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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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Consumption of energy and sport drinks are increasing day by day and according to research its consumption doubled during 2006 till 2014. As to improve the energy level people try to consume energy drinks or to maintain their health after sport activities people use sport drinks (Woolsey & Evans 2015). In UK, usage of these drinks have been rapidly growing. Children as well as youngsters are more likely to consume these drinks which can also effects their health. In this assignment it will be discussed the consumption of sport and energy drinks in the UK. Impact of sugar tax on the marketing activities of sport drinks ,in which it will discuss with the reference of 4P's and the marketing environment of healthy sport drinks (Woolsey & Beck 2015).

Discussion

Energy and Sport Drink

To improve the level of energy, people try to consume energy drinks. Energy drinks help to maintain their weight, concentration and health. Caffeine is considered as the main ingredient in these drinks. Extract from the guarana plant also used in these types of energy drinks as well as in the form of sugar and vitamins, carbohydrates and amino acid is used (Gwacham & Wagner 2012).

After physical activities like sports, most of the people consume sport drinks which helps to replace water i.e. rehydrate and the electrolytes like minerals, calcium, potassium, as well as magnesium which gone due to sweating. To maintain the balance of the body electrolytes are needed. Sweating is the process in which the body loses water and other minerals. During activities, by using sport drinks the consumer helps his body to restore the lost carbohydrates much faster than the non-consumer will (Duncan & Hankey 2013).

Energy and Sport Drinking Consumption in the UK

Like other countries, the UK now is also considered as a rapidly growing energy and sport drinks consumption country. The drinks are mainly made out of water, sugar and caffeine as well as variety of flavour and additives. Moreover, soft drinks contain 150mg of caffeine per litre. There is a rise in the consumption of these drinks of a 155% during 2006 till 2014 in the UK. In between these years average per consumption capita was 9.4 litres i.e. rise of 235 million litres to 600 (Woolsey & Beck 2015).

Teenagers as well as children, from an evidence, it has been proved that they consume more energy drinks which also leads to more of them to consume drugs, alcohol or start smoking. Consumers of these drinks  have also considered as that, they have unnatural diet. Which also causes health effects, other kind of illness or hyperactivity (Mottam 2010). As it has been seen, the consumption of energy drinks by youth from 2006 till 2014 has doubled in the UK. One of the main reasons that the younger people go to the emergency department with symptoms like vomiting, dizziness, headache, nausea and abdominal pain is consumption of energy drinks (Smith 2010).

Energy drinks have a huge impact on our health, which the youth does not understand. Young people are more likely to consume energy drinks which will have a negative effect on their health. It can cause cardiovascular problems on younger children. Due to the increase of consumption of these drinks, some countries have taken action to reduce the level of usage of energy drinks by banning the sales od energy drinks to people under the age of 18 (O'Brien 2008)

GRAPH

Sport drinking consumption in the UK has also doubled. It has increased from 110 to 170 million per capita consumption from 2006 till 2014 which has increased the production number of these products. As the consumption increases, so does the price. People in the UK are now more attracted to the products.(Ali 2015). The UK is focusing on healthier sport drinks and expanding their business by introducing those drinks to other countries as well.

7 YEARS TO 2011

The sports drinks target consumers are people who want to improve their life by consuming healthy drinks with good ingredients. Innovation in the product is the primary focus of the UK industry (Stevens & Kuczek 2014). The main idea of sport drinks products should be based on low or no sugar options. The growing industry of the UK is based on sport drinks as well as energy drinks. Lucozade is considered one of the most popular sport drinks in the UK. Consumption of sport drinks in the UK continuous to rise which helps to make a positive difference in the market as well as its performance (Ali 2015)

Graph

Impact of Sugar Tax On Healthy Sports Drinks

Sugar tax on Sport and Energy drinks can have an impact on the purchasing pattern of it. The tax, which will increase the selling price of the product is predicted to have a negative effect on the sales.

The sugar tax will not effect those who consume less or sugar free sport and energy drinks. By increasing the price on the high-sugar drinks, the consumer is predicted to switch to low sugar, sugar-free or start consuming more affordable drinks. The increase in price will also have a positive effect on the juices and milk market. Because of the of the drawbacks, like higher price, there might be a change in customer drinking patterns.

INSERT MAIN CONSUMERS OF SUGAR DRINKS HOW WILL IT AFFECT THEM

In different categories, innovation in the drink markets of non-alcoholic brands is a confusing line. In juice sectors, for example, some of the brands reason for becoming popular among consumers is that they adapt and innovate new ways to prepare or make their product – some of them use different kind of raw fruits or the company makes their drinks more nutritious as compare to other related products. The energy drink industry should capitalise on the trend of more healthy drinks by lowering or replacing the sugar in their products so they can offer overall more healthy product for their customers, while not being affected by the sugar tax.

Impact of Sugar Taxes on the 4 P's and the Marketing Environment of Healthy Sport Drinks

To promote a product or a brand the marketing mix needs to be used. It consists of the tactics and action which a company needs to use for the promotion. Marketing mix consists of the 4P's i.e. price, place, product and promotions (Corbo & Sinigaglia 2014).

Price

The price is a critical element of the marketing mix. To put materealistic value in a product, a price is needed. Several types of pricing strategies can be used in order to plan the overall business. Historically, price has been the major factor affecting buyer choice. It may determine very much of a firm's market share and its profitability. The price is one of the most flexible elements in the marketing mix. Without doubt, prices have a direct impact on the firms profitability. And even more important: the price is part of the firm's overall value proposition. Prices play a key role in creating customer value and building customer relationships (Jeukendrup & Gleeson 2018) (Linka).

Product

A product is an item that satisfies a need or a desire. Every company wants its product to be unique

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