By introducing 5-Hour Focus, we are creating a sub-brand of 5-Hour to appeal to and build trust in a new customer segment. However, the introduction of a new brand does not come without its threats. The threats to the 5-Hour brand (5-Hour Focus & 5-Hour Energy) are listed below:
- Customers react negatively to consuming the same ingredients in both product (Focus and Energy), resulting in negative word of mouth
- Loyal 5-Hour Energy customers feel betrayed by the introduction of a new brand with a more professional image
- "Safer," "healthier," energy shot disrupts the market
- Health scares are publicized, harming the energy drink category as a whole
- Red Bull (leading competitor) responds similarly by refining the image of the Red Bull energy shot
- Starbucks (or another leading coffee company) comes out with a portable, small, convenient caffeinated “shot.” This could be particularly threatening due to Starbucks’ positive brand image with professionals.
- New retailers refuse to sell 5-Hour Focus because it contains the same ingredients as 5-Hour Energy