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Edit Comment Close Premium member Presentation Transcript New Item Presentation for Xtamina Energy Drink: New Item Presentation for Xtamina Energy Drink We all need food and water for our survival. No question about that. But what if we want to accelerate or boost up our productivity ? We sure need an incentive, something fresh, powerful, speedy. That gives birth to “Xtamina Energy Drink." In this presentation, we will guide you through the non-alcoholic beverage industry, the tactics deployed by marketers to reach customers and the appeals to our psychological needs. We also examine the impacts that these advertising trends bring about. Now sit back and enjoy the ride... Slide2: Early 1960s - Energy drinks are first sold in Asia. 1985 - Jolt Cola becomes first U.S. energy drink. 1987 - Dietrich Mateschitz adapts a Thai drink called Krating Daeng (Red Bull in Thai) to create Red Bull energy drink, and sells it in Europe. 1997 - Red Bull storms the U.S. market, and popularizes energy drinks. 2005 - Energy drink sales reach 3 billion dollars. 2006 – Xtamina Energy Drink Is Introduced to the consumers market. Milestones along The Road Jolt Cola Source: - http://en.wikipedia.org/wiki/Energy_drink - Energy Drinks Bubble Up - http://www.coolbusinessideas.com/archives/energy_drink.html Slide3: The Young Industry at A Quick Glance Competitive and dynamic: characterized by small companies (1000+) $3 billion market (up 75% from $2 billion in 2004) Expected to reach $10 billion by 2010 Fast-growing: 700% increase in sales since the introduction January 2006 Source: - MarketResearch.com - US Energy Drinks - Energy Drinks Build Their Buzz - Endless Energy Slide4: The Big Three of Market Share 70% 8% 13% Source: - Coke Plans Sugar-free Energy Drink - Energy Beverage Market Going Strong - Hansen's Monster gains strength in energy-drink market 1%Slide5: Red Bull: $600 million (or 30% of revenue) in 2006 Coca-cola: $867 million -- $174.4 million for Coca-Cola beverages, $68.4 million for Sprite, $41.4 million for Minute Maid, and $17.6 million for Powerade PepsiCo: $1.31 billion -- $165 million for Pepsi beverages, $37.7 million for Mountain Dew Lynn Springs Waters: $325,000.00 (Xtamina Energy Drink™) in sales since introduction between January 2006- September 2007 Advertising Budget Allocation Source: - Double-digit growth - health is the main market driver - The Soda With Buzz Advertising Objectives: Advertising Objectives To drive trial and build brand equity by positioning Xtamina as the new and innovative energy boost and superior taste of energy drinks. Promotion: Promotion Promotional Elements include: National Debut in Atlanta, GA 3 weeks of sampling in appx. 50 markets National Retail Association Employee participation Slide8: TV commercials Print media (newspaper, men magazines) Sponsoring public events: extreme sporting contests, video game championships ... Free samples provided to crowded places such as nightclubs, gyms, campuses ... Celebrity endorsements Approaching Target Audiences Sports event sponsored by Red Bull Source: - http://energydrinks.factexpert.com/882-energy-drink-industry.php A Typical Strategy By Xtamina Energy Drink: A Typical Strategy By Xtamina Energy Drink Outdoor Advertising: Xtamina Energy Drink unexpectedly pops up in crowded places including billboards, buses, balloons and boats, wild postings (street posters) and wallscapes in the city. Print Advertising: Appearing in lifestyle publications targeting the young nightlife crowd with weekly concert and entertainment information. Sampling products at promotional events. Online Advertising: Running banner ads on myspace.com. Local Radio Promotions: Residents will also hear new Xtamina Energy Drink radio advertisements in each market as Xtamina Energy Drink will run a mix of traditional spot advertising, on-site promotions, in –studio content, and remotes. Street Teams: Offering residents promotional items including key chains, t-shirts, hats and Xtamina Energy Drink . The crew will set up sampling tables at key retail locations, offering consumers a chance to try Xtamina Energy Drink . Retail Promotions: Offering special price for Xtamina Energy Drink . Lifestyle Promotion: Residents can win a “XTAMINA lifestyle package” by throwing a wild party and serving XDC beverages. XTAMINA and Guerilla Tactics: XTAMINA and Guerilla Tactics 300 ad panels located through out Georgia and California. 