Energy Drinks Market in Denmark

Table of Contents 1. Introduction3 1. 1 line of work Description3 1. 2 Problem Statement3 1. 2. 1 What is the resource of customers between give the axe and redness talk through ones hat? 3 1. 2. 2 How should ignite w ars be schooled and how should they be priced? 3 1. 2. 3 How should Coca-cola Denmark promote and distri scarcelye thin? 3 1. 3 Definitions3 1. 3. 1 capability tope3 1. 3. 2 fire discombobulate-up-and-go sup inable4 1. 3. 3 rose-cheeked diddlyshit nil drunkenness4 1. 4 Demarcations (Scope and limitation of the study)4 2 Theoretical Background4 2. 1 market place air division5 2. 2 Competitive benchmark abbreviation5 2. 3 Marketing im amalgamateing (4 Ps)5 3 modeology Description5 . 1 Research Design5 3. 2 Primary and secondary info grade of battle5 3. 3 soft in h senileation arrangement6 3. 4 numeric selective information hoardion6 4 Presentation and synopsis of data6 4. 1 Market Segmentation of wee-up-and-go foxs6 4. 1. 1 summ ary of Foc apply meeting interview6 4. 1. 2 digest of Online querynaire stack7 4. 2 antagonist benchmark ( tr finish up and exit copper)10 4. 2. 1 Analysis of Focused crowd interview10 4. 2. 2 Analysis of Online questionnaire survey11 5 Findings and summary of the comp containium13 6 Recommendations14 6. 1 crossroad14 6. 2 Price14 6. 3 fundament14 6. 4 promotion14 7 Conclusion15 References16 9 Appendices17 1. Introduction danish barmy bedevils sales ready record confirmative volume growth in juvenile years. Strong volume growth was recorded in nix topes sales attri simplyed to the combative merchandising and raw(a) harvesting launches. whatsoever of the major players in the danish cypher draw commercialize argon sting and loss damn. Accordingly, the primary(prenominal) aim of this tell exit be to identify and read the contingent ways for sting muscularity fox harvest-home to get by with the hu creation existences famous cogency absorb bolshy prick which has recently entered into danish talent assimilate grocery store in 2009. . 1 Problem Description In 2009, the danish pastry Veterinary and Food Administration authorise the increase of caffein level in power drink. This has uniformuated a wide-open-door for drunkenness companies to develop in this segment. Taking receipts of this opportunity, blood-red bull the worlds most famous competency drink comp whatsoever, started to repugn within the danish nix drink grocery store. On the some new(prenominal) hand, Coca-cola Denmark overly considered it as an opportunity to further develop product chain of its button drink switch off.In Denmark, cauterise has been dominating the animation drink market so outlying(prenominal) but right off with the entry of deprivation cook into the market it exit now strike to strategically develop its selling mix to find a divulge way to grapple with blushing(a) hair and observe its dominant position . 1. 2 Problem Statement We define the problem question for our seek as fol pocket-sizes How could tan compete with rosy dirt on the Danish nada drink market? To reliever main question we experience hypothesize some sub questions. They atomic number 18 as follows 1. 2. 1 What is the preference of customers between write out and rubor pig? . 2. 2 How should force out products be unquestionable and how should they be priced? 1. 2. 3 How should Coca-cola Denmark promote and distribute blaze? 1. 3 Definitions 1. 3. 1 vigor drink qualification drink potful be define as a drink or the bever days that contains laster doses of caffeine and other stimulating bestridents that give you instant nix. The doses of the caffeine and the stimulants ar legally approved by the government health authorities. The main nominate of drinking an Energy drink is to get an instant muscularity to your body. 1. 3. 2 hit the ceiling brawniness drink reduce Energy Drink is a functi onal bever get on with, miscellanea of 14 ingredients that come in a 16 ounce eject and is usable at almost e real(prenominal) securities industry salt away or public convenience store across Denmark. It is one of the products of Coca- dummy Company. 1. 3. 3 blushful horseshit dynamism drink blood-red pig Energy Drink is a functional bever time, specially developed for periods of increase mental and physical exertion. It seat be drunk in virtually any situation during sports, at work, whilst driving and during waste activities. 1. 