CHAPTER -1

INTRODUCTION
An energy drink is a type of beverage containing stimulant drugs, caffeine, which is marketed
as providing mental and physical stimulation. They may or may not be carbonated and many
also contain sugar or other sweeteners, herbal extracts and amino acids. They are a subset of
the larger group of energy products, which includes bars and gels, and distinct from sports
drinks, which are advertised to enhance sports performance. There are many brands and
varieties of energy drinks.

Coffee, tea and other naturally caffeinated beverages are usually not considered energy
drinks. Other soft drinks such as cola may contain caffeine, but are also not energy drinks.
Some alcoholic beverages, such as Buck fast Tonic Wine, contain caffeine and other
stimulants. According to the Mayo Clinic, it is safe for the typical healthy adult to consume a
total of 400 mg of caffeine a day. This has been confirmed by a panel of the European Food
Safety Authority (ESFA), which also concludes that a caffeine intake of up to 400 mg per day
does not raise safety concerns for adults. According to the ESFA this is equivalent to 4 cups
of coffee (90 mg each) or 5 standard cans (250 ml) of energy drink (80 mg each).

Energy drinks have the effects caffeine and sugar provide, but there is little or no evidence
that the wide variety of other ingredients have any effect. Most of the effects of energy drinks
on cognitive performance, such as increased attention and reaction speed, are primarily due to
the presence of caffeine. Other studies, however, ascribe those performance improvements to
the effects of the combined ingredients. Advertising for energy drinks usually features
increased muscle strength and endurance, but there is still no scientific consensus to support
these statements. Energy drinks have been associated with health risks, such as an increased
rate of alcohol-related injury, and excessive or repeated consumption can lead to cardiac and
psychiatric conditions
Energy drinks are marketed to provide the benefits among health effects of caffeine along
with benefits from the other ingredients they contain. Health experts agree that energy drinks
which contain caffeine do provide the effects of caffeine. The consumption of alcohol drinks
combined with energy drinks is a common occurrence on many college campuses. The
alcohol industry has recently been criticized for marketing cohesiveness of alcohol and
energy drinks. The combination of the two in college students is correlated to students
experiencing alcohol-related consequences, and several health risks.
There is no good evidence that other ingredients in energy drinks provide further benefits,
even though the drinks are frequently advertised in a way that suggests they have unique
benefits. The dietary supplements in energy drinks may be purported to
provide detoxification, sustain mental process, protect heart health, and reduce muscle
fatigue. None of these claims are backed by good evidence, however, the ingredients alone,
for example taurine or vitamin B, are scientifically proven to provide positive effects on the
metabolism.

Variants
Energy shots are a specialized kind of energy drink. Whereas most energy drinks are sold in
cans or bottles, energy shots are usually sold in smaller 50ml bottles. Energy shots can
contain the same total amount of caffeine, vitamins or other functional ingredients as their
larger versions, and may be considered concentrated forms of energy drinks. The marketing
of energy shots generally focuses on their convenience and availability as a low-calorie
"instant" energy drink that can be taken in one swallow (or "shot"), as opposed to energy
drinks that encourage users to drink an entire can, which may contain 250 calories or more.

Effects

A health warning on a can of the Austrian Power Horse energy drink: "Consumption of more
than two cans in a day may be harmful to your health. Not to be used for pregnant women,
breast feeders, children under the age of 16, people with heart disease, high blood pressure,
diabetes, allergy to caffeine, and athletes during exercise."
Energy drinks have the effects caffeine and sugar provide, but there is little or no evidence
that the wide variety of other ingredients have any effect. Most of the effects of energy drinks
on cognitive performance, such as increased attention and reaction speed, are primarily due to
the presence of caffeine. Advertising for energy drinks usually features increased muscle
strength and endurance, but there is little evidence to support this in the scientific literature.
A caffeine intake of 400 mg per day is considered as safe from the European Food Safety
Authority (EFSA).Adverse effects associated with caffeine consumption in amounts greater
than 400 mg include nervousness, irritability, sleeplessness, increased urination, abnormal
heart rhythms (arrhythmia), and dyspepsia. Consumption also has been known to cause pupil
dilation when taken with certain antidepressants or SSRIs. Caffeine dosage is not required to
be on the product label for food in the United States, unlike drugs, but some advocates are
urging the FDA to change this practice.
Combined use of caffeine and alcohol may increase the rate of alcohol-related injury.Energy
drinks can mask the influence of alcohol, and a person may misinterpret their actual level of
intoxication.[29] Since caffeine and alcohol are both diuretics, combined use increases the risk
of dehydration, and the mixture of a stimulant (caffeine) and depressant (alcohol) sends
contradictory messages to the nervous system and can lead to increased heart rate
and palpitations. Although people decide to drink energy drinks with alcohol with the intent
of counteracting alcohol intoxication, another large majority do so to hide the taste of alcohol.

However, in the 2015, the EFSA concluded, that Consumption of other constituents of
energy drinks at concentrations commonly present in such beverages would not affect the
safety of single doses of caffeine up to 200 mg. Also the consumption of alcohol, leading to
a blood alcohol content of about 0.08%, would, according to the EFSA, not affect the safety
of single doses of caffeine up to 200 mg. Up to these levels of intake, caffeine is unlikely to
mask the subjective perception of alcohol intoxication.

Chemistry

Energy drinks generally contain methylxanthines (including caffeine), B vitamins, carbonated

water, and high-fructose corn syrup (for non-diet versions). Other commonly used ingredients
are guarana, yerba mate, aa, and taurine, plus various forms
of ginseng, maltodextrin, inositol, carnitine, creatine, glucuronolactone, sucralose and ginkgo
biloba. Some energy drink manufacturers do not report how much caffeine their products
contain.
One survey found that various energy drinks had 6242 milligrams (mg) of caffeine per
serving. In comparison, an 8 US fluid ounces (240 ml) cup of coffee contains 100 mg of
caffeine and 12 US fluid ounces (350 ml) of Coca-Cola Classic contains 35 mg of
caffeine.] Consumer Reports expected that the caffeine content of a beverage should be within
20% of what the label claims, but product testing on United States energy drinks found that
the caffeine levels of some energy drinks vary beyond that range. A major producer of energy
drinks in the United States explained that they do not report caffeine levels because "there is
no legal or commercial business requirement to do so, and also because our products are
completely safe, and the actual numbers are not meaningful to most consumers. Scientific
groups and consumer organizations have requested more disclosure in ingredient lists.
The sugar in non-diet energy drinks is food energy that can be utilized by the human body.

Frequency of Use

Globally, energy drinks are typically attractive to young people. Approximately 66 percent of
consumers are between the ages of 13 and 35 years, with males being approximately 65
percent of the market. A 2008 statewide Patient Poll conducted by the Pennsylvania Medical
Society's Institute for Good Medicine found that: 20 percent of respondents aged between 21
and 30 had used energy drinks in high school or college to stay awake longer to study, or to
write a paper; and 70 percent of respondents knew someone who had used an energy drink to
stay awake longer to study or work.
US research by Packaged Facts in 2012 showed that consumers aged between 18 and 34
years, men, Hispanics, Pacific region residents and adults with children in the household were
the demographic groups that were using the highest amounts of energy drinks.

HISTORY

Energy drinks were an active subset of the early soft drink industry; Pepsi, for instance, was
originally marketed as an energy booster. Coca-Cola's name was derived from its two active
ingredients, both known stimulants: coca leaves and kola nuts (a source of caffeine). Fresh
coca leaves were replaced by "spent" ones in 1904 because of concerns over the use
of cocaine in food products; the federal lawsuit United States v. Forty Barrels and Twenty
Kegs of Coca-Cola pressured The Coca-Cola Company into reducing the amount of caffeine
in its formula by 1916. These developments brought an end to the first wave of energy drinks.
[39]

In the UK, Lucozade Energy was originally introduced in 1929 as a hospital drink for "aiding
the recovery;" in the early 1980s, it was promoted as an energy drink for "replenishing lost
energy." One of the first post-Forty Barrels energy drinks introduced in America was Dr.
Enuf. Its origins date back to 1949, when a Chicago businessman named William Mark
Swartz was urged by coworkers to formulate a soft drink fortified with vitamins as an
alternative to sugar sodas full of empty calories. He developed an "energy booster" drink
containing B vitamins, caffeine and cane sugar.

After placing a notice in a trade magazine seeking a bottler, he formed a partnership with
Charles Gordon of Tri-City Beverage to produce and distribute the soda.Dr. Enuf is still being
manufactured in Johnson City, Tennessee and sold sparsely throughout the nation.

In Japan, the energy drink dates at least as far back as the early 1960s, with the launch of
the Lipovitan brand. However, in Japan, most of the products of this kind bear little
resemblance to soft drinks, and are sold instead in small brown glass medicine bottles, or
cans styled to resemble such containers. These "eiy dorinku" (literally, "nutritional drinks")
are marketed primarily to salarymen. Bacchus-F, a South Korean drink closely modeled after
Lipovitan, also appeared in the early 1960s and targets a similar demographic.
In 1985, Jolt Cola was introduced in the United States. Its marketing strategy centered on the
drink's caffeine content, billing it as a means to promote wakefulness. The drink's initial
slogan read: "All the sugar and twice the caffeine."
In 1995, PepsiCo launched Josta, the first energy drink introduced by a major US beverage
company (one that had interests outside energy drinks), but Pepsi discontinued the product in
1999.[citation needed] Pepsi would later return to the energy drink market with the AMP brand.
RESEARCH DESIGN:

Primary data:

- Through questionnaire.

Secondary data:

- Through internet

Sample Procedure: Random sampling

Research design: the primary data and secondary data will be studied and analyzed
appropriately and interpreted to extract certain facts. Whenever necessary statistical tools and
financial tools like tabulation, graphs etc will be used to present the findings effectively.

SCOPE OF THE STUDY

This project helps in Studying on factors affecting customers buying decision towards
energy drink in Delhi.

Objective :
LIMITATIONS

1. An in depth study might not be done because of time constraints.

2. The study will be conducted in Delhi only.

Literature review

1. Bingl University, Faculty of Economics and Administrative Sciences, Department of

Economics, Bingol/Turkey

Abstract Purpose: This study aimed to determine profile and purchasing preferences of a
target consumer group who prefer and purchase energy drinks marketed under different
names.

The study was carried out in Adana province, which is one of the largest cities of Eastern
Mediterranean Region of Turkey. Design/methodology/approach: Results of questionnaires
administered to a total of 300 consumers through face-to-face interviews were evaluated in
the study.

Conjoint Analysis was used for data analysis. Conjoint analysis is a multivariate analysis
technique commonly used in marketing research. Conjoint Analysis is a method for
systematic evaluation and prediction of limited number of alternative choices of a consumer
or decision-maker. Findings: It was found that the majority of the consumers consuming
energy drinks were males in 18-24 age group.

According to the results, packaging was the most influential factor affecting the consumers
choices and preferences for energy drinks, and accounted for 31.78% of purchasing decisions.
Other factors in purchasing decisions were price, the amount of caffeine and brand,
respectively. Originality/value: Determining Consumers Preferences for Energy Drinks
Consumption with Conjoint Analysis.

2. Catherine W. Striley and Shivani R. Khan

Purpose of review
In the field of caffeine research, interest in and concern for energy drink consumption have
grown. Most caffeine-related research studies published in 2013 focused on energy drink
consumption. This article reviews this literature.
Recent findings

Prevalence of energy drink consumption varies by measure and age group. Lack of a
standardized definition of use inhibits comparison across studies. Studies reviewed show that
energy drink consumption is generally low, but the minority who drink the most may be
consuming at unsafe levels. Energy drinks are popular among adolescents and young adults.
They boost energy and alertness in some conditions, but may have adverse hemodynamic
effects. Harmful consequences, including involvement in risky driving, riding with an
Intoxicated driver and being taken advantage of sexually, were reported significantly more
often by adolescents and young adults who combined energy drinks with alcohol compared
with those who did not.
SummaThis review of recent literature focused on prevalence, motivation, and consequences
of energy drink use.
Purpose of review
In the field of caffeine research, interest in and concern for energy drink consumption have
grown. Most in 2013 focused on energy drink consumption. This article reviews this
literature.

3. A study of factors responsible for brand preference in FMCG sector.

The purpose of this paper is the study of factors responsible for brand preference in FMCG
products, increasing competition, more due to globalization, is motivating many companies to
base their strategies almost entirely on building brands. Brand preference means to compare
the different brands and opt for the most preferred brand. This brand preference is influenced
by various factors.

According to this study many factors were find out for preferring a brand like:

Brand persona Brand constancy Brand loftiness Brand value. In the identification of factors
affecting the brand preference, it was concluded that brand persona is the most effective
factor that affects the brand preference. This brand persona deals with the personality aspects
or the external attributes of brand, thus it can be said that consumer prefer any brand by
looking at the external attributes of a brand.
Journal of IMS, Vol 5 no.1, Jan-June 2008

4. Taste or health: A study on consumer acceptance of Energy Drinks

This study examined the relative contributions of taste and health considerations on consumer
liking and purchase intent of Energy Drinks. Eight types of commercial Energy Drinkswere
evaluated by 305 adult consumers who also completed a brief questionnaire on food habits.
Data were analyzed using factor analysis. Results revealed that purchase intent of cola drinks
was strongly related to degree of liking and to several key sensory attributes including
saltiness, drinks flavour and greasiness. These variables emerged as the first factor in the
analysis, suggesting that consumers perceive these characteristics as being most important in
their choice of Energy Drinks. Factor 2 described a health dimension and was related to
respondents' attitudes toward fat in the diet. Factor 3 comprised two remaining sensory
attributes (colour and crunchiness), which apparently were of minor importance to the
respondents. These data suggest that in spite of current concern about reducing dietary fat,
health remains secondary to taste in the selection of Energy Drinks for consumers in this
population.
Source-Beverly J. Tepper and Amy C. Trail Journal of Food Science and Technology, 15
September 1998
.

5. Consumer awareness and consumption pattern of food products

This paper aims to investigate the degree of brand awareness of various food products in
relation to background and education of the household, the consumption pattern of various
food products consumed by respondents in the light of their areas, income levels and
education. a sample of200 respondents comprising 100 form rural area and 100 from urban
area were taken. Data are analyzed with the help of mean.
Efficient of variance-testand f-test. The finding of this study reveals that there is low degree
of brand awareness in rural areas, whereas there is a moderate degree of brand awareness in
urban India. The highly educated rural and urban respondents have high degree of brand
awareness for many food products, and the less educated rural and urban respondents have
low degree of brand awareness for many food products.
Journal of IMS Vol 3 no.1, Jan-June 2007