Chapter no.1

EXECUTIVE SUMMERY

EXECUTIVE SUMMARYNielson ORG-MARG which is pioneer in the field of market research undertook this project TO STUDY TO ANALYZE MARKET TRENDS AND OPPORTUNITIES FOR ENERGY DRINK.The main objective was to find out the level of awareness about energy drinks in the market and examine consumer perception towards energy drinks.As a category, energy drinks in India is expected to double in size segment to its 1000cr over next two years from 500 cr in 2009 as host national and international players venture into the country. An indicator is the rate at which it is growing 50% to 55% annually according to experts, leaving little room for doubt that potential for the segment exists in India. There is scope for high growth potential in this marketWhich is why from multinationals such as Coca-Cola and PepsiCo to local players such as Mumbai-based Goldwin (makers of Cloud9), quite a few have been rushing to make their presence felt in the segment, in recent years. For companies such as Coca-Cola, this is the second shot at the category, which it first entered in the 1990s, with a drink called Shock. Now it is Burn that they have launched. But it has quite a few rivals to contend with.The key ones include Red Bull, Cloud9, Sobe (from PepsiCo) and Power horse. Whats more? A new player is set to join this growing list, say industry insiders. Its called SJ XXX, promoted by the JMJ group, a diversified Indian conglomerate, which is into manufacturing, healthcare, hospitality etc.

The objectives of this report are to identify how the Energy Drink market is segmented according to demographic, geographic, psychographic and behavioral variables. The Energy Drink industry which is dominated by Red Bull Energy drinks is the fastest growing category in the soft drink market.Red Bull is the market leader in energy drinks and Cloud 9 is doing good recently in the market but has fallen behind and needs to adopt new and exciting marketing techniques to appeal to the younger demographic also selected SJ XXX which is very newly introduced brand The Executive Summary outlines the main findings of the report (market size, market shares and market forecasts). This report will give u a detailed insight about market size, market share, market forecasts and market trends in energy drinks segment.

THE NIELSON ORG-MARG, PUNE is located in pune, and duration of project is of 2 months.This survey would help company to find out preferences and choices of consumer about energy drinks and also to find out the level of awareness about energy drinks in the market.

The primary information regarding prices, quality of products, availability of product in store etc was collected by direct survey of respondent.

Research instrument was chosen was questionnaire which was easy to fill and most of questions were closed & open ended. Numbers of respondents were 50.

After seeing all the observation & finding were helpful in preparing conclusion that people are aware about energy drink but not prefers energy drink as their regular drink when they go out. Reasons are like price, taste, not up to what they have positioned. Suggestion for the improvements also, Red Bull being the no.1 brand worldwide has the maximum market share and cloud9 and other brands are having very less market share.To increase the awareness among the consumers the companies should deploy new means for advertising and promotions. Sponsoring sports events and internet marketing are some of the recommended media, as youth is more exposed to these media.

My suggestion is to produce the product as per customers requirement and should be middle price range because now awareness about energy drink is there but people think thrice before spend Rs 90 on 250ml bottle . All the relevant charts, graphics & analysis of survey have been put in the project to make it more understandable & meaningful.

Chapter no.2

OBJECTIVES & SCOPE OF THE PROJECT

2. OBJECTIVES & SCOPE OF THE PROJECT

Project Title A Study to analyze market trends and opportunities for energy drinks

OBJECTIVESPRIMARY OBJECTIVES To find out the trends and opportunities for energy drink in market.

To find out level of awareness about energy drinks in the market Examine consumer perception towards energy drinks.

SECONDARY OBJECTIVES To find out preferences and choices of consumer about energy drinks

To find out factors affecting sales of energy drinks

To find out the effective advertising media

Need for the study: To understand the marketing strategy of energy drinks manufactures and try to position the new industry of energy drinks

For the companies it is important because they can use different marketing strategy and apply them to market for future growth of company

This study would provide the primary cause for the low market share of other energy drinks in the city Pune

Scope of the study:

Importance of beverages in India Entry of foreign brands in India Current trend in youth culture This study will provide us data and information about energy drink and its competitors position in the market and this will help us to analyze the market potential and consumer needs. As energy drinks market is at nascent stage, a detailed insight and extensive research is required to understand the market better. Energy drinks market is expected to be doubled in next two years.

Chapter no.3

COMPANY PROFILE

Company profile GLOBAL INDUSTRY OVERVIEWEnergy drinks is an industry emerging really fast from few years. These drinks have ingredients such as caffeine & taurine which help to increase concentration, endurance, alertness & reaction. This kind of drinks are not only designed for sport persons ,it can be used from everyone who wants to get stimulate & energies mind & body . Different type energy drinks Tea, Coffee. One new section introduced recently where energy drinks are mixed with alcohol resulting in new products or cocktails. Energy drinks are beverages non alcohol drink which contain legalstimulants, vitamins, and minerals, including caffeine, guarana, and taurine, various forms of ginseng, maltodextrin, carnitine, creatine, and ginkgobiloba. Some may contain high levels of sugar or glucose. Itmay wellhave come from Scotlandinthe form of Iron-Bru, firstproduced in the form of "IronBrew" in 1901.In Japan, the energy drink phenomenon dates at leastas far back as the early1960s, with the release of the Lipovitan..In UK,LucozadeEnergywas originally introduced in 1929 as a hospital drink for "aiding the recovery;"in the early 1980s, itwas promoted as an energy drink for "replenishing lostenergy."In 1995, PepsiCo launched Josta, the firstenergy drink introduced by a major US beverage Company

In Europe, energy drinks were pioneered by Mr. DietrichMateschitz, an Austrian entrepreneur who developedRedBull based on the Thaidrink KratingDaeng, itself based on Lipovitan. RedBullwas introduced to the US in 1997 and is the dominantbrand there, with a marketshare of approximately 47%.Bythe year 2001;the US energy drink markethad grownto nearly8per yearin retail sales. Over the last5 years, itgrew an average of over 50% per year, total 80millon over $3 billion in 2005.Dietenergy drinks are growing atnearly twice thatrate within the category, as are 16-ounce sized energy drinks. It is estimated to hitnearly 4 billion in 2006, and both Goldman Sachs and Mintel predict that the energy drink market will hit$10 billion by 2010.Major players such as Pepsi,Coca-Cola,Molson, and Labatthave tried to match the smallcompanies innovative and differentapproach, with marginal success. Energy drinks have also become popular as mixers. Many maltbeverages such as Sparks,3sum and Max capitalized on the effects of caffeine while drinking alcohol.