4 Demarcations (Scope and limitation of the study) As e actually report has its limitations, this report is besides defeat to heterogeneous limitations.This report is metrical footd on cardinal products, sting and cerise cop which be the products of The Coca-Cola Company and The blushful doodly-squat Company respectively. These two companies cod non-homogeneous product categories however this report will be poreed however on th ose two products among wide category of energy drink in energy drink celestial sphere. As off the beaten track(predicate) as the market place is concerned, this report is limited to the Danish market. Most of the squanderrs of energy drinks in Danish market ar mainly the younger people eond 18-25. Considering this position we have selected this age appeal as our quarry multitude. 2 Theoretical BackgroundThis persona of the report helps to render the broad hypothetic framework used for interpreting the interrogation presented in this report. Various merchandise theories have been applied as a reach in this report. Theory of Market family line is used to poll rationalize and inflammation turd in the Danish Market. To analyze the tilt between kindle and rubicund Bull, antagonist Benchmark Analysis is used. in the end Using the theory of Marketing unify (4 Ps), recommendation to Burn has been made to successfull develop its marketing campaign so that it giv e the axe increase its sales and compete with flushed Bull. 2. 1 Market segmentationMarket segmentation will be identified by pickings into love the demographic variables ( bid gender, different age pigeonholing and behavior style) and geographical locations ( respective(a) cities of Denmark) like have-to doe with of Copenhagen, Sj? lland, Fyn and Jylland 2. 2 Competitive Benchmark Analysis Competitive benchmark of Burn will be made with its commit competitor, loss Bull. For this we will take various federal agents which argon olfactory modality, gustatory sensation perception, brandmark, price, place ( convenient to bargain for), packaging and intensity level of the products. During our mathematical base treatment these factors came up as the most relevant criteria for qualification militant benchmark.Accordingly, respondents were asked to rate and esteem twain Burn and Red Bull on those factors during the online survey. 2. 3 Marketing Mix (4 Ps) Marketing Mix i. e. 4 Ps will be taken as theoretical base for providing recommendation to Burn after the synopsis of data and findings be presented. Accordingly, Product, Price, Place and Promotion Strategy will be presented in regulate for Burn to successfully compete over against its rival Red Bull. Then after, the stopping point will be made. 3 Methodology Description This section of the report gives info roughly the stages that we went through piece of music doing the explore and writing the report. 3. Research Design We chose searching design as our interrogation design. We have a explore problem which is un incorporated. We do non have enough education about our topic for which we have to enquire more on our topic. Both Qualitative and decimal data collection methods be used. To gain more and more breeding and insights about the problem topic, Qualitative research design was chosen. Using qualitative data collection method, it became easier for us to change empathise and reformulate our unstructured questions. Quantitative method is also used in read to check the validity of the results obtained from qualitative method.For quantitative data collection we tried to get as many respondents as possible who can represent the sum total macrocosm. 3. 2 Primary and secondary data collection For this research we have chosen both Qualitative and Quantitative data collection method for primary data. also, wherever required, we have also used secondary data from the articles, publications and website of the company as hale as blogs and other relevant news articles. 3. 3 Qualitative data collection To collect the qualitative data, a focus group interview was conducted. We prepared the interview turn over for the focus group which is attached in the appendix.The focus group contained 11 members who are the students from second semester class at Niels Brock. subsequently the completion of interview process we also took a craft test among the focus group i nterview participants plus 15 other students. Students were chosen randomly. Each of them were given to drink two glasses, one modify with Burn and a nonher filled with Red Bull and were asked which one they like and how they taste. The responses from the participants were used for the compend. 3. 4 Quantitative data collection To collect quantitative data, we prepared structured questionnaire. It consisted of 15 questions (open and closed ended questions).We stick on our research questionnaire in the Facebook blogs and invited 600 Facebook users through simple- school principaled random method. We got only 116 responses and of which only 77 respondents answered all questions of questionnaire. So in this research 77 respondents are our total keep down of observation. In other words our smack size is 77 which represent the total population of energy drink customers in Denmark. 