Consumer Behavior
BUSA 419B
Dr. Powell
Spring 2013
Team Members:
Joshua Sauer
Tyler VanWingerden
Jamie Schleicher
Peter Dobrotka
Erica Keith
Kevin DeVivo
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Company History
In 2004 Living Essentials launched 5-Hour Energy. It has made Living Essentials
one of the most profitable privately held companies in operation. With sales
approaching the billion dollar mark, 5-Hour Energy controls roughly 80-90% of the
energy shot market. Founder Manoj Bhargava’s journey to start Living Essentials and
invent 5-Hour Energy is nothing short of incredible. After dropping out of Princeton and
spending 12 years as an Indian monk he got the inspiration to create 5-Hour Energy
after attending a natural products trade show (O’Connor, 2012). He saw an opening in
the market and devoted his talents to creating an easier, healthier energy “drink”. Today
the revolutionary energy shot has greatly altered consumer trends. Instead of a morning
cup of coffee or a late night sugar filled energy drink consumers can now turn to 5-Hour
Energy for a quicker, easier, and healthier option.
Since its introduction, the market for energy drinks has grown exponentially with
a 240% increase in sales since 2004. (Burrows, 2013) The following report is based on
insights from a focus group, a survey of 70 students, and informal interviews with
consumers. Our objective for this project is an examination of 5-Hour Energy through
the exploration of the consumer decision-making process.
Stimulus
The average consumer of 5-Hour Energy buys the product on the basis of two stimuli:
they are tired, or they know they will be tired. These motivations are often the same
ones associated with competitors of 5-Hour Energy. Feelings of exhaustion and fatigue
are common in today’s stressful and busy work environment. According to a recent
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study of 40,000 workers, 27% of workers reported that they were either un-refreshed or
exhausted after their nights rest (Massey, T. 2012). This lends well to the energizing
industry. 5-Hour Energy’s core users are people who are the busiest and don’t a lot of
sleep such as students and adults who work long hours.
As opposed to anticipatory use, many consumers buy 5-Hour Energy as a means
to remedy their already tired bodies. Everyone gets tired, but not everyone feels the
need to buy something to help energize them due to the fact that people experience
different degrees of weariness. Some people value being tired over going out and
spending money on a beverage. 5-Hour Energy is often used as a tool to aid someone
in achieving a certain goal. That goal may consist of staying up late to finish a project,
getting through a work shift, or simply walking up in the morning. This is different from
coffee, a popular alternative for waking up in the morning, which is a multipurpose
beverage also consumed for recreational use. Some users who purchase 5-Hour
Energy because they are presently tired do it as a part of a routine, or “ritual”. An
example of this would be a person who takes 5-Hour Energy every day during work at
the same time. Such habitual behavior can result from one’s consistent use of a product
for a long enough span of time that it develops into something that they do not even
think about anymore.
Many consumers of 5-Hour Energy buy it not because they are tired at that
moment, but because they expect to be tired at some point in the future. The people in
this category of buyers make up the majority of all of 5-Hour Energy users. Routine use
is much more common with these preemptive users. The product is available in packs
of 6 or 12 which encourages more consistent and everyday use. Buying based on the
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idea that individuals will need a product in the future generally helps sales. Consumers
tend to buy more than they actually because of price incentive purchasing in bulk
provides. On the same note, habitual users may use the product even when it is not
necessary for them but since they use it out of routine, it doesn’t matter to them. Seeing
a friend use 5-Hour Energy or having someone recommend it to you through word of
mouth are also contributing stimuli.
5-Hour Energy is unique to its competitors. Most brands market their beverages
as being good tasting and are larger in volume. 5-Hour Energy differentiates themselves
by putting an emphasis on its effectiveness instead of its taste or satisfaction. They also
condense the volume more than other brands so that you can consume it in one gulp,
as opposed to sipping it like coffee. These so called “energy shots” have definitely found
their unique niche in the beverage industry. Today they control 80-90% of the energy
shot market.
