JUNE 24, 2019
BUYER BEHAVIOR PERCEPTUAL MAP: ENERGY DRINKS
MELISSA BAEZ, HASAN MISHAL
Table of contents
Executive Summary……………………………………………………………………………2
Introduction……….……………………………………………………………………………3
Methods………………………………………………………………………………………...3
Results………………………………………………………………………………………….4
Recommendations……………………………………………………………………………...8
Appendix……………………………………………………………………………………….8 Executive Summary
For our perceptual mapping project, we have split it into an introduction, methods, results, recommendations, appendix and the executive summary. In the intro, we have what this project is about as well as what we have researched. In methods, we have talked about how we approached the start of the survey, and how we have went about creating the data. In the results section, we have stated our findings. We have also added an ad from each brand, showing what they target in their ads. In recommendations, we have stated what we recommend for each brand, as well as what we think the next step these brands should take. Lastly our appendix is the link to the survey. For this project the question that we had and that we wanted to look into was if these brands made an energy drink with zero sugars and has a beneficial number of vitamins and minerals.
The results concluded that although 5-hour energy dominates less than 2% of the market share in the energy drink industry, they received similar or higher ratings to their larger competitors in ingredient characteristics and effectiveness. A promising target segment to help the growth of 5- hour energy is males between 18 and 24 years old. This demographic rates 5-hour energy favorably in ingredient characteristics in comparison to its competitors. Our recommendation is to position this product to health conscious male consumers looking for alternatives to caffeine or sugary energy drinks before a workout or to male young adults in college as an energy alternative to caffeine for late night study sessions or all-nighters.
Introduction
For our perceptual map project, we were given the task to look at competitors in the energy drink industry. Our assigned brand was 5-Hour energy. We decided to look at these different types of energy drinks offerings to see if they all make energy drinks with less sugar or beneficial vitamins and minerals for consumers that are mindful of their sugar intake as well as for consumers that want a healthier option of energy drinks. The reason we chose to research this is because people are becoming ever more health conscious. They are opting for healthier options, whether it be in what food they are eating or what drink they are drinking. Being that a lot of companies are promoting for healthier drinks, this was a key factor for us, as many people look at energy drinks as bad for a person’s health. The brands we researched were 5-Hour energy, Monster, Rockstar,
Full Throttle, and Red Bull. We found was that every single company makes a sugar free option of their energy drinks that are a healthier option for people that watch their drink intake, except for full throttle energy drink. When we looked to find if they provide any sugar free energy drinks, we found out they do not, and that they typically have 58 grams of sugar in each 16oz can, which is a very high, and it is the equivalent of 14.5 table spoons of sugar. Although some of these energy drinks are not as popular as others, we decided to create the survey and pass it along to a wide range of people to tell us what they think about each energy drink brand.
Methods
As a group, we started by thinking and brainstorming to come up with two key attributes which consumers would think about or consider when purchasing our range of energy drink brands. We chose to look at the ingredient characteristics of each energy drink, as well as the effectiveness of each drink. Secondly, we wrote three semantic differential statements for each of our attributes. Next, we wrote three demographics questions about age, income, and gender of our survey participants. We used the Qualtrics software to set up the survey. We selected the matrix table format with the bi polar option. We setup our survey questions with a semantic scale, with the negative being on the left and positive being on the right. Next, we recoded the values of each bi polar rating option to be rated -2 to 2 rather than 0 to 5. Then, we submitted our survey to professor McKelvey for approval. Lastly, we distributed it to friends, family, and work colleagues.
Results
Through our research we’ve found that all our energy drink brands seem to target young to middle aged adults to promote having energy on long dragging days. Our first brand we looked into which is our main energy drink 5-Hour energy, with a market share of 1.2%. Their ads target adults who are needing energy on the go, as well as they promote that their energy drink has zero sugar and only four calories, making it lean towards a healthier energy drink. 5-Hour Energy:
Energy on the go ad.
Our second brand is Monster energy with a market share of 31.5%. While they seem to target younger adults aging between 18-25 years old. Monster targets the thrill aspect in their ads, making their ads appeal to the younger generation that seeks the thrill. Their ad shows two guys riding dirt bikes in the thrill of the moment. Monster: Thrill of the moment ad.
