XS Energy

Marketing Plan
Erin Moller
Bryant Johnson
Sam Kunjummen
Megan Victorson Bryant Johnson Erin Moller

Sam Kunjummen Megan Victorson

University of Minnesota-Duluth Marketing Plan

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University of Minnesota-Duluth
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TABLE OF CONTENTS

EXECUTIVE BUSINESS SUMMARY 1

Mission Statement

History of XS Energy

Growth of the Business

Market Potential

PRODUCTS 2

13 Flavors of XS Energy Drinks

SITUATIONAL ANALYSIS 3

Internal Strengths and Weaknesses

External Opportunities and Threats

MARKET ANALYSIS 4

Target Market Identification

Market Demographics

Product Market Grid

MARKETING STRATEGIES 5

Product Strategy

Price Strategy

Promotion Strategy

Distribution Strategy

APPENDIX A Competitor Analysis

APPENDIX B Survey Results

Executive Business Summary
1

Mission Statement

The mission of XS Energy is to market an alternative to high sugar

energy drinks. Rather than getting energy from sugar and

carbohydrates, it’s packed with B-vitamins and amino acids that are

healthier and still give you the boost you need. Currently XS Energy

drinks are sold independently in cases, but the objective to our

marketing plan is to reach a younger demographic by supplying to

college campuses and offices, while still maintaining our private status.

History of XS Energy

In 2001, XS Energy Drink was launched into the U.S. market. During

the first year the drinks were marketed through retail outlets primarily

in the Western U.S. Our mission was to find people who could “sample

the drink and tell the story, making a personal connection with the

business” (David Vanderveen, co-founder of XS Energy Drinks). XS

Energy was the first energy drink brand to hit the market with a variety

of flavors, now totaling 13 different varieties and releasing a new flavor

every year. In September of 2002, XS Energy merged with Quixtar, an

Internet e-retailer and network marketing company, and began selling

through Independent Business Owners. Over 55,000 cases were sold

XS Energy Marketing Plan 1

within the first three weeks of distributing through IBO’s. According to

BevNET, within the first year of business with Quixtar, XS Energy Drink

became the second best selling energy drink in North America. They

have shown their potential to make a bold statement in a constantly

growing market, not only in the U.S., but also in world markets.

January 2003 – XS launches in Canada

January 2004 – XS launches in Australia and New Zealand

January 2005 – XS launches in United Kingdom

Growth of the Business

Within the first year, XS Energy did over $51 million in revenue,

over $70 million in the second year, and by the third year they had

made more than $90 million in revenue. Usually in the growth stage of

the business, revenues are fairly low because of production costs, but

since this market has such high demand XS Energy had no problem

attaining large revenues. According to current reports from the

company, IBO’s sell approximately one million cans every six days,

which is quite a leap from the 660,000 that were sold in the first three

weeks (XSBlast.com). XS Energy understands the need for varying

products and tries to keep up with their consumers by creating a new

flavor every 6 to 12 months. Their latest flavor is XS Gold, which is not

only a new flavor, but also a new category of drinks for XS. Reported

XS Energy Marketing Plan 2

sales in 2007 were $150 million, and the company expects continual

growth as the market expands.

Market Potential

Through our marketing plan, we are aiming to expand our sales

demographic and get our product name on college campuses

throughout the United States. XS Energy is not a household name like

Monster and Red Bull, but our goal is to distribute our product in

vending machines and school stores, while still keeping the personal

touch our IBO’s bring to the business. Vending machines make up 11%

of the market segment, which can greatly increase our sales (IBISWorld

Industry Report). Our plan is to increase knowledge, but not make the

company so large as to distribute to supermarkets and convenience

stores, which account for another 60% of market sales.

Since the release of the first energy drinks nearly a decade ago they

have grown popular at an amazing pace in the U.S. According to the

Beverage Marketing Corporation, the U.S. Energy Drink market is

projected to grow by 12% each year through 2010 (XSBlast.com). One

disadvantage XS Energy currently has is the fact their product is not

sold in stores and supermarkets, which is where 54% of all Energy

Drink sales are made (Beverage World). Creating the opportunity for

XS Energy Marketing Plan 2

XS Energy Drinks to emerge in stores and become more public will

greatly increase sales and increase market knowledge of the product.

