Rockstar Energy Drink Could Reverse Slow Energy Drink Market Growth

 

Opportunity: The current energy drink market shows a plateau in growth due to an inability to attract new customers according to secondary research sources. Rockstar could take the lead and adjust its product offering or marketing message to reverse this trend.

 

Secondary Research Findings: In reference to the energy drink markets slow growth Mintel states, “The category added only one million new energy drinks users aged 18+ during 2007-2009, compared to 9.3 million new users during 2005-2007...” This fact illustrates a slow market penetration with seven out of 10 adults showing no interest in NRG drinks. What solutions are there for stagnant growth? Two options supported by Mintel are : 1.) Diversify the product offering to absorb a wider audience 2.) Increase market share through product positioning.

 

Rockstar SWOT Analysis

 

Strengths:

• Rockstar was the first energy drink to successfully introduce a 16oz bottle versus Red Bull’s 8oz bottle.

• Defined target / Demographic: 18-30 Male

• Youthful college student who parties, plays sports, and seeks social awareness through entertainment .

• Great Guerilla marketing tactics by achieving cosponsorship with popular sports brands such as Fox, X-games etc…

• Sponsor alternative sporting events and alternative sports athletes

• Sponsor alternative rock music tours such as the AP Tour, Mayhem and others.

 

Weaknesses:

• Saturated Market for energy drinks

• Perception that all energy drinks are the same

 

Opportunity:

• Reposition Brand to increase market share

• Use iTV campaign to increase awareness, expand & enhance the brands cultural experience that has been defined solely through guerilla marketing. Allow iTV campaign to compliment and support current guerilla marketing success.

 

Threats:

• Top two companies competing for market share, Red Bull and Monster, have deeper pockets

 

Strategy:

Advance the current brand position to match the maturing lifestyle of the target audiences (21-30 year old males who are now young professionals and recent college grads); extending the meaning of the brand, but not leaving behind the youthful college partying target audience.

 

Creative Execution: Change the current slogan “Party Like a Rockstar” to “Live Like a Rockstar”. This expanded slogan will strike a cord in the target audience’s core desire of becoming powerful, popular & successful via consumption of Rockstar. This brand positioning of “Live like a Rockstar” will be carried out in a problem solution strategy delivered through stories and engaging activities via iTV campaign. This campaign will support Rockstars’ current sponsorship strategy by giving Rockstar new events and brands to mix with in such areas as gaming (System brands like Sony, Nintendo; Popular game brands like Rockband etc...), sports, music tours & other music culture brands (American idol, So You Think You Can Dance etc...). Thus encouraging the growth of the current guerilla marketing strategy and increasing market share.