*Does not include sales from Wal-Mart (The Top 15 Energy Drink Brands, 2013)
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5-Hour Energy comes in small two ounce bottles. This allows the marketers to be
creative with their product and package design. The bottles that the product comes in
are plain in shape, but what makes them stick out to customers is their size. You can
easily catch a consumer's eye when your drink comes in a two ounce container when all
other energy drinks in the store are much larger. The label on the bottle is colored red,
yellow, blue, and black and has a silhouette of a man running up a mountain on it. Its
primary colors, red and yellow, represent boldness and energy. This falls in line with the
personality that the brand is trying to create and the target market they are trying to
reach. (Schmitt, 1997) Along with package and label design, 5-Hour Energy’s product
placement greatly aids its promotion. Consumers can regularly find it on display at the
checkout counter in local convenience stores. This increases sales because many
people do not even consider purchasing 5-Hour Energy until they get to the checkout
line. The immediacy of the product encourages a last minute impulsive decision to buy.
The name of the product, 5-Hour Energy, is inherently a stimulus in the mind of
consumers. It is very focused and specific. If the name was vague and did not quantify
how long the energy would last for, consumers would be skeptical of it. . A specific,
measurable claim that the consumer can compare performance to, allows him to a
make a simpler decision. Consumers do not like being deceived. If the product claimed
to give energy that lasted a ridiculous amount of time, they would probably doubt its
performance. Not only is the name specific, but it is also simple and clear. It says what it
will do in the least amount of words possible. When a consumer hears the name “5Hour Energy” for the first time, they automatically know what the benefit is and for how
long.
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Problem Awareness
Problem Awareness is concerned with identifying customer’s needs and
recognizing the problems consumers try to solve by using a product. In the case of 5Hour Energy, the problem it is attempting to solve is an insufficient supply of energy.
The solution that 5-Hour Energy provides is a source of energy that is quick, longlasting, all-natural, and will not be followed by a “crash” after it is done working.
Uses
According to our survey, respondents that have used the product said that their
top three reasons that they have taken 5-Hour Energy are due to lack of sleep (30%), in
preparation for an upcoming exam (32%), or they have taken it just for fun (18%). From
our focus group we learned that athletes use this product to make sure they have an
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adequate amount of energy or to try to give them an edge over their opponents. We
have also observed that some people use 5-Hour Energy simply because they see
other consumers using the product, and see the effectiveness of it.
Users of 5-Hour Energy said that at some point they decided that they did not like
their “actual state” (tired, groggy, sleep-deprived), and decided that their “ideal state”
(refreshed and awake) was more appealing to them.
Advertising
5-Hour Energy has developed different taglines to alert consumers of their
product’s effectiveness. The first one they introduced was “Hours of energy now. No
crash later.” This is refers to the fact, that unlike other energy drinks that leave you tired
and groggy, 5-Hour Energy doesn’t give you that “crash”. By emphasizing “Hours of
energy now”, this tagline highlights how quickly this product starts working. Their other
tagline, “Are you tired of the 2:30 feeling?” is effective because it connects with users on
an important pain spot. 5-Hour Energy builds this relationship by empathizing with
consumers on the middle of the afternoon feeling of fatigue after the morning coffee
wears off. They understand that after a certain point, the day just seems to drag on for
most working people. The feeling that consumers receive says, “The makers of this
product really understand me and what my problems are”, and that provides a very
successful way to entice them to buy the product.
The placement of a product within a store can drastically impact its sales. If a product is
placed in a store where categorically it would not make sense, say batteries being
placed in the clothing section, then potential buyers might not even notice it or think to
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look in that section. From field research we have noticed 5-Hour Energy is placed in the
checkout lines of grocery stores such as County Market or Giant Eagle. We have also
seen it beside the cash register in its own display like it is at our local Sheetz. These are
good places for 5-Hour Energy to be sold because it difficult for potential consumers to
pass through checkout lines without seeing it.
When sold in a bigger package, say a 6-pack, it is placed in an energy drink
section. This is also a good spot for it since someone who is looking for a source of
energy will most likely come to an “energy drink” section.
Being sold in large chains such as Walmart, County Market, and Sheetz allows
5-Hour Energy to be exposed to many different people. These chains cover a large
percentage of the shopping that average consumers do on a daily basis, which means
that they will be exposed to 5-Hour Energy on a consistent basis.
