marketing mix of energy drink

7/29/2019 Marketing Mix of Energy Drink

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GROUP 7

Mr. Star

Energy Drink

Tirup Patel - 171

Shubham Bhakarh - 167

Vivek Jhala - 175

Nischay Gupta - 148

Roochira Tanwani - 158

Priyanka Kamath - 154



History

• Jolt Cola was released in the 1980s.• Jolt Cola pioneered the marketing strategy

which has been still used until today bymarketers for energy drink.

• Targets of the marketing research areyounger audience, mostly students, youngprofessionals, and people on-the-go.

• Energy drinks become significant in 1997 with

products like Red Bull and similar products.• In Japan and UK, energy drinks were known

for as far as the early 1960s and 1929respectively.



Energy Drinks-General Introduction

Energy Drink suddenly takes the market of beverage by storms.

This type of non-carbonated drink has shrunk

carbonate soft drink market in a short periodof time.

Energy drink claims to be healthier beverage

type

Energy beverage industry targets towardsthose people who need some sort of energy

boost



Overview of Energy Drink Target

Audience

The primary consumer group of energy drinksincludes extreme sports enthusiasts, young

adults and teenagers.

This may be the result that many energydrinks are sponsored or created by extreme

sports teams, stars, etc.

This crowd is a group excited by speed,

energy, flash, and instant thrill.



Male teenagers and people in their 20s are most

likely to believe in the fact that energy drinks will

give them the boost they need.

The popularity of energy drinks may have risen due

to busier schedules and more complicated lives

people are going through.



P : Product



Product

Features

No caffeine, taurine.

Natural and Highly Nutritional.

100% fat free.

Tasty.

Available in various flavours.

Original, Martini, Mojito, Tequila sunrise

Attractive Designing and Packaging.



P : Price



Price

Existing Energy drinks are highly priced. All the existing energy drinks are available for

around Rs.90/-

Due to such prices many of the masses wanting to

buy an energy drink, go for any low priced softdrink to rehydrate, at the expense of nutrition.

Mr. Star would be available for Rs.39 which would

be affordable for every segment of the society. The powder packet of Mr. star would be available

for Rs.20.



P : PROMOTION



Advertisement and Promotion

schemes

Since our product already has many well set competitors

in the market , we have to make sure the public is well

informed of our product. Thus we plan to undertake as

many as possible advertisement and promotion schemes

possible.



TELEVISION ADVERTISING Ad campaigns on PrimeTV Channels such asNDTV good times, MTV,TLC, Channel V, Zoom,

VH1, Star World and afew more.

RADIO Advertising on popular

radio channels like104.00 fm, red fm, etc

BILL BOARD ADVERTISEMENT

MAGAZINES



Free distribution of samples in colleges

To promote the drink we will give out 50 free

samples outside colleges once a week for the first

month.

We will also sponsor various college events andfestivals where we can distribute free samples.



Organize various sports

events.

We will organize sport events

like marathons, etc where wecan promote “Mr. Star”

Associate with gyms.

We will have tie ups with gymsto promote our product.



Interactive website.

New Media Promotion: Facebook, Twitter, etc

Advertising and promoting on social networkingwebsites will also help.



P : PLACE



Distribution (or place) is one of the four elements of

marketing mix.

Frequently there may be a chain of intermediaries, each

passing the product down the chain to the next

organization, before it finally reaches the consumer or end-user.

This process is known as the 'distribution chain' or the

'channel.'



Distr ibution Channel

Our distribution channel is consistent as followed by most

companies and involves a lot of intermediaries. However we

plan to sell our products both directly i.e. through our

campaign outlets and indirectly i.e. via Agents , Wholesalersand Retailers.

Since it is new launch, we would primarily like to focus on

production and quality of the product. But once the product isaccepted, we will shift our focus towards distribution as till

then even we will be sure of our production plans as per

response.



Product Outlets

As per our distribution strategy we plan to makethe product advertisements visible every where tothe customers. Other than this it is also veryimportant for the product to be easily available to

the customers. Thus, we plan to make sure that the product must be available in the following places :-

Local drug or medical store

Local general stores Malls and Super Markets

College and office canteens

Clubs



Branding



Brand Elements

Name – Mr. Star

Logo – Orange coloured star

Tagline – Makes you invincible

Colour Scheme – Orange & Black Sounds –



Brand Ambassador – 1985 NES’s Mario



Ad 1



Brand Equity

Added value endowed on products and services.

Important intangible asset to the firm that has

psychological and financial value.

Brand Equity Models : BAV

Aaker

BRANDZ



Brand Asset Valuator

Differentiation (degree of difference)

Relevance (breadth of its appeal)

Knowledge (How familiar customers are)

Esteem (respect for the brand)



Aaker Model

Ten attributes of a brand that can be used toassess its strength.

