Energy drink Essay

Introduction The selling mix ( tool mostly used by sellers ) is composed of the tactics being developed by a company in the 4 P’s countries: merchandise. monetary value. topographic point and publicity. to help them in prosecuting their aims. These variables have to be carefully managed by the administration to run into the demand of the defined mark group. In this essay. we are traveling to concentrate on the “product” variable of the selling mix. Phillip Kotler has defined the merchandise as: “anything that can be offered to a market to fulfill a privation or need” ( Philip Kotler. Marketing Management. 2000 ) .

The merchandise. but besides its name and packaging. hold a major impact on the trade name positioning. They are cardinal tools in assisting the company to bring on test and repetition purchase ; they are besides priceless to accomplish the coveted consciousness degrees and to organize positive attitudes among both clients and perspective clients. Highly profitable and attractive ( giving the tendency that consumers are progressively looking for convenient drinks that boost their energy degrees ) . the energy drinks market is extremely competitory.

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A Mintel’s research ( Market Trends category analysis. June 2004. World Wide Web. PreparedFoods. com ) . found small trade name trueness among consumers of energy drinks. and a willingness to seek a new merchandise if the trade name of pick is non available. This suggest the possibility that consumer could be swayed by the entreaty of an challenging bundle for case. In this context. we will seek to analyze. with the aid of the illustration of the energy drinks. the importance of the naming and packaging tactics employed by the trade names to distinguish their offer from the competition ( given that the generic properties of the energy drinks. in footings of composing. are rather similar ) .

1 Naming and Packaging: selling mix tools of the merchandise 1. 1 The merchandises degrees Philip Kotler. in “Principles of Marketing” . suggested that a merchandise should be viewed in three degrees ( a division between five merchandises degrees has besides been identified by the writer but in our instance. we are traveling to maintain the simpler strategy of three degrees ) . ( beginning: World Wide Web. learnmarketing. net/product. htm. 14/09/2004 ) The nucleus merchandise ( flat one ) represents the nucleus map of the merchandise. a generic property that will be indistinguishable to all merchandises on a specific market.

For illustration. the chief property a client is willing to happen when purchasing an energy drink is a liquid which composing will consist ingredients that hike his or her energy degrees ( caffeine. guarana. taurine… ) The existent merchandise ( flat two ) involves the trade name. the packaging and the possible added characteristics ( benefits ) that are provided to distinguish the company’s merchandise from its competitors’ . In the instance of the energy drinks. if all of them really supply a liquid that increase energy degrees. some of them are sold in tins. other in fictile bottles or in aluminium bottles. utilizing different designs and volumes.

The augmented merchandise ( flat three ) is composed of the different extra non-tangible benefits that the company is offering to the client. This comprises usually added services such as after-sales service. guarantees. delivery… It is hard for a company supplying energy drinks to distinguish itself from the competition through this sort of properties. This is why we decided to concentrate on the 2nd degree of the energy drinks. their name and bundle. ( World Wide Web. learnmarketing. net/product. htm. 14/09/2004 ) First. what lies behind the constructs of naming and packaging?

1. 2 Naming “The naming of the merchandise. service or company is called stigmatization. A trade name or name is the label that consumers associate with your merchandise. For this ground. a trade name or name should assist pass on the product’s placement and its built-in play for the consumer” ( Roman G. Hiebing Jr and Scott W. Cooper ; The successful selling program. a disciplined and comprehensive attack ; 2003 ) .

McCarthy. Perreault and Quester define branding as “the usage of a name. symbol. design or combination of the three to place a product” and more peculiarly a trade name name as “a word. missive. or group of words or letters used to place a product” ( Basic Selling. a managerial attack ; 1997 ) .

1. 2. 1 The ocular peculiarity of a trade name “The name is composed of the rubric by which the company. merchandise. or service is normally known and the in writing signifiers of designation. including symbols. logotypes or signatures. ticket lines. and representative characters” ( Roman G. Hiebing Jr and Scott W. Cooper ; The successful selling program. a disciplined and comprehensive attack ; 2003 ) .