Perception
Marketing is a battle of perceptions. To find out individual’s perceptions of 5-Hour
Energy as it relates to its healthiness, or lack thereof, we asked, “What is your
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perception of 5-Hour Energy?” Through the responses we found that forty-six of the
seventy (65%) respondents say that they view 5-Hour Energy as being unhealthy.
Twenty-three of the seventy (33%) say that they do not think that this product has any
impact on their health.
One component of perception is how consumers compare a product against a
competitor’s product. We wanted to see how consumers view 5-Hour Energy against
other energy drinks so we asked our survey respondents “Compared to other energy
drinks, how do you think 5-Hour Energy compares?” Of the forty-six people who said
that they have had other energy drinks, only eight of those forty-six (17%) said that they
think 5-Hour Energy is less effective than other energy drinks. Nineteen people (41%)
said that 5-Hour Energy is more effective than other energy drinks, and nineteen people
(41%) said that it has the same effectiveness has other energy drinks. This show us that
thirty-eight of the forty-six (83%) respondents have a positive perception of 5-Hour
Energy’s effectiveness by saying that it is either as effective as or more effective than
other energy drinks.
Divergence is another part of problem awareness and an effective strategy that
marketers use to make their product stand out. Divergence is when a product is
somehow made different than other related products. The whole idea behind it is that
creators of a product are constantly trying to find problems or consumer “pains” with
competitors’ products. They then try to create a product that will solve these pains and
therefore become more attractive to customers. These divergent products are the “new
things” out there or the products that have some qualities or some functions that make
them more convenient or better than their competitors. 5-Hour Energy is a good
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example of product divergence because there were no other energy drinks like it out
there in relation to its convenience. It is a much quicker alternative to a full size energy
drink, and according to our survey, has the same as or better effectiveness than other
energy drinks.
Information Search
When consumers are aware that they have a need for a quick energy boost, they often
look to energy drinks to solve their problem. The Information search begins with a
consumer noticing a brand. 5-Hour Energy advertises on TV with three types of
commercials. The first is a compilation of testimonials from people in the workplace. It
shows them using the product and recommending it to people who find themselves in
similar situations. Carl Sperber, creative director at Living Essentials said "It's an old
fashioned Procter & Gamble message. Here's the product; here's the features; here's
the benefits."(Zmuda, 2009) The second type of commercial is athlete spokespersons
representing the brand. These commercials are usually more humorous in nature and
do not directly address the benefits of 5-Hour Energy. The three major spokes-people
for 5-Hour Energy are Bo Jackson, Jim Furyk, and Clint Bowyer. The third and newest
commercial is of a random man boasting about multiple feats he is accomplishing
because of 5-Hour Energy. This commercial is different from the workplace
commercials in that it is fictitious and humorous.
Another part of the information search, when related to food or drink products, is health
ramifications. Consumers approaching 5-Hour Energy are often cautious because the
claim that they can provide a “healthy alternative to energy drinks” seems ambitious. 5Hour Energy has high caffeine content which can lead to restlessness, irritability,
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irregular heart rate, and nausea. These side effects are not limited to 5-Hour Energy,
but are common with all caffeinated beverages. Another ingredient in 5-Hour Energy
that brings health concerns is phenylalanine. This is only dangerous to people who
suffer from phenylketonuria. A final main ingredient is niacin (B3) which in high doses
can lead to headaches, dizziness, and increase risk of liver damage.
One problem facing 5-Hour Energy is that the claim of five hours of energy with no
crash seems too good to be true. This makes people cautious about the drink and the
ingredients that are in it. On the back of the bottle, the nutritional facts read as follows:
niacin 150%, Vitamin B6 2000%, Folic Acid 100%, Vitamin B12 8333%, and less than
1% sodium. Under that there is a different section that is labeled “Energy Blend 1870
mg”. This energy blend does not have a daily value assigned to it. This is one reason
why the ingredients can make people feel a little unsure of the drink. The ingredients in
the “Energy Blend” include: taurine, glucuronic acid, malic acid, N-acetyl L-tyrosine,
L-phenylalanine, caffeine, citicoline. 5-Hour Energy is a product purchased mainly for
personal consumption. Most energy drinks come in large cans or bottles; however, 5Hour Energy is only two ounces and allows busy people to take it without interrupting
their schedule.