Energy drinks, as a whole, are predicted to show the strongest

growth between 2007 and 2012, rising by 53% in total volume terms

(GMID). Energy drinks remain popular among younger “Generation Y”

consumers, for whom the drinks have replaced coffee as the preferred

source of caffeine. Part of this appeal is due to the newness of energy

drinks, which have only been in the US for a little over a decade, and

are unlikely to be used by their parents. Energy drinks are also

appearing in more flavors and brands than before, which allow more

consumers to find unique brands that appeal to them. With the new

release of flavors every 6 months, XS Energy has much potential in a

continuously growing market.

Products
2

XS Energy was the first innovator in the market of energy drinks to

release multiple different flavors. As of 2007, XS has released 10

energy drink flavors, as well as three caffeine free options. XS Energy

uses a blend of Sucralose, Acesulfame Potassium, and fruit essences to

give the drinks flavor without the added sugars. In fact, the calories in

the drink come from the 2 grams of amino acids. Sucralose and Ace-K

XS Energy Marketing Plan 2

are used as sweeteners in our beverages because they are high

quality, great tasting, and safe FDA approved sweeteners. Energy in

the drinks is derived from B-Vitamins, and each can of XS Energy

contains a full day’s supply of vitamin B6 and B12 (XSBlast.com).

Following their mission of releasing a new flavor every 6 to 12

months, XS Energy is releasing their latest flavor in the fall, titled XS

Gold Energy Plus. With the large variety of flavors, our company

believes there is a flavor for everyone.

XS Gold: A superfruit flavored

energy drink of acai, mangosteen,
blueberry, and pomegranate,
enhanced with Essentra. This is the
latest flavor in the XS Energy Drink
collection.

XS Black Cherry Cola: We

brought together the classic taste
of cola with a vibrant black cherry
to give you a powerful infusion of
delicious energy. XS Black Cherry
Cola Blast packs the punch so you
can work all day or play all night
without crash and burn.

XS Energy Marketing Plan 3

 XS Cherry Blast: Take whatever
curveball life throws at you with
Cherry Blast, which combines the
sweet tartness of sun-ripened
cherries with the natural
antioxidant-rich power of
pomegranate.

XS Tropical Blast: A powerful swirl of carbonated

passion fruit, peach, and pineapple. B vitamins
give you one long swell of power—and because
there’s no sugar, you’ll never wipe out. Plus you’ll get
essential amino acids and our proprietary blend
of herbs.**

XS Citrus Blast: Revs you up and

accelerates you through the day. A
delicious carbonated infusion of
orange, lemon, and lime, Citrus Blast
shakes you awake with big taste, B
vitamins, and our proprietary blend of
herbs like Reishi and Astragalus. Plus,
there’s no sugar or carbohydrates, so
you can avoid the crash.

XS Energy Marketing Plan 3

XS Cola Blast: Offering the traditional refreshing
taste of cola with none of the sugar or carbohydrates
and only 8 calories! And keeping with the XS trend,
we've put together our premium blend of herbs, key
amino acids and B Vitamins.

XS Cranberry- Grape Blast: Blast

off with a mouth-watering explosion of
big grape and cranberry flavors. No
sugar, no carbohydrates, just huge
taste and an even bigger explosion of
energy, without the calories. B
vitamins amp you up, while our
proprietary blend of herbs power you
through your day.**

XS Electric Lemon Blast: Pucker up

to Electric Lemon Blast for a sparkling
refresher that’ll give you the natural
energy surge you need to tackle any
task. B vitamins and essential amino
acids get your batteries charged—and
our proprietary herbal formula keeps
you that way.

XS Energy Marketing Plan 5

 XS Rootbeer Blast: Captures the
classic flavor pioneered by the same
sarsaparilla root that began the
popular refreshment of the Old West.
With no sugar, no carbohydrates, only
8 calories, and plenty of B vitamins,
this is one rootbeer that can take you
to the end of the trail with energy to
spare.**

XS Tea-Berry Blast: Get a powerful

antioxidant boost with our new
improved tea, an energy drink without
the carbonation. It offers the
antioxidant power of green and black
teas with energy boosting B vitamins
and a unique blend of Adaptogenic
herbs.

