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FINAL Presentation
Objective of the presentation:

     • Analysis of the challenge faced by the multinational
       organization, in maintaining, growing or divesting its
       business. (as per requirement of the EBM 640)

     • To make audience aware of the Red bull company
       functioning in India (Management style, marketing
       strategies, distribution network etc.)




© 2010 Marching Ants All rights reserved
Group Members:


                                                      Speaking on :

                                               •4 p’s (Place)
                                               •Distribution network
                                               •Marketing Environment
                                               •General overall


             Bishal pandey




© 2010 Marching Ants All rights reserved
Group Members:


                                                    Speaking on :
                                                  Corporate culture
                                                     Promotion
                                                   General overall




             Binod Hyoju




© 2010 Marching Ants All rights reserved
Group Members:


                                                   Speaking on :
                                                       TSTP




                 Trevor Pandi




© 2010 Marching Ants All rights reserved
Group Members:


                                                   Speaking on :
                                                      HRM
                                                   General overall




             Suman Baniya




© 2010 Marching Ants All rights reserved
Group Members:


                                                   Speaking on :

                                                     History
                                                  SWOT Analysis
                                                  General Overall




                Jayant Basnet




© 2010 Marching Ants All rights reserved
Contents:
• About the company
About The company:

Product Name:              Red Bull
Type:                      Energy Drink
Country of Origin:         Thailand
Introduction:              1987
Color:                     Amber
Variants:                  Original, Sugar Free
Related Products:          Red Bull Cola, Red Bull Energy Shot,
                           Red bull Sugar Free.
Website:                   www.redBull.com
History
• In 1982, Dietrich Mateschitz learned about “tonic drinks”, which enjoyed
  wide popularity in Asia.

• While he was sitting in the bar at the Mandarin Hotel in Hong Kong got an
  idea of marketing those particular functional drinks outside Asia.

• This idea was just the variation on the Lucozade theme, another popular
  energy drink marketed by Smith Kline Beecham.

• Red Bull included other ingredients to achieve a different flavor.
• In 1984, Mateschitz founded the Red Bull GmbH company.

• In 1987, a unique marketing concept was developed and started selling
  Red Bull Energy Drink on the Austrian market.

• Red Bull rapidly gained in popularity, giving people wings right from the
  start.
• In 1992, Red Bull touched down in its first foreign market, in Hungary.

• Today, Red Bull is energizing over 100 countries around the globe.
RED BULL ENERGY DRINK
       CATEGORY: US ENERGY DRINKS; PACKAGING: 8.3 OZ CAN


• Ingredients: carbonated water, sucrose, glucose, sodium citrate, taurine,
  glucuronolactone, caffeine, inositol, niacin, D-pantothenol, pyridoxine HCL,
  vitamin B12, artificial flavours, colors
• Nutrition Facts: Serving Size: 8.3 fl. oz Servings per Container: 1 Amount
  per serving: Calories: 110 Total Fat: 0g Sodium: 200mg Protein: 0g Total
  Carbohydrates: 28g Sugars: 27g
RED BULL SUGAR FREE
     CATEGORY: US ENERGY DRINKS; PACKAGING: 8.3 FL OZ CAN


• Ingredients: carbonated water, sodium citrate, taurine,
  glucuronolactone,caffeine, acesulfame k, aspartame, inositol, xanthan
  gum, niacinamide, calcium pantothenate, pyridoxine hcl, vitamin b12,
  artificial flavors, colors
• Nutrition Facts: serving size 1 can; calories 10; fat 0g; sodium 200mg; total
  carb 3g; sugars og; protein less than 1g; niacin 100%; vitamin b6 250%;
  vitamin b12 80%; pantothenic acid 50%
RED BULL ENERGY SUPPLEMENT
                            CATEGORY

• Packaged in a 150ml glass bottle
• labeled as a liquid vitamin supplement
• The packaging presents the product in a different light than the stock 8.2
  oz.
• As for the taste, the core flavor is the same as the other formulations
• This one is not carbonated and is much sweeter than the others.
Man Behind Red Bull

Chaleo Yoovidhya.          Dietrich Mateschitz.
Mission Statement:
  "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.”

