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Energy Shots

Energy shots offer a simple proposition: from a concentrated potion of caffeine, vitamins and amino acids, consumers get the functional

“bang” that they receive from an energy drink but without having to drink all the liquid of a whole energy beverage.

Small portable bottles

Fast and strong effect

Wide application

Daily consumption

Energy shots vs. substitutes

Energy Drinks:

Coffee: diluted - high volume of liquids

(usually) high in sugar big bottle - less convenient perceived as a drink for teenagers time consuming lower effect

(usually) not portable unhealthy

Case study - USA

The first energy shot was launched in 2004

Supported by an educational campaign from the leading brand, the market size reached $340m in three years and an estimated $1.2b in

2010

According to New Nutrition Business*, the market will continue to expand at 40-50% in the short term and will reach as much as $2.5b in 2012

With the price/litre around 5x higher than for the conventional energy drink (see next slide), and the price per portion 50% higher, the energy shot segment offers uniquely profitable growth opportunity

* - New Nutrition Business, http://www.new-nutrition.com/

Caste study - USA

* Source: NNB Surveys in Wal-Mart, Albertsons

Caste study – EU

Sales rose from 150$ million to 350$ million from 2009 to 2010 and still growing. Projected market size in 2012 is 1$ billion

Similar to the US market, price per portion is 40-50% higher for the energy shots vs energy drinks

UK market is more advanced compared to the mainland Europe and has the market structure similar to the US

Other EU markets are fragmented and lack a clear market leader

Per capital consumption in Europe is almost three times lower than in US

* - New Nutrition Business, http://www.new-nutrition.com/

The dynamics of US and EU market size for energy shots

* - http://www.bevnet.com

Potential marketplace analysis

We have selected the most promising markets by analyzing a number of metrics: total population target market size (24-35 years old) working hours per week original NapNock rating*

Conclusion: top countries for energy shots are Germany, UK, France, and Italy

*

Attached in the appendix

Marketplace rating

Countries

Germany

U.K.

France

Poland

Italy

Population

82m

62m

65m

38m

60m

Target market size

9m

7.6m

7.8m

6.6m

7.2m

Working hours

52

55

52

56

55

Original NN rating*

3

1

4

11

2

*

NapNock includes with rating of individualism, uncertainty, masculinity, working hours, population, road network, students, price level in each EU country.

Is there still any potential in EU?

EU energy DRINKS market size amounts to €6 billion* and is still growing 6-8% annually

Western Europe usually lags 2-3 years from the US

EU energy SHOT market is growing 50%-60% annually

There is still no clear market leader in the mainland

Europe

Why Red Bull is not successful?

No clear and distinctive marketing strategy - 0.25l can is not the same as 60ml bottle

They continue to target 14-23 year olds, whereas, in our opinion, the biggest potential is in a more mature 25+ segment

RedBull exited the US energy shot market in 2011 because of low sales (only 10-15% market share 2010)*

*

- http://www.bevnet.com/news/2011/red-bull-discontinues-production-of-cola-and-energy-shot

NapNock energy shot

60 ml energy shot

Ginseng and ginkgo biloba combo reduces negative impact on the heart

No sugar – no crash

Long lasting effect (4-5 hours)

Innovative taste with green tea and lemon

Competitive advantages over

RedBull , Burn and Monster

Natural ingredients: ginkgo biloba and ginseng

Longer lasting effect because of ginkgo biloba and higher dose of caffeine

Healthier: lower impact on the heart

Target market 24-35 (careerists)

Independent energy shot brand

Guerilla marketing campaign

NapNock consumer

Age: 24-35 years

Workaholic careerist

Self confident

Prefers quality goods

Social life: loves to travel, party, socializing

Moto: “Work hard, party harder”

Features: bold, vibrant, imaginative

Competence: reliable, efficient

NapNock marketing campaign

The NapNock TRIP to ASIA

NapNock 48 hours trip (without any sleep)

NapNock flashmob

Guerilla marketing video

POS material (aggressive posters, fake money, t-shirts etc.)

WEB (beverage industry webpages, travelling webpages)

Appendix

Energy shots vs. substitutes

Product

Energy Shot

Strenghts

• Convenient and portable packaging

• Quick and easy to consume

• Price-premium value for money

• Long lasting effect

• The need to place it near the cash desk

Weaknesses

• High price (education of consumers)

Energy Drink • Refreshment and stimulation drink

• Low cost

Coffee • Low cost

• Lifestyle

• Wide market

• Older consumers

• High amount

• Can not close the can

• Target market - younger people (16-21)

• Not portable

• Time consuming

• Lower effect

• No additional ingredients

• Not portable

• Bad for teeth

Competitor analysis

Brand

Quick energy

5 hour energy shot

Target market

30-45

30-45

Burn energy shot 18-24

Ubershot

On Go shot -

18-25

Slogan

Small But

Powerful

Drink it in seconds. Feel it in minutes. Lasts for hours.

Burn. Fire to drink. (same as e.d.)

Energy for life with no lows

Shot it in seconds. Feel it for hours.

A. Ingredients

Caffeine 175mg

Taurine

Caffeine 138mg

Taurine

Glucoronolactone

Citicoline

Tyrosine

Caffeine 80mg

Taurine 200mg

Glucoronolactone

70mg

Caffeine 210mg

Taurine 1050mg

Glucoronolactone

210mg

Caffeine 177mg

Taurine

Glucoronolactone

Ginseng

Pricing

2.25 EUR

2.13 EUR

1.99 EUR

2.15 EUR

2.13 EUR

Active Ingredients

Ginkgo Biloba – natural ingredient which increases mental activity and metabolism

Ginseng – natural ingredient with a unique ability to increase human endurance and mental strength

Glucoronolactone – provides fast recovery from fatigue cause by exercise

Caffeine – psychoactive stimulant which increases energy

Taurine – helps to rebuild stamina

Health Focus International’s study

(32 countries)

Statistics: Targegt by age

Country

United Kingdom

France

Germany

Ireland

Sweden

Norway

Netherlands

Poland

Population 20-35 age Percentage

62,262,000

63,136,180

82,329,758

4,581,269

9,354,462

4,973,200

16,683,400

38,186,860

14,000,000

12,283,012

1,320,551

1,918,156

958,214

3,125,100

22%

19%

0%

29%

21%

19%

19%

0%

Source: http://www.nationmaster.com/country/fr-france/Age-_distribution

Statistics: Students

Country

Germany

UK

France

Poland

Italy

Spain

Russia

Greece

Netherlands

Belgium

Sweden

Czech

Students

(thousands)

2500

2415

2200

2150

2000

1800

1500

637.6

Ranking

5

6

7

8

1

2

3

4

618

425

422

416

9

10

11

12

Country

Hungary

Portugal

Austria

Finland

Slovakia

Denmark

Swithzerland

Norway

Lithuanian

Ireland

Estonia

Students

(thousands)

397

373

308

296

235

234

Ranking

13

14

15

16

17

18

233

219

210

182.6

68.4

19

20

21

22

23

Statistics: Working hours

Country

Portugal

Estonia

Austria

Sweden

Hungary

Ireland

Poland

Italy

UK

Spain

Czech

Finland

Working hours per week

56

56

56

62

60

59

58

55

55

55

53

53

Rating

5

6

7

3

4

1

2

10

11

8

9

12

Country

Netherlands

Norway

Denmark

France

Germany

Swithzerland

Greece

Lithuanian

Belgium

Russia

Slovakia

Working hours per week Rating

52

52

51

51

53

53

52

52

50

50

49

17

18

19

20

13

14

15

16

21

22

23

UK

Italy

Germany

France

Ireland

Hungary

Netherlands

Sweden

Spain

Austria

Poland

Belgium

Swithzerland

Norway

Denmark

Czech

Greece

Portugal

Slovakia

Finland

Estonia

Russia

Lithuania

12

8

1

4

9

2

19

17

3

7

14

5

11

10

6

16

22

23

18

13

15

21

20

8

14

7

4

6

2

21

23

15

3

10

13

5

22

20

11

12

17

1

19

18

16

9

3

15

11

18

4

16

17

13

7

2

19

20

1

14

8

5

23

22

10

21

6

9

12

1

15

6

11

4

20

13

7

5

8

18

10

14

17

2

3

9

16

19

12

21

22

23

21

13

1

2

3

4

7

14

5

15

6

11

16

20

17

12

8

9

18

19

23

10

22

17

16

9

8

6

5

13

4

10

3

7

21

18

14

15

11

19

1

23

12

2

22

20

22

13

1

3

2

5

9

11

6

15

4

10

19

20

18

12

8

14

17

16

23

7

21

14

8

3

1

7

4

10

5

2

13

6

9

20

15

19

11

12

16

23

18

21

22

17

17

5

21

15

12

4

19

22

8

14

9

13

23

16

18

10

2

7

1

20

11

3

6

14

11

12

7

4

20

10

9

13

8

21

6

1

18

3

2

22

15

17

5

16

23

19

TOTAL

OVERALL

RATING

3

4

1

2

5

6

9

10

7

8

11

12

13

14

15

16

17

18

19

20

21

22

23

64

75

92

95

102

103

104

105

108

108

114

118

125

127

129

132

137

140

143

143

160

167

169

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