Mcdonalds Energy Drink Research Report

McEnergy 1 Energy Drink Research Report For McDonalds commode commercialiseing Research, Unit 9 8 tremendous 2011 McEnergy 2 Executive Summary The purpose of this report is to investigate onetime(prenominal) trends and forecasts of the readiness imbibe securities industry. include in this report, is information on market size, head population and statistical entropy on proceeds history and growth projections. The aim is to determine if adding ability potables to McDonalds offerings will create a profitable part for their menu.The market research collected and contained in this report consists of inessential data. This research was authorized by McDonalds Corporation. real market research shows that the sinew tipsiness market has grown into a multi-billion dollar business, which has been reported as being the fastest growing segment in the crapulence industry since bottled water. The US energy drink industry is expected to more than double in the 5 geezerhood preced ing 2013. (Comprehensive Reviews) Eighteen to 24 year olds or college students are the largest segment of energy drink consumers. NutritionJ) The conclusion of this report suggests that the growth of the energy drink market has been greater than most other liquid refreshment drinking sectors in the US in the past five years and that this trend will continue. It is recommended that McDonalds Corporation add energy drinks to their offerings and target college-aged students. Introduction Fast sustenance consumption in the US has declined during the recent economic crisis. To stay profitable, many fast fare chains have introduced low-cost or value items too keep sales up.Along with low-cost items, many fast food chains have added specialized items or receding items to attract customers that can more conveniently buy these at a fast food store. McEnergy 3 Energy drinks have continued to gain popularity since Red Bull was launched in 1997. More than 500 mod energy drinks were launch ed worldwide in 2006 and beverage companies are reaping the rewards of the exploding energy drink industry. This report examines the energy drink market and its potential to become a niche item in a fast food chain along with the population to target. MethodsThis report was conducted using a secondary statistical data and secondary research that was gathered using a focus congregation and mint of college age participants. The statistical data was obtained from New York City-based Beverage Marketing Corporation which is the leading research firm dedicated to the global beverage industry. The statistical data regarding the previous growth patterns and growth forecasts will be discussed in the results. The focus group and discern were done by Nutrition Journal and focuses on energy drink consumption patterns among college students.The survey was based on responses from a 32-member college student focus group and a field test, a 19-item survey was used to energy drink consumption pat terns of 496 randomly surveyed college students. (nutritionj) The population was defined as undergraduate students at a state university located in the Central Atlantic Region of the united States. 85% of the undergraduates were 18-24 years of age, 12% were 25-40 years of age and 3% 41 years of age or older. Sixty cardinal percent of the entire student body is female. The sampling units were individual college students that were generated with aMcEnergy 4 non-probability method of postulation students around campus if they would like to participate. (Nutritionj) Results Fifty one percent of participants reported consuming at least one, energy drinks a month. Thirty four percent of participant reported consuming at least devil energy drinks a month. Table 1 % of college energy drink users reporting amount and frequency of energy drink consumption by situation in an average month Energy drinks consumed Days/month ________________________________________________Situation n 1 2 2 1 -4 5-10 10 Insufficient Sleep 169 64 22 14 74 18 8 Need general energy 165 63 21 16 74 18 8 Studying or project 125 50 36 14 85 10 5 Driving long distance 114 63 23 14 86 9 5With alcohol 136 27 24 49 73 18 9 Treat katzenjammer 42 74 10 16 74 14 12 N= 253 college energy drink users (nutritionj) The US refreshment beverage market grew by 1. 2% in 2010The growth of the energy drinks market is up 5. 4% in the past year. (beveragemarketing) From 2004 to 2009 the McEnergy 5 overall growth of the energy market is up over 240% (Wiley) The shift from consumption of sports drinks such as Gatorade and Powerade towards energy drinks should continue.In the last year, carbonated piano drinks remain the largest liquid refreshment beverages category but their volume slipped 0. 8% from 13. 9 billion gallons in 2009 to 13. 8 billion gallons in 2010, which resulted in their market plow decreasing. (beveragemarketing) Table 2 U. S unstable Refreshment Beverage Market throw in Volume by Segment 2009 -2010 Percent Change Segments 2009-2010 RTD Tea 12. 5% Sports Drinks 9. % RTD Coffee 8. 1% Energy Drinks 5. 4% Bottled Water 3. 5% Value-Added Water 0. 2% Fruit Beverages -2. 0% Carbonated Soft Drinks -0. % Total LRB 1. 2% Source Beverage Marketing Corporation (BeverageMarketing) McEnergy 6 Conclusion The energy drink market has grown into a multi-billion dollar business, which has been reported as being the fastest growing segment in the beverage industry since bottled water. Having grown 240% in the past five years, the only beverage sectors to grow faster that energy drinks last year were ready-to-drink tea, ready-to-drink coffee and sports drinks.McDonalds already distributes these other three beverages and would benefit by adding the next fastest growing beverage sector, energy drinks. despite the large market share that carbonated beverages owns, there is a demand and shift towards other beverage sectors as evidenced by a decrease in carbonated beverage market share last year. A large segment of energy drink consumers is the college-aged consumer. With over 50% of college students drinking at least one energy drink a month and 34% at least devil a month, this would be a good population to target. RecommendationsInclude energy drinks to the offerings at McDonalds fast food restaurants. Target college-aged students with initial locations and marketing strategies. McEnergy 7 References Gonzalez de Mejia, E. & Heckman, M. A. & Sherry, K. (2010). Energy Drinks An Assessment of Their Market Size, Consumer Demographics, Ingredient Profile, Functionality, and Regulations in The United States. Comprehensive Reviews in Food Science and Food Safety. Retrieved from http//onlinelibrary. wiley. com/doi/10. 1111/j. 1541-4337. 2010. 00111. x/pdf West, T. (2011). The Energy Market is exempt Full of Growth Potential Reports.Wholesale News. Retrieved from http//web. ebscohost. com. lib. kaplan. edu/ehost/pdfviewer/pdfviewer? vid=12&hid=123&sid=eeec713f-80bc-4ca6-b 6ce-02c68e0f1f50%40sessionmgr112 The US Liquid Refreshment Beverage Market Increased by 1. 2% in 2010. (March 2011). Beverage Marketing Corporation Reports. Retrieved from http//www. beveragemarketing. com/? section=pressreleases Aeby, V. G. & Barber-Heidal, K. & Carpenter-Aeby, T & Malinauskas, B. M, & Overton, R. F. (2007). A Survey of Energy Drink Consumption Patterns Among College Students. Nutrition Journal. Retrieved from http//www. nutritionj. com/content/6/1/35