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We are three students from SKEMA Business School and the aim of this blog is to present you a brand audit concerning two famous brands of Energy Drink: Red Bull and Monster.

To facilitate your browsing, we have organized the blog in different ways that will enable you to find always the information you are searching for.

If you want to have a complete overview of our work, you just have to continue on this page: all the articles are organized in order. You will first find an overview of the energy market and then, for each part of our plan, two articles dedicated to an analysis of Red Bull and Monster, and finally a comparison, for each topic, of what have been said about the two brands.

If you want to focus on a brand in particular, if you want to discover the amazing market of energy drink, or if you are only interested in reading the comparison of the two brands, you just have to click on one of the four categories offered here:

Finally, if you want to read our articles by author, you just have to click on our name, just next to our avatar, at your right. Moreover, all the articles are signed by the name of the author.

We really hope you will enjoy our work and we wish you a good surfing on REDBURNMONSTERS!

Marie Allaix, Solène Dassing and Géraldine Fernet.

HOW ENERGY DRINKS WERE BORN?

At the origin of energy drinks, there was a drug, Lucozade, which was used in Great Britain in 1929 in some hospitals to cure the patients.

In Japan, energy drinks appeared in the 60’s with the putting on the market of Lipovitan. Most of energy drinks in Japan was sold in some little jars made of glass (like medicines).  These drinks were targeting business men who have to work a lot and very late in the evening.

Lipovitan

Red Bull was developed and introduced in Austria in 1987 by Dietrich Mateschitz, who based his invention on a Thai drink, the Krating Daeng, based on Lipovitain. Red bull was imported in 1997 and has been the dominant brand on the energy drink market for a long time. Several competitors have appeared after.

ENERGY DRINKS IN THE WORLD

All over the world, energy drinks market is growing more and more and represents the more dynamic soft drink segments.

Trends in Europe and in the mondial market show an increase in the consumption of energy drinks. The development of new flavor and new packaging appeal to the consumer who is integrating more and more this kind of drinks in its way of life.

Indeed, if we reduce the analysis to an European scale, we notice that more than 2/3 of European teenagers are drinking energy drinks and 12% of them are drinking energy drinks  every day (according to a study published on the 6^th of March 2013 by Autorité Européene de Sécurité des Aliments).

Moreover, 21% of British adults and 27% of Dutch teenagers are consuming energy drinks.

In France, energy drinks represent only 0.9% of the value of soft drinks. But in Suede this market share reaches 14%, in Italy 1,2% and in Spain 1,6%.

Let’s have a small overview of energy drinks sales in the world

http://www.lemonde.fr/societe/article/2013/10/01/les-boissons-energisantes-doivent-elles-etre-reglementees_3487585_3224.html

ENERGY DRINKS MARKET IN FRANCE

Energy drinks market is booming! People are found of it, there is some huge advertising campaign and sales are increasing.

In September 2013, they reached a volume of 36.5 million liters, according to a study realized by Nielsen. It represents an increase of 13.4% compared to last year. The energy drinks market, composed essentially in France of Redbull, Monster and Burn, weighs 143.3 million euros, with a raise of 6.2%. In France, 1 liter of energy drinks is sold every second!

The market has stabilized around brands and private labels (MDD). According to Nielsen, in 2012, Red Bull had 49.6% market share (up 3.1 points) before Monster (18.3%, +1.5 point). Followed by the MDD and first price, with 16.9% of market share, then Burn (6.3%) and Dark Dog (1.7%).

Despite this strong growth, this type of drink is still far from competing with sodas, which are real stars in supermarkets. The share of soft drinks in the market for large distribution was 1.4% between January and August 2013, according to the magazine Beverage Center.

If Red Bull and other “energy drink” are so popular in France, it is only thanks to the new law voted in April 2008, which put an end to the ban on commercializing it in 2003 because of their nefast effects on health (too high content in taurine, caffeine and ginseng).

http://www.ladepeche.fr/article/2013/10/02/1722054-boissons-energisantes-un-marche-qui-explose.html

http://drogues.blog.lemonde.fr/2013/10/01/boissons-energisantes-la-defonce-en-super-marche/

http://www.economiematin.fr/ecoquick/item/6563-boissons-energisantes-anses-rapport-marche-redbull-burn-monster

SALES OF ENERGY DRINKS

SALES OF ENERGY DRINKS

WHAT IS AN ENERGY DRINK?

An energy drink is a drink which composition uses a mix of different stimulating ingredients. It aims at giving an energy boost to the consumer.

