Mcdonalds Energy Drink Research Report
McEnergy 1
Energy Drink Research Report
For McDonalds Corporation
Marketing Research, Unit 9
8 August 2011
McEnergy 2
Executive Summary
The purpose of this report is to investigate past trends and forecasts of the energy drink market. Included in this report, is information on market size, target population and statistical data on growth history and growth projections. The aim is to determine if adding energy drinks to McDonalds offerings will create a profitable segment for their menu. The market research collected and contained in this report consists of secondary data. This research was authorized by: McDonalds Corporation. Current market research shows that the energy drink market has grown into a multi-billion dollar business, which has been reported as being the fastest growing segment in the beverage industry since bottled water. The US energy drink industry is expected to more than double in the 5 years preceding 2013. (Comprehensive Reviews) Eighteen to twenty-four year olds or college students are the largest segment of energy drink consumers. (NutritionJ) The conclusion of this report suggests that the growth of the energy drink market has been greater than most other liquid refreshment beverage sectors in the US in the past five years and that this trend will continue. It is recommended that McDonalds Corporation add energy drinks to their offerings and target college-aged students.
Introduction
Fast food consumption in the US has declined during the recent economic crisis. To stay profitable, many fast food chains have introduced low-cost or “value” items too keep sales up. Along with low-cost items, many fast food chains have added specialized items or niche items to attract customers that can more conveniently buy these at a fast food store.
McEnergy 3
Energy drinks have continued to gain popularity since Red Bull was launched in 1997. More than 500 new energy drinks were launched worldwide in 2006 and
Energy Drink Research Report
For McDonalds Corporation
Marketing Research, Unit 9
8 August 2011
McEnergy 2
Executive Summary
The purpose of this report is to investigate past trends and forecasts of the energy drink market. Included in this report, is information on market size, target population and statistical data on growth history and growth projections. The aim is to determine if adding energy drinks to McDonalds offerings will create a profitable segment for their menu. The market research collected and contained in this report consists of secondary data. This research was authorized by: McDonalds Corporation. Current market research shows that the energy drink market has grown into a multi-billion dollar business, which has been reported as being the fastest growing segment in the beverage industry since bottled water. The US energy drink industry is expected to more than double in the 5 years preceding 2013. (Comprehensive Reviews) Eighteen to twenty-four year olds or college students are the largest segment of energy drink consumers. (NutritionJ) The conclusion of this report suggests that the growth of the energy drink market has been greater than most other liquid refreshment beverage sectors in the US in the past five years and that this trend will continue. It is recommended that McDonalds Corporation add energy drinks to their offerings and target college-aged students.
Introduction
Fast food consumption in the US has declined during the recent economic crisis. To stay profitable, many fast food chains have introduced low-cost or “value” items too keep sales up. Along with low-cost items, many fast food chains have added specialized items or niche items to attract customers that can more conveniently buy these at a fast food store.
McEnergy 3
Energy drinks have continued to gain popularity since Red Bull was launched in 1997. More than 500 new energy drinks were launched worldwide in 2006 and
References: - Gonzalez de Mejia, E. & Heckman, M. A. & Sherry, K. (2010). Energy Drinks: An Assessment of Their Market Size, Consumer Demographics, Ingredient Profile, Functionality, and Regulations in The United States. Comprehensive Reviews in Food Science and Food Safety. Retrieved from: http://onlinelibrary.wiley.com/doi/10.1111/j.1541-4337.2010.00111.x/pdf - West, T. (2011). The Energy Market is Still Full of Growth Potential Reports. Wholesale News. Retrieved from: http://web.ebscohost.com.lib.kaplan.edu/ehost/pdfviewer/pdfviewer?vid=12&hid=123&sid=eeec713f-80bc-4ca6-b6ce-02c68e0f1f50%40sessionmgr112 - The US Liquid Refreshment Beverage Market Increased by 1.2% in 2010. (March 2011). Beverage Marketing Corporation Reports. Retrieved from: http://www.beveragemarketing.com/?section=pressreleases - Aeby, V.G. & Barber-Heidal, K. & Carpenter-Aeby, T & Malinauskas, B.M, & Overton, R.F. (2007). A Survey of Energy Drink Consumption Patterns Among College Students. Nutrition Journal. Retrieved from: http://www.nutritionj.com/content/6/1/35