SWOT Analysis of the Energy Drinks Industry
Strengths within this particular industry rely on developing a strong brand identity as well as a strong financial position. Strong brand identity can be developed through marketing research to help determine key consumer desires within a product. Innovation also can help provide a strength as it allows product differentiation. Finally, developing good, recognisable and attractive packaging further enhances the products and thus strengths.
Health concerns regarding energy drink consumption can negatively impact overall profitability. The sugar content in particular is generating high level of negative media as it becomes associated with poor health and health issues such as obesity.
There are potential gaps in the market, for example, females have been identified as an underserved section of consumers within this market. This opens up opportunities to claim higher market share and generate profits.
There is also scope to consider energy drinks that are better for your health, through the lowering of calories or sugar content, for example.
Currently, energy drinks are commonly associated with extreme sports and very active lifestyles. There is potential to market energy drinks in a way that satisfies different needs, for example, a marketing campaign focussed on students and helping them prepare for exams or for maintaining a busy lifestyle.
There are well-established competitors within the market already, for example, Red Bull and Monster. They have high market share and high power within the market. This poses as a barrier to entry as these existing firms have resources and capabilities available to them to carry out pricing strategies and block out new entrants.
Another threat within this industry is government regulations. As mentioned already