1.0. Executive Summary
Tiger Energy Drink offers their consumers “a unique product endowed with different usage alternatives” providing a beverage focused on positive effects of an energy drink and guarana with an amazing sweet taste. Tiger Energy Drink is an alternative to tea and coffee and can be consumed cold or hot depending on the preference. It has a very sweet taste -not too much intense- and can be consumed as a regular beverage. Tiger is positioned itself as an alternative to coffee since it offers a great variety of caffeine (guarana) and other energy drink since it offers different flavors. Guarana, the main ingredient of the Tiger energy drink, has a cognitive effect. A 2007 human pilot study assessed acute behavioral effects to four doses (37.5 mg, 75 mg, 150 mg and 300 mg) of guarana extract. Memory, alertness and mood were increased by the two lower doses, confirming previous results of cognitive improvement following 75 mg guarana. Some research also shows that Guarana has antioxidant and antibacterial effects, and also fat cell reduction. The target audience is working class and is primarily males and females between 25 – 40 ages. The majority consumer group of Tiger Energy Drink includes white-collar workers who spend long hours in office, working parents and young adults.
2.0. Situation Analysis
Tiger, founded 6 months ago by 2 entrepreneurs, is about to enter the competitive energy drinks market in Turkey. Although Energy Drinks market is considerably small, its annual growth rate is around 30% and the market is the most profitable segment of the non-alcoholic beverages market. The existence of big players and many cheaper outlier products will make it difficult for Tiger to establish a strong brand and market share in the short term. In order to do that, Tiger will differenciate in product flavors, hot or cold use opportunities and varied serving sizes. Of course, careful targeting of specific segments and supporting marketing activities will be the key to success.
2.1. Market Summary
Energy Drink market in Turkey consists of 0,35% of the whole non-alcoholic beverage market in terms of the market volume. The total volume of non-alcoholic beverages in Turkey is 7,2 billion liters, whereas Energy Drink’s volume is 25,5 million liters. On the other hand, when the market value is taken into consideration, Energy Drink market gets 3,5% of the whole non-alcoholic beverages market. The value of the whole non-alcoholic drinks market is 8,5 billion TL, and Energy Drinks’ share is 298 million TL. While the average value per liter in non-alcoholic beverages market is 1,18 TL, The same ratio becomes 11,66 TL in case of Energy Drinks. Therefore, it can clearly be seen that this segment is quite lucrative and profitable. The sub-markets, from the biggest to smallest, are water, tea, carbonated drinks, non-carbonated drinks (e.g. ice tea) and coffee markets. Although, its size is small, Energy Drink market has a steady 30% annual growth rate.
Energy Drink consumers are usually in the 25-40 age range, upper income level white collar people. However, cheaper products were able to penetrate low and mid income level segments too. These include truck drivers and blue collar workers. Energy Drinks are consumed in many different occasions. The need of concentration and productivity defines their daytime use whereas the need of fun and high energy defines their nighttime use. The table below shows how Tiger addresses the basic needs of its targeted segments. Targeted Segment| Customer Need| Corresponding Feature/Benefit/Product| All Segments| Wake-up in the morning| Tea flavored, hot or cold consumption optioned Tiger (B vitamins and thein)| Students & Professionals| Concentration and Productivity in daytime and work activities| Orange, Melon or Tropical Mix Tiger drinks (Guarana)| | Fun and High Energy in nighttime...