Research paper on Energy drinks

2016BLP009 " ARJUN G




A Research study to explore the Determinants of adults choosing
Energy drinks over Normal drinks

By
Arjun G

Under the Guidance of
Prof. Tithi Bhatnagar










SCHOOL of INSPIRED LEADERSHIP
GURGAON




Acknowledgement

I would like to express my gratitude to all those who gave me the possibility to complete this research paper. I am deeply indebted to my supervisor Tithi Bhatnagar from the Department of Human Resources their help, stimulating suggestions and continuous encouragement helped me throughout in my research during the post graduate program.
I would like to extend my sincere & heartfelt obligation towards all the people who have helped me in this endeavor. Without their active guidance, help, co-operation & encouragement, I would not have made headway in the project.
With immense gratitude I would like to thank Mrs. Neetika Batra, our Program Chair for his full support and guidance and for providing me this opportunity.
I extend my gratitude to SCHOOL Of INSPIRED LEADERSHIP for giving me this opportunity to learn about a new area of research and to understand about my own capability in the research field.
Finally it is all to the almighty who has always blessed me and guided me to the right tracks.

Thanking You
ARJUN G
BLP009

Introduction-
The term "energy drink" refers to soft drinks believed to reduce or prevent fatigue, enhance physical performance, enhance disposition and improve cognitive performance. Athletes prior to competitions with a view to improving their performance frequently consume energy drinks. Most athletes hold the belief in energy drinks, particularly because the term "energy drink" conveys a message that the product has a connection with physical activity. Energy drink consumption has continued to gain in popularity since the 1997 debut of Red Bull, the current leader in the energy drink market. Although energy drinks are targeted to young adult consumers who are into sports and other activities, there has been lot of research carried out to understand the effect of energy drink consumption and the ingredients in it. The purpose of this study was to determine energy drink consumption patterns among young adults, and to determine the potential determinants of adolescence in choosing an energy drink over a soft drink.
Even though a lot has been already researched on understanding the effects of energy drink over a soft drink on the consumer health, the rate of caffeine added in energy drink and its adverse effects on human body. This study will focus on the discovering various perception and behavior of consumers while selecting an energy drink over a soft drink. This explanatory study is important because the recommendations from this study will determine the determinants of young adult consumers and they view towards energy drinks where they are concern about the effect of the drink or cost, taste, flavor, ingredients or health factors etc. Once the study determines the consumer behavior, this study will act as a baseline to understand their customers well and to target that segment of market for energy drink brands to tap in.


Objective:
This study aims:
To determine energy drink consumption patterns among young adults
To explore the potential determinants of adolescence in choosing energy drinks over soft drinks
For an effective, innovative and growth led organization it is necessary to frame the culture and policies in accordance with different mix of the workforce. There is also a need to minimize conflicts and miscommunication among different age groups in order to get everyone working together.
Literature:
In oct 31, 2007; A research study is carried out to understand the energy drink consumption patterns among college students. The purpose of this study was to determine energy drink consumption patterns among college students, prevalence and frequency of energy drink use for six situations, namely for insufficient sleep, to increase energy (in general), while studying, driving long periods of time, drinking with alcohol while partying, and to treat a hangover, and prevalence of adverse side effects and energy drink use dose effects among college energy drink users. Through this study it was found that 51% of 496 college students surveyed reported drinking greater than one energy drink each month. Among college energy drink users, consuming energy drinks is particularly popular for insufficient sleep, when one needs more energy in general, to drink with alcohol while partying, and when studying for an exam or completing a major course project.
The limitations in this study was
This study explained only about the consumption pattern of the students and the situations when they consume an energy drink. The study didn't involve their behavior of choice.
In Oct 14, 2014: Another research study was carried out to understand the Energy drink consumption and it review of the risks, adverse health effects, and policy options to respond in Europe. This study basically explained about the consumption rate of energy drinks in Europe and its adverse health effects due to caffeine content. Although energy drinks are a relatively new class of beverage, they are quickly becoming as a central part of the partying subculture, particularly among young people who commonly mix energy drinks with alcohol. This review of the published literature on energy drinks identifies a number of policies that might be considered by policy makers as they move to minimize the potential for harmful effects from energy drink consumption.
From a review of the literature, it would appear that concerns in the scientific community and among the public regarding the potential adverse health effects of the increased consumption of energy drinks are broadly valid. The potential for acute caffeine toxicity due to consumption of energy drinks may be greater than other dietary sources of caffeine due to the variable and sometimes very high-caffeine content of energy drinks, in combination with the aggressive marketing to young and inexperienced consumers.
The Limitations in this study were:
This study reported only about the adverse health effects of energy drinks, only one side of energy drink is shown, the first research explained about the advantage of energy drinks
This study is more like a journal which explains about government policies. But no sample methodology had been conducted to get actual responses from population.
These limitations both from first and second study have been overcome in this explanatory research study. This study explore more into market research segment where it explained about the behavior and perception of adult consumers on choosing energy drinks over soft drink. This study compared energy drinks with soft drinks; on what basis the consumers prefer both the drinks. Random sampling method is used and interview had been conducted to understand the behavior of the population more deeply. This study also reported detailed determinants, which are influencing the adult consumers to choose a drink.

