Market Segmentation of Energy Drinks
Recently there has been considerable hype about energy drinks. Adults are busy and attempt to maintain an “awake” lifestyle, so they ensure they manage everything on time, and caffeine enables people to hustle better. That does not only apply to young adults because anybody would like a sip of energy from sugary heaven or an unsweetened perfect caffeine taste. The energy drink industry is competitive, so it is more complex for smaller businesses to introduce themselves. Some high market share companies in the energy drink industry are Red Bull, Rockstar Inc, The Coca-Cola Company, and PepsiCo. This blog will break down an overall marketing review of the industry.
Segmentation strategy of energy drinks
The alleged segment that energy drink companies target is passionate about work, and they are driven mainly by substantial money-making opportunities. Concentrating on work sometimes makes people tired, and the getting-out-of-bed state of mind is sometimes not the best way to go to your job. Hence, energizing yourself during the day with something fresh and cold sounds like an excellent plan.
Secondly, the alleged segment that energy drink brands target typically enjoys having fun. Regardless of the different interpretations of fun, they are all for it. And, as we know, having a good work and social life balance takes a lot of energy, time, and guts. That is where, once again, energy drinks arrive at the rescue.
These points make it evident that the segment that energy drink brands target is Hedonists.
What do we know about this segment?
Lifestyle and values:
Nobody understands how fleeting life is. Therefore, every day must be full of experiences and joy.
Hedonists frequently engage in mad behavior as a kind of entertainment. Imagine you went to a concert with a Hedonist.
They might leap onto the stage and perform bizarre acts to make the encounter more exciting. This section is quite welcoming. They are constantly surrounded by more impressive groups of people exercising in various ways.
Their user interface does indeed alter. One minute they can attend a pub; the other, one might spot them in a mall.
Hedonists occasionally invite a couple of their friends over to their homes. They must once more actively participate in some form.
So they can occasionally watch a football game and enjoy a few beers and crunchy chips.
Hedonists can handle difficulties. If they even remotely sense boredom, they will act foolishly.
These include switching schools, jobs, friends, and romantic partners. This explains why connections for this segment could frequently be stronger.
Hedonists frequently venture out to different locations and interact with eccentric people. This may result from their mystery, excitement, and quick tendency to cause boredom.
When this segment goes shopping, they buy gowns or contemporary devices.
You may need assistance to determine whether they have a limited budget. Hedonists give a lot of thought to how they look. One of their most significant life perspectives is this one.
They must stay current with the newest fashions. This gives them a distinctive, attractive, and distinguished appearance. Another factor that Hedonists take into account is appearance, which may be an indication of well-being. Hedonists who thin down to reduce weight do so for their appearance rather than their health.
For Hedonists, money is the source of the most creative effort. For Hedonists, everything at work must be in order.
This portion unquestionably fits the conventional “macho” mindset. “You need to get drunk if you’re drinking.” Stay at home if you are a lady, I say. “You should not cry if you are a man,” was said.
Among all the demands of this hectic way of life, the family is at the bottom of the hedonists’ list of needs. In any event, Hedonists occasionally eat dinner with their families.
Attitude to shopping:
Hedonists typically choose well-known brands. Traditional brands enhance the image of the individual. Hedonists occasionally purchase luxury goods. However, they do it to brag once again.
They need to stand out from the herd by admiring simple things. Shopping as a hedonist does not forbid putting value over quantity.
Hedonists are careless patrons. They are different from the type of people who plan their shopping excursions. Hedonists occasionally use well-known brands.
That only applies when certain products are in style, however. This group enjoys browsing small shops, yet they will still take their time to select the most extraordinary items.
Interesting facts about Hedonists:
Hedonists
- Spend most of their time with friends
- Adore dancing in a large crowd
- Attend bars, cafes, pubs, and cinemas pretty consistently
- Love newly-released movies
- Visit exhibitions whenever interested
- Are passionate about automobiles
- Occasionally play the lottery
- Utilize social media primarily for entertainment purposes but are not active users
- Sometimes read magazines
- Consume TV primarily for mainstream programs
- Use the internet as a tool to turn their life more enjoyable
- Online shopping drives their internet utilization purposes
- Are above-average radio listeners
16 Personalities (What is the best for your business?)
You would think energy drinks are solely for making you feel awake, but they offer much more. These delicious and energizing drinks market themselves not exclusively for their refreshing qualities but for how amazingly their industry brands targeted their segment. Energy drinks have targeted Hedonists and relish their success to this day.
The motto of Hedonists, who are highly conceited young individuals, is “We only live once!” For them, every day should be enjoyable. They believe that people should live as fully as possible. Hedonists use these actions as a way to stand out in society. They would not hesitate to take the stage at a concert or jump out of a paraglider.
Hedonists typically hang out in larger groups with their buddies. Instead of shopping, they would rather go to bars or large clubs. In those areas, you can have fun, laugh, or chat with plenty of friends.
However, they prefer pubs to entertainment places because they tend to operate in a more affordable pricing range.
Segmentation strategies of energy drink companies provide them with the best products to suggest and how to establish their marketing strategies. The aim for an enjoyable life has made it evident that Hedonists are the proper segment to target for energy drink brands.
However, Hedonists are among the many other buyer persona segments.
