Assignment: Sales Promotion Portfolio
– Energy Drink Industry
Module Leader: Richard West
Student Name: Wei-Ting Chen (Kevin)
Student ID: 13553522
Deadline of the resit: 09 July 2012
3.1 Comparison of the different promotions4
3.2 Promotional Marketing Overview of Energy Drink5
4. Selected Promotion7
4.1 Promotion No.17
4.2 Promotion No.28
4.3 Relevant events and PR activities9
5. Budget and ROI11
It is widely believed that energy drinks have been an integral part of beverage in UK market. Consumers can commonly buy energy drinks in a number of places such as supermarkets, grocery stores, corner shops or even convenient shop in petrol stations over UK. A report from Independent indicates that the growth of market for energy and sports drinks has increased b nearly 20 per cent from 2009 and it is anticipated to reach £1.1 billion market value per year and there has been 209 new energy drinks launched in the past five years in the UK. Mintel also reports that the industry could be worth nearly £2 billion by 2016. Energy drinks are functional, non-alcoholic, often lightly carbonated beverages, designed to give the consumer a burst of energy by the addition of a number of energy enhancing ingredients, most notably caffeine. Popular brands of energy drinks such as Lucozade Energy and Red Bull deliver a dose of caffeine equivalent to a cup of coffee, while their more potent competitors Relentless and Monster – marketed to extreme sports fanatics – can contain twice that amount, around 160mg per can (Independent, 2011). Nowadays there around 73 per cent of 16- to 24-year-olds young people drink them regularly and most say they simply like the taste, market analysts Mintel said. Moreover, two-thirds of those aged 16 to 24 questioned by the researchers said the energy drinks improved their performance at work or while studying.
The purpose of this study is to analyse and discuss the use and effectiveness of sales promotion on energy beverages and investigate how these brands are doing with their promotions onto existing products to effectively enhance their awareness and market share. It will be done into four parts. In the first paragraph it will show the methodology planned by implementing secondary research from authentic resources such as Mintel, online articles and professional reports, books and articles etc. Following by an overview of current promotional marketing in UK energy drinks industry, it will be written in the second paragraph and the content will compare the difference of promotions applied among dominated energy drink brands: Lucozade Energy, Red Bull, Monster and Relentless etc. and analyse how the most used marketing skills of promotion target consumers’ purchases to gain their attraction. In the third part, it will indicate the key findings in relation to sales promotion and select promotions in good and poor views, then finally to suggest which method would be a good way in the future.
This section contains the techniques that were employed in this market study process. For the purpose of this study the secondary research method and actual fieldwork were mainly utilized with its critically selected data collection methods from authentic resources such as Mintel, owned media, professional reports, and articles etc. This will enable the research process to be tackled comprehensively in order to draw the right conclusion. It was decided to investigate some representative energy drink brands chosen from this sector. They were: * Red Bull
* Lucozade Energy
The chosen energy drink brands target on extreme sports enthusiasts, students and teenagers who have energy needs, and also some of other brands try to attract the...