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Integrated Marketing Communications (IMC) Plan for Red Bull in India
Integrated Marketing Communications (IMC) Plan for Red Bull in India
Integrated Marketing Communications (IMC) Plan for Red Bull in India
Integrated Marketing Communications (IMC) Plan for Red Bull in India
Integrated Marketing Communications (IMC) Plan for Red Bull in India
Integrated Marketing Communications (IMC) Plan for Red Bull in India
Integrated Marketing Communications (IMC) Plan for Red Bull in India
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Integrated Marketing Communications (IMC) Plan for Red Bull in India

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This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go …

This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/integrated-marketing-communications-imc-plan-for-red-bull-in-india-542


Red Bull the market leader in the energy drinks segment entered India to capture the growing market for beverages. Although, Indian market is a very mature market for soft drinks and fruit juices, but as far as energy drinks are concerned most of masses still prefer the natural drinks like a homemade lemonade or glucose based drinks. Also, Red Bull's heavy marketing through bars and clubs gives a perception that it has association with alcoholic drinks affecting its reach.

It is has been the market leader till now in the very niche segment but it has still not been able to penetrate to the burgeoning middle class society of India. Moreover, its competition is growing with the soft drink giants Coca-Cola and Pepsi both have started eyeing the energy drink segment in India. Red Bull needs to look back at their IMC campaign in order to maintain their position at the summit and take a check at their dwindling market share.

This paper analyzes the current marketing activities of Red Bull in India using various branding models and theories and gives a suggestion on the design and implementation of the new IMC campaign for Red Bull. It starts with a consumer behavior analysis of the Indian consumer with relation to energy drinks. Then to analyze the current position of the Red Bull, a SWOT analysis is presented. It gives an idea about the problems and at hand and the opportunities available once these problems are overcome. After this Red Bull's current marketing activities (both ATL & BTL) are discussed. In the second part of the report the Red Bull as a brand has been analyzed on three fronts viz. Brand Perception, Brand Equity & Brand Identity using theoretical frameworks like Brand Perceptual Mapping, Aaker's Brand Equity Model and Kapferer's Brand Identity Prism. The third part of the report starts with a communication context analysis (Internal, external, customer, business & stakeholder) of Red Bull to understand how various entities are impacting the organization. Further, it discusses the main criteria or essential elements required for the success of any IMC campaign. The last part of the report takes into account the findings of the communication context analysis and the main criteria for success of IMC campaign and gives recommendations on the marketing mix of the Red Bull and the new branding activities it should undertake in order to expand its consumer base and maintain its market leader position.

