Transcript - DrinkPreneur

Energy Shots
Energy shots offer a simple proposition: from a concentrated potion of
caffeine, vitamins and amino acids, consumers get the functional
“bang” that they receive from an energy drink but without having to
drink all the liquid of a whole energy beverage.
Small portable bottles
Fast and strong effect
Wide application
Daily consumption
Energy shots vs. substitutes
Energy Drinks:
diluted - high volume of liquids
(usually) high in sugar
big bottle - less convenient
perceived as a drink for teenagers
Coffee:
time consuming
lower effect
(usually) not portable
unhealthy
Case study - USA
The first energy shot was launched in 2004
Supported by an educational campaign from the leading brand, the
market size reached $340m in three years and an estimated $1.2b in
2010
According to New Nutrition Business*, the market will continue to
expand at 40-50% in the short term and will reach as much as $2.5b
in 2012
With the price/litre around 5x higher than for the conventional
energy drink (see next slide), and the price per portion 50% higher,
the energy shot segment offers uniquely profitable growth
opportunity
* - New Nutrition Business, http://www.new-nutrition.com/
Caste study - USA
*Source: NNB Surveys in Wal-Mart, Albertsons
Caste study – EU
Sales rose from 150$ million to 350$ million from 2009 to 2010
and still growing. Projected market size in 2012 is 1$ billion
Similar to the US market, price per portion is 40-50% higher for
the energy shots vs energy drinks
UK market is more advanced compared to the mainland Europe
and has the market structure similar to the US
Other EU markets are fragmented and lack a clear market leader
Per capital consumption in Europe is almost three times lower
than in US
* - New Nutrition Business, http://www.new-nutrition.com/
The dynamics of US and EU market size for energy shots
* - http://www.bevnet.com
Potential marketplace analysis
We have selected the most promising markets by analyzing a number
of metrics:
total population
target market size (24-35 years old)
working hours per week
original NapNock rating*
Conclusion: top countries for energy shots are Germany, UK, France,
and Italy
*Attached in the appendix
Marketplace rating
Countries
Population
Target market
size
Working
hours
Original NN
rating*
Germany
82m
9m
52
3
U.K.
62m
7.6m
55
1
France
65m
7.8m
52
4
Poland
38m
6.6m
56
11
Italy
60m
7.2m
55
2
* NapNock includes with rating of individualism, uncertainty, masculinity, working hours, population, road
network, students, price level in each EU country.
Is there still any potential in EU?
EU energy DRINKS market size amounts to €6 billion*
and is still growing 6-8% annually
Western Europe usually lags 2-3 years from the US
EU energy SHOT market is growing 50%-60% annually
There is still no clear market leader in the mainland
Europe
Why Red Bull is not successful?
No clear and distinctive marketing strategy - 0.25l can is not
the same as 60ml bottle
They continue to target 14-23 year olds, whereas, in our
opinion, the biggest potential is in a more mature 25+
segment
RedBull exited the US energy shot market in 2011 because of
low sales (only 10-15% market share 2010)*
* - http://www.bevnet.com/news/2011/red-bull-discontinues-production-of-cola-and-energy-shot
NapNock energy shot
60 ml energy shot
Ginseng and ginkgo biloba combo reduces
negative impact on the heart
No sugar – no crash
Long lasting effect (4-5 hours)
Innovative taste with green tea
and lemon
Competitive advantages over
RedBull, Burn and Monster
Natural ingredients: ginkgo biloba and ginseng
Longer lasting effect because of ginkgo biloba and
higher dose of caffeine
Healthier: lower impact on the heart
Target market 24-35 (careerists)
Independent energy shot brand
Guerilla marketing campaign
NapNock consumer
Age: 24-35 years
Workaholic careerist
Self confident
Prefers quality goods
Social life: loves to travel, party, socializing
Moto: “Work hard, party harder”
Features: bold, vibrant, imaginative
Competence: reliable, efficient
NapNock marketing campaign
The NapNock TRIP to ASIA
NapNock 48 hours trip (without any sleep)
NapNock flashmob
Guerilla marketing video
POS material (aggressive posters, fake money,
t-shirts etc.)
WEB (beverage industry webpages,
travelling webpages)
Appendix
Energy shots vs. substitutes
Product
Strenghts
Energy Shot
• Convenient and portable
• High price (education of consumers)
packaging
• Quick and easy to consume
• Price-premium value for money
• Long lasting effect
• The need to place it near the
cash desk
Energy Drink
• Refreshment and stimulation
drink
• Low cost
•
•
•
•
High amount
Can not close the can
Target market - younger people (16-21)
Not portable
Coffee
•
•
•
•
•
•
•
•
•
Time consuming
Lower effect
No additional ingredients
Not portable
Bad for teeth
Low cost
Lifestyle
Wide market
Older consumers
Weaknesses
Competitor analysis
Brand
Target market
Slogan
A. Ingredients
Pricing
Quick energy
30-45
Small But
Powerful
Caffeine 175mg
Taurine
2.25 EUR
5 hour energy
shot
30-45
Drink it in
seconds. Feel it
in minutes. Lasts
for hours.
