M.R.

Project
By Barkha Fatnani Class: T.Y.Bcom Div: B Roll no. 188

[MARKET RESEARCH STEPS FOR ENERGY DRINKS]

INTRODUCTION Energy drinks have now become the fastest growing sector within the beverage industry. Energy drinks are expected to top coke and pepsi sales in the next 10 years. However, there has always been a health concern over the market leading brands because of their high sugar and caffeine content. Red Bull is the industry leader. Red Bull has already occupied a giant market share worldwide (60% by volume) in energy drink segment. In India, the consumer acceptance growth rate of red bull is significantly less in comparison with the market share that it has already gained globally specifically in European and US markets. The positioning of red bull in Indian markets is limited to the youth especially for BPO people within age limit of 19-28 years. The research has been conducted on the basis of identifying the reason for limited acceptance for this brand and exploring the possibility of increasing consumerization level in India for this brand. Hence the problem statement of the project is: To identify and analyze the reason of failure of red bull energy drink promotion in Indian market and possibility to increase consumer preference. When conducting a research study, the process includes a progression of related steps leading to the final results. While not always linear, the process includes the following steps in this general order. The questions listed below need to be considered when initiating the research process. --------------------------------------------------------------------------------------------------------------------1. Identifying the Need/Problem Identifying the need or essentially the reason for conducting research is the key driver for the rest of the process. The reason or problem initially identified for the research may end up to be different once this question is reviewed and discussed. What do you want to know? What problem will the research address, or what need is to be satisfied? How will the research relate to or support specific organizational, operational or marketing goals?

Energy Drinks: Problem Statement Sale of energy drink in India not as competitive as international counterparts. Research Objectives After detailed review of the research following objectives are to be determined: i. To understand and identify the energy drink market in India. ii. To understand consumer preference and their consuming habits. iii. To analyze the market opportunities and drawbacks.

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2. Selecting a Research Professional Once it is decided to proceed with a research project, who will do it is the next question. Who will conduct the research? Is the selection process sole source or competitive? Do you need to develop and distribute a Request for Proposal (RFP)? Do you want a proposal for a specific research project or rather only gather qualifications from a number of suppliers (for future reference or RFP)?

------------------------------------------------------------------------------------3. Choosing the Appropriate Methodology This is typically determined by the research professional after discussions to identify the specific needs the research is to address. It may entail one or a combination of approaches e-mail/Internet survey telephone on-site intercept one-on-one in-depth interviews focus groups secondary research (from existing resources)

Energy Drinks: Research design The method used is basic research method (exploratory) Data collection method: The respondents were asked to fill an online questionnaire Data collection place: Google drive was chosen to upload the questionnaire through which link was generated and forwarded to various respondents. Thus convenient sampling is used to get the responses. ---------------------------------------------------------------------------------------------------------------4. Developing the survey instrument What and how many questions are to be asked? Who is to be asked? Survey format; e.g. paper and pencil, hand-held computer, etc.

Energy Drinks: Sample Design

Sampling Method- The sampling method used is stratified sampling (probability sampling method). As each group has small variation within itself but there is significant variation between different stratas (groups). Sample size- As 20-24 crore (source- Business Hindu Line) people drink energy drink in India. To determine the sample size we have conducted pilot study of 18 respondents. We found that out of 18 respondents, 3 respondents prefer to have energy drink and 15 people do not prefer to have energy drinks. ------------------------------------------------------------------------------------5. Conducting the research This is the research professionals responsibility. An understanding of the interviewing process and timing should be clearly delineated within the Proposal.

------------------------------------------------------------------------------------6. Tabulating and analyzing the results After the survey response data are collected they are input into a computer and tabulated into an organized detailed table format. The research professional should discuss various ways to segment, i.e., cross-tabulate the data tables. The written analysis, performed by the research professional, should be rather detailed and address the initial purpose and goals for the research study. The format should be specified in the project Proposal. Summary of key findings recap of the methodology detailed narrative and tabular analysis conclusions and (optional) observations

Energy Drinks: Overall awareness behavior:

Respondents Aware Unaware Total Frequency 50 70 120 Percent 41.67% 58.33% 100.00% Valid Percent 41.67% 58.33% Cumulative Percent 41.67% 100.00%

Awareness

42%

aware unaware

58%

Overall buying behavior: Respondents Buyer Non buyer Total Frequency 29 91 120 Percent 23.33% 76.67% 100.00% Valid Percent 23.3% 76.67% Cumulative Persent 23.33% 100.00%

Buying Behavior

24% buyer non-buyer 76%

Gender Buyer Analysis: Gender Female Male Total Frequency 10 19 29 Percent 34.17% 65.83% 100.00% Valid Percent 34.17% 65.83% Cumulative Percent 34.17% 65.83%

Genderwise Buyer Distribution

34% female male 66%

It was found from the survey that energy drink segment in Indian market is driven by approx 66% of male consumers.

