Survey on Energy Drinks Essay Example for Free

Survey on Energy Drinks Essay We would like to thank Prof. Richa Chaudhry whose guidance helped us in our efforts to make a successful project. Most of all we would like to thank all the people who took time and effort to take part in our research by sharing their views and perspectives which helped us in our analysis and project, without which the project would not have been possible. Finally we would like to thank IES College of Management and Research for giving us a platform to present our research project study which will help us go a long way in our development as future managers. 4 EXECUTIVE SUMMARY. Energy drinks are soft drinks advertised as a boosting energy. These drinks usually do not emphasize energy derived from calories they contain, but rather through a choice of vitamins, caffeine, and herbal supplements the manufacturer has combined. Energy Drinks has become the fastest growing sector within the beverage industry. Red Bull is the industry leader and has already occupied a giant market share worldwide in the energy segment and the positioning is also limited to the youth within the age limit 16-28 years. The research has been conducted to identify the energy drink that is the most popular and to understand consumer preference and their consuming habits as we plan to launch a new product in the market on a similar basis. 5 The study carried out will help: †¢To understand and identify the energy drink that is the most popular †¢To understand consumer preference and their consuming habits For this purpose basic research was carried out. The data collection was based on the Primary Data being the students of IES College of Management Studies Research using Convenience Sampling Method. The research indicated that people do prefer to consume drinks but the consumption is affected by many factors. There are 25% of the people who do not prefer to have energy drink. The most important factors affecting the buying decision were found to be the brand, price, advertisement and health safety. It was also found that: 1. 62% of the energy drinks segment consists of male consumers 2. 21-23 age group people was found to be the maximum buyers in the sampling population 3. People prefer to have drinks occasionally mainly for leisurely consumption constituting 41% 4. Red Bull is the most popular brand amongst the youth 5. Taste and Price play an important role in the buyer’s mind while purchasing an energy drink 6 TABLEOF CONTENTS SR. NO .TOPICS PAGE NO. INTRODUCTION Energy drinks are a group of beverages used by consumers to provide an extra boost in energy, promote wakefulness, maintain alertness, and provide cognitive and mood enhancement. Although they seem like a new fad, these drinks have been available to the general public for some time. For instance, Red Bull (currently one of the most popular energy drinks) was introduced in Austria in 1987 and to the United States in 1997. Historically, cola soft drinks have been available in their current caffeine-containing form since 1904, and in their original coca leaf (from which cocaine is derived) and kola nut (from which the caffeine is derived) form since 1886, with similar effects as energy drinks as they contain approximately 34mg of caffeine per 12oz can. These beverages have stimulant effects on the central nervous system (CNS) and their consumption is accompanied by an expectation of improving user’s performance physically and mentally. 1 Energy drinks mostly contain caffeine, taurine, l-carnitine, carbohydrates, glucuronolactone, vitamins, and other herbal supplements like ginseng and guarana among others. Additives such as guarana, yerba mate, cocoa, and kola nut may increase the caffeine content of energy drinks unbeknownst to consumers, as manufacturers of these products are not required to include the caffeine content of these herbal supplements in the nutritional information. 2 Different brands of energy drinks contain caffeine ranging from 50mg to 550mg per can or bottle. 3 Caffeine is one of the most commonly consumed alkaloids worldwide in the form of coffee, tea, or soft drinks, and in high doses may cause abnormal stimulation of the nervous system4 as well as adverse effects in the cardiovascular, hematologic, and gastrointestinal systems. 2 With energy drinks becoming a worldwide phenomenon, the short- and long-term effects of these beverages must be evaluated more closely in order to fully comprehend the psychological impact of these products. The market and degree of consumption of energy drinks is increasing every year,5,6 and while only few have detailed knowledge of their potential harmful physiological and psychological effects, the number of publications that have documented the potential adverse risks associated with the use of these beverages remains small. 7 Whereas most studies to date have examined the physiological effects of energy drinks, this article reviews and compiles the body of knowledge of this increasingly important topic by examining the psychological effects of energy drinks on cognitive functions, mood, sleep, decision making, and overall impact on well-being and quality of life (QOL). 8 2. PROBLEM STATEMENT Energy drinks is still not very well accepted and even if they are consumed it is majorly driven by leisurely consumption and not so much for other health related reasons. 