Vision Statement:
• 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 desire and needs
• Partners: Nurture a winning network of customers and suppliers, together
   we create mutual, enduring value.
• Profit: Maximize long-term return to share owners while being mindful of
   our overall responsibilities
• Productivity: Be a highly effective, lean and fast-moving organization.
Corporate culture:
• Corporate culture is a term used to describe the collective beliefs, value
  systems, and processes that provide a company with its own unique flavor
  and attitude. Businesses of all sizes posses some type of corporate
  culture, in that every company has a set of values and goals that help to
  define what the business is all about.
• In any corporation foundation are the standards that organize or predict
  the corporate culture these standards may be :

             Policies and procedures of company operation
             Coordination between the departments

Attitude of everyone involved with the organization

  Communication between management and the employees and the
                        governing rules
Corporate culture:


• Creative and inspiring work environment
• Has its own set of policies for internal (employee) and external
  (Customers).




                                                  http://www.redbullreporter.com/privacy-policy/
Cultural Control:

Management gives personal interaction.

Organizes careful selection of corporate personnel.

Creates enough environment for learning and communication between
the employees from diverse field.

Organizing activities like team building party , recreation activities
different sports and fun events to bring the diverse culture more
together.

Organize seminars and training activities to make employees aware of
the Internal (Corporate) culture they are working with and external
(Customer, clients) culture they are dealing with.
Policies and procedures of company
operation
HRM:

• From time to time, the company recruits student brand managers to
  promote its product among young student groups.
• The firm is seeking to set up Energy Teams in more than twenty
  UK, USA, Canada, Australia etc university regions.
• At the time of writing, the firm is recruiting for sales executives to oversee
  marketing to the 'off trade'.
• Off trade refers to products that are sold for consumption off the
  premises, either as take-home drinks or for drinking at work or school.
• Red Bull is interested in recruiting staff who are young, in touch with
  youth culture, dynamic and innovative.
India : HRM policy
Product
Target Country:
Why India
Headquarter - Austria
Why we chose India:

•Economic Times says : Energy drink market in India is estimated to be
around 100 crorers.
•People more conscious towards health,
•Westernization and growing middle class family.

                          Potential customers:
                          Who used computer for their jobs,
                          Athletes
                          Students studying late night
                          Rising Income Levels
                          Changing age Profile
                          Changing Life style
                          Red bull as alcohol Mixture
India – Headquarter

• Redbull India Head Office Address :
  1st Floor Kakad Chamber Annexe Near Podar Hospital 132 Dr Anie Basant
  Road Worli
  Mumbai : 400018
  Maharashtra ,India .
  Redbull India Phone Number : (22) 66180888
  Redbull India Website :
• Redbull India Financial Details :
  No of Employees – 101-250
  Sector- Private Sector
INDIA COMPANY’S - ACT:
• Red Bull (India Pvt. Ltd., } a company incorporated under the } Companies
  Act, 1956, } having its registered office at } RF-1, Kakad Chambers Annex }
  132, Dr. Annie Besant Road.
• Red Bull GmbH, } a Company incorporated under the } laws of Austria,
  having its } registered office at Am Brunnen 1, } A 5330 Fuschi am See, }
  Austria. }
• By this Petition under Article 226 of the Constitution of India, the
  Petitioner has applied for the following reliefs :-
   – To treat, classify, categorize and test and analyze Red Bull Energy
      Drink as Proprietary Food and NOT as a non- alcoholic carbonated
      water under the provisions of the Prevention of Food Adulteration
      Act, 1954 and Prevention of Food Adulteration Rules, 1955 and
      release the consignments of the Petitioners lying at Nhava Sheva Port
      and warehouses of the Petitioners seized/detained by Respondent
      No.4 as detailed in Exhibit J on that basis and (ii) to
      treat/classify/categorize the Petitioners product Red Bull Energy
      Drink(R) as Proprietary Food and not as non-alcoholic carbonated
      water and to deal with the same on the basis that it is a Proprietary 4
http://www.indiankanoon.org/doc/407536/
• Company incorporated under the } laws of Austria,
• Red Bull Asia FZE } P.O. Box 54310 } Dubai Airport Free Zone, } UAE. }
• The State Public Health Laboratory, } Pune, through its Public Analyst, }
  Pune 411 001.
• The Central Food Laboratory, } Mysore, through its Director, } Mysore 570
  020. }
• Office of the Commissioner, } Food and Drug Administration, M.S., }
  Survey No.341, Bandra-Kurla } Complex, 2nd Floor, Bandra (East), }
  Mumbai 400 051. }
• 5. The Port Health Organization, } through the Port Health Officer, } POC,
  JNPT, } Nhava Sheva, Tal. Uran, Dis. Raigad, } Maharashtra 400 707. }
• 6. The Director, Public Health, } State of Maharashtra, } Mantralaya,
  Mumbai. }
• 7. The Union of India, } through the Ministry of Health & } Welfare and the
  Department of } Revenue, Ministry of Finance, } Government of India, }
  Udyog Bhavan, } New Delhi 110 001. }... Respondents. Mr. Virag
  Tulzapurkar, Sr. Counsel, Mr. Suhail Dutt, Miss. Merlyn Monteiro, Mr.
  Abhixit Singh for the Petitioners. Mr. D.A. Nalavade for the State.
Level and channel of Distribution
                                              Manufactures / Marketers