Methodology
This section discusses the sample, research tools used and procedures taken to carry out the study.
Sample Particulars:
Purposive Random Sampling technique has been used to carry out the research because it would cover the diversity in respondents varying in age, marital status, gender and tenure of respondents. Therefore, it would possibly avoid any kind of sampling error due to bias in the sampling. A sample of 20 respondents both from Male and Female have been selected though purposive random sampling. The sample comprised of particulars like gender, perception, favorability and perception about the price of energy drinks.
Research Tool:
An interview approach has been used to explore the consumer behavior of both Male and Female adults. Semi- structured questionnaire was developed by incorporating Open ended questions to obtain answers based on experiences from the respondent. The questionnaire method enables us to find various factors upon which the research is focused. A list of questions is available in the Appendices section. For gathering the required data the respondents have been probed further for objective oriented results.
Procedure:
The data was collected using a purposive random sampling technique. The respondents were approached by the researcher and a rapport was built with them, providing them with a brief on what the research is about. Their consent on participation and other ethical considerations were taken. The respondents were then interviewed on the set of questions. Their interviews were recorded, transcribed and content analyzed. Post the interview the respondents were thanked for their support.
Analysis:
The interviews were able to capture several interesting aspects from both Male and Female samples which explained various factors influencing their favourability towards choosing energy drinks.
Table 1: Factor Analysis Male: Determinants are mentioned on the table are based on the favourability of Male samples towards energy drink

Determinants
Favourable
Non Favourable
1

6
4
2
Repeatability
4
6
3
Strength (energy)
7
3
4
Flavour
2
8
5
Cost
1
9
6
Brand
5
5
7
Taste
3
7
8
Choice over soft drink
5
5
9
Health conscious
4
6
10
Trust towards the product
6
4



Table 2: Factor Analysis Female: Determinants are mentioned on the table are based on the favourability of Female samples towards energy drink
S. No
Determinants
Favourable
Non Favourable
1
Addiction
3
7
2
Repeatability
4
6
3
Strength (energy)
4
6
4
Flavour
2
8
5
Cost
1
9
6
Brand
3
7
7
Taste
2
8
8
Choice over soft drink
0
10
9
Health conscious
2
8
10
Trust towards the product
3
7

Based on the responses by the samples during the interview, the determinants have been decided. These determinants give a clear view on the perception and behavior of both male and female towards energy drinks. The determinants like flavour, taste, addiction and strength within the drink are closely related with the ingredients and the content that the energy drinks possess. The behavior and perception of the samples are explored using the determinants namely trust towards the product, confidence of choice, repeatability and preference towards energy drinks. Since a large range of the population expressed their view about the pricing of the drinks in Indian FMCG market, cost efficiency is also considered as one of the determinant. It is necessary to discuss about the health aspects related to energy drink because it is mentioned in the ingredients about the use of caffeine and most of the people during study raised their consciousness about health, hence health conscious is considered as one of the major determinants in the study. These determinants are considered as major key factors which determines the consumer behavior of adolescence towards energy drinks
Discussion:
The sample distribution in this study is equally divided between male and female to get an overview about their characteristics and behavior when it comes to energy drinks. This will also paves a way for further research studies using this study as base to find out whether gender difference actually matters while choosing energy drinks or any FMCG products.

The population distribution is given below in the form of a pie chart:

The reason behind choosing 10 male samples and 10 female samples equally is to find out the responses from both the gender perspectives to get more reliable results. Taking male adult respondents only into consideration, the responses given by them are comprised in a graphical representation for better understanding.


From the graph, it is visible that the determinants clearly express the view of male applicants towards energy drinks. For any energy drink, strength and availability are the major key factors, according the responses received most of the them feels that energy drinks have great strength within it which give a boost to the body when someone feels tired. Nearly 50 percent of the sample considered that brand of the drink is really matters while buying any drink and they also mentioned usually they don't prefer local brands. Apart from the top five determinants, the other factors also plays a major role in determining the consumer behavior. Considering the cost of the energy drink, 90 percent of the population is concerned about the price of the energy drink. They feel that the price is not reasonable and it is overpriced. But the addiction rate of the people moving towards energy drinks is around 60 percent based on the responses given. For few respondents taste and flavor of energy drinks actually matters apart from its basic purpose. This gives us a different prospection of human behavior towards any product, that there is always a different angle of view for any product by itself.

