Question

In: Economics

Write a positioning statement for 5-Hour Energy. What are the potential challenges 5-Hour Energy faces in...

  1. Write a positioning statement for 5-Hour Energy.

  2. What are the potential challenges 5-Hour Energy faces in the future?

Solutions

Expert Solution

ANSWER :

positioning statement for '5-Hour Energy'.

Then the 5-Hour Energy shots are termed to be the "dietary supplements." According to the government a product will be a dietary supplement when these can be consumed orally and are not medical foods, conventional foods, pharmaceutical or preservatives drugs. When it was introduced first in the market, the popular energy drinks were Monster and Red Bull that targeted the young people, especially young men. However with more brands pop up as rivals the 5-Hour Energy has worked successfully and consistently for expanding their market share. For engaging more women and more athletes, the company started promoting a healthier image. The words such as “zero net carbs,” “zero sugar,” and “4 calories” were added prominently in their advertising strategy. Today, 5-Hour Energy accounts has strengthened it's position in the rapidly expanding market.

The potential challenges '5-Hour Energy' faces in the future

After the launch of 5 Hour energy drink, the brand was facing knock off's from other manufacturers who managed with similar packaging, design and graphics. Also the drink was priced higher at $3 per 2 ounces bottle and was not cheap or economical, considering the products from other established manufacturers such as Red Bull. Also the product faced speculation given that it was the very first 'energy shot' drink available in the market.

Coming to the challenges from health perspective, the FDA identifies a number of health hazards in connection with 5 Hour Energy. Reports find out that 5 Hour Energy contains 215 milligram of caffeine, thus making 5-hour energy containing double the amount of caffeine as a standard cup of coffee.

The challenge is that drinks such as 5 Hour Energy, Monster Energy etc, have deaths linked with their consumption. Caffeine, is an artificial borrowed energy which is not naturally generated, instead artificially simulated. This thus has a lot of medical issues due to the high doses of concentrated caffeine consumption.

The problem is that, other factors such as age, weight, Pre-existing conditions such as asthma , heart diseases etc have an adverse reaction to the consumers of this product. The first report was a death due to the direct consumption of 5 Hour Energy was in 2009. Caffeine is a type of drug, which can result in anxiety, gastrointestinal problems. Energy drinks which contains caffeine is regulated as a food addictive that can result in addiction while consumption and result in dangerous side effects and body imbalances.

Then do not possess much information relating to this issue, the risks of energy drinks can't be fully evaluated if we don't have all the information about people who've died or experienced other adverse effects. Also energy drinks are often mixed with alcohol because caffeine makes people feel less drunk but does absolutely nothing to change the actual blood alcohol level. But if it is absolutely must to have caffeine and drink caffeine induced beverages, it must to consult a doctor or a pharmacists to know about your health status or to get awareness on the negative effects on consumption of caffeine.

These are some of the questions on the following reports of US Food and Drug Administration on deaths and hospitalizations as reports from energy drink manufacturers, specifically in the reports includes Monster and Rock star energy drinks as well as 5-hour Energy that are available throughout pharmacies and convenience stores.


Related Solutions

What are the potential challenges '5-Hour Energy' faces in the future?
What are the potential challenges '5-Hour Energy' faces in the future?
what are the technology challenges that Disney faces?
what are the technology challenges that Disney faces?
What is the electric potential energy? Write the relation between the electric potential and the electric...
What is the electric potential energy? Write the relation between the electric potential and the electric potential energy.
list 5 challenges a venture faces in managing its growth?
list 5 challenges a venture faces in managing its growth?
what are some strength and challenges faces as a writer
what are some strength and challenges faces as a writer
5. What fraction of rest mass energy is converted from potential energy to kinetic energy when...
5. What fraction of rest mass energy is converted from potential energy to kinetic energy when a particle comes from infinity to the event horizon of a black hole?
What are the challenges Amazon faces and what are the impactions for its supply chain?
What are the challenges Amazon faces and what are the impactions for its supply chain?
What are the challenges of the electricity energy sector in terms of electric energy consumption and...
What are the challenges of the electricity energy sector in terms of electric energy consumption and the availability of combustion sources for electricity generation?
5 application of energy, transfer energy, potential energy. (application that based in real life. like something...
5 application of energy, transfer energy, potential energy. (application that based in real life. like something we can see. NOT examples) or something we USE
What are key tactics and strategic challenges your service operation faces ?
What are key tactics and strategic challenges your service operation faces ?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT