1. Idea Generation:
Too many of the so called energy drinks on the market including, Red
Bull and Monster, contain high levels of sugar and caffeine. For example, Monster contains 160 mg of caffeine with a consumption warning. Red Bull contains taurine, caffeine, sucrose and glucose as well as the controversial artificial sweetener aspartame. Health concerns arise when consumers drink too much of these types of beverages. One study suggests the ingestion of one 250mL can of sugar-free Red Bull, in a sample of 30 healthy young adults, had an immediate detrimental effect as it temporarily raised the cardiovascular risk to a level comparable to that of
individuals with established coronary artery disease. Gatorade and Propel are popular drinks used by athletes which hydrate but have limited nutritional benefits.
2. Idea Screening: A vitamin infused energy drink appealing to teenagers, athletes and health conscious consumers that is different from Monster, Red Bull and soda beverages.
3. Concept Development and Testing: This organically brewed tea infused with ginseng and chai provides vitamins and a natural energy boost. The product will be tested in focus groups consisting primarily of teenagers, athletes and active adults. Screening test results will be analyzed regarding flavor, perceived health benefits, price, and popularity.
4. Marketing Strategy Development: This energy drink will initially be developed with three flavors, cherry, orange and lemon and infused with Vitamins A, C, Vitamin B6, B12, calcium, carbohydrates, electrolytes and fortified iron. Health benefits of the organic drink will be emphasized. It will not contain artificial sweeteners or chemicals. It will priced at $1.50 per bottle and we anticipate capturing 10% of the brewed tea market the first year with $50,000 spent on marketing the first year.
5. Business Analysis – Popularity and name recognition of a tea such as Nestea or Snapple is well known. Sales history for those competitors has been very profitable. Snapple, the leading brand of bottled tea, recently introduced a new diet lemonade/tea made from green tea and black tea with only 10 calories per bottle. It is apparent consumers are looking for health benefits as well as refreshment. Overall sales forecast, profits, estimated costs and financial projections for our energy drink/tea will be calculated.
6. Product Development- Three different formulas with vitamins would be considered for initial product development. The tea should be flavorful with supplemental nutritional benefit. Advertising, pricing and distribution options will be initiated.
7. Test marketing – the drink could be test marketed with focus groups at popular teen oriented activities such as rock concerts or student events at large universities. Another option would be at sponsorship with free samples distributed at an athletic event such as the New York City or
Boston marathon.
8. Commercialization – The product will be introduced in the late spring, early summer in the east coast and west coast markets. The drink would then be advertised in convenience and grocery stores, health food stores, and regional television. Celebrity endorsement will be considered, for example someone such as, Miley Cyrus, who has a strong teen following. Advertisements for social networking sites will be developed.
