PR Analysis Essay

Submitted By lwagener3794
Words: 2076
Pages: 9

By definition, an energy drink is a type of beverage containing stimulant drugs, mainly caffeine, which is marketed as providing mental or physical stimulation. They generally are carbonated and contain caffeine along with sugar, herbal extracts, and amino acids. Coffee, tea, and other naturally caffeinated beverages are usually not considered in this category. Energy drinks are said to have multiple effects on people, whether it be physiological or psychological. Because of this, there are many health concerns and sales restrictions, which can be damaging to the manufacturer and the reputation it has throughout the country. Because this topic is so familiar with college students everywhere, we thought it would be interesting to research how public relations impacts this industry. It is actually reported that energy drink sales will skyrocket to $21 billion by the year 2017. Our job is to figure out why, and solve any issues that could arise specifically within the companies Red Bull, Rock Star, Verve, 5 Hour Energy, and Monster. The history of energy drinks started overseas, in Europe and Asia where these popular drinks were first developed. One of the oldest energy drink bands is Lucozade, a drink which originated in Newcastle, England in 1927. It was originally used in hospitals as a much-needed source of energy for the sick. The first energy drink to hit the shelves in the United States was Jolt Cola in 1985. At this time, it was basically marketed as a cola with high-caffeine and high-sugar contents. Jolt Cola’s original marketing strategy targeted students and busy professionals around the country. It’s initial slogan was, “All the sugar and twice the caffeine.” By 2001, the United States energy drink market had grown to nearly $8 million per year in retail sales. Over the next five years, it grew an average of 50% a year, totaling over $3 billion in 2005. Right now, the market is estimated at over $12.5 billion, having grown 60% between the years 2008-2012. In order to understand how this market became so profitable, we need to look at the history of each individual company we chose. Red Bull, launched in 1987, was an energy drink sold by Austrian company called Red Bull GmbH. Austrian entrepreneur Dietrich Mateschitz was the founder of Red Bull, and was inspired by a pre-existing energy drink called Krating Daeng, which was invented and sold in Thailand. He took this idea, and modified the ingredients to suit the tastes of others. In 1992, the product expanded to Hungary and Slovenia, and finally made its way to the United States in 1997. In 2008, Forbes magazine listed Mateschitz in the 250th richest people in the world. In the past, Red Bull has been severely criticized for its marketing and advertising strategies. It’s slogan is “it gives you wings”, and in turn targets young men mostly with extreme sports. These sports range from mountain biking, BMX, motocross, snowboarding, to break dancing. Red Bull uses music and video games, and has enlisted many celebrities, such as Eminem to promote their product. This company also owns association football teams, with clubs in Austria, Germany, and the United States featuring the Red Bull trademark in their names. By associating the drink’s image with these activities, the company seeks to promote a “cool” public image to raise brand power. Some of its more well-known endorsements are Reggie Bush, Ryan Sheckler, Dani Pedrosa, and John Reynolds. Next, we have Rockstar, an energy drink founded by Russell Weiner in 1998. He was the son of conservative talkshow host Michael Savage, and with his help, Rockstar launched into the fastest-growing segment of the United States beverage market at the time. In order to sell, it claimed its ingredients were “scientifically formulated to speed the recovery time of those who lead active and exhausting lifestyles-- from athletes to rock stars”. It used this phrase to try and differentiate itself from the market leader,…