                         D
                         i
                         r
                         e
                         c
                         t                                               Wholesaler
                         S
                         e
                         l
                         l
                         i
                         n             Wholesaler        Retailer        Retailer
                         g




                                                    CUSTOMER



© 2010 Marching Ants All rights reserved
Supply chain Management :
                                   – Direct to retailer:
                                   – Direct to the consumer:




© 2010 Marching Ants All rights reserved
Pricing Strategy:




© 2010 Marching Ants All rights reserved
Price


        INR 75 / - In
           2009

         INR 85 /-
          Present
Price:
                                            Our Strategy



                                                         Promotion

             Price                            High                        Low

             High                          Skimming                  Low Skimming

              Low                          Penetration               Low Penetration




© 2010 Marching Ants All rights reserved
Pricing Strategy:




© 2010 Marching Ants All rights reserved
International Hierarchy

                   CEO


 President       President
 Domestic      International


VP EUROPE        VP ASIA         VP AMERICAS

                  Country
                  Manager                      Finance
                   INDIA

                                          Production



                  Country                  Marketing
               Manager Finance
Advertising


•Red Bull follows a policy that specifically excludes any print
advertising
•The advertisements are seen or heard and then disappear,
thus creating interest and momentum.
•The animated advertisements have achieved great success
and represent the lighter side of the brand's profile.
•Statement “Red Bull revitalizes body and mind”
Promotion

• The promotion strategy used by Red Bull is word-of-mouth or „Buzz
  –Marketing".
• Reaching the youth is of great importance to Red Bull.
• Promotional jobs are offered to young which are very social and have
  innovative ideas.
• Until 2003, the company only produced one version of Red Bull. A sugar-
  free version was introduced in that year.
• Red Bull did not stay at only sponsoring...
• A brand image was created and cultivated which associated the
  drink with youth culture and extreme and adventure-related sports,
   – motor sports,
   – mountain biking
   – snowboarding
   – dance music
Red Bull associates its brand with youth culture and extreme and
adventure-related
Promotion Strategy

• Red Bull worked to ensure that their brand was visible on the street
• Cans of the drink were also given out free to those who had been
  identified as being in need of energy
• Red Bull was given to club DJs, empty cans would also be left on tables in
  hot spots such as trendy bars, clubs and pubs
Entering into India

• The brand came to India in 2003.
• Marketed and distributed in India by Narang Hospitality Services (NHS),
  Red Bull currently dominates the Indian energy drink market
• Although It is keeping a low profile compared to the Cola majors, It has
  created a category of energy drinks in the Indian market.
• According to Economic Times the energy drink market in India is
  estimated to be around 100 crore.
• The market now has two main players Red Bull and Power Horse.
• Energy Drinks are not much popular in India or it can be said that this
  product is used mostly by sport persons .
• People prefer more than of redbull.
  Examples are Glucose –D, Amul products
• So far the use of these kind of drinks has not percolated to the mass
  market.
Into Indian Markets
Student Brand Managers :
• These managers were given free Red Bull cans and was encouraged to organize parties for
    other youngsters.
Identify Hot Spots :
• The brand identified hot spots where the majority of consumers /opinion leaders gather.
           BAR OR PARTY AREAS
Extreme Sports :
• Red Bull chose to sponsor or associate with extreme sports. At one point of time the brand
    also owned a Formula 1 racing team.