XS Peach Tea Blast: XS is taking

flavor to the next level with an
exciting twist on iced tea. We have
taken the full-blown intensity of EGCG
as well as other mighty antioxidants
and combined them with the sweet
taste of summer peaches and ice-cold
tea.

XS Energy Marketing Plan 7

** These varieties also offered in Caffeine-Free

For more drink information, visit

http://www.xsgear.com/info/drink_info.asp

XS Energy Marketing Plan 9

Situational Analysis
3

Internal Strengths and Weaknesses

XS Energy prides itself on working through Independent Business

Owners to sell our products to businesses all over the world. We

maintain closer business relationships with all distribution areas by

using IBO’s rather than distributing from one central unit. Who else

can say their energy drinks are delivered right to their door? Not many

companies have the personal touch that IBO’s bring to the business.

There are many competitors in the market, and any small touches can

give us a competitive edge. Along with distribution and flavors, price is

also an important factor in gaining profits.

When it comes to price, XS Energy has an advantage over the

competition. Many energy drinks in the market are almost three dollars

a can, and they contain sugars and carbohydrates to give you energy

rather than nutrients the body really needs. We may have a smaller

can, but what the can contains is the most important part. Our drinks

are packed with B-Vitamins and amino acids to give you the energy

you need without the added sugars. Many cans currently in the market

are around the same price, but consumers may only notice the size of

the can. The selling point we try to emphasize is how much healthier

XS Energy Marketing Plan 11

our drink options can be, and how energy through a small amount of

vitamins can be more beneficial than a large amount of sugars and

carbohydrates.

Since we maintain such close relationships with our customers and

choose not to distribute to larger chains, we are not as well known as

Red Bull and Monster. Having a private company gives us a

disadvantage in market share and restricts potential customers from

coming in contact with our product. We would like to keep the

company private, but be able to distribute to larger chains and colleges

to get our name better known and recognizable.

Another trait some consumers may see as a disadvantage is the

smaller size of our cans, being only 8.4 oz. Some energy drinks come

in cans nearly twice the size of ours, but don’t contain the same

vitamins and amino acids that consumers get from XS Energy Drinks.

Lifestyles today seem to be more based on health and nutrition, but

many consumers like to see the larger cans rather than the nutrition

facts, which give Monster a competitive advantage over XS Energy.

Monster and Rockstar use 16 oz cans and bright, flashy colors to

attract consumers, which is clearly working for them. XS Energy uses

all the bright colors and large icons, but their smaller can size still can’t

stand up to larger competitors.

External Opportunities and Threats

XS Energy Marketing Plan 2

 When energy drinks emerged into the market nearly a decade ago,

there were very few flavor choices. XS Energy has gained a reputation

of being innovators, introducing numerous new flavors to the category,

including three caffeine free varieties. As a part of our marketing plan

to set us apart from competitors, we have made it a mission to release

a new flavor every year. This year’s new flavor is XS Gold containing a

mix of superfruits such as blueberry and acai. Each year our customers

can expect something new and exciting, which also brings potential for

new customers. As well as new flavor innovations, XS Energy also

offers a healthy alternative to other energy drinks by using vitamins

and amino acids to give our consumers the energy they need.

In today’s society, there has been a growing emphasis on eating

healthy and staying in shape. Energy drinks such as Monster contain

about 100 calories, 26 grams of carbohydrates, and 26 grams of sugar

in an 8 oz serving (BevNET). XS Energy’s main selling point is being a

healthier alternative to other energy drinks in the market. Most drinks

in the XS Energy line contain 0 grams of carbohydrates, 0 grams of

sugar, and only 8 calories per 8.4 oz can (XS Gear).

The major threat we face is not being a public company. Red Bull

and Monster have a large advantage over our company by placing

their products in convenience stores and vending machines at nearly

every corner. They even have stock market share and gain money

XS Energy Marketing Plan 2

through sponsoring, but XS Energy has stayed lower key. Our

marketing plan is not intending to make us as large as other

competitors, but we want to get our company known to a younger

demographic on college campuses. By placing vending machines on

college campuses and by selling single cans in school stores we should

be able to boost sales and get our brand name in the heads of our

target market consumers.