Some merchandises. as paper cartridge holders. or energy drinks. are ill differentiated by their “physical” attributes. One of the marketer’s undertakings will be so to develop the trade name in footings of its name and its in writing individuality ( logo ) . to pass on its differences. Nowadays. the consumers have an astonishing and increasing array of pick. In analogue. their available clip to research merchandises and do purchase determinations is diminishing.

The importance of holding a typical name is critical to procuring competitory advantage. even more for the merchandises such as the energy drinks. which nucleus specificities have become deficient to do a existent difference. Consumers must be able to acknowledge the company in its name. logo. artworks and brand’s motto ; these must supply agencies of placing the merchandise as different from that of the competitors’ . make a ocular and verbal peculiarity. For illustration. the name and logo of Ralph Lauren ( a Polo participant ) have become high agencies of acknowledgment for the trade name.

Coca-cola is one of the best-known names in the universe ( even the characters’ type can be identified and recognized by the client presents ) . Some companies. which offer different merchandise lines. can utilize maker trade names. a name provided specifically for a merchandise or aggregation of merchandises that is different from the manufacturer’s one. For illustration. Powerade is the athletics drink supplied by Coca-Cola. Pepsi-Co sells a athletics drink line under the name Gatorade. If the name is the more of import component of the trade name. one mustn’t forget that a trade name can’t be merely reduced to its name.

What is of import are the positive associations that are traveling to be related to the trade name in the customer’s head ( Philip Kotler. Marketing Management. 2000 ) . 1. 2. 2 Choosing the right name A good trade name name can assist make trade name acquaintance ( truly of import in the instance of energy drinks ) . In general. good trade name names are: · short and simple ( easy to acknowledge and retrieve ) · easy to articulate · should be able to be pronounced in all linguistic communications · implicative of merchandise benefits ( but non excessively generic ) · avoid any potentially unwanted intension or image.

( Roman G. Hiebing Jr and Scott W. Cooper ; The successful selling program. a disciplined and comprehensive attack ; 2003 ) . 1. 3 Boxing 1. 3. 1 Definition “For makers. packaging holds and protects the merchandise and aids in pass oning the merchandises properties and image. For retail merchants and service houses. packaging is the interior and outside environment that houses and dispenses the product/services ( shops. offices. etc… ) . and it helps pass on the company’s properties and image” ( Roman G. Hiebing Jr and Scott W.

Cooper ; The successful selling program. a disciplined and comprehensive attack ; 2003 ) . Kotler has defined the packaging as “the activities of planing and bring forthing the container for a product” ( Philip Kotler. Marketing Management. 2000 ) . 1. 3. 2 The maps of packaging Three maps lay behind the construct of packaging: protection. easing the merchandise use and communicating. At its basic degree. the bundle serves to protect the merchandise ( prevent breakage. exposure to visible radiation. exposure to air. spoilage… ) and. in some instances. to keep or to incorporate it.

Boxing besides plays a function in protecting the consumer as good. Then. the bundle has a facilitative function in the usage of the merchandise ( form. size. fact that it can be resealed… ) . Finally. the product’s bundle represents a strong communicating tool. at two degrees. First. the bundle will consist indicants on the trade name name. the merchandise class definition. the composing. the spirit. warnings. directions… Second. packaging besides serves an of import function in publicity. Its design. size. form. stuffs. coloring material. text and trade name mark… should appeal to the mark market.

For illustration. yogurt designated to the adult females on diet will non hold the same bundle than yogurt aiming the kids. Besides. in today’s cluttered environment. where 10s of 1000s of trade names are contending for the shopper’s attending. consumers are doing more and more purchase determinations at the point of sale. This is why the bundle. through artworks and colorss that are attractive. plays an of import function in acquiring the merchandise noticed in the egos ( to promote impulse purchase for case ) . ( Philip Kotler. Marketing Management. 2000 ; Roman G.

