Game Changer Energy Drink Straye

GAME CHANGER ENERGY DRINK 3 Game Changer Energy Drink Strayer University BUS-599 Dr. Banto October 16, 2019

Game Changer Energy Drink is a nonalcoholic beverage company that offers a wide range of energy drinks aimed at customers seeking an extra energy boost through light, healthy, and additive-free options. The company's flagship product, also named Game Changer, targets health-conscious consumers who prefer mild-tasting energy drinks that support metabolism and physical wellness without artificial additives or excess calories. The company's mission emphasizes providing a convenient, accessible, and refreshing energy solution that promotes focus, health, and balance for individuals with busy lifestyles.

The global energy drink market has experienced remarkable growth, driven by increasing demand among students, athletes, and working professionals worldwide. Industry research projects a compound annual growth rate (CAGR) of approximately 7.3 percent from 2018 to 2026, reaching nearly $85 billion in revenue (Market Watch, 2019). Major demographic groups such as Millennials, Latinos, and consumers aged between 18 and 35 are the primary drivers of this growth, as they seek healthier alternatives and innovative flavors (Vercammen, Koma, & Bleich, 2019). The United States leads this market with an estimated valuation of over $14 billion in 2016 and a forecasted increase to $19.2 billion by 2021 (Grandview Research, 2019; Caballero, 2018).

Competitive landscape within the energy drink industry is characterized by aggressive strategies such as mergers, alliances, and technological innovations aimed at expanding market share and introducing natural ingredients like ginseng, coffee seeds, and organic sugars. Leading companies, including PepsiCo, Coca-Cola, Monster Energy, and Red Bull, are continuously expanding their product portfolios, often through acquisitions like Amway’s purchase of XS Energy or Monster's acquisition of multiple brands, to appeal to health-conscious consumers and capture new market segments (Grandview Research, 2019).

Positioned within this competitive environment, Game Changer Energy Drink adopts a strategic approach centered on convenience and product differentiation. The company plans to place its products predominantly in on-trade channels such as restaurants, bars, and clubs, which account for around 65 percent of the market revenue. Distribution through these channels will constitute 75 percent of sales, with the remaining 25 percent supplied through retail outlets like supermarkets and convenience stores. This strategy aims to enhance accessibility and ensure consistent visibility among target consumers who prioritize quick and easy healthful options (Grandview Research, 2019).

To ensure its success, Game Changer is aware of potential risks, including regulatory challenges, marketing risks, and stakeholder concerns. Regulatory risks stem from health reports and lawsuits linked to energy drink consumption, exemplified by investigations into adverse health effects associated with products like Monster Energy (Outifa & Gwilliam-Beeraree, 2015). To mitigate this, the company will adhere strictly to safety standards and use organic raw materials. Stakeholder risks relate to the negative perception of energy drinks’ behavioral effects, which Many studies suggest can lead to overconsumption and adverse health effects (Vercammen, Koma & Bleich, 2019). Consequently, product labels will include warnings about potential health risks, and education campaigns will promote responsible consumption.

Furthermore, securing a broad distribution network remains crucial for market penetration. Game Changer seeks to build strong relationships with distributors in both the on-trade and off-trade sectors to ensure product availability. This strategic partnership approach will help the company mitigate stakeholder risk and expand its market presence effectively.

In conducting a SWOT analysis, Game Changer’s strengths include its unique and high-quality product offerings, innovative packaging, and a versatile product lineup that crosses categories to appeal to a diverse consumer base. Weaknesses involve limited financial resources, a relatively narrow distribution network, high product development costs, and dependency on raw material suppliers. Opportunities for growth include expanding into new markets, launching new flavors and product categories, leveraging technological innovations, and pursuing global expansion. Threats include fierce competition from established industry giants, potential regulatory changes, natural disasters impacting raw materials, and shifting consumer preferences that could influence demand.

Overall, Game Changer Energy Drink positions itself as a health-oriented, convenient alternative within the rapidly growing energy drink market. Through strategic placement, product innovation, and adherence to safety standards, the company aims to capture a significant share of the health-conscious consumer segment while navigating risks inherent in the highly competitive food and beverage industry.

References

• Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2015). Principles of marketing. Melbourne, Australia: Pearson Australia.
• Caballero, M. (2018, May). Energy’s evolution: It’s a huge category. But where do energy drinks go next? Bevnet Magazine.
• Grandview Research. (2019). U.S. energy drinks market size, share & trends analysis report by product (organic, non-organic, natural), by target consumer, by distribution channel (off-trade, on-trade), and segment forecasts, 2019–2025.
• Market Watch. (2019, April 18). Energy drink 2019 global market net worth US$ 84.70 billion forecast by 2026.
• Outifa, S., & Gwilliam-Beeraree, K. (2015). Energy drinks—regulatory risks and market growth. Vigeo Food and Health, 1-5.
• Vercammen, K. A., Koma, J. W., & Bleich, S. N. (2019). Trends in energy drink consumption among US adolescents and adults, 2003–2016. American Journal of Preventive Medicine, 56(6), 827-834.