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5-Hour Energy was the first of its specific product type. Energy drinks had been
around for a while when 5-Hour Energy first came out. It was presented as the first
“energy shot”, a quicker and easier solution to the large cans or bottle of energy drinks.
Another selling point for 5-Hour Energy was the “no crash later” promise. They
do not use sugar in their drink so after the five hours, the user does not crash and
become even more tired. At the time of its release, most energy drinks on the market
did compensate for a crash and assumed that consumers would view it as a necessary
evil of energy drinks.
There are three central reference groups that impact consumers purchasing 5Hour Energy. These are co-workers, fellow students, and sports teams. Based on our
focus group, 5-Hour Energy is used most often in situations involving these reference
groups. The workplace is a common place to see 5-Hour Energy being used. People
use it to get through unusually long shifts, or to get rid of the “2:30 feeling”. Co-workers
using 5-Hour Energy can be influential opinion leaders. This reference group is very
powerful in persuading or dissuading people from becoming users of 5-Hour Energy.
Fellow students can also be influential in a person’s consumption of 5-Hour Energy.
Colleges are subcultures filled with people of similar goals and lifestyles. College
students will readily listen to a friend advocating a drink that helped them stay up late to
finish a paper or project.
Another notable reference group is sports teams. Opinion leaders in this subculture
include coaches, teammates, and trainers. All of these people can influence a member
of the team to use 5-Hour Energy by persuasion or example. Energy drinks have a
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noticeable effect on heart rate during and after exercise. Taking an energy drink before
exercising allows your heart to stay elevated longer after you are finished (Wiklund,
Karlsson, Ostrom, Messner, 77).
Evaluation of Alternatives
There are several alternatives for consumers to 5-Hour Energy. 5-Hour Energy is
categorized as an energy shot, yet it competes with the full-sized energy drinks. The top
four energy drinks that compete with 5-Hour Energy are Red Bull, Rockstar, AMP and
Monster. The target market of these energy drinks consists mainly of men, although
lately these drinks have been targeted at women as well. They also market to tired and
hardworking people as well as the “extreme sports culture.” While these energy drinks
advertise to the same consumer group, their advertising strategies are very different.
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Red Bull was the first energy drink to the market, selling its first can in Austria in
1987. This product essentially created the energy drink market. Their slogan, ‘Red Bull
gives you wings’, is used in commercials to appeal to a sense of freedom that the drink
gives its consumers. More recently Red Bull has been found to appeal to the
environmentally conscious energy drink consumers. The cans are all 100% recyclable
and their design uses space very efficiently, on both the shelves and trucks/trains.
In 2001, Rockstar was the second energy drink to be introduced the market. It
has become a more prominent brand in the more recent years. The company attributes
its increased market share to its provocative slogan, ‘Party like a ROCKSTAR’. The
brand suggests celebrity status, high energy, and sex appeal. The marketers at
Rockstar understand that it is all about how the consumers perceive themselves while
drinking this beverage, not necessarily how the drink tastes. Rockstar has differentiated
itself from the market leader, Red Bull, by not only involving itself with extreme sports
sponsors, but also delving into the entertainment world. They have maintained the
brand image of a ‘rock star’ consistently and successfully to the point that its consumers
associate the brand with empowerment and aspirations of a thrilling lifestyle.
AMP was also released in early 2001. This energy drink company has three
drinks customers may choose from depending upon what it is that the person wants to
achieve from consumption of the beverage. The three choices are AMP Focus, AMP
Active, and AMP Boost. Focus is to be used to get buckle-down and get things done.
This drink comes in a mixed berry flavor and contains caffeine, choline and theanine.
Caffeine is used to stimulate the body and improve mood, choline is an essential
nutrient for humans that has been found to aid in brain development and the prevention
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of memory loss and theanine is an amino acid that potentially improves cognition,
reduces stress, and boosts moods. AMP Active is lemonade flavored and is generally
consumed in order to hydrate and push through the day. This drink contains both
caffeine and electrolytes to get the job done. Boost is an energy drink containing
caffeine and B-vitamins. This beverage is designed to ‘boost’ the consumer’s general
performance and comes in original, grape, and cherry flavors. AMP has multiple athlete
sponsors that help capture more market share for the brand,
Monster entered the energy drink market shortly after Rockstar and AMP in
2002. Within two years they had climbed to number two in the energy drink industry.
Monster is fortunate to have an extremely large budget available for marketing and
advertising. Because their target market is men, Monster centers their commercials and
even their subliminal messages around one of men’s natural desires: women. They use
scantily clad women to associate its product with the sexual desire that is created in
men. This tactic is questioned as to whether or not it is ethical to promote a product in a
way that objectifies a sex and degrades the image of a woman. Monster also utilizes
free promotions in order to sell its beverages and gain public awareness. This energy
drink positions itself as the ‘beastly’ beverage by sponsoring extreme athletes and edgy
music groups.