Hiebing Jr and Scott W. Cooper ; The successful selling program. a disciplined and comprehensive attack ; 2003 ) . 1. 3. 3 The importance of packaging Packaging is a critical selling tool. It can do an of import difference from the competition by run intoing customers’ demands more efficaciously. A better box. negligee. bottle or can may assist to stress the peculiarity or freshness of a merchandise or even ensue in the gap of a new market. It can even better the merchandise by doing it easier or safer to utilize and so increase its value in the customer’s head.

Used right. the bundle can so underscore the trade name image. convey qualities such as freshness. manner and quality ( McCarthy. Perreault & A ; Quester ; Basic Marketing. a managerial attack ; 1997 ) . It is of import that the packaging elements align with the remainder of the selling scheme to back up it ( pricing. advertisement and other selling tools ) . For illustration. an expensive aroma would instead be sold in a crystal bottle than in a fictile 1. to underscore and back up the esteemed image ( Philip Kotler. Marketing Management. 2000 ) . 2 Packaging and Naming for the energy drink industry 2. 1 Industry overview.

As a comparatively new manner of drink in Australia ( looking in the mid 90’s ) . energy drinks. sometimes known as “smart drinks” . were originally designed to give people a encouragement.

Other benefits advertised by these merchandises are improved concentration. endurance. staying power and the ability to assist battle weariness ( World Wide Web. instruction. theage. com. au/pagedetail. asp? intpageid=69 & A ; strsection=students & A ; intsectionid=0. 29/09/2004 ) . “Lifestyles are traveling faster. Peoples seem to hold become clip hapless and tend to work harder and drama harder. These drinks are for those who need to pack more hours into their twenty-four hours.

” ( Glenn Martin. general director. Frucor Beverages. The Age. May 2. 2001 ) . Typically including a high caffeine degree every bit good as vitamins. amino acids and herbal infusions. they normally sell for approximately $ 2 – $ 3. 5 for 250 milliliter. doing them a comparatively expensive soft-drink option. ( World Wide Web. instruction. theage. com. au/pagedetail. asp? intpageid=69 & A ; strsection=students & A ; intsectionid=0. 27/09/2004 ) . Initially popular in cabarets and hotels. the energy drink market has been dining during the past few old ages in Australia. and these drinks are now widely available in supermarkets and convenience shops.

Although this market is slightly new in Australia. it is the fastest turning country of the soft-drink market. ( World Wide Web. instruction. theage. com. au/pagedetail. asp? intpageid=69 & A ; strsection=students & A ; intsectionid=0. 27/09/2004 ) . 2. 1. 1 Leading trade names on the Australian market In 2002. the energy drink gross revenues were dominated by four trade names in Australia: Frucor Beverages Limited’s V ( staying by far the most important participant with 35 % volume portion ) . Red Bull Australia’s Red Bull. Coca-Cola Amatil’s Lift Plus and the Red Eye Company’s Red Eye.

With a clever selling and promotional tactics. V managed to get by with the turning competition and to increase its market portion between 2000 and 2002. aiming at adolescents and immature grownups through the sponsoring of young person oriented events and advertisement during young person scheduling ( Euromonitor International. Soft Drinks in Australia. August 2004 ) . However. in the latter portion of this same period. the best growing was performed by Coca-Cola Amatil’s Lift Plus. which volume portion increased from 5 % in 2000 to 14 % in 2002. to the hurt of the Red Eye trade name which lost market portion by the same sum.

Red Bull signed. in 2003. a distribution trade with Cadbury Schweppes to work out its volume portion diminution over the recent old ages by accessing the group’s strong sale web. ( Euromonitor International. Soft Drinks in Australia. August 2004 ) . Sing the immense figure of little trade names bing today on the energy drink market. we decided to exemplify our survey utilizing entirely the illustration of these 4 leaders. 2. 1. 2 Target market of the energy drinks The possible clients ab initio consisted in 90 % of immature and voguish people ( club scene. utmost athleticss ) . nocturnal revelers. trendsetters and clubbers.