Our third brand of energy drinks is Red Bull with a market share of 38.6%. The target segmentation for Red Bull drinks ranges between young and middle-aged adults. Red Bull tries to appeal to everyone in their ads with their slogan “Red Bull gives you wings” their ad shows people stuck in a traffic jam and taking a sip of Red Bull and flying away. Red Bull: Red Bull gives you wings ad. Our Fourth brand is Rockstar with a market share of 9.3%. Just like Monster energy,
Rockstar reaches out to the younger adults that seek the thrill. On their ad, it shows a professional stunt driver, driving and doing stunts that are exhilarating, again reaching for those that love the thrill. Rockstar Energy ad.
Lastly, our last brand is full throttle with a market share of 6.9%. Through what we have found full throttle targets the hard working, and handy man. Although we didn’t find many ads for full throttle, the ad we found shows men working hard on racing cars. Just like the name suggests, full throttle targets those who like speed. Full Throttle ad.
Demographics: Gender
Males Females
Demographics: Age
Less than 18 years old 18 to 24 years old
25 to 34 years old
35 to 44 years old
Demographics: Income
Less than 20,000 20,000 to 40,000 40,001 to 60,000 60,001 to 80,000 80,000 to 100,000 More than 100,000 Table of Grand Means Assigned Brand Competitor Brands 5-Hour Energy Rockstar Monster Red Bull Full Throttle Ingredient characteristics 0.2 -0.2 0.2 0.2 -0.2 Effectiveness 0.4 0.1 0.5 0.5 0.1
Target segment (Males between 5-Hour Energy Rockstar Monster Red Bull Full Throttle 18 to 24 years old) Ingredient characteristics 0.4 -0.2 0.2 0.3 -0.3 Effectiveness 0.8 -0.1 0.9 1 0 Market Share 1.2 9.3 31.6 38.6 6.9
Very bad Bad Neither Bad or Good Good Very Good Scale is -2 -1 0 1 2
Analysis of the Table of Grand Means: In the sample size of 26 survey respondents most felt neutral about both ingredient characteristics and effectiveness of 5-Hour energy, Monster, Red
Bull, Rockstar and Full Throttle energy drinks. Our selected target segment is males between the ages of 18 and 24 years old. This smaller sample size felt neither bad nor good about the ingredient characteristics of 5-Hour energy, Monster, Rockstar, and Full Throttle energy drinks. In effectiveness the respondents produced the same rating of neither bad nor good with the exception of Red Bull which was rated good. Perceptual Map: Energy Drinks 1.0
0.9
0.8
0.7
0.6Monster 0.5 Red Bull
0.4 Effectiveness
0.3 5-Hour Energy
0.2
Full Throttle 0.1 Rockstar 0.0 -1.0 -0.8 -0.6 -0.4 -0.2 0.0 0.2 0.4 0.6 0.8 1.0 Ingredient Characteristics
Perceptual Map: Males between 18-24 years old 2
1.5
Monster 1 Red Bull
0.5 5-Hour Energy
Full Throttle 0 -0.5 -0.4 -0.3 Rockstar-0.2 -0.1 0 0.1 0.2 0.3 0.4 0.5 0.6
Effectiveness -0.5
-1
-1.5
-2 Ingredient Characteristics
Recommendations
Our interpretation of the results concludes that although 5-hour energy has less than 2% of market share; males between 18 and 24 years old perceive 5-hour energy to have relatively better ingredient characteristics than its competitors. In effectiveness, males between 18 and 24 years old perceive 5-hour energy to rank 3rd out of its competitors. This is insightful because 5-hour energy has such a small market share.
It would be promising to target young adults who are male about the effectiveness of 5- hour energy and its ingredient characteristics. One way to appeal to our male target segment is to position 5-hour energy as a healthy pre-workout drink to help maintain stamina for intense exercise. This positioning aims to attract health conscious male consumers looking for alternatives to caffeine or sugary energy drinks pre-workout. Another recommendation is to position 5-hour energy to male young adults in college as an energy supplement when they feel defeated from a long day at work and school, and also need to pull an all-nighter.
Appendix
Qualtrics Survey: Energy Drinks