Market Analysis
4

Target Market Identification

The current consumption market for XS Energy Drinks are people

above the age of 40, mainly “soccer mom” types (Beverage World).

These people fit the ideal because they have the money to spend on

energy drinks and other luxury items, and may be the ones purchasing

groceries for the whole household. They are also more likely to be

concerned with health issues such as sugars and calories. According to

XS Energy’s previous statistics, only about one can per week per

household is currently consumed (XS Gear), which is why we are

XS Energy Marketing Plan 3

aiming to sell to younger adults to hopefully increase amount of cans

consumed per household.

The feature that sets our plan apart from the others currently

implemented by XS Energy is that we want to get our name known to

younger audiences. Trying to sell to a younger, impressionable market

will greatly benefit the company’s revenues. The group we plan to

market ranges from 16-25; from kids with a new found freedom, to

college students, and also reaching young professionals.

The sixteen year olds find themselves a new freedom with the

ability to drive and get a job, which brings in their own flow of income.

They are able to spend more freely because the money is theirs, and

they no longer need to rely on their parents for money. For the college

students to young professionals, they need energy and it is apparent

that they gain habits in college. Whether it is a morning cup of coffee

or an energy drink after the first class of the day, this activity will carry

through when they get their first jobs. The need for energy is apparent

in everyone’s life, and the older you get the more concerned about

health you become. This makes the young professionals a good target

for our product. If we can get the teenagers and college students used

to our product they may find more benefits than just energy as they

mature and get into the working world.

Market Demographics (Global Market Information Database)

XS Energy Marketing Plan 2

Market Sizes (per 8 oz. serving size) USA

2002 624,879,136
2003 842, 729, 975 34.9% Growth
2004 1,278,225,135 51.7% Growth
2005 2,113,177,208 65.3% Growth
2006 3,138,856,560 48.5% Growth
2007 4,157,945,347 32.5% Growth

8 oz. Servings Per Household Per Year

2002 100
2003 132.5
2004 199.6
2005 327.8
2006 481.5
2007 630.6

Product Market Grid

Market Segment Products

General Group with Need Caffeinated Drinks Caffeine-Free

Options
Need Energy High School Primary Secondary
85% Students
College Students Primary Secondary
Adults Primary Secondary
Thirsty 15% High School Secondary Primary
Students
College Students Secondary Primary
Adults Secondary Primary

Since we are trying to sell more of our product to a younger age

group, we need to understand who they are and what they want. We

will separate our target market into three key demographics by age:

XS Energy Marketing Plan 1

high school students, college students, and adults. Each one of these

segments can be looked at individually. Some offer more than others

as consumers but each one is key to our product. According to Mintel,

“Young adults aged 18-24 are the key consumers in the market with

34% drinking energy drinks in 2008,” this is where we need more users

of XS Energy. This should not be that difficult because in 2008, teens

accounted for around 21% of total energy-drink consumers (Mintel).

XS offers the ability to purchase their product online, which will

become a key characteristic for purchasing with the computer savvy

young adults. However, this may also cause an added inconvenience

in attaining the product.

Teenagers seem more interested and likely to try new products, and

the wide variety of flavors that XS has is a great advantage over its

single flavored competitors. College students are notorious for their all

night study sessions, and as unnatural as that is, they need a means of

getting energy. Students find themselves taking on a full academic

load and many of them also working. These qualities make them a top

candidate for energy drink users. One key characteristic that sets

them apart from the teenagers is their ability and freedom to spend

money as they please. Spending habits change drastically when you

have more freedom and are living away from home. According to

XS Energy Marketing Plan 2

Mintel, Parents are the main source of income for 55% of all teens,

which changes when they go to college.

As the main consumer of XS energy, the 40 plus age group doesn’t

fit into the typical energy drink crowd. However, some of the

specifications that these adults are looking for are found with this

product that many others don’t have. As people get older, health

becomes an increasing concern. This is a main selling point for XS

Energy; it offers a healthy alternative to its sugar filled competitors.