Nowadays. the group of clients has evolved and includes: · long distance drivers. particularly people who work during the dark or even employees working out of the office and hotfooting from assignment to assignment who have come to appreciate Energy Drinks as a good manner to wake them up. · top-level every bit good as free clip sportswomans like snowboarders. mountain rockerss. free climbers and downhill race drivers but besides people traveling to the gym or take parting in a triathlon. · students or pupils under emphasis who use the energy drinks as a new replacement of java.

Users of Energy Drinks buy/drink them to be mentally and physically top tantrum and broad awake. They are dynamic. wellness witting. achievement-orientated and active. in their occupations every bit good as in their trim clip. Most of them are immature but there is an increased involvement in these merchandises coming from an older age group of the population. ( World Wide Web. fortunecity. com/tinpan/clapton/843/energydrinks. hypertext markup language # eda. 29/09/2004 ) . 2.

2 Packaging issues and tendencies on the energy drink market Due to its turning competitory context. the energy drinks sector saw packaging used as an indispensable component in set uping trade name individuality. Consequently. the outgrowth of plastic bottles was far less pronounced in this sector than in any other soft-drinks sector. 2. 2. 1 Capacity and stuffs When Red Bull entered the Australian market in 1999. the company employed its hallmark slim can and do it an immediate mark of acknowledgment for the energy drink merchandise.

The trade name wanted to utilize this as a point of distinction to assist consumers separate these extremely caffeinated drinks from their carbonate opposite numbers. and rivals such as Lift Plus. V and Black Stallion followed this illustration to profit from the association consumer would do between 250ml can and the type of merchandise ( Spark Gale. “Sports and energy drink market spread outing faster than other soft drinks” . Food & A ; Drink Weekly. February 23. 2004 ) .

This can size non merely distinguish the merchandise from the usual soft drink but besides. harmonizing to the makers. encourages merely moderate ingestion at any one clip. because of the high caffeine content. Indeed. the energy drinks market has suffered from claims that inordinate ingestion of caffeine can do a rise in blood force per unit area and can trip events such as bosom jobs and shots in some people ( Euromonitor International. Global Packaging:

Key Trends. World Wide Web. euromonitor. com. library. vu. edu. au/gmid/default. asp. 20/09/2004 ) The initial pick of many energy drinks manufacturers for the can packaging has besides been determined harmonizing to the intent of the drink and the demands of its mark market. Indeed. the design of the bundle and its stuff had to reply the demands of people reacting to the turning tendency for feeding and imbibing “on-the-move” . had to offer at the same clip convenience. solidness. to be light-weighted. easy to manage ( the 250 milliliter format appears more convenient than the usual 330 mL size ) .

Single-serve merchandises besides allow busy consumers. to imbibe in the auto. office and in school. which happened to be indispensable to appeal to a broaden mark market as it is now ( Marsha Barancik. “Bottle cans’ have magnetic attraction” . Beverage Industry. March 2003 ) . In fact. when the merchandise entered the market. it was sold in major portion in bars. saloons and cabarets and convenience shops. but as trade name like V and Red Bull started to derive typical trade name identities the started to sell through supermarkets.

In this context the 250mL aluminum can show another advantage since it was an easy form to offer in multipack that could suit in shelves optimally. and appealed to consumers because of the lower unit monetary values offered and the easiness of conveyance to their places ( Euromonitor International. Soft Drinks in Australia. August 2004 ) . However. the demand for distinguishing from rivals and for geting a strong trade name equity. related to figure entry the industry saw these last twelvemonth. pushed the company to introduce. making packagings that would differ from the overused 250 mL aluminum can.