Globallyit is estimated to be a $ 9-billion segment, which is expected to become $14 billion by2012. Today there are many internationalbrands doing business in differentcountries which includes brands likeRockStar,RedBull, Burn,Monster,Full Trotle,Nos,Battery,Sting,Rage,SJ XXX, RiIt, BooKoo, Crunk, Hype, Blast, Lightning Bolt, Hooah!, Xenerg,Duff,QF,Tiger,VonDutch,Race,Tab,MG Puma,Shark,SoBe,Pussy,XL,Cloud9,PowerHorse, etc

INDIAN INDUSTRY OVERVIEWEnergy drink industry in India is growing with very convincing speed. It can be said that the foundation pillars of this industry was put forth byRed Bull. It entered the Indian market sometimes back in the year 2003 and since then the energy drink market took its way. Energy drink market was of Rs.100 Cr. till 2005 but it gained acceleration from then on and the energy drink market in India is growing rapidly above 50%. As a category, energy drinks in India is expected to double in size segment to its 1000cr over next two years from 500 cr in 2009 as host national and international players venture into the country. An indicator is the rate at which it is growing 50% to 55% annually according to experts, leaving little room for doubt that potential for the segment exists in India. There is scope for high growth potential in this marketThe energy drinks market in India is expected to double in sie till the end of 2010 as a host national and international players venture into the segment. The market for such drinks is expected to double in size to Rs.1, 000 Cr.from Rs.500 Cr. presently. Energy drinks in India till a year back were dominated by players such as Bullet, Cloud 9 and Red Bull among others has suddenly spruced. Sales, however, started picking up post the entry of established players such as Pepsi, Amway and the latest entry of Coca Cola & GT&T in this segment has shown the market potential of the Energy Drink segment.

Pepsi has been marketing its energy drink SoBe since November 2008, while Amway XLhas been around since September 2009, Red Bull and Power Horse, who have been around for some years now, perhaps were the only existing players to be marketing such products aggressively.It is believed that the fun drinks such as colas segment has declined by 5% since 2007. With the positive changes in the perception of health and fitness in India, the industry foresees a huge potential for supplementary drinks like the Energy Drinks.

Amway sells health drinks under the Amway XL label which comes in 2 flavors CitrusBlast and Tropical Blast, priced at Rs.450 for a pack of 6. The energy drink segment is the fastest growing segment in the ready to drink category. The reason being India has a youth centric population and we are urbanizing very fast. Players are taking to unique marketing strategies to expand the marketfor energy drinks in India.RedBull, forinstance, started free sampling at schools and colleges beforelaunching their Product. Even after the launch, the free sampling continues to enhance brand recall. They do free sampling atcolleges.

There are many companies who entered into this energy drink segmentafter RedBull. SomeOf them arePowerHorse, Burn(CocaCola),Cloud9,SJ XXX(JMJ launched this year).Among these brands RedBullholds the marketshare of about83%, followed byPowerHorsewith 9%,Cloud9and restby other brands includingSJ XXX,Burn,SoBe,etcEnergy Drink Brands in INDIA

Sr.NoCompanyBrands Price(Rs)

1RedBull (Austria)RedBull250ml- Rs 90

2Spitz KG company(Imported by Maluram Enterprises for distribution)PowerHorse250ml-Rs 96

3Coca-colaBurn250ml- Rs 85

4PepsiCoSoBe250ml-Rs 75

5SJ-XXX (promoted by the JMJ group)XXX (Xperience Xtreme Xcitement)250ml- Rs85

6X35 ltd (uk Based Company)X35250ml- Rs 50

7VKG Management (p) Ltd(Importer of Fighter)Fighter250ml-Rs 75

8R.M.Indian liqueur Xtazy350ml- Rs 85

9Goldwin HealthCare Pvt ltdCloud9250ml- Rs90

Energy Drink Brands in INDIA

1. Fighter 2. RedBull 3.SoBe (PepsiCo) 4. X35 5.Cloud9 6.XXX Energy Drink 7.Burn (Coca-Cola) 8.Xtazy 9.POWERHORSE

AC Nielsen company profile The Nielsen Company (erstwhile ACNielsen) was established in the United States in 1923 by Arthur C. Nielsen, Sr., one of the founders of the modern marketing research industry. Among many innovations in consumer-focused marketing and media research, Mr. Nielsen was responsible for creating a unique retail-measurement technique that gave clients the first reliable, objective information about competitive performance and the impact of their marketing and sales programs on revenues and profits. Nielsen information gave practical meaning to the concept of market share and made it one of the critical measures of corporate performance. Mr. Nielsen also founded the business known today as Nielsen Media Research, the global leader in television audience measurement and other media research Services.

ACNielsen opened its first international office in the UK in 1939 and, after World War II, progressively expanded its operations in Western Europe, Australia and Japan.

In India the company is better known as ACNielsen-ORG-MARG Pvt. Ltd. MARG (Marketing and Advertising Research Group) started in 1983 is primarily into Customized Research Services (CRS). ORG (Operations and Research group) that was started by Sarabhai Group in 1962 were into Retail Measurement Services (RMS). In 1994, ORG and MARG decided to merge and it became ORG-MARG Pvt Ltd. It gave 26% stake to the Dutch company VNU. In 2001, ACNielsen became part of VNU, a world leader in marketing information, media measurement and information and business media and that is where the name comes ACNielsen-ORG-MARG Pvt Ltd.

