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Energy Shots

Energy Shots. Energy shots offer a simple proposition: from a concentrated potion of caffeine, vitamins and amino acids, consumers get the functional “bang” that they receive from an energy drink but without having to drink all the liquid of a whole energy beverage. Small portable bottles

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Energy Shots

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  1. Energy Shots Energy shots offer a simple proposition: from a concentrated potion of caffeine, vitamins and amino acids, consumers get the functional “bang” that they receive from an energy drink but without having to drink all the liquid of a whole energy beverage. • Small portable bottles • Fast and strong effect • Wide application • Daily consumption

  2. Energy shots vs. substitutes Energy Drinks: diluted - high volume of liquids (usually) high in sugar big bottle - less convenient perceived as a drink for teenagers Coffee: time consuming lower effect (usually) not portable unhealthy

  3. Case study - USA • The first energy shot was launched in 2004 • Supported by an educational campaign from the leading brand, the market size reached $340m in three years and an estimated $1.2b in 2010 • According to New Nutrition Business*, the market will continue to expand at 40-50% in the short term and will reach as much as $2.5b in 2012 • With the price/litre around 5x higher than for the conventional energy drink (see next slide), and the price per portion 50% higher, the energy shot segment offers uniquely profitable growth opportunity * - New Nutrition Business, http://www.new-nutrition.com/

  4. Caste study - USA *Source: NNB Surveys in Wal-Mart, Albertsons

  5. Caste study – EU • Sales rose from 150$ million to 350$ million from 2009 to 2010 and still growing. Projected market size in 2012 is 1$ billion • Similar to the US market, price per portion is 40-50% higher for the energy shots vs energy drinks • UK market is more advanced compared to the mainland Europe and has the market structure similar to the US • Other EU markets are fragmented and lack a clear market leader • Per capital consumption in Europe is almost three times lower than in US • * - New Nutrition Business, http://www.new-nutrition.com/

  6. The dynamics of US and EU market size for energy shots * - http://www.bevnet.com

  7. Potential marketplace analysis We have selected the most promising markets by analyzing a number of metrics: • total population • target market size (24-35 years old) • working hours per week • original NapNock rating* Conclusion: top countries for energy shots are Germany, UK, France, and Italy *Attached in the appendix

  8. Marketplace rating * NapNock includes with rating of individualism, uncertainty, masculinity, working hours, population, road network, students, price level in each EU country.

  9. Is there still any potential in EU? • EU energy DRINKS market size amounts to €6 billion* and is still growing 6-8% annually • Western Europe usually lags 2-3 years from the US • EU energy SHOT market is growing 50%-60% annually • There is still no clear market leader in the mainland Europe

  10. Why Red Bull is not successful? • No clear and distinctive marketing strategy - 0.25l can is not the same as 60ml bottle • They continue to target 14-23 year olds, whereas, in our opinion, the biggest potential is in a more mature 25+ segment • RedBull exited the US energy shot market in 2011 because of low sales (only 10-15% market share 2010)* * - http://www.bevnet.com/news/2011/red-bull-discontinues-production-of-cola-and-energy-shot

  11. NapNock energy shot • 60 ml energy shot • Ginseng and ginkgo biloba comboreduces negative impact on the heart • No sugar – no crash • Long lasting effect (4-5 hours) • Innovative taste with green teaand lemon

  12. Competitive advantages over RedBull, Burn and Monster • Natural ingredients: ginkgo biloba and ginseng • Longer lasting effect because of ginkgo biloba and higher dose of caffeine • Healthier: lower impact on the heart • Target market 24-35 (careerists) • Independent energy shot brand • Guerilla marketing campaign

  13. NapNock consumer • Age: 24-35 years • Workaholic careerist • Self confident • Prefers quality goods • Social life: loves to travel, party, socializing • Moto: “Work hard, party harder” • Features: bold, vibrant, imaginative • Competence: reliable, efficient

  14. NapNock marketing campaign • The NapNock TRIP to ASIA • NapNock 48 hours trip (without any sleep) • NapNock flashmob • Guerilla marketing video • POS material (aggressive posters, fake money, t-shirts etc.) • WEB (beverage industry webpages, travelling webpages)

  15. Appendix

  16. Energy shots vs. substitutes

  17. Competitor analysis

  18. Active Ingredients • Ginkgo Biloba – natural ingredient which increases mental activity and metabolism • Ginseng – natural ingredient with a unique ability to increase human endurance and mental strength • Glucoronolactone – provides fast recovery from fatigue cause by exercise • Caffeine – psychoactive stimulant which increases energy • Taurine – helps to rebuild stamina

  19. Health Focus International’s study (32 countries)

  20. Statistics: Targegt by age Source: http://www.nationmaster.com/country/fr-france/Age-_distribution

  21. Statistics: Students

  22. Statistics: Working hours

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