Pest Analysis Essay

Political: With the growing demand in the energy drink market and possible side effects due to them because of the high caffeine content, the government of India may come up with the regulations that require the product to be tested clinically to prove its benefits and get the local certification too. Social: Burn position itself as a youth brand. With India being the country with youth centric demographic, it helps BURN to reap the benefits if it position itself as the right product with right pricing and good promotion. However the youth segment of the country is becoming more and more health conscious. Youth now days prefer to have less calorie drinks. Hence it will help burn if it keeps this changing psychographic in mind and design its drinks with lesser calories ( as of now the presence of caffeine and calorie may present a hindrance). The company needs to position the product with keeping in mind about this changing social trend. Legal: Energy drinks in India may soon have to drop the word energy and settle for a less glamorous descriptive such as caffeinated beverage or caffeinated drink. If the Food Safety and Standards Authority of India (FSSAI) have its way, they may also be asked to carry a warning. The FSSAI has proposed that the words â€Å"Not recommended for children, pregnant or lactating women, persons sensitive to caffeine† be displayed in a bold font on every can of energy drink. On 21st Sept’2012 FSSAI declared that the drinks with 320ppm caffeine have to be labeled as â€Å"Caffeinated Drinks†. Economic The energy drinks are premium priced products. It being a non alcoholic beverage has a lot of cheaper alternatives. We know that the sales of such products do get affected during recession. Though recession has almost got over, but its after effects is yet to get over. The policy paralysis is slowly changing for the better but still the its has not reached a stage to control inflation. Higher inflation will lead to lesser consumption of Burn. The pricing needs to be competitive but at the same time we need to keep in mind the current Technology: The technology in India has grown at a very high speed. Internet is becoming a big part in the lives of an Indian consumer. Burn needs to make use of this fact as the current TG of burn will high end and hence will be exposed to internet. Burn can use niche websites as well as social media to do its promotions and hence increase the desirable awareness among the TG. Also the presence of innovative OOH like digital projection (AXE) can be used to engage with the potential TG.