In 2003, VNU announced a new organizational structure for VNU Marketing Information (MI), its largest business group, to address evolving client needs and to create an enhanced platform for accelerated growth.

In 2005, VNU attempted to expand into healthcare and pharmaceutical information by acquiring IMS Health. Although the merger was terminated in the face of shareholder opposition, the two companies agreed to work together to develop new capabilities.

In 2006, VNU was acquired and taken private by a consortium of six private equity firms. In 2007, VNU changed its name to The Nielsen Company. This new identity emphasizes its best known brand name and underscores its commitment to create an integrated, streamlined global organization.

NIELSEN REACHNielsen today has its presence over 108 countries with 17 countries in Asia Pacific itself. Nielsen is divided broadly into 3 main divisions. Client Solution (CS) Data Acquisition (DA) Global operations. (GO)Data Acquisition and Global Operations comes under Global Structure headed by Michael Habib who sits in New York.

1. CLIENT SOLUTION TEAM:This team actually interacts with the Client, takes an idea of the Client, briefing is done and then briefs the Client about what is Our plan of action.

2. DATA ACQUISITION TEAM: a. PMT (Project Management Team) b. Line management teamPMT (Project Management Team) - This team is alignment with CS team

LINE MANAGEMENT TEAM- Data collection exercise is done by the Line Management Team that gives report to CS team

CS TEAM: CS team will do the top line presentation to the Client. All the reviews are sent to the LMT that again gets the final data which is again sent to the CS team. The CS team will then give the final presentation to the client

3. GLOBAL OPERATION TEAM (GO)Only the analysis part is done and then the final presentation with findings is given to the CS team that will finally give that presentation to the Client. The turnaround time is 3 to 4 days.

BUSINESSNielsen tailors research solutions to individual client needs. For common research needs Nielsen has a suite of internationally recognized proprietary research products and methodologies providing powerful comparative and normative data.Other research requirements are idiosyncratic and depend on a particular organizations prerogative and strategic goals. In this case specific, ad hoc research may be necessary, designed to address a particular market issue or set of issues. Often a combination of the two is necessary.All Nielsen research is conducted and delivered by a team of research and client service professionals with specialized industry, business issue or methodological expertise. Aside from providing market data, Nielsen endeavors to add value to clients business by translating the data into actionable market and business insights.

WHAT A C Nielsen DO?AC Nielson offers an integrated suite of market information gathered from a wide range of sources, advanced information management tools, sophisticated analytical systems and methodologies, and dedicated professional client service to help their clients to find the best paths to growth.Clients work with Nielsen services to: Measure their market performance Analyze market dynamics Diagnose and solve marketing and sales problems, and Identify and capture growth opportunitiesNielsen people work closely with their clients to help them choose the right set of information and services and use it to make the best possible decisions.MARKET MEASUREMENTNielsens major market-measurement services provide comprehensive coverage of: Sales to consumers of fast-moving consumer packaged goods, gathered at the point of sale in retail stores of all types and sizes. These retail measurement services provide clients with essential facts on how their products are performing compared with their competitors, and on trends and changes in market conditions and sales results. They also provide critical information on the use of promotional activities at the retail level, such as special displays or pricing, and on distribution and stock conditions in retail stores.Purchases by consumers of packaged goods and other products, gathered through participating panels of consumer households and through customized studies. These consumer panel and consumer research services provide a foundation for understanding and analyzing consumers motivations, attitudes, behavior, shopping patterns and demographic characteristics.

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In many markets, Nielsen offers a suite of consumer-focused consumer research techniques and services that address clients unique and specific marketing and sales issues.

OPPORTINUTY IDENTIFICATIONWhile Nielsens major clients all share a common focus on consumers; each individual client has its own distinct set of business characteristics and marketing and sales concerns. Our information and services are designed to help each client identify and act upon unique growth opportunities. Using a structured and disciplined approach to building and managing long-term relationships, our people work in close partnership with their clients to understand their strategies and business objectives. To design the right suite of Nielsen services that fits their needs. To agree on clear and measurable business objectives and to measure the results and clients return on their investment.GLOBAL PRESENSE:Nielsens operations span more than 100 countries. Headquartered in New York, our major regional business centers are located in Schaumburg, Illinois; Wavre, Belgium; Hong Kong; Sydney, Australia; Buenos Aires, Argentina; and Nicosia, Cyprus. The Nielsen CodeArthur C. Nielsen, Sr.Chairman, A. C. Nielsen Company, 1931

In 1931, Arthur C. Nielsen, Sr., wrote the Nielsen Code, defining the principles that would guide Nielsen to global leadership in marketing research. The Code remains relevant today and continues to guide our business.ImpartialityBe influenced by nothing but your clients' interests. Tell them the truth.ThoroughnessAccept business only at a price permitting thoroughness. Then do a thorough job, regardless of cost to us.AccuracyWatch every detail that affects the accuracy of your work.IntegrityKeep the problems of clients and prospects confidential. Divulge information only with their consent.EconomyEmploy every economy consistent with thoroughness, accuracy and reliability.PriceQuote prices that will yield a fair profit. Never change your price unless warranted by a change in specifications.DeliveryGive your clients the earliest delivery consistent with quality - whatever the inconvenience to us.ServiceLeave no stone unturned to help your clients realize maximum profits from their investment.