The group above 30 is also great consumer because they are

financially independent and may purchase the product for the

household. By doing this they will be introducing their kids to the

product and encouraging them to use a healthy alternative to other

products. Parents can have a strong influence as to what their children

will consume in the future.

Marketing Strategies
5

Product Strategy

XS Energy is a healthy energy drink, fortified with essential

nutrients and herbs that will help boost up anyone with a lull in their

energy and focus. XS Energy is a healthy and tasty alternative to a

XS Energy Marketing Plan 3

high sugar soda or energy drink. Also a good alternative to coffee and

expensive espresso drinks. With a proprietary blend of herbs that

contain a mix of Gandoderma, Ginseng, Astragalus, Echinacea

Purpurea, Reishi mushrooms and Schisandra also amino acids L-

Taurine and L-Glutamine, that give this healthy energy drink its blast of

natural energy needed to keep drinkers gain back their spunk. XS

Energy comes in a convenient 8.4-ounce aluminum can, which is the

perfect size to throw in a purse, backpack, gym bag, or brief case.

Every flavor comes with its own color and design on the can

distinguishing it from the other flavors.

Price Strategy

XS Energy currently provides competitive prices ranging from

$23.88 to $34.88 for a 12-pack case of XS Energy drinks. We would

like to see the company branch out and start selling single cans in

convenience stores, and vending machines. We would like to keep a

competitive price of $2.00 a can. Also to offer incentives of buying

more than one at a time, and put in place a discount of 2 for $3.50.

Promotion Strategy

To promote XS Energy to our new target market of teens and young

adults, we want to focus to put promotions of schools and campuses.

Offer incentives for students to spend their money on XS Energy drinks

by offering deals on buying more than one. Currently XS Energy

XS Energy Marketing Plan 2

targets 35 – 45 year old women, or the main ‘buyer’ of the household.

So we want to keep the strategy of buying in bulk through

Amway/Quixtar for that demographic. To advertise to the new younger

target market we also would like to team up with dance clubs, sports

teams, and music producers. With dance clubs we would offer

alcoholic and non-alcoholic drinks in the club made with XS Energy.

For sports teams we want to sponsor new and edgy sports such as

snowboarding, boxing, and lacrosse to get our logo out in the action.

Lastly with music producers we hope to help sponsor musical tours and

have a booth at concerts to give out samples and also sell XS Energy

to consumers.

Distribution Strategy

As of now XS Energy is only available to customer by buying

through either an IBO (Independent Business Owner) or through

Amway/Quixtar directly. We want to make XS Energy available to

everyday customers in gas stations, grocery stores, convenience

stores, and in vending machines. Currently the Amway/Quixtar have

an exclusive contract with XS Energy for selling the product in the USA.

But our next goal is to have XS Energy available to buy in outlet and

retail stores in other countries such as Canada, the UK, Australia, and

New Zealand. Currently XS Energy is transported through general

XS Energy Marketing Plan 2

mailing companies like FedEx. In the next few years we would like XS

Energy to have its own distribution center with its own delivery trucks.

Financial Summary
6

Purchases include packaging materials, beverage bases, and

beverage ingredients. Distribution costs arise from product delivery to

a large number of markets. XS Energy must ship products to

Independent Business Owners, who then ship products to their

customers. Other costs include depreciation, rent, utilities, interest,

and other organizational sustaining costs (IBISWorld Industry Report).

These costs consist of estimates throughout the soft drink industry.

Life Cycle Analysis

Out of the four life cycle stages, Energy Drinks are in the

maturation stage. Since energy drinks have been around for many

years, they are no longer in the introductory stage. New products and

new emerging brands have expanded consumer choice in the energy

drink market, which has pushed them past the growth stage. Major

mergers among energy drink companies and soft drink companies

indicate a shift to a mature life cycle stage. Industry Value Added (IVA)

has grown at an estimated rate of 2.1% during 2008, and is expected

XS Energy Marketing Plan 2

to grow by a further 2.6% per year until 2013 (IBISWorld).