This demand happened to beef up with the add-on of supermarket as a channel of distribution: the figure of merchandise and drinks that competed with the trade name on the purchase decisional procedure was all of a sudden more diverse. To that extent. Red Eye used glass packaging as a scheme ( that happened to be successful ) . to construct trade name trueness among its consumers and to interrupt with the expected can box offered by rivals. Since so. Lift Plus and V besides offered a glass format to distinguish themselves from other canned energy imbibe trade names ( Global Packaging: Key Trends. World Wide Web. euromonitor. com.

library. vu. edu. au/gmid/default. asp. 20/09/2004 ) . 2. 2. 2 Graphics and books Boxing in the energy drinks besides feature typical artworks and book. Each trade name will go to to convey a differentiated image utilizing specific colorss and ocular affect known for being associated by the consumer to positive properties. In 1988. McGraw Hill studied the feelings and the images conveyed by coloring material in order to demo the importance of the packaging in the purchase determination procedure. As a consequence. he found out that consumer unconsciously were doing the undermentioned association: · Black: formality and elegance.

· White: Crispness · Violet: tenderness · Red: revolution. exhilaration. fire. energy. stanfurd. · Blue: dark. unhappiness. imperturbability. tranquility · Yellow: happy. warm. optimism · Aluminum: high-energy electromotive force ( hypertext transfer protocol: //www. alumnas. Berkeley. edu/Students/Group_Resource_Guide/Marketing_Tips_for_CAA_Student_Leaders. asp. 7/10/2004 ) . Looking at each trade names boxing. we can see that. harmonizing to this theory. different feelings are meant to be evocated by each trade name. Except for Lift Plus. that is more orientated towards immature people and students/children market. the aluminum coloring material is present on each packaging.

The blue of the Red Bull can instantly reminds the client with the clubbing and the night life while the ruddy missive stands for energy and exhilaration. The xanthous can of Lift Plus gives a joyful and playful image to the drink and makes it a drink to be consumed during the twenty-four hours instead than in cabaret as a assorted drink ( like its rival Red Eye. Red Bull. or V ) . We can detect besides the usage of black in the two other bundles. that gives a classy and typical image to the drink. leting them to stand in saloon and club’s shelves. 2. 3 Naming issues on the energy drinks market

In general. even if stigmatization is one of the most of import stairss in the selling program of a merchandise ( a good name provides a strong mean of peculiarity for the trade name ) . there is non much secondary information available on the appellative scheme adopted by the companies. Refering the energy drinks industry. we are traveling to concentrate on the major trade names present on the Australian market: V. Lift Plus. Red Eye and Red Bull. V is a typical illustration of a simple and memorable trade name name that rapidly identifies the merchandise with an thought of vibrant. speed. verve. vigour…

Above all. V is the widely known abbreviation for V. positioning the merchandise as a high energy supplier ( World Wide Web. frucor. com/brands/aus/new_age. hypertext markup language. 03/10/2004 ) . The name Lift Plus explicitly suggests the benefits of the drink that. harmonizing to its manufacturer Coca-Cola Amantil. as been designed “for people who work and play hard and necessitate a encouragement to assist them do the most of their waking hours” . It is besides named after the well-known drink “Lift” . to inform the consumer on the common point between the two drinks: both have citrus-based spirits ( hypertext transfer protocol: //www. cokebuddy. com. au/about_brands. asp. 03/10/2004 ) .

Red Bull has been the first energy drink to come in the planetary market. the name of the merchandise reflects good its properties and benefits ( the bull is a powerful animate being. it represents the high degree of energy the consumer is traveling to acquire by imbibing this merchandise ) . But this trade name name has besides been capable to a batch of contention ( that has eventually benefited the trade name by making some publicity around it ) related to the fact that the word “Bull” created a direct association in the public head with one of the ingredient included in the expression: the Taurine.

However. despite whatever decisions one might pull from the name. Red Bull contains no substances of carnal beginning ; even the taurine used in the preparation is synthetically produced ( World Wide Web. snopes. com/toxins/redbull. htm. 03/10/2004 ) . Again. as for its rival Red Eye. the codification of coloring material ( “Red” ) is used as a manner to propose the energy and betterment of physical public presentation provided by the ingestion of the drink.

