Objective - To Understand:: Contents - Marketing Research

Contents Marketing Research
Research Objective Data Collection - SECONDARY DATA Questionnaire Design Questionnaire- Responses Analysis ,Inferences & Tabulation
Objective To understand:
What is the feasibility of launching an Energy Drink in NAGPUR ? Is there potential? How much? What do they want? What should I as the launching company do? What are the geographical criteria? How should I go about doing it? Direct Interview - Questionnaire Method. Questions were linked to the Objectives of the research
New product introductions are often vital to the long run success of a firm. As background first consider the sources of growth for a firm. One useful perspective is Ansoffs product/market expansion grid.
Market penetration strategy
Product development strategy
Market development strategy
Diversification strategy
When a firm introduces a new product , it has 3 choices for branding it 1. It can develop a new brand, individually chosen for new product. 2. It can apply, in some way, one of its existing brands. 3. It can use a combination of a new brand and an existing brand. At present retailer shelves are stocked with energy drinks that go by the names of Rhinos, Bullet, Cloud 9 and Amway XL, apart from Red Bull and Power Horse, XXX Brand portfolio is designed to satisfy the various needs of the consumers hydration, energy, enjoyment or simply having fun.
Category Break Up
Health Drinks Eg: Bournvita Sports Drinks Eg: Gatorade Energy Drinks Eg: Red Bull An energy drink is distinct from a sports drink. While an energy drink is aimed at boosting energy, sports drinks like Gatorade by PepsiCo aim at replenishing body fluids. While sports drinks are generally not found as mixers at clubs, energy drinks are. Austria's Red Bull, world leader of the energy drink market, dominates the Indian market too, and has become a popular mixer at clubs since its 2003 launch. Energy drinks consumption is projected at 20-22 million cans in India this year Indian consumers drink an estimated 120 billion litres of beverages, of which only 4% are ready-to-drink packaged ones. This shows there is a lot of scope for growth for the packaged ready-to-drink segment. Product Category Break Up
Age Group
7% 13% 38% 15-22 yrs 22-30 yrs
42%
Which of the following non-alcoholic beverages do you prefer the most?
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
43% 31%
45+ 30-45 yrs
8%
9% 5% 3% 1%
23-30 yrs 15-22 yrs
From this data, we can conclude that almost three fourth of our respondents preferred soft drinks as their drink of choice. This shows how much the beverages market is dominated by the carbonated drink players and on the other hand it also shows that there is a lot of potential for market development of the energy drinks market.
Have you ever consumed an Energy Drink? (Mark the most accurate response)
50 40 30 20 10 0
Have you ever consumed an Energy Drink?50 (Mark the most accurate % response)
25 % 10 % 1 3 %
Quite Very often rarely Once
2 Never Would %
never
Analysis As per the responses to this there are fewer people consuming energy drinks regularly .
How often do you consume energy drinks?

60% 40% 20% 0% More than Once a week 1-3 times a once a week week Less than once a month
Analysis More than half of our respondents consume energy drinks 1-3 times a month which is quite a healthy sign for judging the feasibility of launch.
Where do you buy energy drinks?

80% 60% 40% 20% 0% 72% 51% 28% 6% 8%
12%
20%
This being a multiple choice question, a majority of our respondents in Nagpur buy their energy drinks from pubs, discos etc as well as wine shops. The insight that we get here is that Energy drinks are consumed most often as mixers with alcohol.
80% 60% 40% 20% 0%
On what occasions do you use energy 68% drinks?

31% 24% 6% 6%
At parties Before Casually in At the Others and/or deadlines, college workplace after exams etc. parties
Analysis The responses to this question again reiterate the fact that energy drinks are most often consumed as mixers with alcohol. Also, a lot of people consume energy drinks before deadlines, exams etc which gives them a proper boost.
What do you look for in your Energy Drink? (Please Rank in order of preference)
80% 70% 60% 50% 40% 30% 20% 10% 0%
Taste Price Brand Image Choice of flavours Advertising
Analysis Taste followed by price is the main thing that most respondents look for in Energy Drinks. The respondents also listed Choice of flavours as one of the important thing they look for in an energy drink while the few respondents were more brand conscious.
Have you consumed any of these existing brands of Energy Drink? (If yes, Please Rank in order of preference)
80% 70% 60% 50% 40% 30% 20% 10% 0% First

Analysis
RedBull
Cloud9 XXX Burn No other drink Second Third
Red Bull emerged as the most preferred drink in both cities with Cloud 9 and XXX being preferred over the others. This gives us an insight that the energy drinks market is pretty much dominated by just one player as of now as being the preferred drink and there is definitely a lot of potential for new entrants in the market.
Which form of packaging of Energy Drinks are you most likely to prefer?
2% 0% 2% 14% Cans Glass Bottles Pet Bottle 82% Tetra Packs Others
Analysis An overwhelming majority of respondents favoured cans as being the preferred form of packaging which goes with the cool image associated with the energy drink segment. Pet bottles were preferred by respondents who consume energy drinks mostly as mixers with Alcohol. Are you happy with the current choices of Energy Drinks available in the Market?
15% 30%
Yes, very happy Yes, but it can be better Unhappy
55%
Analysis
The respondents were more satisfied with the choice of energy drinks available in the market, but they thought there was definitely a chance for much better products, which again is a healthy indicator of the feasibility of launch of a new energy drink. The respondents who think the energy drinks segment can have better options are the ones to primarily target as they will easily switch to our brand if we get their expectations right. How can the currently available Energy Drinks in the Market be better?
Cheaper Price More Flavours Better Packaging Others 0%

Analysis Again , taste as well as price were the most preferred options.
20%
40%
60%
80% 100%
If you were offered a new Energy Drink to try as a free sample would you try it?
18% 8%
Yes, certainly
No, not at all 74%
Analysis Most of our respondents were okay with trying out a new drink on the market, so, if we are able to get our taste and pricing right, we can definitely aim at increasing the market share as well as developing the market.
What price would you be willing to pay for an Energy Drink unit of 250 ml?
40% 40% 35% 30% 25% 20% 15% 10% 5% 0%
28%
22% 10%
Less than Rs. 50

Analysis
Rs. 50 Rs. 65
Rs. 65 More than Rs. 75 Rs. 75
Again as we see, the respondents are slightly more price conscious, but in all, most respondents are ready to pay more than Rs.65 for a 250 ml can, which can be looked at as our initial price.

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Contents Marketing Research

Market penetration strategy

Product development strategy

Market development strategy

Which of the following non-alcoholic beverages do you prefer the most?

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

23-30 yrs 15-22 yrs

Quite Very often rarely Once

How often do you consume energy drinks?

Where do you buy energy drinks?

80% 60% 40% 20% 0%

On what occasions do you use energy 68% drinks?

80% 70% 60% 50% 40% 30% 20% 10% 0%

Taste Price Brand Image Choice of flavours Advertising

80% 70% 60% 50% 40% 30% 20% 10% 0% First

Yes, very happy Yes, but it can be better Unhappy

Cheaper Price More Flavours Better Packaging Others 0%

No, not at all 74%

40% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Less than Rs. 50

Rs. 65 More than Rs. 75 Rs. 75

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