Energy Drink Research Report
For McDonalds Corporation
Marketing Research, Unit 9
8 August 2011
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.
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 beverage companies are reaping the rewards of the exploding energy drink industry. This report examines the energy drink market and its potential to become a niche item in a fast food chain along with the population to target.
This report was conducted using a secondary statistical data and secondary research that was gathered using a focus group and survey of college age participants. The statistical data was obtained from New York City-based Beverage Marketing Corporation which is the leading research firm dedicated to the global beverage industry. The statistical data regarding the previous growth patterns and growth forecasts will be discussed in the results. The focus group and survey were done by Nutrition Journal and focuses on energy drink consumption patterns among college students.
The survey was based on responses from a 32-member college student focus group and a field test, a 19-item survey was used to energy drink consumption patterns of 496 randomly surveyed college students. (nutritionj) The population was defined as undergraduate students at a state university located in the Central Atlantic Region of the United States. 85% of the undergraduates were 18-24 years of age, 12% were 25-40 years of age and 3% 41 years of age or older. Sixty two percent of the entire student body is female. The sampling units were individual college students that were generated with a
non-probability method of asking students around campus if they would like to participate. (Nutritionj)
Fifty one percent of participants reported consuming at least one, energy drinks a month.
Thirty four percent of participant reported consuming at least two energy drinks a month.
% of college energy drink users reporting amount and frequency of energy drink consumption by situation in an average month
Energy drinks consumed Days/month ________________________________________________...