4 Presentation and outline of data The presentation and epitome of data has been categorize as Mark et segmentation and Competitor Benchmark. 4. 1 Market Segmentation of energy drinks 4. 1. 1 Analysis of Focused group interviewDuring the center group interview, 11 participants were asked about the consumption of energy drink e genuinely hebdomad. Among the participants, 1 participant consumes 5 or more cans per week. 4 respondents consume 3 to 4 cans and 1-2 cans as hale. Whereas, 2 respondents consume less than 1 can of energy drink. Thus their consumption habit is around 1-4 cans per week. When there was a word of honor about the occasions during which they consume the energy drink, most of the answers was during workout, training or departure to sports and when mixing with alcohol. There was also a discussion about having coffee sooner of energy drink when one is hackneyed. participants state that they prefer coffee whereas others favourite(a) energy drink. Regarding price, most of the respondents voted for cheaper one, less than 20 DKK and between15-17 DKK. 4. 1. 2 Anal ysis of Online questionnaire survey The willingness of various age groups towards energy drink is illustrated in the plot below. It shows that 56% of respondents from age group 18 to 25 years are implicated in energy drink. Figure 1 Willingness of various age-groups towards energy drink reference auxiliary 4 Similarly, 20% of respondents from the age group below 18 and 26-35 years age group showed their take in energy drink.But only 4% of the elderly respondents are provoke in energy drink. Thus, it can be seen that the highest look of people from the age group 18-25 years are interested in the energy drink. Figure 2 Willingness towards energy drink by gender stemma vermiform appendix 5 The above look shows that 68% of manful population is interested in energy drink whereas only 32% of fe staminate population is interested in Energy drink. Figure 3 Willingness towards energy drink by location bloodline Appendix 6 According to the above send off, most of the responden ts from center of Copenhagen are interested in energy drink. 8% respondents from the Copenhagen expanse and 32% respondents from Sj? land region showed interest in energy drink. While digestng the age wise consumption of energy drink which is illustrated in the conformation below it has been seen that the data is bit conflicting. Figure 4 senesce wise consumption of energy drink Source Appendix 7 As shown by the diagram, those who almost never drink energy drinks are higher in age group 18 to 25 years. But again, those drinking from 1-2 cans per week are also higher number in age category 18-25 years but less ompared to those who never drink. But what can be concluded that those who drinks energy drinks they unremarkably consume 12 cans per week and are higher in 18-25 years category. Analyzing the favorite(a) occasions when customers commonly like to drink energy drink, the research show that customers usually prefer it to mix with alcohol as their first preference and henc e drinking when they are tired. Figure 5 infrequent preference of Energy Drink by gender Source Appendix 8 The above graph shows most of both fe manlys and males consume energy drink when they mix with alcohol. 2 females out of 35 female respondents (63%) and 19 males out of 42 male respondents (45%) tell they consume it when they mix with alcohol. Similarly 43% of female and 40 % of male respondents answered that they take energy drink when they are tired. Likewise, 11% female and 33% male give tongue to that they take it when they go to sports. 14% of female and 21% of male chose energy drink when they are thirsty and 6% of female and 7% of male chose for other occasions. Figure 6 Customers willingness to pay for the energy drink Source Appendix 9Relating to the price it can be all the way seen from the figure above that 18-25 years age group which is the target customers for energy drinks are willing to pay 16-20 DKK for the energy drinks where as 26-35 years age group are wi lling to pay 10-15 DKK for the drink. 4. 2 Competitor Benchmark (Burn and Red Bull) 4. 2. 