovate, creating packagings that would differ from the overused 250 mL aluminium can.This need happened to strengthen with the addition of supermarket as a channel of distribution the number of product and beverages that competed with the brand on the purchase decisional process was suddenly more diverse. To that extent, Red Eye used glass packaging as a strategy (that happened to be successful), to skeleton brand loyalty among its consumers and to break with the expected can packaging offered by competit ors. Since then, Lift Plus and V also offered a glass format to differentiate themselves from other canned energy drink brands (Global Packaging Key Trends, www. euromonitor. com.library. vu. edu. au/gmid/default. asp, 20/09/2004). 2. 2. 2 Graphics and scripts Packaging in the energy drinks also feature distinctive graphics and script. Each brand will attend to convey a differentiated image using specific colours and visual affect known for being associated by the consumer to positive attributes. In 1988, McGraw Hill studied the feelings and the images convheartd by colour in order to show the importance of the packaging in the purchase decision process. As a result, he found out that consumer unconsciously were making the succeeding(a) association Black formality and elegance. White Crispness Violet heart and soul Red revolution, excitement, fire, energy, stanfurd. Blue night, sadness, coolness, tranquillity Yellow happy, warm, optimism Aluminium high-energy potential (http //www. alumni. berkeley. edu/Students/Group_Resource_Guide/Marketing_Tips_for_CAA_Student_Leaders. asp, 7/10/2004). Looking at each brands packaging, we can see that, according to this theory, different feelings are meant to be evocated by each brand. overleap for Lift Plus, that is more oriented towards young people and students/children market, the aluminium colour is present on each packaging.The blue of the Red Bull can immediately reminds the customer with the clubbing and the nightlife while the red letter stands for energy and excitement. The yellow can of Lift Plus gives a joyful and pixilated image to the beverage and makes it a drink to be consumed during the day rather than in nightclub as a mixed drink (like its competitor Red Eye, Red Bull, or V). We can notice also the use of black in the two other packages, that gives a classy and distinctive image to the beverage, allowing them to stand in bar and clubs shelves. 2. 3 Naming issues on the energy drinks marketIn gene ral, even if branding is one of the most important steps in the marketing plan of a product (a good name provides a strong mean of distinctiveness for the brand), there is not much secondary information available on the naming strategy adopted by the companies. Concerning the energy drinks industry, we are going to focus on the major brands present on the Australian market V, Lift Plus, Red Eye and Red Bull. V is a typical example of a simple and memorable brand name that quickly identifies the product with an idea of vibrant, velocity, vitality, vigourAbove all, V is the widely known abbreviation for volt, positioning the product as a high energy provider (www. frucor. com/brands/aus/new_age. html, 03/10/2004). The name Lift Plus explicitly suggests the benefits of the drink that, according to its producer Coca-Cola Amantil, as been designed for people who work and play hard and need a boost to help them make the most of their waking hours. It is also named after the well-known bev erage Lift, to inform the consumer on the common point between the two beverages both have citrus-based flavour (http//www. cokebuddy. com.au/about_brands. asp, 03/10/2004).Red Bull has been the first energy drink to enter the global market, the name of the product reflects well its attributes and benefits (the jack is a powerful animal, it represents the high level of energy the consumer is going to get by drinking this product). But this brand name has also been affair to a lot of controversy (that has finally benefited the brand by creating some promotion around it) related to the fact that the word Bull created a direct association in the public mind with one of the ingredient included in the formula the Taurine.However, despite whatever conclusions one efficacy draw from the name, Red Bull contains no substances of animal origin even the taurine used in the formulation is synthetically produced (www. snopes. com/toxins/redbull. htm, 03/10/2004). Again, as for its competitor Red Eye, the code of colour (Red) is used as a way to suggest the energy and improvement of physical act provided by the consumption of the beverage.Red Eye, as a following fledgeling in the energy drink market (after Red Bull), has used the repute of the Red Bull name as part of its naming strategy (the two brand names are quite similar). The term eye reflects the personality of the product, putting the stress on the ability of the product to provide its consumer with an improved ability to concentrate, an increased alertness and an enhanced reaction time (www. red-eye. com. au/classic. html, 03/10/2004). (Roman G. Hiebing Jr. and Scott W. Cooper, The successful marketing plan, McGraw-Hill, 2003). ConclusionNaming and packaging are critical marketing tools for the company they assist its brand differentiation in the customers mind and product identification in the shelves of the store. Even if these two elements are even more important for products as energy drinks, that have qu ite generic core attributes (their composition is almost similar) and that cannot differentiate their offer using the augmented level of the product, we ascertained through our research that a brand mustnt limit its marketing mix tactic to its product features (naming and packaging).The three other Ps areas (Price, Place, and Promotion) are critical tools to strengthen the differentiation of its offer. The leading brands demonstrate it by supporting their product with heavy advertising campaigns and diverse promotional actions, as they proved to be essential to ensure their brand equity (sponsoring, smack distribution, co-branding, commercials, ads in various medias ). The study of the energy drinks market also showed us how the strategies linked to the issues of naming and packaging can evolve as the industry changes.Indeed, we discovered how these two aspects of the actual product could be used as way to assimilate the brand to a particular type of product, as well as a different iation feature. In fact, the energy drinks market demonstrated us that the maturity of the industry influences greatly the challenges implied by the choice of a name or a package. Indeed, all the companies which launched their energy drink at the introduction of the product in the soft drink industry, chose to follow the first entrant (Red Bull) on its package choice, in order to distinctly indicate to the customer the kind of product provided.As the industry matured, and the competition increased, offering a packaging that actually differentiated the brand seemed to be the only way to gain customer loyalty and to survive in this mature market. Sources Literature Philip Kotler, Marketing Management, 2000 Roman G. Hiebing Jr and Scott W. Cooper The successful marketing plan, a disciplined and comprehensive approach 2003 McCarthy, Perreault & QuesterBasic Marketing, a managerial approach 1997 Websites Market Trends category analysis, June 2004, www.PreparedFoods. com www. learn marketing. net/product. htm www. education. theage. com. au/pagedetail. asp? intpageid=69&strsection=students&intsectionid=0 www. fortunecity. com/tinpan/clapton/843/energydrinks. htmleda Euromonitor International, Soft Drinks in Australia, August 2004, www. euromonitor. com. library. vu. edu. au/gmid/default. asp Euromonitor International Global PackagingKey Trends, August 2004, www. euromonitor. com. library. vu. edu. au/gmid/default. asp www. alumni. berkeley.edu/Students/Group_Resource_Guide/Marketing_Tips_for_CAA_Student_Leaders. asp www. frucor. com/brands/aus/new_age. html www. cokebuddy. com. au/about_brands. asp www. snopes. com/toxins/redbull. htm www. red-eye. com. au/classic. html Articles Glenn Martin, general manager, Frucor Beverages, The Age, May 2, 2001 Spark Gale, Sports and energy drink market expanding faster than other soft drinks, Food & Drink Weekly, February 23, 2004 Marsha Barancik, Bottle cans have magnetic attraction, Beverage Industry, March 2 003.