Rockstar energy drinks fall into the category of functional drinks, which would also include sports and nutraceutical drinks.Sports drinks, such as Gatorade, are intended to be devoured prior, amidst, and post exercise to prevent dehydration, enrich the body with carbohydrates, and provide electrolytes. Nutraceutical drinks are all-natural fruit drinks, and are pretty healthy because they contain bioactive compounds extracts from teas, herbs, and fruits. On the other hand, we have the energy drink market. In fact, in the United States, the energy drink market makes up 61% of the functional beverage market (Datamonitor 2008a, 2008b). Initially, athletes were the primary market for Rockstar, but over the years, the energy drink market rose. Now we see their primary category shifted to various niche markets such college students and young adult aged 18-34 years old that live an “on-the-go type of lifestyle. Rockstar accommodates for this primary market by utilizing cross‐promotional strategies to reach their consumers by integrating their drinks with outrageous sporting events, for example, the X‐games, BMX, or NASCAR, and additionally promoting their items by sponsoring famous music icons. They are also using a sex appeal approach to reach the target male 18-34 year older male by having a bikini model hold on of their energy drinks.
Although Rockstar originated in Northern California, their geographic isn’t targeted to one specific area. This is an advantage for Rockstar because it broadens their scope of who they can target. Marketers across the globe, including Rockstar’s marketing team, uses a process called VALS (values, attitudes, lifestyles) as a tool to better understand their consumers. It identifies current market segments and divides the customers into eight groups based on personality types: 1) innovators, 2) achievers 3) thinkers, 4) experiencers, 5) believers 6) strivers, 7) makers, and 8) survivors. According to this methology, we can identify the Rockstar energy drink customers as being the “experiencers.” This is the young, high energy, self expression crowd that focus on physical activity.
As of now, Rockstar energy drink is falling into marketing myopia, which is focusing soley on the immediate need of their consumers, as oppose to marketing towards the consumers wants and desires. (Levitt, 2004) https://hbr.org/2004/07/marketing-myopia#. Unfortunately, a lot of major companies have fallen into this myopic view. Kodak thought they were in the film industry and not the storytelling business. Blockbuster didn’t change or question the validity of their business model when new technology rolled around so they basically ignored a completely new market. In the same sense, Rockstar is oblivious to the fact there is a new marketing that is open to try their products under the right conditions.
Our group has conducted a survey, and the information we received was incredible. Out of all twenty four adults aged 45 and older, we found that 50% of them have never tried a Rockstar energy drink. As of now, Rockstar isn’t doing anything to target these individuals, yet the market is huge. Rockstar should attempt penetrate the whole market and not just segment young adults. As of now, their bikini model advertisements makes it clear that they are only concerned with a piece of the market. In fact, Coca Cola denied a distribution deal in 2005 with Rockstar because their model choice didn’t align with the values, features, and attributes of Coke. 70% of our respondents reported that the packaging of the energy drink plays an important role in their buying decision! Bam. The black, bulky can with a neon burst of color doesn’t seem to attract that age group, but with the right marketing team, a rebrand of the product could be a success for Rockstar.
The CEO of Rockstar is Russ Weigner. “It’s very, very hard for me to focus on the future (Weigner 2014).
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