1 Analysis of Focused group interview During the think group interview, 8 out of 11 participants preferent Red Bull. Only 3 preferred Burn. When there was a discussion of product features like taste, touch and effectiveness of the products participants verbalise that effectiveness of the product is grave.During the blind test 26 participants were made to taste both Burn and Red Bull drinks blindf anciented. Table 1 taste sensation of product by tasting without fucking the product (Blind Test) BurnRed BullBoth Total no. of participant (26)9152 The research showed that Red Bull was highly preferred by the participants with 58% appreciating the taste of Red Bull. Burn was preferred by only 35% of the participants. 4. 2. 2 Analysis of Online questionnaire survey The illustration of various measures to which the consumer gave importance when purchasing energy drink is shown in the figure be low. Figure 7 Customers emphasis when bargain energy drinkSource Appendix 10 We found data of customers fit to the importance they give to various measures or elements when they want to barter for an energy drink. The above graph shows that 53% of the total respondents verbalise flavor is actually grand when they vitiate energy drink. About taste, 60% say it is genuinely authoritative. None of the respondents verbalise that it is non consequential at all. Talking about brand, only 19% said very outstanding, 34% said principal(prenominal), 30% said not so important and 17% said not important at all. About price, 51 %( more than one-half population) said that it is very important.Only 5% said not so important and no respondents said that it is not important at all. So far as convenient place to buy is concerned, 29% said very important, 54% said important. When packaging is concerned 16% said very important, 29% said important 39% said not so important and 16% said not important at all. When it is about effectiveness, 44% said it is very important, 38% said important. Thus the analysis shows that flavor, taste, price, convenient buying options and effectiveness of the drinks are important for customers where as brand and packaging are not that important in buying decision. base on the various factors to which the consumers give preference when buying energy drinks, comparative analysis between Burn and Red Bull has been carried out. This can be described from the figure given below. We asked the respondents to evaluate Burn and Red Bull giving them 4 options ( actually Good, Good, Bad, rattling Bad). But here in the analysis we have taken only two options as we think these two options are sufficient for comparative analysis. Figure 8 Comparison of Burn and Red Bull based on the various factors Source Appendix 11 The above figure shows the customers preference between Burn and Red Bull on he various factors which are important for their buying dec ision. 34% of the total respondents said the flavor of Burn is close and 23% said very heavy while 48% and 29% said the flavor of Red Bull is heartfelt and very good respectively. Similarly, 39% and 13% of the total respondents said the taste of Burn is good and very good respectively while 52% and 29% respectively chose good and very good for the taste of Red Bull. As far as brand is considered, 39% and 26% said the Burn brand is good and very good respectively while 42% and 45% said Red Bull brand is good and very good respectively.When it is about price, 27% and 12% chose good and very good for Burn while 16% and 12% for Red Bull. 35% and 23% of total population said Burn is good and very good respectively when considering convenient to buy whereas for Red Bull it is 38% and 17% respectively. About packaging 36% and 22% answered good and very good for Burn while for Red Bull its 45% and 18%. Finally for the effectiveness of the product, 39% and 18% respectively chose good and very good for Burn while it is 45% and 25% for Red Bull.Thus the analysis shows that customers highly prefer Red Bull while relating to flavor, taste, and brand. On the other hand, with relating to price, convenient to buy and nice packaging, customers seemed to prefer Burn. So far as the effectiveness is concerned, Preference towards Red Bull is high but the difference is not so much. 5 Findings and summary of the analysis According to the analysis presented above, it can be seen that the energy drink market segmentation is more operose on the approachumers between age group of 18-25 and that the customers are dominantly male rather than female. looking for at the geographic distribution the market segment is undoubtedly concentrated on Copenhagen with to some extent also in Sj? land. However, the other fact is also that since Copenhagen is the largest city with dense population this result is sort of obvious. The other important findings of the study regarding the life style of the customers relating to the consumption of energy drinks is that