Caffeine 138mg
Taurine
Glucoronolactone
Citicoline
Tyrosine
2.13 EUR
Burn energy shot 18-24
Burn. Fire to
drink. (same as
e.d.)
Caffeine 80mg
Taurine 200mg
Glucoronolactone
70mg
1.99 EUR
Ubershot
18-25
Energy for life
with no lows
Caffeine 210mg
Taurine 1050mg
Glucoronolactone
210mg
2.15 EUR
On Go shot
-
Shot it in
seconds. Feel it
for hours.
Caffeine 177mg
Taurine
Glucoronolactone
Ginseng
2.13 EUR
Active Ingredients
Ginkgo Biloba – natural ingredient which increases
mental activity and metabolism
Ginseng – natural ingredient with a unique ability to
increase human endurance and mental strength
Glucoronolactone – provides fast recovery from fatigue
cause by exercise
Caffeine – psychoactive stimulant which increases energy
Taurine – helps to rebuild stamina
Health Focus International’s study
(32 countries)
Statistics: Targegt by age
Country
Population
20-35 age
Percentage
United Kingdom
62,262,000
14,000,000
22%
France
63,136,180
12,283,012
19%
Germany
82,329,758
0%
Ireland
4,581,269
1,320,551
29%
Sweden
9,354,462
1,918,156
21%
Norway
4,973,200
958,214
19%
Netherlands
16,683,400
3,125,100
19%
Poland
38,186,860
Source: http://www.nationmaster.com/country/fr-france/Age-_distribution
0%
Statistics: Students
Country
Germany
UK
France
Poland
Italy
Spain
Russia
Greece
Netherlands
Belgium
Sweden
Czech
Students
Ranking
(thousands)
Country
2500
2415
2200
2150
2000
1800
1500
637.6
1
2
3
4
5
6
7
8
618
425
422
416
9
10
11
12
Students
Ranking
(thousands)
Hungary
Portugal
Austria
Finland
Slovakia
Denmark
397
373
308
296
235
234
13
14
15
16
17
18
Swithzerland
Norway
233
219
19
20
210
182.6
68.4
21
22
23
Lithuanian
Ireland
Estonia
Statistics: Working hours
Country
Portugal
Estonia
Austria
Sweden
Hungary
Ireland
Poland
Italy
UK
Spain
Czech
Finland
Working hours
per week
Rating
62
60
59
58
56
56
56
55
55
55
53
53
1
2
3
4
5
6
7
8
9
10
11
12
Country
Netherlands
Norway
Denmark
France
Germany
Swithzerland
Greece
Lithuanian
Belgium
Russia
Slovakia
Working hours
per week
Rating
53
53
52
52
52
52
51
51
50
50
49
13
14
15
16
17
18
19
20
21
22
23
Price Level
Competetiveness
Students
Road Network ize
Population
Purchasing
Masculinty
Uncertainty
Indviduasim
Working Hours/w
OVERALL
RATING
TOTAL
UK
Italy
Germany
France
Ireland
Hungary
1
4
12
8
9
2
3
15
11
18
4
16
7
4
8
14
6
2
1
15
6
11
4
20
9
8
17
16
6
5
3
4
1
2
21
13
7
4
3
1
14
8
2
5
1
3
22
13
17
5
21
15
12
4
14
11
12
7
4
20
64
75
92
95
102
103
1
2
3
4
5
6
Netherlands
Sweden
Spain
Austria
Poland
Belgium
3
7
19
17
14
5
7
2
17
13
19
20
21
23
15
3
10
13
5
8
13
7
18
10
13
4
10
3
7
21
7
14
5
15
6
11
10
5
2
13
6
9
9
11
6
15
4
10
19
22
8
14
9
13
10
9
13
8
21
6
104
105
108
108
114
118
7
8
9
10
11
12
Swithzerland
Norway
Denmark
Czech
Greece
Portugal
Slovakia
Finland
Estonia
Russia
Lithuania
11
10
6
16
22
23
18
13
15
21
20
8
5
1
14
23
22
6
9
10
21
12
5
22
20
11
12
17
1
19
18
16
9
2
3
14
17
9
16
19
12
21
22
23
18
14
15
11
19
1
23
12
2
22
20
16
20
17
12
8
9
18
19
23
10
22
20
15
19
11
12
16
23
18
21
22
17
19
20
18
12
8
14
17
16
23
7
21
23
16
18
10
2
7
1
20
11
3
6
3
2
1
18
22
15
17
5
16
23
19
125
127
129
132
137
140
143
143
160
167
169
13
14
15
16
17
18
19
20
21
22
23