Athletes :
• Rather than roping in expensive celebrities, Red Bull sponsors high performing athletes who
    are not celebrities. According to Forbes Magazine, Red Bull sponsors more than 500 athletes.

Quirky Ads :
• Red Bull is a brand which was built without depending too much on advertising. The brand
    used advertising for reinforce brand identity rather than for selling the product. The ads of Red
    Bull has the classical cartoon format with a touch of humor.
SWOT Analysis:




          Strength                                       Weakness




          Opportunities                               Threats

© 2010 Marching Ants All rights reserved
SWOT ANALYSIS
• Strength:
Market Leadership : Within the energy drinks market , red bull is the leader.

High Promotion around the globe

Strong Brand identity, statement of style
Weakness :


• High price
• Lack of innovation : USP, Advertisements in TV or Newspaper
• Small Product Base: One brand Product with some colas and sugar free
  varieties
• Only seven years in India
Opportunity:
• High Potential market in India: Positive response from the consumers and
  trade.
• Product mostly targeted towards all those who lead an active lifestyle and
  India a best place for this.
• Active participation on Face book and other networking sites.
• Tie- up with sports stadium and health clubs
Threats:
• Amul recently launched India's first domestically-produced energy sports
  drink `Stamina.
• Tougher rules on high caffeine content.
• Organic energy drink might capture market share.
• Many controversies may lead to loose its identity.
Competitors:
Market Environment
 Political Environment:                                               Technological Environment:
                                           Economic Environment:
 •Banning of beer in different                                        •Online sales of beers by
 states                                    •Delhi is Special          competitors
                                           Economic zone
 •Legal ages bar difference                                           •Mixing ingredients
 in different states                       •Increasing middle class   technology by other beers
                                           number
 •Banning drinking during                                             • Different flavor and color
 election time



Cultural / social Environment:                   Marketing            legal Environment:
                                             Environment
•Family background                                                    •Legal age above 20 in Delhi
•Living style                                                         •Banning in advertising in
•Income                                                               TV and newspaper
                                       Competitive Environment:       •High Tax
•Increasing female consumers
                                       •Local and other Franchise     •Banning drinking habits on
•More social gathering
                                       Brands                         public places
•India co native market
                                       •International Imported        •Limited retailer shop
•Religious Issues                      Brand
                                                                      •Transportation


© 2010 Marching Ants All rights reserved
Conclusion:

      • The Indian beer industry is showing steady growth during the last
        decade. Strong economic growth resulting in high disposable
        incomes, an increase in beer sales in the next two or three years is
        expected.

      • The beer market in India is pegged around 12 million hectoliters per
        year and is expected to double in the next five years or so.

      • The brand is a fresher entering into market with an Indian label
        stating itself to be the most different and most satisfactory beer for
        the customer ever found in an Indian market.




© 2010 Marching Ants All rights reserved
Recommendation


  Teamwork                Together Everyone Achieves More. Teamwork and success go hand-
                          in-hand.
  Excellence              We offer nothing but the best through a focus on delivering high
                          quality service and continuously improving ourselves and our work.
  Integrity               Integrity is a necessity - honesty, open communication and
                          professionalism drive each and every interaction.
  Dedication              Every individual is committed to the success of each interaction to the
                          best of his ability.
  Creativity              The environment at MAC enables individuals to be imaginative,
                          innovative and to think outside of the box
  Fun                     Work hard, play harder




© 2010 Marching Ants All rights reserved
Product Mix (Red Bull):


                                                  Product Line

     Product                Red Bull                                     Red Bull

                                 Red Bull Cola                   Energy Shots


  Product Item


                                  Red Bull sugar Free




© 2010 Marching Ants All rights reserved
Bibliographic References:


   http:// www. bio-medicine.org/medicine-news/Beer-Found-To-Be-Effective-In-Fighting-Cardiovascular-Disease-2598-1/
   http://www.rediff.com/money/2007/dec/04bspec.htm
   http://www.netmba.com/marketing/product/lifecycle/
   http://www.team-bhp.com/forum/route-travel-queries/38655-delhi-saharanpur-route-quick-info-req.html
   http://tutor2u.net/business/marketing/pricing_strategy_penetration.asp
   http://www.marketingteacher.com/Lessons/lesson_pricing.htm
   http://www.morebusiness.com/running_your_business/marketing/id-
   http://www.eufic.org/page/en/faqid/which-beer-contains-energy-per-volume-alcohol
   http://www.bio-medicine.org/medicine-news/Beer-Found-To-Be-Effective-In-Fighting-Cardiovascular-Disease-2598-1/
   http://www.rediff.com/money/2007/dec/04bspec.htm
   http://www.reportbuyer.com/food_drink/alcoholic_drinks/beer/beer_market_india.html
   http://in.rediff.com/cms/print.jsp?docpath=//money/2008/mar/06beer.htm
   http://www.rhythmicdissonance.com/funny/why-do-people-drink-beer/
   http://www.netmba.com/marketing/product/lifecycle/
   http://www.team-bhp.com/forum/route-travel-queries/38655-delhi-saharanpur-route-quick-info-req.html
   http://tutor2u.net/business/marketing/pricing_strategy_penetration.asp
   http://www.marketingteacher.com/Lessons/lesson_pricing.htm
   http://www.authorstream.com/Presentation/Yuan-51270-VesnaDamnjanovic
   -MARKETING-LIFE-CYCLE-ANALYSIS-Objectives-Context-Introduction-Example-vesnadamnjanovi-Education-ppt-powerpoint/




© 2010 Marching Ants All rights reserved
© 2010 Marching Ants All rights reserved

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Red Bull Final International Business