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Clients work with our services on a daily basis to make fundamental, fact-based decisions about core business activities.Brand DynamicsNew Product Introductions

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Market DynamicsUnderstanding the Consumer

New Brand Launch

1. New product launch- When launching a new product, it is not enough to understand how the product is performing. It is crucial to know who is buying, where the volume is being sourced, and whether the product is attracting new or existing category buyers. Developing new products requires effective ways to minimize risk and maximize gain. New ideas need to be thoroughly tested and evaluated to reduce risks and helps fine-tune the marketing mix before launch

2. Understanding the Consumer - Understanding human needs is critical for effective targeted marketing. However, these needs are not always easily detectable. People are not fully aware of their own underlying motivations or of the forces that determine their own behavior. In fact, we often mislead ourselves when we attempt to explain our behavior in our desire to act as rational human beings. Sometime we do not want to admit or even realize the real reason for our behavior because it is, more often than not, irrational.

3. Promotion Efficiency and Effectiveness - For many companies, promotion costs are their biggest single area of expenditure, and understanding the impact and worth of that spend is of critical importance. The scale of promotional spend often means that even marginal gains in efficiency will have a significant affect on the bottom line. Nielsen promotions models use weekly scanning data to evaluate the impact of different promotional tactics. Other information sources such as Nielsen | Homes can consumer purchasing information and manufacturer profitability measures can also be incorporated.

4. Retail Performance : Formulating effective sales and marketing strategiesA thorough understanding of your retail performance, and how it compares to your competitors, is vital for formulating an effective sales and marketing strategy. At the very least, you need to be able to answer the following questions: What is the size of your category and how is it changing? What are your strengths and weaknesses within individual retail chains? How are your brands performing in relation to your competitors? How does this differ by retail chain? What are the key causal factors affecting your performance? What are the overall trends in the marketplace in terms of segments, pack size and flavours? How can you use this information to exploit market opportunities and counter threats?Industry Expertise

Whatever your business needs, Nielsen professionals have the knowledge and expertise across a variety of industry sectors, built over more than 80 years addressing clients' business issues and delivering consumer insights to support our clients' growth. Advertising Automotive Consumer Package Goods Financial Services Government & Social Retailing Telecommunications Travel & TourismCOMPITITORS OF THE NIELSEN:TOP 9 MARKET RESEARCH FIRMS IN WORLD

Rank CompanySales in 2009(million USD)Growth in%

1Nielsen Company5,000.02.6

2Kantar Group2,0002.5

3IMS Health Inc.1,958.68.9

4GfK AG1,397.35.4

5Ipsos1,077.06.5

6Synovate739.69.5

7IRI665.06.6

8Westat425.80.8

9Arbitron400.05.9

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SWOT ANALYSIS OF COMPANY:

1. Strength: - Number one market research company in the world Joint venture with MNC 70% Market share in market research Commitment to security Friendly relationship with Client Mostly clients are the large companies of India Gained experience because of market leader Client trust on the secrecy of data Occupied important location and building Trend setter of marketing research

2. Weakness: Higher prices for the clients Extra burden of work Bureaucratic style of management Shortage of place

3. Opportunities: More fields for specialization Increasing awareness for marketing research in every field Better methods for market research Cost effective methods from merger with national organization Demand will greater than supply More clients participation Growing competition in the market Media rating television index great market for growth 4. Threats: Employee turnover Research department in advertising agencies Government regulations Increased competition in marketing research Establishment on in-house research departments Privacy of data

Chapter no.4

THEORETICAL BACKGROUND

THEORETICAL BACKGROUND

Energy drinks are non-alcoholic beverages which are intended to provide a quick burst of high energy to the consumer. These may be prepared with a composition of methylxanthines, caffeine, natural flavors, some herbal components or specific vitamins including Vitamins B. They may also contain taurine, guarana, maltodextrin, ginseng, carnitine, inositol, glucuronolactone, creatine and ginkgobiloba. Most products include artificial sugar. The primary active component is generally caffeine.

MARKET SIZE:Market size is the measure of the total value or volume of a particular product sold in a particular length of time. In our case it is the total amount of the market covered by a title in the last whole year. The aim of the report is to tell how much of the product was consumed in the country discussed by value and by volume.

MARKET SEGMENTATION:

Dividing market into smaller groups of buyer with distinct needs, characteristics or behaviors who requesting mixes. Company identifies different ways to segment the market and develop profiles of the resulting market segmentFour major segmentation bases for consumer markets will be: Geographic segmentation Demographic segmentation Psycho-graphic segmentation Behavioral segmentation

a. Geographic segmentation: subdividing ng markets into segments based on locations, regions, countries, cities, and towns where pee and work is Graphic segmentation.b. Demographic segmentation: Most common characteristic for segmenting, it include age, gender, family life cycle , income and education.c. Psycho graphic segmentation: T his segmentation divides buyers into different groups based on social class, life cycle or personality characteristic .people in the same demographic group can have different psycho graphic makeup..So psycho graphic segmentation helps the marketer in examining attributes relate to how a person thinks, feels, and behaves. d. Behavioral segmentation: it divides buyers o groups based on their knowledge, attitudes, uses or responses to a product.

TARGETING: Selecting one or more segment & delivering product to provide there requirement

POSITIONING: Create distinct image of product/ service brand or organization in the mind of customer . it is relative competitive comparison their product occupies in a given market as perceived by the target market . e.g. Tide (mehkati safedi ) conveys 2 benefits

PRODUCT LIFE CYCLE: The stages of a product goes through from its introduction , to its growth and maturity to its eventual decline and death ( withdrawal from the market or deletion from the companies offerings ) , includes Introduction stage Growth stage Maturity stage Decline stage

PRODUCT/MAEKET EXPANSION GRID= A Portfolio planning tool for identifying company growth opportunities through market penetration, market developments, product development, or diversification.

Existing products new products Market penetration{EM}Product development {EM}

Market development{NM}Diversification {NM}

EM= Existing Market , NM= New Market

a. Market penetration: :-A strategy for company growth by increasing sales of current products to current market segments without changing the product.b. Market development :-A strategy for company growth by identifying and developing new market segments for current company products.c. Product development:- A strategy for company growth by offering modified or new products to currents market segments.d. Diversification: a strategy for company growth through starting up or acquiring businesses out-side the companys current products and markets.