3. RESEACRCH OBJECTIVES 9 After a detailed review of the research the following objectives were determined: 1. To understand the energy segment among the youth and the consumer preference. 2. To understand their consuming habits and factors associated with it. 3. To derive a conclusion based on the acceptance levels of the energy drinks in order to launch a new product in the near future. 10 4. BACKGROUND. The term energy drink refers to soft drinks believed to reduce or prevent fatigue, enhance physical performance, enhance disposition and improve cognitive performance. Energy drinks are frequently consumed by students prior to exams, stressed situations, and leisurely consumption with a view to improving their performance and act as a stress buster. The belief in energy drinks is held by most people, particularly because the term energy drink conveys a message that the product has a connection with physical activity. Consequently, an uninformed consumer may assume that some benefits would be derived after consuming these beverages. It has been reported that the consumption of energy drinks, especially among young adults aged between 18 and 25, is currently of great concern. This is because these energy drinks typically contain three times the amount of caffeine present in soft drinks, and in some cases, up to ten times as much. Another issue of great concern is that, for most brands, information regarding the potential negative health effects of an excessive intake is not presented on the labels. Some energy drinks contain ingredients with potential interactions such as between taurine and other amino acids and between caffeine and some herbal extracts. Some herbs combine with caffeine to create a synergistic effect which varies from drink to drink. Producers of energy drinks usually target young adults who are easily lured to consume energy drinks after watching numerous appealing marketing advertisements on television and in newspapers and magazines. 5. RESEARCH METHODOLOGY 11 The general purpose of this study is a comparative study of various brands of energy drink from consumer’s point of view. After detailed review of the research following objectives are to be determined: †¢To understand and identify the energy drink that is the most popular †¢To understand consumer preference and their consuming habits For this purpose basic research was carried out. The data collection was based on the primary data being the students of IES College of Management Studies. 5. 1 RESEARCH DESIGN The method used is basic research method. Data collection method: The respondents were asked to fill an online questionnaire. Data collection place: We have chosen an online survey as the media and the same was sent to the respondents. And the data collected was then segmented based on gender, age group, information, consumer preferences etc. 5. 2 SAMPLE DESIGN Sampling Method- Convenience Sample Sampling Method: A convenience sample is a matter of taking what you can get. It is an accidental sample. Although selection may be unguided, it probably is not random, using the correct definition of everyone in the population having an equal chance of being selected. Volunteers would constitute a convenience sample. Sample Size: The sample size taken was of 66 students from IES College. We found out that out of 66 respondents 16 do not consume energy drinks and the remaining prefer to consume the same. Survey Area: We intent to take survey from our college itself. It was basically an online survey where the questionnaire was posted and the link was sent to several respondents. 12 5. 3 DATA PROCESSING AND ANALYSIS SUBJECTS In this study, the participants were students sampled from IES College of Management and Studies. The respondents completed a questionnaire. We could gather a response of 66 people. STUDY INSTRUMENT AND DATA COLLECTION The questionnaire was in two parts, the first part assessed the socio-demographic characteristics of the respondents and the second part assessed energy drink consumption practices of the students and reasons why students consumed them. The questionnaire which was administered assessed students in the following areas: background information (i. e. age, gender information on energy drink consumption practices, brands of energy drinks usually consumed and reasons why students consumed energy drinks). The researchers explained to the participants that the investigation was mainly aimed at assessing how and why energy drinks were consumed? 5. 4 STATISTICAL ANALYSIS Statistical tools: Data collected were entered and analysed using the Quantitative Techniques and the results were displayed Frequencies and Percentages, Mean Median and Mode Standard Deviation. Graphical representations: Pie Charts and Bar Diagrams were used. 6. DATAANALYSISAND INTERPRETATION 13 1) Gender Wise Buyer Distribution: Observation- It was found out that the energy drink segment was driven by a market of 62% of Male consumer and 38% Female Consumer. 2) Do you consume energy drinks? Observation- It was found out that the out of 66 respondents only 48 consume energy drinks and the remaining do not consume energy drinks at all. 3) Out of the following brands, which ones have you heard of? M 4 1 62% F 25 38% Yes 48 75% No 16 25% 14 Red Bull 61 32% Monster 17 9% Cloud 9 46 24% Gatorade 40 21% Tzinga 24 13% Other 2 1% Quantitative Tool MODE The Modal value is 61 which states that Red Bull is most popular among the energy drinks. 