HIP OR POPULAT

DIFFERENTIATION

SATISFACTION OR LOYALTY

PERCEIVED QUALITY

LEADERSHIP OR POPULARITY

PERCEIVED VALUE

BRAND PERSONALITY

MARKET PRICE

MARKET SHARE

BRAND AWARENESS

ORGANIZATIONAL ASSOCIATIONS



BRANDZ MODEL

Presence (Do I know it)

Relevance (Does it offer something)

Performance (Can it deliver)

Advantage (compared to others)

Bonding (Nothing beats it)

Strong Relationship

Weak Relationship



Ad 2



Competitors in the market

Red bull Xxx

Burn

Cloud 9



SWOT ANALYSIS

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS



OPPORTUNITIES

Good Market Potential. Upcoming Sector in the Non-carbonated drink

Segment.

Increasing Awareness about health.

Established & Strong Players.

Conventional methods of Hydration still prevalent. Cheaper alternatives.

THREATS



SEGMENTATION ,TARGET,

POSITIONING



SEGMENTING, TARGET,

POSITIONING

AGE GROUP : 18 TO 28 HEALTH CONCIOUS PEOPLE WHO ARE

AVERSE TO ALCHOHOL

COLLEGE STUDENTS WHO NEED TO STAY

AWAKE LATE AT NIGHT, HECTIC SCHEDULES

WORKING CLASS PPL WHO NEED THAT

EXTRA BOOST OF ENERGY

ATHLETICS WHO NEED ENERGY AFTEREXHAUSTIVE FIELD ACTIVITIES

PARTY ANIMALS



SEGMENTING TARGETING AND

POSITIONING

SHOULD BE POPULAR AMONG YOUTH IN THEURBAN AREAS.

TARGET : TIER ONE AND TIER TWO CITIES

CONCENTRATION IN METRO CITIES

IT SHOULD BE PERCIEVED AS A HEALTHY

DRINK UNLIKE ITS COMPETITORS

EASY SOLUTION TO TODAYS STRESSFUL

AND HECTIC LIFE



Porter’s Generic Business

Strategy

Broad

Target

Narrow

target

Low cost Differentiated

Competitive Advantage

Competitive

Scope

Cost

leadershi

p

differentiation

Focused

differentiation

Focused cost

leadership



DIFFERENTIATION

PRODUCT DIFFERENTIATIONMAINLY THE HEALTHY INGREDIENTS



DIFFERENTIATION



COST DIFFERENTIATION

RS 30 to

40

Rs 40 to

50

Rs 60

to70 Above R

80

We have been very sensitive in responding to our customer survey. Thus the

product is priced at rs 35. its just what the consumers are willing to shell.

competito

r

redbull cluud9 burn Mr star

price 80 65 75 35



Effects of the stratergy

Major benefit : expected to sell more cans than itscompetitor in a span of one year.

Mr STAR is half the price of its competitors thus later

it may invite competative pricing from other small

competitors like cloud9 and Burn in the future. There may be an entry of other organic and herbal

energy drinks in the future which may eat into our

profits. As in the Indian market herbal and organic

energy drinks are unexplored.

It cannot be called a focus stratergy as we are

targeting the same market segment as our

competitors.



Timing stratergy

We are not the first movers to bring the product tothe market, however we are the very first ones to

differentiate the product.

Redbull was launched in 2002 (first movers)

Cloud9 was launched in 2008

Mr star to be launched in 2011



Market challenger stratergy

Flank attack : attack

the weekness of the

competitor.

Since redbull is amarket leader with a

62% dominance in the

market followed by

cloud9 with 20 %

share.



Flank attack

We choose to attack the weakness of thecompetitor. We will spread awareness on the high

caffine content and its ill effects by organzing

marathons in colleges and having tie ups with

leading gymnasiums and fitness centres wherebyour sales representatives will be wearing tshirts

reading “say no to caffiene”



Marketing challenger Stratergy



By pass attack

Again since it’s a low cost product and has low

caffaine contents MR STAR aims to overcome its

competitors by positioning itself as a 100 %

natural energy drink. Ready drink plus powder form available.



Market Distribution

Brand Loyalty for Star Ltd. will be advantageous.

Mr.Star will be given to club DJs, empty cans will

also be left on tables in hot spots such as trendy

bars, clubs and pubs.

Wide target audience to grow beyond the

boundaries of existing energy drinks.

Coverage of a large section of the society inlower cost.



Market Distribution

Easily accessible in most retail stores, provision

stores, supermarkets.

Using pick-up trucks as mobile displays

A long term tie up with Star Bazaar

Tie ups with gymnasiums and fitness centres.

Cans of the drink will be given out free to people

on the street who will be identified as being inneed of energy.



Conclusion

Mr.Star will be a caffeine free and taurine freeenergy drink for a wide range of audience.

Students who need energy for a hectic life style,

sportsperson, working class people.

Different packaging and designing will gain

consumer attraction.

Low cost and availability in cans and also in

powder form will differentiate the product from

competitors.



Conclusion

Redbull, our major competitor can currently beconsidered a monopoly in the Indian market.

Targeting the weakness of the competitor.

The drink will be healthy and nutritious along with

being 100% fat free.

Star Ltd. Being a developed company in the

market, will be an advantage for Mr.Star.



Conclusion

Mr.Star will be an easy and healthy way toacquire energy in the day to day hectic life.

THANK YOU

marketing mix of energy drink

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