15 king-size bus posters in metropolitan area of Atlanta. Sponsoring community events: Annual young teens basketball camp last summer in Atlanta, GA, Score Racing (Off Road Racing Team) at the Baja 500, 1000 in Nevada and California. Free samples were distributed at both events. Media coverage: XTAMINA has been featured throughout the media, including radio stations 107.9 FM (Atlanta, GA) and 102.5 FM (Radio Atlanta). Source: Xtamina Energy Drink Uses Guerilla Tactics to Reach Diverse Markets Slide11: Extreme sports enthusiasts Video game players Hip youngsters College students Who Are The Buyers ? Energy Drinks target primarily male teenagers and young adults (18 - 30) categorized in specific groups as follows: * Recently, the industry has tapped into female demographic. Motor racers Source: - http://energydrinks.factexpert.com/882-energy-drink-industry.php - Other Campuses Slide12: Energy and strength to cope with: Getting through long work days Partying all night long Studying late Suppressing stress Training & playing sports Overcoming hangovers What Do They Need ? College students enjoying energy drinks Slide13: How To Appeal ? Powerful messages such as "Giving you wings," "Let your man out" “Xtamina counts for everything”…. Energetic male characters doing hard work to trigger psychological desires for power, dominance and aggression Motivated youngsters performing fast actions Advertisements appeal to target audiences through: Promotional poster by Xtamina Energy Drink Slide14: The need to aggress: There are many times when people want to aggress, but social controls keep them from doing so. The scenes of the robot destroying things and causing damage invites viewers to fantasize about aggressing. The need to dominate: The need to dominate: The farmer in the commercial takes back his farm from the crows, other animals, and hippies. He is in control. The word “XTAMINA" brings to mind energy and strength. The advertisements creates a connection between drinking Xtamina Energy Drink and having power. To What Does Xtamina Energy Appeal ? References: Advertising's Fifteen Basic Appeals - Jib Fowles Slide15: Created by: Frucor Beverages Ltd Target audience: Young partying teens and college guys. Description: The ad is set in a living room decorated in a jungle theme. Your eye automatically looks at the lightest color in the page which is the young mans shirt. You notice that he is sitting like a monkey in a 1970’s chair while your eye moves down to the left towards an oversized monkey hand which is beside the main text, which is in neon green. The text reads, “Release the monkey in you.” It is then you realize the carpet is made of monkey hair and then you see bamboo on the walls. Following the lines of the bamboo, your eye wanders up towards a light that is also near text that says, “Taste the smoothness.” Other Advertising Tactics Used to market new lines of beverages to boost sales and awareness such as “V Energy Drink”Slide16: Need for affiliation: Gives the idea that you can be crazy tonight by one drink . Usually people like to get crazy with others and not by themselves. Need for attention: Attention ties in with affiliation. The ad seems to be saying, “Be the life of the party with V!” On Monday, everyone will remember you acting crazy during the weekend which will make you cool. Need to escape: Escape solitary. A person wants to escape the studying frame of mind by having fun on the weekend. Need to satisfy curiosity: Its part of human nature to be curious. Guys want to know how much like a monkey V will make them. Basic Appeals References: Advertising's Fifteen Basic Appeals - Jib Fowles Slide17: Target audience: Teen girls - 25 year old women. Description: A blonde skinny girl with a good looking body has been caught by a cube of sugar with a video camera while sunbathing without her top on. The young woman has her chest covered as she screams for the sugar to stop filming. But the sugar just stands on the perfectly green grass with one hand on his “hip” and his other hand holding the video camera. The sugar is like a disgusting nosey little neighbor boy spying on you. At the bottom right corner reads,” Say no to sugar.” Next to the text is a can of sugarless V energy. Your eye moves up the page again to look at details you might have missed, like the giant pool and fancy trimmed hedges. Tapping into Female DemographicSlide18: Need for sex: Appeals