The paper "Consumers’ Preferences and Behaviour in the Energy Drinks Industry in the UK and China" is a good example of a business case study. In the face of chronic diseases such as obesity, diabetes and cancer, consumers throughout the globe are shifting from consuming carbonated soft drink to consuming alternative healthy beverages. This has, therefore, affected the consumption patterns, with older adults preferring energy and vitamins enhanced drinks, on one hand, and children preferring juices on the other hand. Therefore, the demand for alternative beverages such as energy drinks is expected to increase globally as buyers’ purchasing power increases (Deichert et. al, 2006).
Leading beverage companies, including Coca-Cola, PepsiCo and Red bull are putting efforts into a deep investigation of how beverage customers behave, after and throughout the purchasing process. Each consumer has unique needs and, therefore, beverage firms should predict the trends in buying behaviour in order to develop products that meet the diverse needs of their clients (Hitt, Ireland, & Hoskisson, 2013). This paper will analyze and discuss how cultural factors affect consumers’ preferences and behaviour in the energy drinks industry in the UK and China. Brief Description In today’ s world, energy drinks have become a major source of energy, especially among children.
These alternative beverages play a critical role in providing extra burst in energy, promoting wakefulness, maintaining attentiveness and enhancing moods. A recent investigation shows that energy drinks contain caffeine which causes physical and psychological addictions. Statistics reveal that, in the UK and China, more than 70% of the kids’ population consumes energy drinks each day. They are found in most colleges and high schools. They are mostly packed in appealing cans to catch the attention of energy drinks’ enthusiasts. Table 1.
0: Worldwide and Regional Market Shares for the Three Largest Producers of Alternative Beverages, 2009 Company Worldwide United States Asia-Pacific Europe PepsiCo 26.5% 47.8% 12.4% 12.9% Coca-Cola 11.5% 10.2% 13.7% n/a Red Bull 7.0% 10.6% n/a 10.1% Others 55% 31.5% 73.9% 77.0% Total 100% 100% 100% 100% Figure 1. 0: Worldwide and Regional Market Shares for the Three Largest Producers of Alternative Beverages, 2009 Source: Euromonitor, 2009 The above figures show that the alternative beverage industry has recorded remarkable growth in the recent past. After experiencing slow and erratic growth for decades, the energy drinks industry is presently performing much better (Heckman, Sherry & Mejia, 2010). In an effort to gain a larger share of the market, marketers in the energy drinks industry are launching new products.
In addition, they are researching on customers’ needs in order to discover their latent needs and hence produce appropriate goods. Red Bull and Coca-Cola are the global market leader as far as energy drinks beverages are concerned. Other players in the alternative beverages industry include PepsiCo and Rockstar. It is worth noting that competition in the alternative beverages industry is still. For this reason, firms have to predict changes in client’ s trends and take steps to be ahead of them (Heckman, Sherry & De Mejia, 2010). Considering that there are new trends in the alternative beverages industry, it is important to compare and contrast the cultural differences between the United Kingdom and China to see the impact.
Quantitative research on existing documented data will be used to collect this information.