Break-Even Analysis

Break-Even Analysis
Forecast
Volume in
Units
(Cases) 5,832,117
Total $139,270,9
Sales 54

Variable
Costs
Direct (99,320,95
Labor 3)

Total
Variable (99,320,95
Costs 3)
Contributi
on Margin 39,950,001

Fixed (39,950,00
Costs 0)
Profit
Before
Vary-with-
Profit
Costs $1

For our break even analysis we used information from “The Risk

Management Association Annual Statement Studies Financial Ratio

Benchmarks.” Because XS Energy is a private company, certain

numbers were not available for us to take so; we had to use numbers

XS Energy Marketing Plan 1

from a similar sized in the financial statements to find our break-even

point.

In order to find the break-even point we took the Net Sales (100%)

and subtracted Gross Profit (28.7%), this gave us a Variable Cost of

(71.3%). To find our Unit Variable Cost we took that 71.3% multiplied

by the cost of a case of XS Energy as $23.88, giving us $17.03. We

assumed our fixed costs to be our Operating Expenses in the Financial

Ratio Benchmark which came out to be 23.5%. We multiplied this by

our $170 million to get 39,995,000. Using the Break-Even Equation of

Fixed Cost/ (Unit Price-UVC), we get 39,995,000/(23.88-

17.03)=5,832,116. This is the number of cases that we will have to

sell in order to break even. Based on these numbers, and the 2007

sales of XS Energy of $170 million, they were able to turn a profit.

With this information we are able to make projections and goals to sell

more cases and estimate what our profits will be.

Implementation Plan
7

XS Energy Drinks are currently marketed as just that, “Energy

Drinks”. Through our marketing plan, we are aiming to launch our

product to a younger audience as a “Health Drink that Promotes

Energy”. Since our product contains B-Vitamins and Amino Acids that

XS Energy Marketing Plan 2

are healthy for the body and promote brain function, we would like our

drink to be associated with health drinks rather than energy drinks.

The current market captured by the company is the over 35 crowd,

or “Generation X” (Mintel). Our plan is to market to an audience of

young adults, mainly 16-23 year olds. We are hoping since the drink

contains vitamins and nutrients healthy for the body, parents will find

it to be a good alternative to the other sugar filled energy drinks

currently in stores.

Vending machines throughout college campuses and high schools,

and selling our products individually through school stores will help

increase awareness among younger consumers. Vending machines

create impulse buys when placed in high traffic areas, which is an area

where XS Energy is currently lacking. They have remained a private

company and strictly provide their product through IBO’s, but we are

hoping to get the name well known among a younger crowd through

wider distribution channels.

We are going to market the product as a health drink that promotes

energy. When people think of energy drinks they automatically think of

high sugar and high carbohydrates, which is the exact opposite of our

product. Our main emphasis will be getting our consumers the energy

they need without all the added sugars and carbohydrates that no one

needs to add to their diet. Health has been an increasing trend in

XS Energy Marketing Plan 3

today’s society and XS Energy Drinks can be a positive addition to your

daily diet.

In order to get our name in the schools, we need to put vending

machines in places that students can easily access on-the-go. Students

are living in a fast paced world, and our product needs to keep up with

them. Giving them the option of buying it in school gives an alternative

source of attaining the product. Fliers will also be placed throughout

the school in high traffic areas so students are aware of our name and

the healthier options that are available.

For our implementation into schools and universities, it will not be

easy to get our product into these resources. Schools like the

University of Minnesota and satellite campuses put out RFP or requests

for proposal which is basically an open bidding for companies who

want to get involved to put a bid in for a contract. These contracts can

be for just the solar campuses like the University of Minnesota-Duluth

or for the whole campus so its product goes out to every school. The

school sets out a list of criteria that they are looking for so they can

find the company to best suit their needs. This would be difficult for XS

Energy because they would be competing against large companies like

Coca-Cola and Pepsi. It would be hard for us to compete financially

against these power houses of the soda and energy drink industry.

There would need to be a large amount of research done to determine

XS Energy Marketing Plan 4

whether putting a bid into these would be worth the cost and time for

XS Energy. This information was given by Penny Graskey of Coca-Cola.

She is the On Premise Customer Development Manager for the Duluth

Area.

While no numbers were available, the cost for a home school and

sister schools like the University of Minnesota would be great. I think

the best suggestion would be to start with smaller schools and build

report and eventually get into the larger schools. By doing this we

would still be getting our name out while spending a significant less

amount of money trying to compete against the larger companies.

