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Presented by: Polly Dumond Stephanie Kung Giovanna Francia Parisa Mohammadi Shierwin Vigilla

Over all Facts. Energy drinks contain a variety of ingredients, primarily caffeine or guarana and vitaminsIndustry is driven by health and wellness trendsNo scientific evidence to prove energy drink claimsEnergy drinks are primarily consumed by the younger generation, people who are

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Presented by: Polly Dumond Stephanie Kung Giovanna Francia Parisa Mohammadi Shierwin Vigilla

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    1. Presented by: Polly Dumond Stephanie Kung Giovanna Francia Parisa Mohammadi Shierwin Vigilla

    3. Industry History Nearly 20 years old Began in Europe & Asia Red Bull: first in US in 1997 Hansen also based in US in 1997 First became popular with athletes in US - extra energy for workouts & competitions

    4. Industry Sales Currently thought to be the second highest growth sector of the soft drink industry $3.7 billion dollar industry Sales of energy drinks have increased 50% each year since 2001 (total of 516% increase from 2001-2006) Sales are projected to reach $5 billion in 2007 6th largest category in the beverage market

    5. Advertising Expenditures Use distribution as a marketing tool - fashionable night clubs, convenience stores, and gas stations. Red Bull increased it’s advertising expenditures from $2 million in 1998 to more than $40 million in 2003. In 2004, Red Bull spent $600 million Energy drink companies market themselves around extreme sports and adventure. Red Bull supports 240 athletes worldwide to help promote their product Monster is known for its high advertising budget

    6. Competitors Industry is dominated by one product - Red Bull Rockstar is strongest non-Red Bull brand (distributed by Coca-Cola) Followed by Monster (distributed by Hansen) SoBe (distributed by PepsiCo) Xyience first launched energy drinks in 2006

    7. Target Audience Appeals to very specialized market segments Overworked executives/businessmen People “on the go” Truck drivers “Hip”, younger generation 65% of US teenagers (7.6 million teens) say they drink energy drinks Number of teenage consumers has increased by 3 million over the past 3 years

    8. America’s Most Caffeinated Cities 1. Chicago 2. Tampa 3. Miami 4. Phoenix 5. Atlanta

    9. Red Bull Energy Drinks Logo: Two charging bulls Colors: Red, blue, white/silver, yellow Slogan: “Red Bull gives you wiiiings” Commercials: Generally cartoons; sometimes spoofs on famous stories (Rapunzel, Frog prince, Aladdin, Adam and Eve, Petrus)

    10. Red Bull Commercial: Rapunzel The prince comes galloping on his horse towards Rapunzel’s tower to save her Rapunzel lets down her hair, but it is too short and the prince cannot reach it Instead, the prince tosses Rapunzel a can of Red Bull, because “Red Bull gives you wiiiings”

    11. Red Bull - Appeals Need to escape The tower was confining Rapunzel, but the commercial implies that now that she has Red Bull, Rapunzel will be set free In the original story, Rapunzel is able to free herself with help of the prince and her long hair. However, because her hair is too short in the commercial, she is helpless without the Red Bull. Need for affiliation This commercial promises that Red Bull can provide the fairy tale ending in which the prince and princess live happily ever after together. Because Rapunzel will be freed from the tower, she can run off to have a better life with the prince.

    12. Red Bull - Symbolism The product name, Red Bull, implies dominance and aggression. Many people are drawn to this idea and believe that the energy drink can satisfy their lack of these attributes in their lives. Red: energy, strength, and power Yellow: energy Blue: confidence White: perfection All four of these vibrant colors combine to form an energetic and powerful image for Red Bull

    13. Product Promotion Techniques Utilizing familiar stories with new twists implies that Red Bull can improve the original image of the consumer to be better, cooler, and more modern. Humor is used to connect to the audience to imply that the product is fun and exciting.

    14. Underlying Message Red Bull is essential to having a fulfilling life, because it can make your life exciting and fun. With the energy drink, anyone can conquer things that were never possible before.