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Perceptual Map
Purchase Decision
The next phase of the CDP is the purchase phase, in which customers buy their
chosen item. For 5-Hour Energy consumers, it is a very easy and convenient process to
purchase the product. This is by design. The distribution and placement of 5-Hour
Energy makes it a highly accessible product. Customers do not have to work hard to
find 5-Hour Energy. For tech savvy consumers, it is possible to order 5-Hour Energy
directly from their official website. However, the majority of consumers will buy the
product at brick and mortar stores. 5-Hour Energy is offered at almost 100 stores in the
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United States, including most large drug stores, gas stations, and convenience stores,
including the most popular store in the country, Wal-Mart.
Aside from offering the product at high traffic stores, the physical location of the
product inside the stores contributes to its convenience. 5-Hour Energy is often placed
right next to the cash register. This is highly coveted territory in stores and consumers
who have had a long day, or anticipate a long night, often see an easy solution to the
problem and decide to make the purchase impulsively. This availability and
convenience make it extremely easy for customers to get their hands on the product. It
is estimated that up to 15% of the company’s sales come from the Wal-Mart checkout
aisle (O’Connor, 2012). This was consistent with the findings of our focus group.
Participants explained that they were more inclined to buy a single bottle of 5-hour
energy as they needed it, as opposed to buying a 6-pack or even a 24-pack just to have
the product already when they needed it. When customers are at a store or a gas
station and they are making another purchase, they see 5-Hour Energy and are
reminded that they are tired or are going to need energy later in the day and that
convinces them to make the purchase.
A point that is closely tied to convenience is the operating hours of the stores
where 5-Hour Energy is sold. Wal-Mart is one of several stores that are open twentyfour hours a day, which means that the product is available to someone who needs it at
any time. Walmart’s and gas stations are usually strategically located, meaning that for
most individuals, the nearest store that supplies 5-Hour Energy is only a few minutes
away. This practically eliminates wait time and consumers who begin to think about
making the purchase have one more reason to do so.
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The second major aspect of the purchase decision involves the customer’s value
perception. Priced at $3 a bottle, 5-hour energy is an expensive option for energy. The
small amount of liquid in the bottle and the chalk-like taste means that the consumer is
getting little to no satisfaction from the physical act of consuming the beverage. This
resulted from creator Manoj Bhargava identifying what he perceived was a false
assumption in the energy drink market, that people who are tired are also thirsty. To
simplify the product offering to people who were simply looking to deal with tiredness
and to keep the product from competing with companies like Red Bull and Monster, 5Hour Energy is only a 2 oz. drink.
This puts all of the perceived value from the energy shot on being more awake
and alert. For many customers, they value the five hours of energy higher than the three
dollars required to make the purchase. We also discovered through our survey that
price is not a significant detractor to individuals who have never tried 5-hour energy. Out
of forty-nine respondents who said they have never tried 5-Hour energy, only 12%
identified price as the reason they had not tried it. When confronted with the pressure of
deadlines and requirements, the sacrifice of three dollars is considered a small price to
pay in exchange for the extra energy needed to successfully complete the task.
Consumers have a variety of 5-Hour Energy choices to select to meet their exact
preferences. There are three broad categories of 5-Hour Energy, original, extra
strength, and decaf. Original, which is distinguished by the traditional red label, comes
in pomegranate, grape, berry, orange, and lemon-lime flavors. For consumers looking
for something a little stronger there is the extra strength option which comes in a berry
flavor. Lastly, for individuals who are worried about ingesting caffeine, there is a decaf
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option that is available in a citrus flavor. In 2012 5-Hour Energy introduced a new pink
lemonade flavor in a pink bottle. The company then ran a promotion from October 1 st
through December 31st where it donated five cents from every bottle sold to help support
the fight against breast cancer. This promotion struck a chord with several consumers.