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  • 1. 1 Executive Summary Red Bull the market leader in the energy drinks segment entered India to capture the growing market for beverages. Although, Indian market is a very mature market for soft drinks and fruit juices, but as far as energy drinks are concerned most of masses still prefer the natural drinks like a homemade lemonade or glucose based drinks. Also, Red Bull’s heavy marketing through bars and clubs gives a perception that it has association with alcoholic drinks affecting its reach. It is has been the market leader till now in the very niche segment but it has still not been able to penetrate to the burgeoning middle class society of India. Moreover, its competition is growing with the soft drink giants Coca-Cola and Pepsi both have started eyeing the energy drink segment in India. Red Bull needs to look back at their IMC campaign in order to maintain their position at the summit and take a check at their dwindling market share. This paper analyzes the current marketing activities of Red Bull in India using various branding models and theories and gives a suggestion on the design and implementation of the new IMC campaign for Red Bull. It starts with a consumer behavior analysis of the Indian consumer with relation to energy drinks. Then to analyze the current position of the Red Bull, a SWOT analysis is presented. It gives an idea about the problems and at hand and the opportunities available once these problems are overcome. After this Red Bull’s current marketing activities (both ATL & BTL) are discussed. In the second part of the report the Red Bull as a brand has been analyzed on three fronts viz. Brand Perception, Brand Equity & Brand Identity using theoretical frameworks like Brand Perceptual Mapping, Aaker’s Brand Equity Model and Kapferer’s Brand Identity Prism. The third part of the report starts with a communication context analysis (Internal, external, customer, business & stakeholder) of Red Bull to understand how various entities are impacting the organization. Further, it discusses the main criteria or essential elements required
  • 2. 6 1.2 SWOT Analysis of Red Bull in the Indian Market Red Bull current position in the Indian Market can be analyzed using the below matrix Figure 1: SWOT Analysis of Red Bull in India ( Source – Author’s Creation) Thus, it is imperative for Red Bull to design an Integrated Marketing Strategy to leverage their existing brand value and counter the various threats. Strengths • High Brand Recognition – Huge following in the world markets • Leadership in the Energy drinks market • Strong Brand Identity & Brand Personality – Fresh, Sporty, Masculine & Trendy • Ability to leverage its good financial strength for brand promotions • A successful Formula 1 team adds to its brand value Weaknesses • Less experience in the Indian market (only about 7 years) • Overpriced in the highly price sensitive market • Small product base – Only a single product offering • Hasn’t achieved a cult recognition as of now • No innovation in its promotions Opportunities • Early mover advantage • Introduction of new product offerings in the market – Extending Product line • Product Innovation - Catering to the taste of Indian Consumer. Examples of McDonald, Pizza Hut etc • Mass Market Penetration through heavy advertising and positioning • Increase market reach -Sports events & discovering new mediums Threats • Rise of the competitor brands like Burn, XXX, monster and Gatorade with various promotions and suitable pricing • Move towards health and organic drinks • Consumer might still prefer natural lemon/ orange based drinks over caffeine based drinks • Less acceptability for new product offeringsThis document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/integrated-marketing-communications-imc-plan-for-red-bull-in-india-542
  • 3. 11 2) Natural – High in artificial preservatives 3) High Energy – Low Energy 4) Strong Taste – Weak Taste 5) Group Drink – Individual drink 6) Sporty- Conservative 7) High satisfaction – Low Satisfaction The next step is to identify the competitors from each category. Red bull not only competes in the high energy drink segment but also in the fruit juice, aerated drinks & milk based segments. Following competitors from each category would be analyzed. Aerated Drink – Pepsi, Coca-cola, Thumbs up, Mountain Dew Milk Based Drinks – Amul Flavoured Milk1 Fruit Juices – Tropicana, Real from Dabur2 Energy Drinks – Burn from Coca cola, Gatorade The Brand Perceptual Mapping has been drawn in the below given figure. Following is the analysis- Red bull is considered to be overpriced but at the same time it is considered sporty and provides high energy. Consumption of Red Bull is associated with high self esteem and people like to consume in group. That’s why Red Bull has been successful in selling its products in clubs and bars. Red Bull is not famous among Tea-totlers as they perceive it to be containing some alcohol due to its sale in bars. On the other side, Red bull suffered some loss in the sales due to a rumor that it contains Taurine, one of the essential amino acids, extracted from animals. This led to ban on the sales of 1 AMUL is one of the major players in the dairy industry in India 2 Dabur is one of home grown FMCG players in India. They sell packaged fruit juices in the name of Real Brand This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/integrated-marketing-communications-imc-plan-for-red-bull-in-india-542
  • 4. 16 the recipient’s side: customer reflection and customer’s internal mirror of the brand. The left side of the hexagon deals with external side: Physique, Relationship and Reflection while the right side of the hexagon deals with the internal side of brand identity: Personality, Culture and Self Image. (Abbing, 2005) In the above analysis, it is assumed that the customer or the recipient is the Indian Middle class. Considering this assumption we can see the difference between the consumer’s self image and the image of the brand as perceived by him. For a simple middle class consumer, the preferable energy drink would be either lemonade or a glucose based drink. For him Red Bull is a premium brand, overpriced and doesn’t represent any value for money. For him the functional aspects of the product (quenching thirst and reenergizing) are important rather than emotional benefits (Self appreciation, self esteem boost). 4. Suggested IMC Campaign for Red Bull in India The main aim of the marketer should be to “mix and match” communication options to enhance brand image of the brand. The idea is to choose a variety of different communication options that present common feeling and content but are different in nature and provide complementary advantages so that the whole is greater than the sum of parts. 4.1 Context Analysis It is the first step towards developing an integrated marketing communication plan. It is done by analyzing five aspects viz. Internal (organization) context, External Context, Business context, Consumer context and Stakeholder context. This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/integrated-marketing-communications-imc-plan-for-red-bull-in-india-542
  • 5. 21 4.4 Recommended Strategy for Red Bull – Pull Strategy Pull strategy involves devoting marketing efforts to directly reach the end customer as it is believed that customers can use their buying power and influence on retailers to “pull” the product through the channel. Traditionally, Red bull as hardly involved itself in sales promotions and discounts, so it is recommended that it does the same in India too. Objective: To leverage the brand name of Red Bull and sell it as an experience rather than a product. Suggested Tag Line for the Campaign: “Come Experience the Red Bull, Discover the wings within” The campaign should mostly use BTL marketing activities to establish a close connect with the consumers, to educate them about the brand and to project it as a fun loving experience. Sports Promotion: First Formula 1 race in India India is all set to host its first ever Formula 1 race in India in the month of October, 2011. This presents a great opportunity for Red Bull to leverage its highly successful Formula 1 team, who are current championship holders. The inaugural Indian Grand Prix is set to break all the records of viewership and would be receiving huge media coverage. Red Bull can use this platform to give an everlasting experience to not only the people who would be visiting the race circuit but also to many others. Red Bull should leverage the high youth following of their current champion Sebastian Vettel to organize road shows and small events in the metro & mega cities of India like Mumbai, Delhi, Bangalore & Chennai. At the circuit they can create a Red Bull Formula 1 Zone where they can highlight the legacy of the brand, its history and its achievements. It could be combined by providing simulators of formula1 cars to attract more crowds. This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/integrated-marketing-communications-imc-plan-for-red-bull-in-india-542
  • 6. 26 • scribd.com, n.d. Red Bull: BUILDING BRAND EQUITY IN NON-TRADITIONAL WAYS. [Online] Available at: http://www.scribd.com/doc/46876450/Red-Bull-Building-Brand- Equity-in-Non-Traditional-Ways [Accessed 25 April 2011]. • The Hindu Business Line, 2004. Pepsi launches sports drink `Gatorade'. [Online] Available at: http://www.thehindubusinessline.in/2004/10/20/stories/2004102001250900.htm [Accessed 28 April 2011]. • Wooeb News, 2011. India: Food and Beverages Industry Guide - new market research report. [Online] Available at: http://news.wooeb.com/NewsStory.aspx?id=714289 [Accessed 25 April 2011]. This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/integrated-marketing-communications-imc-plan-for-red-bull-in-india-542
  • 7. 1 Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn. Contact Us Please contact us with any questions you may have about our company. • General Inquiries support@flevy.com • Media/PR press@flevy.com • Billing billing@flevy.com

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