NEW PRODUCT DEVELOPMENT: The Development of original products, product improvement, product modification, and new brands through the firms own R & D efforts.

MARKET SHARE:Market Share is the share of each competitor in the market place and can be expressed in value or volume terms.

Market Share by Volume - each competitors share of the total Market Volume

Market Share by Value - each competitors share of the total Market Value

DISTRIBUTION:This measure of the market relates to the different distribution channels to market for each product. The distribution channelsExample:- 0 level- 1 level - 2 level - 3 level

FORECASTS:

All market forecasts are based on statistical forecasting techniques based on historic performance (linear extrapolation of the market size, based on the five-year historical growth). These statistical tools are supplemented with qualitative parameters such as: industry expectation/opinion. Socio-economic drivers, new product development, technological advances, expected levels of market saturation etc.

Please find below an explanation of general terms used throughout reports:

Market Value = All market values are expressed at either retail selling prices (RSP) or other measures as specified in the reports.

Market Volume = All market volumes are expressed in the unit relevant to the market researched (i.e. kg, liters etc.)

Chapter no.5

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

5.1) what is research?Research in common parlance refers to a search for knowledge. Research is an Endeavour to discover answers to problems (intellectual and practical) through the application of scientific method to the knowable universe. It comprises defining and re-defining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions and making conclusions and at last, carefully testing the conclusions to determine whether they fit the formulated hypothesis.

Clifford Woody defines research as, the process which includes defining and re-defining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis.

RESEARCH OBJECTIVE :The main objective of the research was to determine the impact of sale and promotion offer on the buying behavior of the consumer of energy drinks. Information based on previous information is research.

Research is the search or find out new information based on previous information. Research is a scientific and systematic search for pertinent information on a specific topic. Research is a careful investigation or inquiry especially through search for new facts in any branch of knowledge.

Research comprises defining and redefining problems, formulating hypothesis or suggested solutions: collecting, organizing and evaluating data; making deductions and reaching conclusions; and last carefully testing the conclusions to determine whether they fit the formulating hypothesis

5.2) Different sources and methods of data collection

Data for my study is collected by the Primary data.

PRIMARY DATA

Primary data is data collected from field research. Primary data was collected by means of personal interview. tools of data collection in my study are

1. Questionnaire 2. Interview Questionnaire:-It is one of the important sources of collecting information. A list of questions are prepared for the specific subject as the name indicates there is a set of selected question whose answer the investigator seeks from respondents in order to get knowledge about the matter. Structured questionnaire is prepared with the data concern and guidance of the management of company. The same questionnaire was used for the entire consumer.

Interview:-The interview method of collecting data involves collecting presentation of oral, verbal stimulus and reply in terms of oral and verbal responses .it is one of the best methods of investigation and the investigator gets direct contact to get accurate information.

Method varies from person to person. It depends on our aim and objective. Based on some selective question. Ask a particular person about a particular subject.

SECONDARY DATA :

Secondary data refers to data collected from books and articles. The secondary data are those which already have been published earlier in Journal or Paper or Thesis or Books or Report, newspaper etc i.e. any form of publication.

5.3) Sample Design Sample Unit: IndividualPlace: PuneType of Sampling : Convenience sampling is used for this study. Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive Approximation of the truth. As the name implies, the sample is selected because they are convenient. This non probability method is often used during preliminary research efforts to get a gross estimate of the results, without incurring the cost or time required to select a random sample.Sample size :50 + 10 (retailer)

5.4) STATISTICAL TOOLS:

Pie chart This is very useful diagram to represent data, which are divided into a number of Categories. The diagram bar chart can make comparison among the various Components or between a part and a whole of data

Bar chart As the name implies, It consist of a number of whispered bar, which originated from a common base line and are equal widths, the lengths of the bars are proportional to the value they represent.

Chapter no.6

DATA ANALYSIS

A) Graphical analysis of consumers perception towards energy drinks:The analysis and interpretation is based on the data collected through questionnaire.7.1 No. of respondents, who are actually aware about energy drinks, in percentage out of total 50 respondents:Table no. 1Responses No. Of RespondentsPercentage

Aware 4286%

Not aware 814%

Analysis:From the above figure it can be interpreted that only 86% of the consumers know the presence of energy drinks in the market and 14% of the consumers had never heard of it before. From the above analysis it can interpreted that majority of consumers have heard about energy drinks

7.2 Below mentioned is the no. of respondents, who have actually tasted energy drinks, in percentage out of total 50 respondents:Table No. 2Sr. no No. Of RespondentsPercentage

Tried 3264%

Not tried 1836%

Total 50100%

Analysis:From the above figure it can be interpreted that 64% of the previous respondents have said they have tasted energy drinks and 36% of the respondents said that they had heard about it but not tasted yet. Majority of consumers they tested energy drinks.

7.3 How often do you prefer energy drinks?Table no. 3OptionsRespondentsPercentage

More than once a week 00%

1-2 times a month512%

Rare 2559%

Never1229%

Analysis:From the above figure it can be interpreted that out of 42 aware people of energy drink , 61%% prefer to drink energy drinks rarely, 29% aware about energy drink but never tried . From this we can make out that comparatively this consumption level is far too less than soft drinks.

7.4Where do you buy energy drinks?Table no. 4Sr. no No. Of Respondents

Local shops 18

Night clubs 10

Multiplexes 4

Total 32

Analysis:

From the graph we can interpret that majority of consumers consume energy drinks at local shops and night clubs because energy drinks are considered to be good mixers with alcohols. Moreover large amount of energy drinks are sold at local shops

7.5 What are the factors you dont consume energy drinks?Table no. 5OptionsRespondentsPercentage

High prize 1852%

Taste1029%

Packaging 00%

Caffeine contents614%

unavailability65%

Analysis:Above question was asked to the consumers who were aware about energy drinks but did not consume it. Majority ( 52%) of them answered that due to comparatively high prices of energy drinks they prefer other soft drinks over energy drinks. 29% of them avoid energy drinks because of Taste .8% of them avoid energy drinks because of caffeine contents.

