Recommendations for the New Energy Drink Brand

The purpose of this report is to present recommendations for the new energy drink brand based on secondary data collected.

Main Competitors and their market share

Red Bull and Monster are the two main competitors in the energy drink market, Red Bull being the leader taking up 48% of the market share followed by Monster with 39% market share.

Main Consumers

Energy drinks appeal to the younger consumer segments. Approximately 72% of consumers of energy drinks are between the ages of 15 and 39 years.

Risks associated with using energy drinks

According to the World Health Organisation (WHO) study, health risks associated with energy drink consumption are primarily related to their high levels of caffeine content. The potential risks associated with energy drink consumption include:

• Caffeine overdose (which can lead to a number of symptoms, including palpitations, high blood pressure, nausea and vomiting, convulsions and, in some cases, even death)

• Type 2 diabetes - as high consumption of caffeine reduces insulin sensitivity

• Late miscarriages, low birth weight and stillbirths in pregnant women

• Neurological and cardiovascular system effects in children and adolescents

• Sensation-seeking behavior

• Use and dependence on other harmful substances

• Poor dental health

Recommendations

Even though energy drinks has seen relatively little impact in terms of sales, with the rise of health concerns over energy drinks and threat for stronger regulation, It is recommended to practice caution on high caffeine content, which might cause the brand to be vulnerable to regulatory control.

Because energy drinks are known for its improvements in mental and cognitive performance in addition to increased subjective alertness. As a result energy drinks are commonly used among younger consumers in high school and tertiary education institution to stay awake longer to study or before writing an exam. It is therefore recommend;

• To have flavour...