to male audience’s sex drive and raging hormones Need to be safe: Be careful about your health. Don’t let sugar be as intrusive as a nosey neighbor boy with a camera Need to dominate: The ad is telling future customers, “Take control of your life by controlling your weight. Control your weight with V.” Need for attention: The girl is sunbathing almost completely naked. Chances are she wants to look good for a man Need to be healthy: Ad makes viewer feel bad about their own looks causing them to choose to watch their sugar intake in order to not gain weight Need to achieve: The ad subconsciously tells the viewer that success is being beautiful: blonde hair, long legs, and perky breasts. The ad says success is being rich: Having a big well groomed yard and huge pool. To have the energy to be successful you need to drink V Need for aesthetic sensations: Consumers are unknowingly sensitive to artwork Psychological NeedsSlide19: A common unhealthy message of this advertising trend is that emotional needs can be met by buying a product. It is implied that by drinking an energy drink, needs such as the need to dominate, the need to aggress, the need for affiliation and the need for attention can be fulfilled. Marketers constantly condition consumers to believe in the idea of "instant gratification." Consumers become more dependent on energy drinks as a substitution for nutritious fruits, vegetables and exercising. Social Impacts Nutritious fruits Slide20: Energy drinks are said to keep up our energy during periods of intense physical activity. But rather than re-hydrating our bodies, these drinks may actually lead to dehydration. The long-term effects of energy drink ingredients, if any, are still not known meaning that drinking a lot of these drinks on a consistent basis may or may not harm you in ways that have yet to be researched. It remains unknown as to whether any medical conditions and related prescription medication will interact with energy drinks. Health Risks Source: http://brianx.com/nightlife/energy-drinks.html References: - http://energydrinks.factexpert.com/888-energy-drink-dangers.php - Combining Energy Drinks With Alcohol Potentially Dangerous - Raging Bull: Health warnings over popular energy drink being brushed off? - Safe Use of Energy Drinks The Road Ahead for Xtamina Energy Drink: The Road Ahead for Xtamina Energy Drink The increase in sales of energy drinks has proven the vital role of advertising; it follows that marketing budgets will continue to grow at a rapid rate. The industry is starting to target a wider demographic of consumers, such as women and children. The current advertising trends gradually shift direction towards more aggressive tactics. Lynn Springs Waters will introduce BJ’s 30 Wild Flavors for Kids to refuel the body. Source: New kids drink has a lot of caffeine Slide22: Alaska Airlines gives Red Bull wings Coca-Cola makes it 'Real' with new flavors, energy drink, ad campaign Energy-drink business gaining strength Anheuser-Busch Wants to Boost Energy-Drink Category With Hansen Alliance Energy drink adds kick to Coke lineup Xtamina Energy Drink is the New Kid On The Block (Bev-Spectrum Magazine) Recent NewsSlide23: Additional Resources A Comprehensive Review of Beverage Industry Anything You Need To Know About Energy Drink News and Data of Non-Alcoholic Beverage Industry Four Factors to Contemplate When Tackling Energy Drink Sales Soft drink company marketing tactics: the experts sound off Print Ads: Print AdsCommunications Media: Communications Media Radio – ad spots on major stations TV – launch on Speed Channel Newspapers Magazines Outdoor – Billboards Direct Mail Interactive/Digital Media Public Relations Supplemental Media - CinemaCommunications Media: Communications Media An integrated marketing campaign will support the U.S. roll-out, including television, radio, outdoor, cinema and Internet advertising. A roadblock of spots will begin running on local networks as wholesalers and distributors purchase our products for they target area. Sales 2007 : Sales 2007 * Numbers are recorded are our sales figures in the Atlanta, GA, Birmingham, AL, Raleigh, NC market area. 1st Qtr- $250,000.00 (4 Truck Loads) 2nd Qtr- $280,000.00 (5 Truck Loads) 3rd Qtr- $285,000.00 (5.5 Truck Loads) 4th Qtr- Quarter is not complete at this time.Slide28: Presented By The Managing Team of Xtamina Drink Corporation You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.