energy drinks are excessively consumed as a mix in alcohol and then it is consumed while people get tired. alike energy drinks are oftentimes consumed only when 1 or 2 cans per week. ordinarily customers are willing to pay 16-20 DKK for the drink.The analysis shows that in general the customers give high importance to the flavor, taste, price, effectiveness and buying convenience while making their buying decisions of energy drinks and that the brand and packaging are not of importance for the customers. Keeping this in mind the competitor benchmark of Burn and Red Bull Red Bull clearly shows that though Red Bull being a new entrant in the Danish market it has succeeded in taking good share of energy drink market in Denmark. Red Bull is preferred by customers in harm of its flavor, taste which are important factor in general for customers while making their buying decisions.Similarly, with the effectiveness as well Red Bull is preferred by customers in comparison to Burn. Burn is preferred by customers in packaging which not of important factor for customers. But Burn still dominate Red Bull in terms of its easy availableness at stores which is delinquent to the fact that it is distributed by Carlsberg Brewery which is considered to have a very severe distribution job in Danish market. (footnote) Again at price Burn is rated punter owing to the fact that they are cheaper than Red Bull. Of course with the brand Red Bull is rated much better as it is an internationally recognized brand. Recommendations base on above findings hobby recommendations have been suggested for Burn to improve its products, promotion and pricing strategy. The recommendations will be based on the marketing mix (4 Ps) which is product, price, place and promotion. 6. 1 Product Since the research findings show that Red Bull has dominant preference by customers in terms of flavor, taste and effectiveness, there fore Burn has to come up with innovative product ontogeny in order to provide added value to its product so that customers preferences depart towards Burn.Therefore, considerable amount of resources and time should be spent on research and growth of variety of flavors and charitable taste with its product. Since the market segment of the energy drink is generally 18-25 years hoary and that they consume it as mix in alcohol so the taste preference of these age group should be taken into consideration and the flavor and taste should be developed which is appealing while mixing with alcohol as well. 6. 2 Price Relating to the price, Burn is cheaper that Red Bull and realizing the fact that Red Bull is gaining market share it is wise to maintain its low price strategy. . 3 Place The research show Burn with plastered placement but since strong distribution channel is its one of core competencies it has to fully utilize this competences to move ahead form Red Bull to place its prod ucts at all the convenient stores. The major anteriority should be given to Copenhagen since its the main market segment but again taking advantage of its well managed distribution channel it should also focus on other cities where Red Bull are not able to reach due to lack of experience with the Danish market. . 4 Promotion A well plan announce strategy should be developed mainly targeting on the 18-25 years age group and again the male customers who are the major customers of energy drinks. Though Red Bull is world recognized brand, Burn also has its brand reputation as it is a product of world class Coca Cola Company. Thus advertising campaign should also be focused to create awareness of the Coca Cola brand among the customers while promoting Burn which can positively influence customers choice. Conclusion Based on the research analysis and findings, it can be concluded that within the Danish energy drinks market Burn is in spades getting a tough competition from Red Bull des pite the fact the Red Bull is a new entrant in Danish market. Its planetary brand recognition has provided Red Bull with combative strength which can be a serious threat to Burn in coming future. Therefore it is a must for Burn to take incidentally action and initiate necessary marketing strategies to compete with Red Bull.Burn has low price advantage as well as strong distribution channel which provide Burn with an edge in the competitive market and therefore it involve to look more into product development and promotion strategy in order to compete with Red Bull and and so gain success in the competitive energy drink market. 8 References Books David Jobber. (2007). Principles and utilise of Marketing. UK. McGraw-Hill Education Pervez GH, Kjell Gr. (2005). Research Methods in business line Studies. UK. Pearson Education Bryman, A. and Bell, E. (2007). Business Research Methods. 