The philanthropic endeavor raised $387,531.20, which was donated to the Avon
Foundation for Women Breast Cancer Crusade (5-Hour Energy.com, 2013). This array
of categories and flavors provides a wide product offering to consumers at the point of
purchase.
Cognitive Dissonance
As mentioned previously, 5-Hour Energy costs around $3 per bottle (shot). For
this “investment”, consumers are expecting what the product advertises, five hours of
being awake and alert with for just 4 calories and no sugar (5-Hour Energy Statistics,
2013)
From personal experience we have noticed that people will only buy the larger
packs containing multiple bottles after first trying a single shot. We asked my roommate
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about this phenomenon after we noticed that he purchased a 6 -pack of shots during
midterms. He told me that he was not sure how 5-Hour Energy would affect him initially,
as he had heard that some people did not react well to it. After trying one on a whim a
few weeks earlier, he realized that the product worked well for him and it would give him
the boost he needed to stay awake and study.
Cognitive dissonance is often referred to as “buyer’s remorse.” It occurs when a
consumer purchases a product and either the product does not live up to the
consumers’ expectations, or when a competitor presents a better alternative. In the
case of 5-Hour Energy, Cognitive dissonance appears to be low.
5-Hour Energy is polarizing in that it is generally viewed either as having little
health impact to an individual, or that it is very unhealthy. It is safe to assume that those
that find it very unhealthy will not purchase the product. People that do not purchase 5Hour Energy cannot experience cognitive dissonance and those that do purchase it
expect the product to work effectively.
According to our survey, 86% of participants found 5-Hour Energy to be either
very or somewhat effective. With such a high percentage of approval, it appears either
5-Hour Energy works, or the placebo effect of taking it allows people to stay energized.
A product that effectively does what it is advertised to do is unlikely to cause a high
cognitive dissonance.
Some individuals respond very differently to 5-Hour Energy. We were able to talk
with two different people about their negative experiences with the product. The first
individual felt that while the product did work, he felt like he could feel the product inside
of him. This was a feeling that he was not expecting, nor enjoyed. The second person
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also believed that the product worked well, but after roughly five hours he had a large
crash and he felt even more tired than he had previously.
While a number of different variables could have influenced these individuals’
stories, three things remained constant. First, that 5-Hour Energy kept them awake for
five hours, secondly, they both experienced cognitive dissonance, and third, that they
would not recommend 5-Hour Energy to a friend.
In our opinion, 5-Hour Energy is doing a good job of lowering their cognitive
dissonance. In their advertisements they pitch that it will remove grogginess and allow a
consumer to become more alert. From our research we find this result to be generally
true, although we have heard stories of it being completely ineffective for a friend.
It might be advisable for 5-Hour Energy to make it more apparent to customers
that it affects different people differently, although this may have a negative effect on
their sales. Consumers are already aware of this fact and generally will not initially try it
before an important event. With 80% market share in the energy shot industry it is
unlikely that consumers are experiencing a high cognitive dissonance as they purchase
5-Hour Energy time and again (5-Hour Energy Statistics, 2013).
Use
From personal experience and talking with members of our focus group, 5-Hour
Energy is a very easy product to use. It is very apparent to people that they need to
drink it, and if there is any confusion the bottle clearly states “For Maximum Energy:
Drink entire bottle at one time.” To most, the taste leaves something to desire as it is
very concentrated.
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Overall taking 5-Hour Energy is not the most enjoyable thing. People recognize
that it goes by quickly and delivers results after the initial swallow.
Apostles & Terrorists
Like any brand, 5-Hour Energy has both apostles and terrorists. About 85% of
our survey respondents said that they do not consume energy drinks or had serious
health concerns about 5-Hour Energy. Our survey is not representative of the entire
population, but if just a majority of people hold these beliefs then they are bound to
influence their friends and potential customers with these beliefs.
While 5-Hour Energy would never admit that their product is unhealthy if used
properly, they were cited in an FDA report linking them to 13 deaths and 30 life
threatening issues since 2008. While the study did not sight how the product was used,
there is a general stigma about the population that energy drinks are dangerous and
unhealthy.