Red Eye. as a undermentioned entrant in the energy drink market ( after Red Bull ) . has used the ill fame of the Red Bull name as portion of its naming scheme ( the two trade name names are rather similar ) . The term “eye” reflects the personality of the merchandise. seting the emphasis on the ability of the merchandise to supply its consumer with an improved ability to concentrate. an increased watchfulness and an enhanced reaction clip ( www. red-eye. com. au/classic. hypertext markup language. 03/10/2004 ) . ( Roman G. Hiebing Jr. and Scott W. Cooper. The successful selling program. McGraw-Hill. 2003 ) . Decision

Naming and packaging are critical selling tools for the company ; they assist its trade name distinction in the customer’s head and merchandise designation in the shelves of the shop. Even if these two elements are even more of import for merchandises as energy drinks. that have rather generic nucleus properties ( their composing is about similar ) and that can non distinguish their offer utilizing the augmented degree of the merchandise. we discovered through our research that a trade name mustn’t bound its selling mix tactic to its merchandise characteristics ( calling and packaging ) .

The three other P’s countries ( Price. Topographic point. and Promotion ) are critical tools to beef up the distinction of its offer. The taking trade names demonstrate it by back uping their merchandise with heavy advertisement runs and diverse promotional actions. as they proved to be indispensable to guarantee their trade name equity ( patronizing. sample distribution. co-branding. commercials. ads in assorted medias… ) . The survey of the energy drinks market besides showed us how the schemes linked to the issues of naming and packaging can germinate as the industry alterations.

Indeed. we discovered how these two facets of the “actual product” could be used as manner to absorb the trade name to a peculiar type of merchandise. every bit good as a distinction characteristic. In fact. the energy drinks market demonstrated us that the adulthood of the industry influences greatly the challenges implied by the pick of a name or a bundle. Indeed. all the companies which launched their energy drink at the debut of the merchandise in the soft drink industry. take to follow the first entrant ( Red Bull ) on its bundle pick. in order to clearly bespeak to the client the sort of merchandise provided.

As the industry matured. and the competition increased. offering a packaging that really differentiated the trade name seemed to be the lone manner to derive client trueness and to last in this mature market. Beginnings: Literature: · Philip Kotler. Marketing Management. 2000 · Roman G. Hiebing Jr and Scott W. Cooper ; The successful selling program. a disciplined and comprehensive attack ; 2003 · McCarthy. Perreault & A ; Quester ;

Basic Marketing. a managerial attack ; 1997 Websites: · Market Trends category analysis. June 2004. World Wide Web. PreparedFoods. com · World Wide Web. learnmarketing. net/product. htm · World Wide Web. instruction. theage. com. au/pagedetail. asp? intpageid=69 & A ; strsection=students & A ; intsectionid=0 · World Wide Web. fortunecity. com/tinpan/clapton/843/energydrinks. hypertext markup language # eda · Euromonitor International. Soft Drinks in Australia. August 2004. World Wide Web. euromonitor. com. library. vu. edu. au/gmid/default. asp · Euromonitor International Global Packaging:

Key Trends. August 2004. World Wide Web. euromonitor. com. library. vu. edu. au/gmid/default. asp · World Wide Web. alumnas. Berkeley. edu/Students/Group_Resource_Guide/Marketing_Tips_for_CAA_Student_Leaders. asp · World Wide Web. frucor. com/brands/aus/new_age. hypertext markup language · World Wide Web. cokebuddy. com. au/about_brands. asp · World Wide Web. snopes. com/toxins/redbull. htm · World Wide Web. red-eye. com. au/classic. html Articles:

· Glenn Martin. general director. Frucor Beverages. The Age. May 2. 2001 · Spark Gale. “Sports and energy drink market spread outing faster than other soft drinks” . Food & A ; Drink Weekly. February 23. 2004 · Marsha Barancik. “Bottle cans’ have magnetic attraction” . Beverage Industry. March 2003.