Michael Porter's Five Competitive Forces

2.2.2 COMPETITOR ANALYSIS

Michael Porter's Five Competitive Forces

a. Rivalry Among Present Competitors

Red Bull Singapore faces direct competition from other functional drinks like 100 Plus, H-Two-O, Shark, Gatorade, Livita, Sportade and 7-Up Revive. Most recently, much hype was garnered for a new energy drink, Naughty G, which targets similar markets as Red Bull.

100 Plus

Established in 1983 by Fraser & Neave Limited (F&N), 100 Plus's build its mission to "enable everyone to live life to the fullest in their daily challenging and active environment and to outdo themselves".

100 Plus's target market is people who maintain an active and sporty lifestyle.

Strengths

100 Plus has achieved the market leadership in the functional drinks industry with a 63.2% Company Shares of Functional Drinks by Off-Trade Volume in 2009 (Appendix). 100 Plus dominates the industry, with the next largest market share held by H-Two-O paling in comparison at just 14.1%.

100 Plus has strong association with Singapore sporting events. 100-plus concentrates on sponsoring sporting events like Aviva Ironman, OSIM Triathlon, OCBC Cycle Singapore and Adidas Sundown Marathon etc. In fact, they sponsor an average of 10 sporting events, which is a considerably large amount in Singapore. In addition, they organize sporting events annually, namely 100 Plus Boulderactive and 100 Plus Passion Run. To keep up with the sporty, active image, 100Plus sponsored The Straits Times' Athlete of the Year.

100 Plus is primarily sold in the South-East Asia region, like Malaysia and Singapore, giving them the information, resources and advantage as they are more focused to the market.

Weaknesses

Although 100 Plus is an isotonic drink, it is linked to other carbonated soft drinks like Coca Cola and Sprite, which contains large amount of sugar and is unhealthy to the body. Therefore, 100 Plus is perceived as unhealthy as other carbonated drinks.

Opportunities

Singapore's government has expressed plans of growing Singapore into a sports hub. The establishment of Singapore Sports School and the recent inaugural Youth Olympic Games are fine examples of Singapore's growing sports scene. The increase in sporting events and growing amount of athletes in Singapore will increase the demand of sports-related products, and 100 Plus is no exception.