Essay on Marketing Strategy Of The Energy Drink Industry

1. The energy drink industry, largely dominated by Red Bull, is relatively new. One of the industry’s strengths is that it targets a select group of people so companies can focus their advertisements towards these people. Coca-Cola, for example, is a drink that is consumed by a wide variety of people, so their advertisements are very broad and focused on the product. Whereas, energy drink advertisements can focus on people and events centered around an active lifestyle. Another strength of the energy drink industry is the marketing strategy. The extreme sports all have something in common: the energy drink logos all over the athletes’ attire and equipment. Extreme sports athletes are exactly the kind of people that energy drinks are trying to sell to. These young athletes are bringing the names and logos of different energy drinks into the faces of young adults with an active lifestyle, which is exactly what the energy drink industry was trying to accomplish. Another strength of the industry would be that the products are sold for a relatively high price considering the low cost of production. For instance, the cost of a twelve-ounce energy drink can be upwards of two times the cost of a twelve-ounce soft drink for the same cost of production. A weakness of the energy drink industry is that there are so many alternatives. Several soft drinks, along with water and different juices are all more popular than any energy drink. An energy drink is more of a specialized…