Energy Drinks Case Study

Over the years, energy drinks have become very popular being one of the fastest-growing parts of the beverage industry. (Meier) These products are meant to revitalize the body by boosting energy so that consumers can be more active and productive. The strengths of entering this industry include: low supplier power, international recognition, and an appealing image. The ingredients necessary to make energy drinks consist of caffeine, taurine, vitamins, and other supplements that are easily accessible. There are a large number of suppliers from which a manufacturer could purchase the ingredients; therefore, entering this market is probably not too expensive. Another benefit is that energy drinks are a popular market all over the world, especially

For instance, the low supplier power makes entering the market a bit easier; however, the contents are not patented so there is little that can differentiate one company’s product from another. It is also difficult for brands to branch out beyond just producing energy drinks. Other than establishing a variety of flavors, expanding an assortment of products will rarely be successful because consumers already correlate the brand to energy drinks. Another big weakness of energy drinks is the negative reputation. Although the initial appeal is very attractive to young people, older audiences, and parents who may not agree with the image of a fast-paced, wild lifestyle that energy drinks represent generally dislike energy drinks. A main concern that most have is based off of health conflicts that energy drinks have caused. Consuming excessive amounts of caffeine can cause elevated heart rates and there have been “reports of deaths and serious injuries that may be linked to their high caffeine levels.”

If Red Bull takes a healthier approach, then they could promote their product at marathon races and charity walks so as to keep a positive, healthy image. They could make a SnapChat account and record their marketing teams at these events to showcase their healthy attitude. Red Bull could also create its own application that shows deals, and gives customer loyalty discounts. The application could also scan QR codes that Red Bull could put on their cans and each one might have a different result. Examples could be receiving deals for a free can, certain percentages off, or offers that say “scan four more cans to get one