Energy drinks are essentially composed of water, sugar, caffeine and some added components known for their stimulant properties.

The energetic effect of this kind of drinks is essentially provided by the association of the caffeine and sugar.

Sugar: Energy drinks contain 4 to 6 sugar teaspoons per can of 250ml

Caffeine: Energy drinks contain 80mg of caffeine for a can of 250ml and 160mg for a can of 500ml

Some other components are supposed to increase keen mindedness, vitality and endurance:

Guarana: It’s a plant which seeds contain some caffeine. It is known for its stimulating effect on the nervous system.

Taurine: The amount is different from an energy drink to another, from 420mg to 1g.Taurine is an amino acid. Our food brings about 120mg/jour of taurine without exceeding 180mg/jour. Energy drinks provide large amounts of taurine, representing 4-6 days  of taurine natural consumption in a single can of 250ml.

Ginseng: The combination of ginseng and caffeine could raise the stimulating effect of energy drinks

Glucuronolactone: It’s a sugar, present in our organism whose natural contributions would be from 1 to 2mg/day. A can of energy drink contains an amount equal to 600 days food input! The health effects of such a massive dose remain unknown.

Here, are the component of several well known energy drinks:

Now, compare with some other drinks:

Be careful, energy drinks are often confused with energetics drinks:

An energetic drink is a drink of effort. It is a dietetic drink which brings a carbohydrate formula adapted, to help sportsmen in some intense sportive activities. This kind of drinks is made to answer specific physiological needs

WHAT ARE THE EXPECTATIONS OF CONSUMERS DRINKING ENERGY DRINKS?

Energy drinks are now an integral part of everyday life of consumers, especially teenagers. They are now consumed in the same way than conventional soft drinks.

Drinking some energy drinks, people are more looking for an excess in energy than salvage. We evolve in a society where the competitiveness has to be total and the performances fast. Indeed, we find this idea in lot of teenagers’ practices and consumptions, often in combination with alcohol. We observe, especially from young people, a desire to be always up and a taste for speed and intensity. Young people want to test their limits, surpass themselves and violate the forbidden! They see the drink as the magic potion that helps them, in everyday life, to be competent and competitive. It will give physical and mental power to everyone who would drink it. Young adults are consuming energy drinks in following the “always more” trend.

Surpassing oneself, transgression of the prohibition, performance… are the promises made ​​by brands!

Besides, an interesting analysis was made by the Professor Joan Sénéchal from the University of Montréal. According to him, the names of the energy drinks are revealing the values claimed by the brands. They could be divided in 5 categories:

–          Energetic explosion

–          Narcotics

–          Monstrosity

–          Apocalypse and war

–          Poison

According to the professor, these references remind the consumer the cruelty and dangerousness of the world he lives in. Energy side of these drinks would return the consumer to his human nature not adapted to the modern world as too slow and vulnerable. This fact makes these drinks indispensable weapons to survive in the society!

THE TARGETS OF ENERGY DRINKS

Attracted by the forbidden/ dangerous dimension of energy drinks, young teenagers are the main consumers of this product. Energy drinks brands target youth aged from 15 to 25 years: a bulimic population of sports, media, entertainment and any kind of experiments, which is seduced by the dark and forbidden side of the drink. These drinks have become a product of general commodity for the youth of the entire world. Whether to wake up, work, study or partying, these drinks have become indispensable.

We can divide the targets of energy drink in 5 groups:

–         Night owls who consume energy drinks to “resist” and stay awake all the night.

–          People who are looking for caffeine but who don’t like coffee

–          People who work a lot and very late

–          Sportsmen

–          People who like to mix Energy drinks and vodka

HOW ENERGY DRINK BRANDS SUCCEED IN TARGETING YOUNG PEOPLE?

These brands do not use the so-called “traditional” advertising communication (TV advertising, radio spots, billboards…), but a more modern communication made for young people. They should be where young people are! They use massive sponsorship of events frequented by young people, whether sporting or cultural. At the same time, it allows brands to go inside places frequented by young people and to accumulate knowledge about the latest trends and fashion to improve their marketing strategies. They also recruit young people, whose profile match with their target, to act as brand ambassadors.

The brands favor buzz and street marketing. For instance, the famous wing teams of Red Bull, with the Mini Cooper customized with the colors of the brand make and distribute, through pretty young women, free cans in some frequented places: universities, concerts, sporting events, subway exit, etc…