Our e-book “16 Personalities” has various buyer personas, each representing multiple segments and their traits. The book will also offer advice on negotiating and enhancing your marketing effectiveness.
Energy Drinks’ positioning plan
Energy drinks and shots continue to be driven by function, but experts say that increased flavor variety and healthful qualities are helping the category do well.
According to research analyst Catherine Krol of Chicago-based Euromonitor International, consumers are finally becoming aware of the sugar content in energy drinks.
Customers have started moving toward the low-calorie variations to still benefit from the numerous B vitamins and taurine most energy drinks offer while ingesting less sugar because the functional features of the category are still enticing to consumers.
Three of the Top 10 energy drinks have fewer calories, less sugar, or low carbs. Red Bull North America Inc., a company based in Santa Monica, California, placed its Red Bull Sugar-Free variation in third place. In contrast, Monster Beverage Corp., a company based in Corona, California, placed its Monster Zero Ultra and Lo-Carb energy drinks in fourth and seventh place, respectively.
Exclusive flavors, which have gained consumer favor, support these “diet” varieties. According to Euromonitor’s February “Energy Drinks in the US” study, Monster and Red Bull have been experimenting with flavors that are not offered in their full-calorie lines to offset the “diet flavor” that has many consumers uninterested. It continues that tropical fruit flavors have shown to be overwhelmingly well-liked.
However, full-calorie flavored energy drinks also contribute to the category’s performance. For instance, IRI’s Viamari estimates that Red Bull The Green Edition made $110.7 million in its first year of sales through the convenience store channel. It was also a Top 100 food and beverage brand, earning first-year sales of $27.6 million in IRI’s multi-outlet geography.
There is a definite consumer demand for new tastes, whether a diet or a full-calorie energy drink.
Four in ten consumers of energy drinks/shots are interested in trying new flavors, suggesting innovation in this area may be especially effective in building the market.
Additionally, natural and organic products are competing with the major brands.
For instance, Atlanta-based Kill Cliff announced the release of its new Ignite energy drink collection, which includes natural ingredients including green tea, ginger, ginseng, B vitamins, and electrolytes and contains no sugar, artificial flavors, or colors.
A growing share of these small, niche, health-oriented energy drinks can compete with the biggest brands in this fairly consolidated category. Until recently, energy drink businesses struggled to distinguish themselves from the well-known marketed imagery of Monster and Red Bull. Though on a relatively modest scale, minor players are currently riding the wave of health consciousness to sustain themselves.
Energy drinks that contain beneficial components, such as coconut water, guarana, green tea extract, monk fruit, etc., are anticipated to continue expanding in popularity in the years to come due to an increasing number of active people.
Marketing mix of energy drink brands
Before getting into it, let us understand the marketing mix. The latter demonstrated four brand concepts. Those are product, pricing, place, and promotion.
And since we can notice that pattern of those concepts beginning with the letter “p,” the latter is also referred to as the 4Ps strategy.
So, let’s take a look at them.
Product:
Energy drinks improve brain clarity and motivation. The energy drinks had excellent brand distinctiveness in the energy sector and were certified organic. Energy drinks have guarana and less sugar. Guarana contains three times as much caffeine as coffee beans, ginseng, and other natural ingredients. Chemicals are not present in the energy drinks’ ingredients. The nutrition facts label for the energy drink also indicates that each serving contains 80 milligrams of caffeine.
Price:
Let us take a look at this section with specific examples. Monster Zero Ultra Energy Drink is worth $1.548.
Monster Mega Energy Drink is reasonably priced at $2.94.
Monster Energy Drink Beverage Cheap Wholesale Discount is expensive. Food and drink in bulk Beverage cans Fish and seafood $4.29
The cost of Crescent Pure energy drinks is $2.75. Energy drinks range from $2 to $5 on the open market. The energy drink cost is very similar to Monster’s affordable cost. As a result, Crescent Pure sets its drink prices at a Moderate Level.
The medium-priced product from Monster has healthy substitutes like vitamin B6, vitamin B12, etc. Energy drinks are reasonably priced and of high quality.
Place:
“mass merchandise” refers to businesses with expansive storefronts that exhibit a wide range of goods, such as furniture, appliances, accessories, food stores, etc. Numerous people shop through mass merchandisers, making substantial purchases at discounted prices.
Customers can purchase prescription drugs, healthcare items, and other domestic goods in a drugstore, including toothpaste, cosmetics, energy drinks, meals, and snacks.
The Seattle-based online retailer Amazon specializes in various goods, including electronics, home goods, books, and other goods. One Prime Day Delivery is a unique service offered by Amazon that enables customers to get their items within a day.
Promotion:
Crescent Pure used an outdoor music festival to advertise its energy goods. The corporation leveraged the event’s energy features as a critical selling element to clients. Crescent Pure used images of male athletes between 18 and 24 to promote its products. The event features rock music and targets younger attendees with the slogan, “Our beverages help you achieve anything you want to do.”
By 2012, there was a rise in the popularity of energy drinks. According to Booth’s son, adults who consumed energy drinks felt more energized and productive. They then told their father, Michael Booth, about their experiences. As a result, The Crescent Pure learned about energy drinks from word of mouth.
And that concludes the “Market Segmentation of Energy Drinks” blog. We studied the industry’s segmentation strategy, positioning plan, and marketing mix intensely. Remember to stop by our main website for more enlightening and entertaining content!
