How is the market for energy drinks, sports drinks and vitamin-enhanced beverages changing? What are the underlying drivers of change and how might those forces individually or collectively make the industry more or less attractive?
The market for energy drinks, sports drinks and vitamin-enhanced beverages kept on changing through differentiation from other brands to have a better brand image and also to meet the demands of the consumers as it is said that USA has helped greatly in the growth of the industry. Because of the significance of brand recognition, the sellers kept on building the product and how it to be most familiar. Product innovation, one of the market’s drivers of change, is said to be the most important competitive features of the alternative beverage industry. Alternative beverages competed on the basis of differentiation from traditional drinks (carbonated soft drinks or fruit juices) so for energy drinks, they often changed the taste, the energy boosting of their ingredients, and image. It is also through marketing innovation and efficient distribution systems that the industry kept on changing by always having varied its packaging, clever ads, endorsements from celebrities/athletes and sponsorships. Alternative beverage sellers also need to have efficient distribution systems to be successful in the industry. These forces only made the industry attractive because it can attract first time buyers through product and marketing innovation and offer responsive customer service to large customers which may then lead to an increase in market demand, make competition more intense and lead to a higher industry profitability.
Please join StudyMode to read the full document