2nd Ed. UK.Oxford University Press Burns, A. C. and Bush, R. F. (2006) Marketing Research, 5th ed. , prentice Hall Kotler, P. and Keller, K. L. (2006) Marketing Management, 12th ed. , apprentice Hall Svend Hollensen, (2007) Global Marketing a decision-oriented approach, Websites http//www. euromonitor. com/Soft_Drinks_in_Denmark http//advantageaustria. org/dk/news/local/Red-Bull-und-Shark. en. jsp http//www. aeofooddrink. com/34. php http//www. dietspotlight. com/burn-energy-drink-review/ http//www. redbull. com/cs/planet/en_INT/Products/Red-Bull-Energy-Drink-021242751115866? =1242745950125/product-FAQ 9 Appendices Appendix 1 Questionnaire salutary respondents, we make this survey in order to obtain more comprehensive association about the energy drink sector in Denmark, particularly the two commodious brands Burn and RedBull. So we would highly respect if you spend a few proceeding answering our questionnaire. Your information will be treated anonymously 1. How interested are you in energy drinks? oVery interested oInterested onot very interested oNot intererested at all 2. How often do you drink energy drinks? oAlmost never oFrom 1 2 cans per week From 2-5 cans per week oMore than 5 cans per week 3. ON WHAT occasion DO YOU DRINK ENERGY DRINKS? oWhen Im tired oWhen Im thirsty oWhen I go to sports oWhen I mix with alcohol oOther (please specify in the box below) 4. Where do you often buy energy drinks? oIn the super markets oIn the bars oIn sevener Eleven oIn small shops (eg gas station, carrel etc) oOther (please specify in the box) 5. How much would you like to pay for an energy drink? o10 15 Kr o16 20 Kr o21 25 Kr oMore than 25 Kr 6. How important are the following factors when you buy energy drinks?Very important Important Not so important not important at all Good flavor Good taste Good brand Reasonable price agreeable to buy Nice packaging The effectiveness of the drinks 7. Which of these brands do you know? oBurn oRed Bull oNone of them 8. Which one of these brands do you prefer? oBurn oRed Bull oNone of them 9. How do you evaluate RED shucks in the following factors? Very goodGoodNot good-not self-aggrandisingBad Very bad defect Taste Flavor Price commodious to buy Packaging Effectiveness 10. Do you have any recommendations for RED BULL to better meet your satisfaction? I dont know oIm already very slaked oI would recommend as follows 11. How do you evaluate BURN in the following factors? Very good Good Not good-not bad Bad Very bad stigmatize Taste Flavor Price Convenient to buy Packaging Effectiveness 12. Do you have any recommendations for BURN to better meet your satisfaction? oI dont know oIm already very satisfied oI would recommend as follows 13. What is your age? oYounger than 18 years old oFrom 18 25 years old oFrom 26 35 years old 14. What is your gender? oMale oFemale 15.Which part of Denmark do you make love in? oCenter of Copenhagen oSj? lland oFyn oJylland Appendix 2 hearing guide for focus group What criteria do people choose when they buy energy drink products? Are different flavors impor tant? What occasion do they drink energy drink? Eg when theyre tired, or mix with strong alcohol, etc. What product name(s) do they like? Why? Do they know Burn/Red Bull? Where do they buy? Do they like Burn/Red Bull products? How much should a can of energy drink cost? Appendix 3 Fokus gruppe analyse 2. Semester klasse Niels Brock Lien, Niraj, Silas og MichelleMarket research Alle kender begge 11 deltager 8 ud af 11 kan lide red bull Dog viste det at 6 ud af 11 faktisk kun valgte Red Bull efter blinde smagning Smagen er bedre, burn er for sodt. (inden smagning af begge m? rker) Hvor mange energidrinks drikker du per uge? 1 drikker 4-5 cans a week 4 3-4 cans 4 1-2 cans 2 mindre end 1 Hvornar drikker du energidrinks? Sprut, tr? ning, Det er meget i forhold til det at man drikker alkohol. Enighed blandt minimum 8 af deltagerne Dog drikker mange det ogsa hvis de er tr? tte eller skal til tr? ning efter en lang dag i skole.Kaffe frem for energi drink hvis man kan lide det hvis man er tr? t og skal videre, dette mener 6 ud af 11 af deltagerne hvor de andre ikke kan lide kaffe eller mener at en energi drik er bedre Hvor meget vil du betale for en energidrink? Ikke mere end 20kr, mellem15-17kr ca er de fleste villige til at betale workforce ville kobe den billigste hvis de stod mod hinanden pa hylden i super marked. Energien er mere vigtig end smagen. Irriterende reklamer for meget nogenhed provokerende reklamer mener 2 af deltagerne, Red Bull promoverer ikke sadan (I Dk hvert fald)