7.6 Brand Awareness:Table no. 6.

Sr. no No. Of Respondents

RedBull 42 / 42

Cloud9 32 / 42

Others 2 / 42

Analysis:Above graph tells us that Red Bull enjoys the highest top of the mind awareness. And 32 / 42 of the total respondents have Cloud 9 as TOMA. Whereas, top of the mind awareness for others (Sobe, burn, XXX) is almost negligible.

7.7 Advertising Awareness: Table no. 7

Sr. no No. Of Respondents

RedBull 42 / 42

Cloud9 32 / 42

Others 2 / 42

Analysis:From the graph we can clearly state that Red Bull promotes itself effectively. Recently Red Bull has come up with an ad campaign it gives you wings which clicked very well among youth. Consumers actually are able to recall the ads more over Red Bull does promotion by sponsoring sports events; it also uses outdoor media effectively for promotion. This is why the advertisement awareness for red bull among energy drink consumer is so high. On the other hand cloud 9 is only focusing on outdoor media advertisements; its ad awareness level is less. Others like sobe, Burn, XXX etc advertisement awareness level is pretty low.

7.8 Brand consumption:Table no. 8Sr. no No. Of RespondentsPercentage

RedBull 2475%

Cloud9 825%

Analysis:

From the findings we can says that RedBull is king in market with largest market share 75% and cloud 9 has market share of 25% only even they have good brand awareness recently after world cup.

7.9 Which drink you normally consume (particularly when you are out)? Table no. 9OptionsRespondentsPercentage

Tea 2550%

Juices 0510%

Alcohol

0510%

Soft drink 1530%

Analysis: The above pie chart depicts that energy drink has long way to go as it has many substitutes. Traditional drinks and soft drinks still continue to dominate; each of them has 50% and 30% shares respectively in Indian beverage market. Energy drinks on the other hand is catching up slowly, because of high cost and taste is not suitable to Indian consumer

7.10 What will attract you to try a/an (new) energy drink? Table no. 10

Analysis:

From the analysis we come to know that price and taste plays big role to purchase of energy drink. RedBull 250ml = Rs 90, so middle class n higher middleclass people always thinks twice before purchase. Recommendations by friends and peer group also influence people to buy it.Even advertising & promotions also played role to taste / buy it.

7.11 Internet services and social networks uses (once a week):Table no. 11

Analysis:The above question was introduced in questionnaire in order to understand the usage and popularity of commonly used internet websites. We found that Facebook, Google search, Gmail are largely used sites with large usage rate which is followed by, YouTube, orkut yahoo, twitter, respectively. Trend of youth is more to use of social network sites, so we can use this data to online advertising and Brand awareness.

7.12 Demographics: Table no. 12

Sr. noResponse

Male40

Female10

Analysis:

As the sample size for this research was 50. Out of 50 individuals 40 were males and 10 were females. It has been observed that males are more intended towards energy drinks consumption. A few females seemed to aware of energy drink but they avoid energy drinks .

B) Graphical analysis of retailers perception towards energy drinks:The analysis and interpretation is based on the data collected through questionnaire Q1 Are you aware of energy drink?

ResponsesRespondentsPercentage

Yes990%

NO110%

Analysis:From the above figure it can be interpreted that 90% of the retailers know the presence of energy drinks in the market and 10% of the retailers had never heard of it before. From the above analysis it can interpreted that majority of retailers have heard about energy drinks.

Q2. Do you keep Energy drink in your shop?

ResponsesRespondentsPercentage

Yes660%

NO440%

Q3. Which age group of customer buys this product from your shop?

Age GPercentage

16-2017%

20-2550%

25-3033%

Analysis:From the above figure it can be interpreted that most of the customers are from age group of 20-25 and 25-30 year old.

Q5. In future will you keep energy drink on the shelves of your shop?

ResponsesRespondentsPercentage

Yes375%

NO125%

Analysis: From the above figure it can be interpreted that those retailer are currently aware of Energy drinks products like RedBull, Cloud9 etc. Because currently trend of youth is changing from soft drinks to Different energy drinks so Retailers also are positive to keep Energy drinks in Shop.