Talking with our focus group, no one came out and said they “hated” 5-Hour
Energy. In general, people either loved it, or did not trust energy drinks as a whole.
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Continuing our search for terrorists we searched the internet for independent
communities against the product. From our search it was difficult to find people who
were adamantly against the product. We did find a Facebook group entitled “I Hate 5Hour Energy” with 50 likes, but there were no posts within the group to substantiate the
claim. Either 5-Hour Energy’s web team has done a good job of suppressing any
dissenters or there just are not many people that strongly dislike 5-Hour Energy. It
appears most people, if they do not like the product remain indifferent.
While searching online for people that did not like the product 5-Hour Energy, we
came across a large group of people that hate 5-Hour Energy’s commercials. The
majority of people we found sounded off at commercialsihate.com. They did not like 5Hour Energy’s initial advertising campaign in which they coined the term “2:30 feeling.”
They prefer their new commercials even less. It features a man who is able to do a lot of
things like “climb a mountain, surf the pacific, build a house, all while doing his debut
album” while taking 5-Hour Energy. These users found the advertisement annoying and
had some very negative comments about it.
On their website, 5-Hour Energy has a section entitled “Fan Stories.” Here they
post the testimonials of people that swear by their product. In our opinion a lot of the
stories sounded un-genuine and it is likely that they were doctored up a bit. Despite this,
the stories sounded feasible and people are clearly passionate about the product.
Our focus group confirmed this theory. As one participant said “It is my go to
product when I needed to stay up late and study.” Other participants that had used 5Hour Energy agreed and said they always used it before a certain sporting events.
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Some customers love 5-Hour Energy and 5-Hour Energy shows the same
support for its fans. In addition to “Fan Stories”, 5-Hour Energy has a “Featured Fan
Zone” where certain customers are selected every month. Their pictures and
experience with the product are highlighted on the site. For the dedicated 5-Hour
Energy fans, they also host a number of contests. Consumers are eligible to win
NASCAR tickets, a year’s supply of 5-Hour Energy, or numerous articles of 5-Hour
Energy apparel.
5-Hour Energy has been strongly supported by the military. One amazon review
we read said that a man adopted 50 troops for a Christmas package, and the number
one item they requested was 5-Hour Energy. The Army times (Army Times, 2012)
posted an article saying “Energy drinks and 5-hour Energy in particular, are immensely
popular with U.S. troops. In 2011, sales of 5-Hour Energy topped $9.2 million across the
military exchanges — almost 1 percent of 5-hour Energy's $1 billion in total sales.” With
such high demand among troops, it appears the genuinely works well and consumers
are left satisfied.
It seems as if 5-Hour Energy has few brand terrorists and many brand apostles.
The product is generally effective for those that use it, and those that do not care for it
are usually complacent.
Disposition
5-Hour Energy is packaged and sold in small, plastic bottles. These small bottles make
disposition easy. Depending on what type of recycling options the individual’s company
or college has, he will have a choice to recycle the bottle or just throw it in the trash.
25
Conclusion
Not even a decade old, 5-Hour energy has established itself and carved out a niche as the
leader in the energy “shot” market. By taking a simple approach to the concept of energy
supplementation consumers have continued to turn to 5-Hour Energy. The hundreds of millions
of dollars 5-Hour Energy pulls in annually in sales show that there is a market for this type of
product. Low levels of sugar and calories make the drink an appealing alternative to energy drink
leaders like Red Bull and Monster. There are mixed feelings about the product, however, with
many consumers expressing a distrust of the energy beverage industry. Caffeine content and
reports that 5-Hour Energy might be related to 13 deaths are two additional reasons individuals
question 5-Hour Energy.
The individuals who do not like 5-Hour Energy do not express their displeasure very
vocally though, and overall there is an absence of brand terrorists. Consumers who have tried the
product find it effective and do not believe the beverage has adversely affected their health in a
significant way. These individuals are more likely to become repeat customers. This information
was supported by the research we conducted through observations, secondary sources, focus
groups, and a survey. As long as 5-Hour Energy continues to connect with consumers and ease
their pain, the company should continue to see growth in the near future.
26
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