The objective of this paper is to analyze and discuss some of Energy Boost Inc.’s business decisions using their strengths, weaknesses, opportunities and threats, also known as an S.W.O.T. analysis which is defined as “a way of monitoring the external and internal marketing environment” (Kotler and Keller, 2012).
o Energy Boost Inc. has a very experienced marketing team with new product launches. This makes Energy Boost Inc. stand out from its competitors. Product launching plays a key role in marketing a product. The marketing team should have a good plan about how to launch the product in the market. They should do proper research in knowing the customer preferences and requirements. The company should be able to meet the requirements of the customers to be getting accepted in the market. An experienced marketing team will fulfill all these requirements.
o As Energy Boost ...view middle of the document...
5-hour Energy sold over x60 times the amount that Stacker 2 Xtra sold in 2014 (Statista, 2015). By positioning Energy Boost as the healthier alternative to 5-hour Energy, there is potential for a quick large market gain.
o Sales of energy shots have been declining since 2013 and research shows that taste is the number one cause of consumer turning to energy drinks instead of energy shots (Crawford, 2015). The great taste of Energy Boost could help differentiate itself from other energy shots bucking the industry trend.
o Ability to utilize health and wellness markets to grow initial product
o Ability to gain trust with the public through transparent ingredients and effects.
o Energy drinks are the biggest threat to the energy shot market. Consumers prefer energy drinks to energy shots in the latest polls. This is attributed partly to energy drinks releasing new products, increasing distribution and decreasing pricing (Crawford, 2015).
o 5-hour Energy has an 87% share of the market (Crawford, 2015). This is very close to a monopoly. This type of competition makes it very hard to break into the energy shot category and gain store counter and shelf space.
o Energy shots are classified as dietary supplements. This designation doesn’t resonate with all consumers. 60% of consumers say they prefer energy products labeled as beverages (Crawford, 2015).
Crawford, E. (2015, June 16). Sales of energy shots slump as consumers reach for drinks instead. Retrieved from http://www.foodnavigator-usa.com/trends/energy-drinks-and-shots/sales-of-energy-shots-slump-as-consumers-reach-for-drinks-instead
Kotler, P., & Keller, K.L. (2012). Marketing Management (14th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Statista. (2015). Leading energy shot brands in the United States in 2014, based on sales. Retrieved from http://www.statista.com/statistics/235191/leading-20-energy-shot-brands-in-the-united-states-based-on-sales