These smaller facilities would be a good test for how our product fairs

in schools.

Sporting events and entertainment are very popular on college

campuses, so we would like to use banners of our product during

basketball games or even during student concerts to get our names in

the mainstream of students. Athletes and nutrition-conscious students

will notice our “Health drinks that promote energy” signs, and realize

they can get energy without adding sugars that can ruin their workout

and performance. When students see our signs promoting healthy

energy, they will be eager to try the new product that not only tastes

good, but also is good for them.

XS Energy Marketing Plan 5

 All in all, our main goal is to be seen as a healthy alternative to the

other high sugar energy drinks in the market. Vending machine sales

are constantly increasing, and edging XS Energy into that market will

continually increase revenues. Through product placement in high

traffic areas and fliers throughout the school, we are hoping students

will notice our diverse product and boost sales in a new market for XS

Energy.

http://www.franchiseonline.com/cgi-

bin/folpages/xynergy2.gif

XS Energy Marketing Plan 7

 APPENDIX A Competitor

Analysis

Even though energy drinks are fairly new to the United States, their

popularity has grown at a remarkable pace. The energy drink market

has grown from $100 million to more than $250 million in just two

years (XSGear.com). Red Bull, the most widely advertised energy

drink, claims to sell over one billion cans every year.

Fast growth in the specialized coffee market has also made a great

contribution to the growth of energy drinks. People in today’s market

want things fast, and expanding energizing coffee into can form is a

great idea for people on-the-go. This is a great advantage for people

who want more options for energy, rather than picking up their every

day coffee.

The average American family drinks several gallons of liquid every

day, and everyone loves having options. Many of the drinks consumed

are soda or other forms of sugared and caffeinated drinks to provide

energy for the day. Since there are so many new energy drinks brands

emerging in the market, companies need to have a competitive edge

to get their name in the minds of consumers.

XS Energy Marketing Plan 3

XS Energy Marketing Plan 5
XS Energy Marketing Plan 6
APPENDIX B Survey Results

XS Energy Marketing Plan 7

XS Energy Marketing Plan 9
Sources

"XSGEAR.COM: FAQ." XSGEAR.COM. Jan. 2007. 01 Dec. 2008

<http://www.xsgear.com/support/faqs.asp>.

XS Energy Marketing Plan 11

1. "XSGEAR.COM: FAQ." XSGEAR.COM. Jan. 2007. 01 Dec. 2008

<http://www.xsgear.com/support/faqs.asp>.

2. "BevNET.com Media for XS Energy Drink." BevNET.com.

BevNET.com, Inc. 01 Dec. 2008

<http://www.bevnet.com/reviews/xsenergy/media.asp>.

3. Global Market International Database

4. Energy unleashed: a unique distribution model for XS Energy Drink

proves a winner. Beverage World, 127. March 15, 2008. RDS

Business Suite, UMD Library.

5. Soft Drink Production in the U.S: 31211. IBISWorld Industry Report.

October 10, 2008.

6. "Official Website of XS Energy Drink." XSBlast.com. 01 Dec. 2008

<http://xsblast.com/default.aspx>.

7. Financial Ratio Benchmarks: Annual Statement Studies.

Philadelphia, PA: The Risk Management Association, 2007. 284-85.

8. Cirillo, Jennifer. "Energy Drinks Are On A Steady Track." Beverage

World Apr. 2008: S15-17.

9. Kleiner, Adam. "XS Worldwide: With a Unique Distribution Model, XS

Energy Drink is Unleashed." Beverage World. 11 Mar. 2008. Ideal

Media. 18 Nov. 2008

<http://www.beverageworld.com/content/view/34516/>.

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10.Solman, Gregory. "Strategic Smarts Pay Off." Ad Week. 8 Aug.

2007. Nielsen Business Media, Inc. 18 Nov. 2008

<http://www.adweek.com/aw/national/article_display.jsp?

vnu_content>.

11.“Market Size and Forecast.” Mintel/ based on information

Resources, Inc. InfoScan. Energy Drinks June 2008. 15 Nov. 2008.

University of Minnesota Duluth. Mintel Reports.

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