Analysis of Energy Drink Industry in Australia using Porter's Five Forces Framework

FOOD MARKETING

ENERGY DRINK 1
Executive summary
The overall energy drink industry in Australia is growing continuously and the forecast
drink sale for the next five years is at the high level. Customers are the main source for
future opportunities and challenges in the competitive world. The main aim of the energy
drinks market is to give the fresh drinks that satisfy the customer needs. Innovation and
variety of flavours attract the consumers toward the energy drink. These methods help to
expand the market. Porter’s five forces framework is used to analyse the environment. It is
observed that the quality and packaging will be necessary for the growth.

ENERGY DRINK 2
Contents
Introduction..................................................................................................................3
Description of the industry...........................................................................................3
Porter’s five forces framework.....................................................................................4
The threat of the new entrant....................................................................................4
Bargaining power of supplier....................................................................................5
Bargaining power of buyer.......................................................................................5
The intensity of the competitive rivalry....................................................................6
Substitutes.................................................................................................................6
Opportunity and Threat................................................................................................7
Recommendations........................................................................................................7
Conclusion....................................................................................................................8
References....................................................................................................................9

ENERGY DRINK 3
Introduction
Many tools are used to analyse the threats and opportunities of the industry. Porter’s five
forces framework is used to analyse the external environment of energy drinks. In this
report, the Energy drink is taken into the consideration to analyse the product market
whether it will have a strong position in future or not. At the beginning of the report, market
share and the size of the market of the product is discussed. After that, Porter's five forces
framework has been taken to analyse the external environment of the market. At the end of
the report, the recommendation is given for the improvement of the market. At the end of the
report, the conclusion has been reported based on the analysis.
Description of the industry
The first energy drink of the Australia is launched in August 1999 with the name of Red
Bull, it was one of the most popular drink in the Australia market(State Library, 2018). It
has the packaging of the ‘Tin green can’ which is also famous in the market. Vitamin B,
caffeine, carbonated water, and taurine are the ingredients of its energy drinks. There are
number of brands of energy drinks in Australia such as Red bull, monster, and others. The
energy drinks brands in Australia have strong goodwill and large market share in the market.
Energy drink market is expanding continuously; each brand of energy drink of Australia is
highly innovated and has unique features in the marketplace. By increasing, the health
awareness among the consumers demand of the energy drinks is increasing as well as
revenue. Consumer of Australia is addicted to these beverages such as 60 % of the male and
40% of female are addicted of these energy drinks and it can be said that it will boost in
future.