Gender Awareness: Female Aware Unaware Total Frequency 26 14 40 Percent 65% 35% 100% Valid Percent 65% 35% Cumulative Percent 65% 100%

Awareness among Females

35% aware unaware 65%

Male Aware Unaware total

Frequency 54 26 80

Percent 67.50% 32.50% 100.00%

Valid Percent 67.50% 32.50%

Cumulative percent 67.50% 100.00%

Awareness among Males

33% aware unaware 67%

It was observed from the study that awareness about the energy drink among the male and female is almost same.

Age Group: Age Group Awareness 15 20 20 25 25 30 30 and above Total Frequency 1 24 21 4 50 Percent 2.99% 47.76% 41.79% 7.46% 100.00% Valid Percent 2.99% 47.76% 41.79% 7.46% Cumulative Percent 2.99% 50.75% 92.54% 100.00%

Awareness
30 25 20 15 10 5 0 15-20 20-25 25-30 30&above 4 1 24 21

Age Group Buyers 15 20 20 25 25 30 30 and above Total

Frequency 1 13 12 3 29

Percent 2.86% 45.71% 40.00% 11.43% 100.00%

Valid Percent 2.86% 45.71% 40.00% 11.43%

Cumulative Percent 2.86% 48.57% 88.57% 100.00%

Buyers
14 12 10 8 6 4 2 0 15-20 21-25 26-30 30 & above 1 3 13 12

It could be identified that age group 20 25 and 25 30 respondents are most potential buyers and can be considered as target market for positioning any new brand or vice versa. Income Group: Income range Awareness Less than 3 lacs 3 5 lacs More than 5 lacs total Frequency 14 17 19 50 Percent 28.57% 33.77% 37.66% 100% Valid percent 22.86% 40.00% 37.14% Cumulative Percent 22.86% 62.86% 100%

awareness
19 20 14 15 10 5 0 less than 3 lacs 3-5 lacs more than 5 lacs 17

Income range Buyers Less than 3 lacs 3 5 lacs More than 5 lacs total

Frequency 6 12 11 29

Percent 22.86% 40.00% 37.14% 100%

Valid percent 22.86% 40.00% 37.14%

Cumulative Percent 22.86% 62.86% 100%

buyers
12 12 10 8 6 4 2 0 less than 3 lacs 3-5lacs more than 5 lacs 6 11

It can be observed that 3 -5 lac income range people are the main consumer for energy drink and income range of more than 5 lacs is the potential customer that can be targeted for positioning the brand.

BEHAVORIAL SEGMENTATION; Brand preference: Brands Frequency Percent Red Bull Cloud 9 Power Horse Rhino Current Bullet Amway XL Pepsi SoBe Gatorade Coca Cola burn Total 14 4 1 2 1 3 1 1 2 29 50% 16% 2% 8% 2% 10% 2% 2% 8% 100%

Valid Percent 50% 16% 2% 8% 2% 10% 2% 2% 8% 100%

Cumulative percent 50% 66% 68% 76% 78% 88% 90% 92% 100%

Brand Preference
Coca Cola burn Gatorade Pepsi soBe Amway XL Current bullet Rhino Power horse Cloud 9 Red Bull 0 2 4 6 8 10 12 14 1 4 14 16 1 2 1 1 3 2

It is clearly visible that preference for red bull energy drink is predominant over other brands.

Frequency of usage:

Respondents Everyday A couple of times a week Once a week Couple of times a month On occasions like social gatherings, etc Total

Frequency 1 2 3 6 17 29

Percent 3% 7% 10% 21% 59% 100%

Valid Percent 3% 7% 10% 21% 59%

Cummulative Percent 3% 10% 205 41% 100%

Frequency
18 16 14 12 10 8 6 4 2 0 everyday couple of times a week once a week couple of times a on occassions like month party, social gatherings

It can be concluded that respondents buying behavior is not regular. Its only occasional as most of the respondents prefer it during parties, social gathering, etc. -------------------------------------------------------------------------------------

7. Presenting the results...the facts (and a few other points) An in-person presentation may be part of the project proposal. The client and researcher should work together to determine the content, format, timing etc.

Energy Drink: Energy drink market in India: it was found that only 23% of the respondents consume energy drink and awareness level is also very less at around 4% of the total population. Survey result revealed that energy drink segment in Indian market is driven by approximately 66% of male consumers though the awareness level is almost same in both the cases. It could be identified that age group20 25 and 25 30 respondents having income range 3-5 lacs or above are most potential buyer and can be considered as target market for positioning any new brand or vice versa. Red Bull market in India: It was clearly observed that the preference for red bull energy drink is predominant over other brands. Though Red Bull is market leader, its awareness among people is still less. 32% population never heard about it. ------------------------------------------------------------------------------------8. Implementation how can the findings and results be applied to help meet your goals?

Energy Drinks: Recommendations: Awareness among the people need to be increased to promote energy drink by introducing proper marketing mix strategy. An integrated marketing is carried out would minimize the illusion among potential buyers about the adverse effect of energy drink on health. Aggressive marketing strategy if adopted could benefit the placing of brand image in consumer mind particularly the target group age 20-39 years with an income of 3 lac plus. Price can be reduced further to stimulate more buying tendency.
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