4) How many bottles of energy drinks do you purchase in one go? Single bottle 49 80% Multiple Bottles (6 pack) 6 10% Multiple Bottles (24 pack) 6 10% Quantitative Tool used Mean Median The Mean is 20. 33 the Median is 31. Also the Standard deviation is 20. 27. There is a deviation of 20. 27 in the preference of people buying single and multiple bottles. 5) How often do you purchase energy drinks? 15 Very frequently 3 5% Frequently 11 18% Sometimes 26 43% Rarely 21 34% Quantitative Tool used Mean Median The Mean is 15. 25 the Median is 31. Also the Standard deviation is 8. 89 in the consumption patterns of Energy Drinks. 6) For which activities do you use Energy drinks? Exercising at the gym 14 18% Playing competitive sports 4 5% Playing recreational sports 8 10% 16 To quench your thirst 15 19% Leisurely consumption 32 41% Other 5 6% Quantitative Tool used – MODE The Modal Value is 32 which states that people consume energy drinks for Leisurely consumption. 7) Does advertising affect your decision of purchasing Energy drinks? Quantitative Tool used MODE The Modal Value is 31 and says that advertising does influence the buying decision. 8) How much do you pay for a 250 ml energy drink? Yes 3 1 51% No 30 49% 17 25-50 14 50-75 25 75-100 21 Quantitative Tool used – Mean, Median MODE The mean is 65. 41 and the mode is 68. 33. Median is 66. Std dev? 9) Have you experienced any ill effects after consuming any energy drink? Tremors 1 3% Shivers 2 6% Headaches 9 26% None 22 65% Quantitative Tool used – MODE MODE is 22. 18 10) What kind of taste do you prefer? Sweet 17 24% Sour 9 13% Fruity 45 63% Quantitative Tool used – MODE Mode is 45. 19 7. LIMITATIONS The following limitations were found: ?Samples were approached from our College itself hence the variety of population was limited. ?Time constraints did not allow the research to be carried out on an extensive scale. 8. SUMMARY OF FINDINGS ?It was found out that only 75% of the respondents consume energy drinks. ?It was found out that the energy drink segment was driven by a market of 62% of Male consumer and 38% Female Consumer. ?21-23 age group people was found to be the maximum buyers in the sampling population. ?People prefer to have drinks occasionally mainly for leisurely consumption constituting 41% . 8. 1ConsumerBehaviour Preference towards Energy Drinks: 20 ?The buying behaviour is not regular. It’s only occasional. People prefer it during exercising, leisurely consumption at parties or social gatherings to reduce stress. It was observed that people are price as well as brand sensitive. They want average price energy drink from a reputed brand. The flavour should be good (for eg. Fruity) as well as the health content. ?26% of the respondents believed that the energy drink is associated with a risk highest being headaches while 68% believed the risk was none. 8. 2Red BullMarket ?It was clearly observed that the preference for Red Bull energy drink was predominant over other brands. ?The red bull market is the leader constituting 32% of the sample. Still the purchase was limited to ‘sometimes’ standing at a 43%. 8. 3 Recommendation ?Awareness among the people need to be increased to promote energy so that the number people who don’t consume the energy drinks for reasonsbest kno n to them all start consuming. ?An integrated marketing is carried out which would help minimise the illusion among the potential buyers about the adverse effect of energy drink on health. 9. CONCLUSION We have investigated the feasibility of the top selling energy drinks for the students of IES College of Management and Research. The market is dominated by Red Bull, and other brands like Monster, Could 9, Tzinga, Monster, Gatorade. Also, because students are in constant need of an energy boost, we have researched which energy drink will provide the students with the most energy without sacrificing nutrition, taste, or cost. With the information from this report, we hope to help students make a better decision when choosing energy drinks. We recommend Red Bull as the best energy drink for students at the IES College of Management and Research. 21 Questionnaire on Energy drinks Objective: To launch a new product of energy drinks in the market and understand its consumption pattern among the respondents To find out Top of the mind awareness of consumers To find out the factors which influences the consumer to buy energy drinks * Required Name: * Age * Gender *. 1) Do you consume energy drinks? o Yes o No 22 2) When someone mentions Energy drinks, what brand name comes first in your mind? 3) Out of the following brands, which ones have you heard of? o Red Bull o Monster o Cloud 9 o Gatorade o Tzinga o Other: 4) How many bottles of energy drinks do you purchase in one go? o Single bottle o Multiple Bottles (6 pack) o Multiple Bottles (24 pack) 5) How often do you purchase energy drinks? o Very frequently o Frequently 23 o Sometimes o Rarely 6) For which activities do you use Energy drinks? o Exercising at the gym o Playing competitive sports o Playing recreational sports. o To quench your thirst o Leisurely consumption o Other: 7) Does advertising affect your decision of purchasing Energy drinks? o Yes o No 8) How much do you pay for a 250 ml energy drink? o 25-50 o 55-75 o 80-100 24 9) Have you experienced any ill effects after consuming any energy drink? o Tremors o Shivers o Headaches o None 10) What kind of taste do you prefer? o Sweet o Sour o Fruity Never submit passwords through Google Forms. 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