    15. Rockstar Energy Drinks Logo: Star Colors: Gold, Black, Red, White Slogan: “Party Like A Rockstar” Ads: Typically with attractive girls in bikinis and projecting a party image

    16. Rockstar - Appeals Cont. Need for affiliation “Party like a Rockstar” gives off an image to consumers that admire celebrities and want to socialize with or be like them. Many celebrities are known to party like rock stars and many consumers feel compelled to imitate the images they see. Using sexy women in the ads attract men. The commercial implies that with Rockstar, anyone can attract sexy women like the women in the ad.

    17. Product Promotion Techniques Marketing ads with hip hop artists, famous athletes, actors and actresses, sexy women and men Hiring sexy models to promote their products at clubs, sporting events, concerts, and parties

    18. Rockstar - Message Literal meaning: Rockstar will make you cool, sexy, wealthy, famous, and powerful Drinking Rockstar will make you feel energized, healthy, and strong. If you drink Rockstar, it will also help you look sexy, stay in shape, and feel good all day. Hidden Subtext: Buy our product and you will live, feel, and act like a Rockstar.

    19. Monster Energy Drinks Logo: Big “creepy” M looks like it’s been slashed or clawed as if a Monster has created it. Colors: Green and White for main logo. Colors of logos on cans are different depending on the product Slogan: “Unleash the Beast!” Commercials: Usually ad prints or internet ads

    20. Monster Print Ad Ad has a race car driver, presuming someone famous and driver of the Monster Energy race care Slogan is on the upper left hand side “Unleash the Beast!” in standard Monster green color Race car is center of shot and has flames coming out of it

    21. Monster - Appeals Need to Affiliation Race car fans and clubs – many people, a large majority of the men, want to be affiliated with racing Need to escape The dream of driving a race car; getting to go fast Need to aggress Racing is an aggressive sport The flames in the ad also hint at aggression

    22. Monster - Appeals Cont. Need for prominence Being associated and therefore having the same prominence as the Monster race car driver because the consumer is drinking Monster as well Need for Drink Monster provides a basic need – drink and promises to deliver energy as well

    23. Product Promotion Techniques Known for their high advertising budget Mainly distribution channels – bars/clubs, gas stations, convenience stores Extreme sports/events promotions Race Car sponsorship Athlete and Celebrity endorsement Internet website and advertisements Attracts fan mail on MySpace pages

    24. Monster - Symbolism The product uses a logo that appears to have been created by a “monster.” Logo is slashed or clawed and the background is green on the primary logo Monster uses various logo colors depending on the product in which they’re placed The primary logo color of green gives off eerie monster vibe

    25. Underlying Message Product messages are definitely slanted towards males – their target audience. “Unleash the Beast!” really aims to convenience the consumer that their product will give them a real increase of energy and make them tougher, boosts athletic performance or powers of concentration – this could be why it appeals to the extreme sports fans.

    26. Writing Prompt How do manufacturers target audiences? What are the claims made in advertising? What concerns might you have about the ingredients in a power or energy drink? What do you know about the authors of this power point? Write a half page essay on the above points.

    27. Resources and Links A Drink for Today: History of the Energy Craze http://energydrinks.factexpert.com/889-energy-drink-history.php Vemma Verve http://vemma-verve.com/ Marketing Profs Knowledge Exchange : Energy Drink Markets http://www.marketingprofs.com/ea/qst_question.asp?qstID=12178 Sports Energy Drink-Makers http://www.bevindustry.com/content.php?s=BI/2004/09&p=9 Energy Fiend : America's Most Caffeinated Cities http://www.energyfiend.com/category/news/ 

    28. Resources and Links Cont. Energy Drink – Wikipedia, the free encyclopedia http://en.wikipedia.org/wiki/Energy_drink The Soda With Buzz http://www.forbes.com/forbes/2005/0328/126_print.html ˇDouble-digit growth – health is the main market driver http://www.beveragemarketing.com/dilworthcsdgrowth.html http://www.color-wheel-pro.com/color-meaning.html www.redbull.com/#page=LandingPage.1143632066244-92676986 http://www.rockstar69.com/galleriesP.php?custom=Rockstar%20Mansion%20Shoot http://www.xyience.com/c-584-video-gallery.aspx http://www.monsterenergy.com

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