Chapter no.7

FINDINGS

FINDINGS: Red Bull being the no.1 brand worldwide has the maximum market share. In the cities like Pune consumers are mostly modern, young, Adventurous, ready to spend quite sum of amount and full of excitement. This is what needed by the energy drink makers to launch their brands in such cities. The energy drinks are mostly sold by local shops and Night clubs. Therefore there are limitations to certain areas where these brands are not familiar to the customers. Whenever there is any occasion where the consumer wants to buy the energy drink, the first name comes in his/her mind is Red Bull. Retailers data showed that the perception of retailers towards energy drink is pretty positive and energy drinks altogether have good future of success in this market. Overall it is clear that the consumers from Pune have shown low response for other Energy drink. The consumers here are mostly not aware of SJ XXX, Sobe, Burn brand, resulting in low sales. On the other hand majority of the consumers think that Energy Drinks are good for health but are highly priced too. Most of the retailers viewed other brands as a not a good selling brand because very less no. of consumers are actually aware of this brand. So only few retailers agreed to keep it. After comparing the above mentioned 3 brands on Energy Drinks it is clear that RedBull holds the maximum stake in the market share, followed by Cloud 9 and then SJXXX with very slow progress due to number of reasons We can say the awareness level among consumers for energy drinks is good Unlike soft drinks energy drink are not available in each and every corner of the city Consumers do not consume energy drinks as frequently as soft drinks Consumers prefer energy drinks as a style statement and most often they use it as a mixer in alcohol. Price has been rated the most important product attributes by the customer. Price point is the final factor which either makes or breaks a sale. Product and Pricing go hand in hand; the price should be apt to the product attributes. The most important factor for low sales of energy drinks is its high price. Energy drinks are priced high compared to other beverages available in the market. Tin cans are most preferred containers for energy drinks Red Bull has high top of the mind awareness. Energy drinks are mostly preferred by the people with reasonably high income or youth that gets a good pocket money We found that Facebook, Google search, Gmail are largely used sites with large usage rate which is followed by, YouTube, orkut, yahoo, twitter, respectively. Trend of youth is more to use of social network sites, so we can use this data to online advertising and Brand awareness. It has been observed that males are more intended towards energy drinks consumption. A few females seemed to aware of energy drink but they avoid energy drinks but some of them used it as substitute for alcohol. From the above analysis it can interpreted that majority of retailers have heard about energy drinks. From th e retailers feedbackt it can be interpreted that most of the customers are from age group of 20-25 and 25-30 year old. From the above figure it can be interpreted that those retailer are currently aware of Energy drinks products like RedBull, Cloud9 etc. Because currently trend of youth is changing from soft drinks to Different energy drinks so Retailers also are positive to keep Energy drinks in Shop. Out of 4/10 retailer those dont sale energy drink ,are ready to keep this product in future.

Chapter no.8

RECOMMENDATION

RECOMMENDATION: Most of the consumers stated that price is the main factor for not preferring energy drinks. So the companies should try to curb down on the price in order to attract more customers In order to make the product available in every nook and corner, the companies should opt for intensive distribution strategy To increase the awareness among the consumers the companies should deploy new means for advertising and promotions. Sponsoring sports events and internet marketing are some of the recommended media, as youth is more exposed to these media. Companies should come up with more flavors and variants of the products as youth prefer variety and innovative products Some of the consumers are concerned about the health hazards of energy drinks so the products should be positioned as health hazard free drinks Companies are required to follow an integrated marketing communication approach for building an effective awareness among the potential consumers. Companies which are not doing good enough needs to personally contact with retailers who help in knowing the activities of the distributors as well as help in Promoting the business. Companies should focus its attention to the untapped market where it can considerably increase its market share. Distributors and sales men should from time to time take the pain of finding out the requirement of retailers and the problem they are facing, advertise more to support sale of retailers. The attention should be paid to the consumer Perception. Advertisement and publicity in the untapped market by way of signage, racks, paintings, banners, hoarding etc. should be expanded. Margin to retailers should be taken care of and may be possible ought to be increased without increasing the overall price. Merchandise should be installed against the sale performance of the outlets as well as the need of the market. Survey by the top officials should be made in the untapped areas to access the real situation and should be done as a surprise visit instead of planned visit. Trend of youth is more to use of social network sites, so we can use this data to online advertising and Brand awareness. Manufacturer should reach to maximum retailers to increase there sell in the designated market area.

Chapter no.9

LIMITATIONS

LIMITATIONS:

The project study carried out and the information collected to some extent is based on the information given by the people and hence it is based on what they feel, and may not necessarily exist.

Time limitation the research was done over a period of three weeks

Geographic Limitations

Every individual has a unique idea, preference and perception, thus the opinions cannot be generalized.

Budget constraints

Chapter no.10

CONCLUSION

CONCLUSIONTREND IN THE INDIAN ENERGY DRINK MARKET: The explosion of energy shots proves that this niche market boom is expected to build over a period of time. In 2008, sales of this specific sector of the market continue to grow. The extreme energy per shot with 5-Hour Energy leading the pack in sales and popularity.HEATING UP OF CONSUMPTION: A few years ago red Bull was the only know energy drink in India but in last few years have seen multiple brand launches in the category. Cloud 9 was the first Indian energy drink, XXX was launched in 2009, Coca-cola launched Burn in 2010. In 2011, Red Bull Company is market leader and is closely associated with energy drinks Coca-cola Burn, Goldwin Healthcare Pvt Cloud9, JMJ Group XXX.1. The target buyers for energy drinks continue to be the young and working Indian population. They are often associated with partying and essential for leading an active lifestyle in middle of tiring and stressful work life.2. Energy drinks are urban phenomena and supermarkets are the primary channels of their sales. Apart from retail sales, energy drinks are sold in bars and pubs along with alcohol.Trends show that awareness about energy dink is increasing and target customer are ready to pay prize for them prize / taste doesnt matter but energy from it matters lot .It is saw the emergence of energy powders and tablets marketed as the more convenient and portable form of energy for athletes and people on the go. I think In a country where everyone grows up drinking tea that's high in caffeine, taking to energy drinks is an easy and exciting transition,"

THE FUTURE OF THE ENERGY DRINK MARKET: As a category, energy drinks in India is expected to double in size segment to its 1000cr over next two years from 500 cr in 2009 as host national and international players venture into the country. An indicator is the rate at which it is growing 50% to 55% annually according to experts, leaving little room for doubt that potential for the segment exists in India. There is scope for high growth potential in this market

OPPORTUNITIES IN THE ENERGY DRINK MARKET:Though dominated by Red Bull, there exists opportunities in Indian energy drinks market by using innovative business models: Point of sale: Traditionally energy drinks are sold through supermarkets, but another channel can be collaborating with cafes, restaurants, sports centre, fitness centers, etc. for both promotion and sales Price points: All energy drinks in India are very expensive as compared to carbonated drinks and juices, thus limiting their market. Cost reduction can open up the market; one such innovation is tried by Hector Beverages (their product Frissia) where they plan to provide energy drinks at affordable prices (as less as one-fourth prices of large players).Retailer have positive approach to keep this product on the shelves, those who havent this product on the shelves are ready if they get good margin on because trend is changing, sale increased.

