Red Bull can be called as a pioneer in the energy drink category worldwide. In India too, Red Bull was the brand that created the energy drink category.
The brand came into existence in 1984.
The brand came to India in 2003. Although the brand has been keeping a low profile compared to the Cola majors , Red Bull has created a category of energy drinks in the Indian market.
According to Economic Times ( 30.05.08) the energy drink market in India is estimated to be around 100 crores.
The market now has two main players Red Bull and Power Horse.
RB has an assessed market share of 29% of the global market of energy Drinks.
In the U.S., Red Bull enjoys a 47% share of the energy drink market, and now has a 50% share of the German energy drink market.
Market leadership- Within the energy drinks market Red Bull is the industry leader throughout the world. Marketing Efforts- a lot of promotions and well targeted campaigns and sponsorship e.g. formula 1 helps to expand Red bull brand and increase consumer brand awareness.
Strong , fresh & fashionable brand identity.
Lack of innovation- there are a lot of competitors in the market and they have their own USP which leaves Red Bull behind.
Reliant on small product base- The company only markets one branded product, Red Bull Energy Drink (along with a sugar free variety).
Inexperience: is only 6 years old in India.
Lack of patent on RB ‘s recipe means anyone can copy it.
Extension of product line- this will help to retain market share.
Hardcore Advertising and Promotions.
Consumer recognition through sponsorship of sports events.
New ventures like partnership with Facebook.
Health concerns- tougher rules from government on high caffeine content.
Consumer awareness of health and well being- people may start to drink other alternatives as it is associated with healthier life style.
Drinks might not be accepted in the new markets.
Organic energy drinks might steal RB’s market share.
Promotion Opportunity Analysis
Target Market Analysis
Market Segmentation Strategy
Share of Energy Drink Market Red Bull 42.6 Monster 14.4 Rockstar 11.4 Full Throttle 6.9 Sobe No Fear 5.4 Amp 3.6 Sobe Adrenaline Rush 2.9 Tab Energy 2.3 Monster XXL 0.9 Private Label 0.9 Rip It 0.8 Sobe Lean 0.7 BooKoo 0.5 Sobe Superman 0.4 Von Dutch 0.4
Redbull’s real competitors are the market leaders of cola companies such as : Pepsi & Coca Cola, who have created their brand leadership since several years in the Indian market.
RB has a niche market & is yet to percolate in the mass market.
Target Market Analysis
Core target market segments for RB consists of the core age group of 15 to 60.
Energy drinks with high sugar levels are more popular among children and women, while energy drinks with strong taste and flavor are more preferred by male consumers.
Recent studies also indicated that 65% of the energy drinks market consists of male consumers.
Young people are especially open to determined exhaustion and insufficient energy.
More specifically male teenagers & people in their 20s, are also most likely to believe in the authenticity of the energy drinks’.
As a result, the majority of energy drinks are developed for and advertised to this younger generation.
Appeal to very specialized groups, such as gamers, extreme sports enthusiasts, and the hip-hop crowd.
Target Consumer Demographics Psychographics Usage Behavior Consumption collection Age: 15- 60 Content Image Conscious Influenced Spending Power Youth trends Physically Active Eat Out 25% of Indians
Market Segmentation Strategy
RedBull avoided usual methods of marketing, relying more on what is called 'buzz marketing' or word-of-mouth.
Red Bull advertised directly to Generation Y , the so-called 'millennial': people born after 1981.
‘ Student brand managers' who would be used to promote Red Bull on university campuses. These students would be encouraged to throw parties at which cases of Red Bull would be distributed.
Our mission is to be the premier marketer and supplier of
RedBull in Asia, Europe and other parts of the globe. We will
achieve this mission by building long-term relationships with the
people who can make it become a reality.
People: Be a great place to work where people are inspired to be the best they can be.
Portfolio: Bring to the world a portfolio of quality beverage that anticipate and satisfy people's desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.
Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.
Productivity: Be a highly effective, lean and fast-moving organization.
Brand Development Strategy
Great Strategy Begins with Great Research.
Once the brand’s core values have been identified, the road towards effective brand proposition development begins.
Development of the brand statement- commencing a Brand development strategy.
Brand Positioning Strategy
Clear, Engaging, Unique, & Relevant to the target audience.
Able to incorporate an element of positive emotional attachment that is better than just "good”.
Echoed within business, internally and externally.
Continually toughened within the organization so that employees consistently deliver what is promised.
Able to adapt to a changing marketplace.
Intensive distribution aims to provide saturation coverage of the market by using all available outlets such as:
Coffee Houses: Subway, Barista, Costa Coffee, Café Coffee Day
In n Out Convenience Stores.
Monitor the Web
Create Public Awareness
Integrated Marketing Communications Management
Must encourage the 1 st purchase of the product in a store.
Make them aware of the product & its advantages.
RedBull’s IMC objective is: Sales Promotions.
Create new target markets.
Large display in the Departmental stores.
Bull Hoof stickers on the floors of departmental stores promoting RB.
Internet Web site
Promotions through social networking sites such as: facebook, twitter, Hi5.
Also, Ad promos on websites such as NDTV, zoom India.
Ad Campaigns on Prime TV channels such as NDTV good times, MTV, Channel V, Zoom, VH1, Star World & a few more.
Femina, People, Rolling Stones.
15k per page * 12 mnths- 180,000
HT City & Delhi Times
1lac per page * 4 weeks * 12 mnths- 4800000
10k per mnth * 12 – 120000
5 lacs * 4 weeks * 12 - 2400000
Total Expense: 31,80,000
Integrated Marketing Communication Methodologies
How do we communicate? How do customers process information?
There are many models & theories.
Thorough understanding of the audience's needs, emotions &
activities is essential to ensure accuracy & relevance of the
What target market do you want to reach?
What image do you want to portray?
What product or service do you want to emphasize?
How much money can you spend?
When is the right time to advertise?
Red Bull has an aggressive marketing campaign.
Red Bull uses all the available media channels, meaning cinema, TV, radio, press and the internet.
In other words the company focuses on the media through which it reaches its primary target market-young people.
RB allows the consumers to interpret the product & the moments of use themselves.
Red Bull achieves this by a humorous and witty cartoon campaign, transferring the message that this energy drink helps you to escape by `giving you wings ´.
Red Bull sponsors the motorsports or fun sports, but always where Red Bull is needed.
Red Bull does event sponsoring.
Event sponsoring attracts people’s attention towards the product and connects them.
Sampling is another very important part of the three pillar marketing system.
As the major purpose of Red Bull is to energize the company samples at the right place at the right time, where it finds its exact target market.
Examples of usage are driving, studying, working night shifts and sports.
Still a staple medium of advertising.
Allows to demonstrate the advantages of RB.
Provides higher brand awareness.
Evaluation & Control Metrics Campaign Element Metrics News Media No. of viewers of the articles Social Media No. of people using the Blogs such as Twitter, Facebook Internet & TV No. of people viewing particularly when the Ad is being aired. Print Advertisement No. Of Subscribers of those magazines, Newspapers Product Placement No. of comments (+ or - ) mentioned on social networking sites.
Timelines IMC/ Month Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10 RedBull on the Web Print Media Blogs Radio & TV Other Misc.