SWOT Analysis of The Energy Drink Industry
Strengths:
The energy drink industry manufactures and produces energy drinks that are proved to accelerate performance of consumers, develop one’s concentration and increase one’s speed of reaction. The energy drink industry, in general, is an aggressive and proactive industry. This is fitting because of the consumer base they are advertising to. If energy drink brands are more aggressive than soda and vitamin water brands, athletes and young people (which is considered the target market) are more willing to purchase energy drinks. The brands within the industry are constantly developing and pushing their specific drinks to sell. Another strength of energy drinks is the design of packaging. Most of …show more content…
Because the industry has such a small consumer base, all of the energy drink companies are competing for the same consumers, thus, it is harder for more brands within the industry to thrive. Additionally, because of this, the consumer/buyer power is much higher. Another weakness of the energy drink industry is that it is not cost effective. Brands charge a high price for a small can of product; because of this, consumers might lean more towards soda, or coffee which is cheap, and available in a large quantity. There is also a lack of diversity due to the fact that all energy drinks are relatively made from the same ingredients, thus, they all seemingly taste …show more content…
To continue to be competitive in the industry, Red Bull can attempt to reach a larger consumer base, while still upholding their “risk-taker” and “adventurous” characteristics. They can do this by developing a classier energy drink for young people or old people looking for a pick me up, without looking to do something extreme and calling it something completely different than Red Bull. It would provide the consumer with more options and consumers love having an opportunity to have opportunities. This is also a way for Red Bull to expand from being a “luxury and sports drink”. The energy drink could be marketed to people attempting to lose weight, models looking for a dose of energy before a show, celebrities looking for a dose of energy before a concert or simply for older, working class men and women just looking for a low-calorie soft drink so that they can get through the rest of their
Strengths:
The energy drink industry manufactures and produces energy drinks that are proved to accelerate performance of consumers, develop one’s concentration and increase one’s speed of reaction. The energy drink industry, in general, is an aggressive and proactive industry. This is fitting because of the consumer base they are advertising to. If energy drink brands are more aggressive than soda and vitamin water brands, athletes and young people (which is considered the target market) are more willing to purchase energy drinks. The brands within the industry are constantly developing and pushing their specific drinks to sell. Another strength of energy drinks is the design of packaging. Most of …show more content…
Because the industry has such a small consumer base, all of the energy drink companies are competing for the same consumers, thus, it is harder for more brands within the industry to thrive. Additionally, because of this, the consumer/buyer power is much higher. Another weakness of the energy drink industry is that it is not cost effective. Brands charge a high price for a small can of product; because of this, consumers might lean more towards soda, or coffee which is cheap, and available in a large quantity. There is also a lack of diversity due to the fact that all energy drinks are relatively made from the same ingredients, thus, they all seemingly taste …show more content…
To continue to be competitive in the industry, Red Bull can attempt to reach a larger consumer base, while still upholding their “risk-taker” and “adventurous” characteristics. They can do this by developing a classier energy drink for young people or old people looking for a pick me up, without looking to do something extreme and calling it something completely different than Red Bull. It would provide the consumer with more options and consumers love having an opportunity to have opportunities. This is also a way for Red Bull to expand from being a “luxury and sports drink”. The energy drink could be marketed to people attempting to lose weight, models looking for a dose of energy before a show, celebrities looking for a dose of energy before a concert or simply for older, working class men and women just looking for a low-calorie soft drink so that they can get through the rest of their