marketing assignment

Environmental factors affecting energy drink

Six environmental factors affecting energy drink market

By and large, managers can control the four Ps of the marketing mix: they can decide which products to offer, what prices to charge for them, how to distribute them, and how to reach target audiences. Unfortunately, there are other forces at work in the marketing world—forces over which marketers have much less control. These forces make up a company’s external marketing environment

1. Political Environment

Political conditions in the area and the United States are beneficial for the Company's activities. Federal and state governments have enacted measures intended to spur economic growth and create employment, so the company should take advantage of tax advantages and more lenient regulations when locating its operations in these regions.

2. Economic Environment

The economic crisis that began in 2008 is still having an impact on many parts of the country. Non-essential commodities like soft drinks and energy drinks are being purchased less often by consumers as discretionary incomes are decreasing. People who are unemployed are unable to acquire items from others. However, the economy looks to be improving, and the long-term forecast appears to be positive

3. Social-Demographic Environment

The energy drink is aimed mostly towards young people between the ages of 15 and 35. As the population of the United States continues to grow, this market is becoming more and more important.

5. Ecological Environment

There is a lot of fresh water and a lot of energy used in the manufacture of soft drinks. Even though aluminum and plastic packaging materials are non-biodegradable, they end up in the trash. The company intends to use solely recyclable packaging materials and has designed a technique that consumes 8% less water and energy than the industry standard method of packaging.

4. Technological Environment

An abundance of specialist engineering and food experts is accessible to the company, which plans to use them as consultants in the energy drink sector. The company should outsource these specialized services. There is no sugar and just a very little quantity of caffeine in the company's products, which means that more people are likely to be drawn to their brand.

6. Competitive Environment

The company will face competition from various famous energy drink companies such as red bull and monster. Competition from established companies who have adequate resources that may frustrate the company from entering the market smoothly is a main threat for the company.