Research Report

Research ReportJanuary 42013Marketing Research Assignment

Contents

Objectives3Research Plan (Methodology)3Primary Data Collection:3Qualitative Data Collection:3Research Design3Qualitative or Quantitative4Implementation of the Research Plan/Data Collection4Literature Review4Interviews5Analysis5Conclusions9References10

ObjectivesThe objectives of the research are to find out insights about the product to be launched which is an energy drink. Conducting a market analysis of the present competitors with the same product. To collect qualitative and quantitative data for analysis This research will find out insights about the market demand for energy drink. The research will focus on finding the consumer preferences for an energy drink. The research will also identify the target market for the energy drinkResearch Plan (Methodology)The research plan is explained in detail as below, we will be using primary data collection techniques for data collection.Primary Data Collection:A detailed literature review will be conducted to collect relevant data. We will be involved in collecting primary data for the research using closed ended questionnaire and qualitative data collection methods as follows:Qualitative Data Collection:Literature Review & InterviewsQualitative Data will be collected with the help of a detailed literature review; also we will be using interviews for qualitative data collection, qualitative data usually consists of quotations, observations, and excerpts from documents . Out of these three qualitative data collection we will be using only interviews for the purpose of qualitative data collection.Research DesignThe research is a Social Survey Design comprising of cross-sectional design, with the help of cross-sectional design we will collect data using closed ended questionnaires in interviews.This research will assist the users with information on the profitability of the energy drink and will open new insights on why there is an increase or decrease in the profitability of the product. Social Survey Design refers to data collection on a variable at a single point in time to collect quantitative or qualitative data using interview forms . The collected data are then analysed for different relations. Therefore we will be collecting qualitative data at a single point in time and then analyse the relationships between the energy drink and profitability using graphical analysis.Qualitative or QuantitativeThe research is a combination of both qualitative and quantitative approach because we will be conducted a detailed literature review and using closed ended questionnaire for data collection. This approach will help to collect data with focus on interactive process, authenticity, thematic analysis and construction of social reality. Consequently with the application of qualitative data collection we will incorporate all the characteristics of qualitative data collection.Implementation of the Research Plan/Data CollectionTo implement the research plan as discussed above, we will start with a literature review or competitor analysis:Literature ReviewEnergy drinks have become very popular worldwide, a study reveals in 2009 consumers in UAE consumed 16.1 million litres of energy drinks, according to estimates this is worth about USD 121.6 million or AED 446.6 million . The article further reveals that by 2014, the consumption of energy drinks is expected to increase to29.6 million litres a year which is worth USD 199.8 million. Another research conducted by Coca Cola in 2010 revealed that the consumption of energy drinks in UAE is around 12 million litres a year, the Arabs between the age of 19 to 29 years old account for 70% of the energy drink consumption . The consumption figures here clear show a healthy market demand for energy drinks in UAE, the research also shows that the age group 19 to 29 is the target market for the energy drink.Some of the leading brands in the market Red Bull, Power Horse and Burn have been in the market over last 10 years. According to one of the employees at Red Bull, the brand has been growing every year since Red Bull was established in 1998 except the year 2009 due to the effects of credit crunch. Further literature review revealed that there are more than 20 brands of energy drinks available in the market but Red Bull takes the market lead in dominating the market and the consumer mind. Power Horse is the second biggest name in the energy drink business. Burn an energy drink launched by Coca-Cola comes third; Burn was launched in 2007, the products of three competitors are:

Due to high consumption of energy drinks the government of UAE has shown concerns on the quality of the products, and on December 14, 2011 ESMA (Emirates Authority of Standardization and Metrology) issued a new resolution No. 19/2012 concerning the registration of energy drinks and the acceptable quality standards, in the new standard No. UAE.S/GSO 1926:2009 . The new law requires all the producers of energy drinks in UAE to register their products with ESMA before the deadline of 14th June, 2012.InterviewsFor the purpose of data collection interviews were conducted by using close ended questions the results are presented in analysis part. The questions asked to the respondents in interviews were as follows:1- Age:a. 19 to 29b. 30 to 40c. 41 and Over2- Would you prefer energy drink over classical drink or juices?a. Energy Drinkb. Tea/Coffee, Classical Carbonated Drink or Juices (Other Drinks)3- Would you always choose to buy the same energy drink every time?a. Yesb. No4- Are you satisfied with you energy drink?a. Yesb. NoAnalysisThe graphical analysis of the data collected is presented below:Question 1: Age of the respondent taking the interview:

The above graph shows that 73% of the respondents who took the interview for the energy drink were from the age group 19 to 29. In the graph the age bracket 19 to 29 is represented by 1, 30 to 40 by 2 and 41 & over by 3, this clearly shows that 70% of the people who consume energy drinks fall in the age group of 19 to 29. The target market for our energy drink is the age group 19 to 29.Question 2: Would you prefer energy drink over classical drink or juices?a. Energy Drink (represented by 1 in the following graph)b. Tea/Coffee, Classical Carbonated Drink or Juices (represented by 2)

This graph clearly shows the customer preference and changes, it shows that 73.3% of the respondents prefer to purchase an energy drink instead of going for a classical carbonated drink or juices. In todays busy routine the consumers always wanted something to get them going all day in the past it used to be coffee/tea, juices or carbonated drinks, but todays world have different preferences and the new drink is the energy drink.Question 3: Would you always choose to buy the same energy drink every time?a. Yes (coded as 1)b. No (coded as 2)The following graph presents the results.

73.3% respondents said they would like to go for a new drink every time they go to purchase a drink, predicting the consumer preferences and also showing the potential market to be captured.Question 4: Are you satisfied with you energy drink?a. Yes (coded as 1)b. No (coded as 2)

73.3% of the respondents said no to this question and said they wanted a new energy drink with a local flavour, and also explained that they have been tired of consuming international brands like Red Bull, Power Horse and Burn.ConclusionsThe research has revealed important information on the consumption, competitors and market share of energy drinks in UAE. It is been discovered that the target market for energy drinks are the people in the age group of 19 to 29 along with other useful information regarding the local energy drink market.It is been deduced that the energy drink must be launched as soon as possible with a strong promotional and advertisement campaign to compete competitors like Red Bull, Power Horse and Burn.

References

AlAzzeh, B. (2012, March). New Regulations for Energy Drinks. Retrieved January 5, 2013, from Al Tamimi & Co: http://www.tamimi.com/en/publication/publications/section-3/march-1/new-regulations-for-energy-drinks.htmlBadih, S. (2010, March 15). Business. Retrieved January 05, 2013, from Gulf News: http://gulfnews.com/business/features/uae-consumes-12m-litres-of-energy-drinks-every-year-1.597607Ligaya, A. (2010, May 11). Business. Retrieved January 5, 2013, from The National: http://www.thenational.ae/business/retail/region-abuzz-over-energy-drinksNichols, P. (2006). Social Survey Methods. Retrieved January 5, 2013, from Google Books: http://books.google.com/books?id=MLqyxiTDiNoC&pg=PA15&dq=social+survey+design&hl=en&sa=X&ei=L-XnUP7aOoaD4ATQroHoDg&ved=0CG8Q6AEwCQ#v=onepage&q=social%20survey%20design&f=falsePatton, M. Q. (2001). Qualitative Research & Evaluation Methods. Retrieved January 5, 2013, from Google Books: http://books.google.com/books?id=FjBw2oi8El4C&pg=PA47&dq=qualitative+data+collection&hl=en&sa=X&ei=IuPnULLFOc2R0QXKlICgAw&redir_esc=y

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