Chapter no.11

BIBLOGRAPHY

BIBLOGRAPHY

Web reference:

http://www.energyvault.com http://www.redbull.com http://www.cloud9.com http://www.leammarketing.com http://www.theydeserveit.com http://www.energydrinks.bfxmedia.com http://www.lifestyle.iloveindia.com http://www.citeman.com/market-size-for-energy-drinks http://www.foodindustryindia.comBooks:

Philip Kotler, Marketing Management, Millennium Edition, Prentice Hall Publications.

William Zikmund, Business Research Methodology, 9th Edition.

Dennis Adcock, Ray Brad field (1995) marketing principles and practices Second Edition, Pitman Publishing.

GS BERI MARKET RESEARCH Third edition

Chapter no.12

ANNEXURE

A. ANNEXURE: To Consumer

QUESTIONNAIRE: Respondents name: ________________________________________________City:____________

Respondents email-id:_______________________________________________

Interceptors name: ________________________________________________ Date: / /

Q1. Are you aware about energy drinks? Yes (continue) 1 No (terminate the interview) 2Q2. How often do you drink energy drinks?1 More than once a week2 Once a week3 1-3 times a month4 Less than once a month5 Never (go to Q7)

Q3. Where do you buy energy drinks?1 local shops2 Restaurants3 Canteens4 Night clubs5 Multiplexes/malls6 Others______________

Q4.On what occasions do you use energy drinks?1 At parties2 Before deadlines, exams etc.3 At work4 While having fast food5 While hanging out6 While doing sports7 No need for special occasions8 Others_______________

Q5. What brand you enjoy drinking most?1. Sobe2. Burn3. Cloud 94. Red bull5. Bullet6. XXX7. XL8. Shark 9. X3510. Power horse11. Others_______________

Q6. How satisfied are you with your energy drink of choice?

Very unsatisfied 1 2 3 4 5 very satisfied

Q7. (Ask only if coded never in Q2.) What are the factors you dont drink energy drinks?1. High price2. Taste3. Packaging4. Caffeine contents 5. Health issues6. Unavailability7. Others___________

Q8. What container would you prefer for energy drink?1. Tin can 2 Glass bottle 3 Plastic bottle 4 Tetra pack

Q9. Please evaluate your energy drink of choice: (dont ask if coded never in Q2)(Very poor) 12345 (excellent)

Taste

Price

Packaging

Flavors

Advertising

Availability

Brand image

Energy boost

1

1

1

1

1

1

1

12

2

2

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23

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34

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45

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5

Q10. Brand awareness:Aware 1stAwareothers1stfavorite2nd favoriterecommend

Sobe

Burn

Cloud 9

Red bull

XXX

XL

X35

Power horse

Others_________

None 1

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Q11. Brand consumption (dont ask if coded never in Q2.):Consumed regularlyMost oftencosider

Sobe

Burn

Cloud 9

Red bull

XXX

XL

X35

Power horse

Others___________

None1

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Q12. Brand prompted advertising awareness:Ad awareNews papermagazinesTVtheatreshoardingsinternetCant recall

Sobe

Burn

Cloud 9

Red bull

Bullet

XXX

XL

X35

Power horse

Others_________1

2

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Q13. Which drinks do you normally consume (Particularly when you are out)? Note first five ranks:consumerank

Tea

Coffee

Juices

Nimbupani

Soft drinks

Health drinks

Lassi

Alcoholic drinks

Energy drinks

Others__________1

2

3

4

5

6

7

8

9

10 __

__

__

__

__

__

__

__

__

__

Q14. What will attract you to try a/an (new) energy drink?1. Brand2. Price 3. Packaging4. Energy boost5. Good taste6. Flavors7. Nutrients (vitamins)8. Low calories9. Recommendation of friends10. Advertisings and promotions11. Celebrities12. Others_______________

Q15. Life style questions:Strongly disagreeDisagree Neither agree nor disagreeAgree Strongly agree

I like to try new things

I like to socialize and party

I try to avoid social events

I usually stay up late

I go to bed early

I am very health conscious

I like to eat fast food

I like sports

I enjoy working out

1

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Q16. How often are you involved in these activities?Almost everydayAt least once a weekAt least once a monthLess than once a monthnever

Reading newspaper

Reading magazines

Playing computer games

Listening to music

Using internet

Going to cinemas

Eating in restaurant or cafeteria

Going to the night clubs

Drinking alcohol

Smoking

Doing sports

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Q17. Please tell me what internet services and social networks do you use at least once a week? 1. Orkut 6. Rediff 11. AOL 2. face book 7. YouTube 12.others__________ 3. MySpace 8. Gmail 4. Twitter 9. Hotmail 5. Yahoo 10. MSN

Demographics: Q. 18Record gender: 1 male 2 female

Q19. What is your age?

Q20. What is your occupation?

1 student 2 employed 3 unemployed

Q21. What is your highest level of education you have completed?

1 middle school 2 high school 3 university 4 post graduate

Q22. What is your approximate monthly pocket money/ income amount? 1 pocket money___________ 2.income_____________

Thank you

____________________ ____________________Respondents signature

B. Annexure :To retailerRespondents name: ________________________________________________City:____________

Respondents email-id:_______________________________________________

Interceptors name: ________________________________________________ Date: / /

Questionnaire :( To Study analyze market trends and opportunities for energy drinks)Q1 are you aware of energy drink?1. Yes 2. NoQ2. Do you keep Energy drink in your shop? ( if answered NO ,go to Q 5)1. Yes2. NoQ3. Which age group of customer buys this product from your shop?1. 16-202. 20-253. 25-304. Above 30Q4. Which energy drinks do you sell in your shop? 1. RedBull 2. Cloudd9 3. Powerhorse 4 . OthersQ5. In future will you keep energy drink on the shelves of your shop?

1. Yes2. No

70