The major determinants that favourable towards energy drink were trust towards the product, brand, choice of energy drink with respect to any other drink, addiction rate and strength or energy of the drink. As per the responses given in Table 1, it is clear that these were the five factors, which influence in making a decision of choosing any drink. The relationship of these factors in our study towards the energy drink is explained using a pie chart

It is clearly understandable from the pie chart, that these five determinants are the major key factors that determines the consumer behavior of adult men in choosing energy drink over a soft drink. Around 70% of them reported that they buy energy drinks purely based on the belief that it gives strength boost to the body. They buy energy drinks often when they are really tired for the day, during sports occasions, parties and when they need more energy to the body. Strength, Addiction, Trust, Availability and Brand are the five major determinants, which are considered by more than 50 percent of the sample population as the most favourable factors while choosing energy drinks over soft drinks.

Taking Female adult respondents only into consideration, the responses given by them are comprised in a graphical representation for better understanding.

From the graph, it is visible that the determinants clearly express the view of Female applicants for the semi formal interview regarding energy drinks. When it comes to female samples they have a difference expectation from the product, which may be completely opposite to the other gender. As per the responses we received through this study, most of the female candidates are not considering energy drinks as a product of purpose. Most of the respondents expressed their view that energy drinks create adheres effect to health and would cause health related issues. Considering the cost of the energy drink, same as the first sample group nearly 90 percent of the population is concerned about the price of the energy drink. They feel that the price is not reasonable and it is overpriced. For few respondents taste and flavor of energy drinks actually matters apart from its basic purpose, they reported that energy drinks have neither flavour nor taste attached with it ingredients along with caffeine. When a question was raised with these samples that if they are given a chance to choose a soft drink over an energy drink, which drink do they prefer. Everyone reported that they would go for soft drinks than energy drinks, only few of them reported that unless the situation is worse they need really high energy boosters then they would consider energy drinks. The major determinants that favourable towards energy drink in this sample segment were strength or energy of the drink, repeatability of habit, trust towards the product and its effects, addiction rate and the brand. As per the responses given in Table 2, it is clear that these were the five factors, which influence in making a decision of choosing any drink. The relationship of these factors in our study towards the energy drink is explained using a pie chart

The five major determinants are considered as key factors, which influence the second set of samples. Though only 30 percent of the sample population prefers these determinants, this analysis would give us a fair understanding of this segment of population how their perception would influence the choice of energy drinks. The major determinants such as strength or energy of the drink, repeatability of habit, trust towards the product and its effects, addiction rate and the brand are considered by samples who are concerned about energy and who are into sports are the one who choose these kind of products. Basically this segment is not considered as major target audience for the energy drink market. But the study has been conducted to find out the possibilities of this segment.
Recommendations:
Based on the analysis of the major attributes considered in this study, the perception and behavior of young adult consumer changes according to situation they are experiencing in. More or less it can be predicted using the determinants from this study. From discussion, it is highly favourable that the around 70 percent of male sample population choose energy drinks over soft drinks. The strength or energy of the drink, brand, choice of energy drink with respect to any other drink, addiction rate and trust towards the product are the major determinants which determines the behavior of the youngster choosing energy drinks over soft drinks. This study also defines the target segment for energy drink market to penetrate using these attributes. This also clearly explains that female gender segment is not the major target segment for energy drinks, though it is recommended to come up with new product development strategy to target this female segment of the market. Hence the brands, which are into energy drinks market, should consider these determinants as major attributes to create campaigns and advertisements to reach out to their target audience and get maximum market share. Future research should consider exploring study on more brand centric to discover the behavior of consumers over a particular brand.


APPENDICES
Which drink you prefer most energy or soft drink?
When was the last time you had an energy drink?
How often do you buy an energy drink?
What are the key factors you look for when you buy an energy drink?
If you are given a chance to choose a soft drink over an energy drink, which drink do you prefer?
Do you think the price of energy drinks are reasonable? why?
There is a saying that, energy drinks gives boost to your body, do you agree that? why?
Which drink (Energy/soft) according to you have more adrerse effect on your health? and why?
What are the things you don't like in energy drinks, which you like in soft drinks?
What do you prefer most, taste or energy in a drink?
I would rather go for a low priced soft drink than costly energy drinks, do you agree this statement? please justify?








References


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The Center on Young Adult Health and Development
University of Maryland School of Public Health " www.cyahd.umd.edu
Ginni Rana " HRLP024


Responses from Female samples


Major determinants from Male responses





Population


Responses from Male samples