  • 2. Objective of the presentation: • Analysis of the challenge faced by the multinational organization, in maintaining, growing or divesting its business. (as per requirement of the EBM 640) • To make audience aware of the Red bull company functioning in India (Management style, marketing strategies, distribution network etc.) © 2010 Marching Ants All rights reserved
  • 3. Group Members: Speaking on : •4 p’s (Place) •Distribution network •Marketing Environment •General overall Bishal pandey © 2010 Marching Ants All rights reserved
  • 4. Group Members: Speaking on : Corporate culture Promotion General overall Binod Hyoju © 2010 Marching Ants All rights reserved
  • 5. Group Members: Speaking on : TSTP Trevor Pandi © 2010 Marching Ants All rights reserved
  • 6. Group Members: Speaking on : HRM General overall Suman Baniya © 2010 Marching Ants All rights reserved
  • 7. Group Members: Speaking on : History SWOT Analysis General Overall Jayant Basnet © 2010 Marching Ants All rights reserved
  • 9. About The company: Product Name: Red Bull Type: Energy Drink Country of Origin: Thailand Introduction: 1987 Color: Amber Variants: Original, Sugar Free Related Products: Red Bull Cola, Red Bull Energy Shot, Red bull Sugar Free. Website: www.redBull.com
  • 10. History • In 1982, Dietrich Mateschitz learned about “tonic drinks”, which enjoyed wide popularity in Asia. • While he was sitting in the bar at the Mandarin Hotel in Hong Kong got an idea of marketing those particular functional drinks outside Asia. • This idea was just the variation on the Lucozade theme, another popular energy drink marketed by Smith Kline Beecham. • Red Bull included other ingredients to achieve a different flavor.
  • 11. • In 1984, Mateschitz founded the Red Bull GmbH company. • In 1987, a unique marketing concept was developed and started selling Red Bull Energy Drink on the Austrian market. • Red Bull rapidly gained in popularity, giving people wings right from the start. • In 1992, Red Bull touched down in its first foreign market, in Hungary. • Today, Red Bull is energizing over 100 countries around the globe.
  • 12. RED BULL ENERGY DRINK CATEGORY: US ENERGY DRINKS; PACKAGING: 8.3 OZ CAN • Ingredients: carbonated water, sucrose, glucose, sodium citrate, taurine, glucuronolactone, caffeine, inositol, niacin, D-pantothenol, pyridoxine HCL, vitamin B12, artificial flavours, colors • Nutrition Facts: Serving Size: 8.3 fl. oz Servings per Container: 1 Amount per serving: Calories: 110 Total Fat: 0g Sodium: 200mg Protein: 0g Total Carbohydrates: 28g Sugars: 27g
  • 13. RED BULL SUGAR FREE CATEGORY: US ENERGY DRINKS; PACKAGING: 8.3 FL OZ CAN • Ingredients: carbonated water, sodium citrate, taurine, glucuronolactone,caffeine, acesulfame k, aspartame, inositol, xanthan gum, niacinamide, calcium pantothenate, pyridoxine hcl, vitamin b12, artificial flavors, colors • Nutrition Facts: serving size 1 can; calories 10; fat 0g; sodium 200mg; total carb 3g; sugars og; protein less than 1g; niacin 100%; vitamin b6 250%; vitamin b12 80%; pantothenic acid 50%
  • 14. RED BULL ENERGY SUPPLEMENT CATEGORY • Packaged in a 150ml glass bottle • labeled as a liquid vitamin supplement • The packaging presents the product in a different light than the stock 8.2 oz. • As for the taste, the core flavor is the same as the other formulations • This one is not carbonated and is much sweeter than the others.
  • 15. Man Behind Red Bull Chaleo Yoovidhya. Dietrich Mateschitz.
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  • 17. Mission Statement: "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.” Vision Statement: • 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 desire and needs • Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. • Profit: Maximize long-term return to share owners while being mindful of our overall responsibilities • Productivity: Be a highly effective, lean and fast-moving organization.
  • 18. Corporate culture: • Corporate culture is a term used to describe the collective beliefs, value systems, and processes that provide a company with its own unique flavor and attitude. Businesses of all sizes posses some type of corporate culture, in that every company has a set of values and goals that help to define what the business is all about. • In any corporation foundation are the standards that organize or predict the corporate culture these standards may be : Policies and procedures of company operation Coordination between the departments Attitude of everyone involved with the organization Communication between management and the employees and the governing rules
  • 19. Corporate culture: • Creative and inspiring work environment • Has its own set of policies for internal (employee) and external (Customers). http://www.redbullreporter.com/privacy-policy/
  • 20. Cultural Control: Management gives personal interaction. Organizes careful selection of corporate personnel. Creates enough environment for learning and communication between the employees from diverse field. Organizing activities like team building party , recreation activities different sports and fun events to bring the diverse culture more together. Organize seminars and training activities to make employees aware of the Internal (Corporate) culture they are working with and external (Customer, clients) culture they are dealing with.
  • 21. Policies and procedures of company operation
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  • 24. HRM: • From time to time, the company recruits student brand managers to promote its product among young student groups. • The firm is seeking to set up Energy Teams in more than twenty UK, USA, Canada, Australia etc university regions. • At the time of writing, the firm is recruiting for sales executives to oversee marketing to the 'off trade'. • Off trade refers to products that are sold for consumption off the premises, either as take-home drinks or for drinking at work or school. • Red Bull is interested in recruiting staff who are young, in touch with youth culture, dynamic and innovative.
  • 25. India : HRM policy
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  • 36. Why we chose India: •Economic Times says : Energy drink market in India is estimated to be around 100 crorers. •People more conscious towards health, •Westernization and growing middle class family. Potential customers: Who used computer for their jobs, Athletes Students studying late night Rising Income Levels Changing age Profile Changing Life style Red bull as alcohol Mixture
  • 37. India – Headquarter • Redbull India Head Office Address : 1st Floor Kakad Chamber Annexe Near Podar Hospital 132 Dr Anie Basant Road Worli Mumbai : 400018 Maharashtra ,India . Redbull India Phone Number : (22) 66180888 Redbull India Website : • Redbull India Financial Details : No of Employees – 101-250 Sector- Private Sector
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  • 39. INDIA COMPANY’S - ACT: • Red Bull (India Pvt. Ltd., } a company incorporated under the } Companies Act, 1956, } having its registered office at } RF-1, Kakad Chambers Annex } 132, Dr. Annie Besant Road. • Red Bull GmbH, } a Company incorporated under the } laws of Austria, having its } registered office at Am Brunnen 1, } A 5330 Fuschi am See, } Austria. } • By this Petition under Article 226 of the Constitution of India, the Petitioner has applied for the following reliefs :- – To treat, classify, categorize and test and analyze Red Bull Energy Drink as Proprietary Food and NOT as a non- alcoholic carbonated water under the provisions of the Prevention of Food Adulteration Act, 1954 and Prevention of Food Adulteration Rules, 1955 and release the consignments of the Petitioners lying at Nhava Sheva Port and warehouses of the Petitioners seized/detained by Respondent No.4 as detailed in Exhibit J on that basis and (ii) to treat/classify/categorize the Petitioners product Red Bull Energy Drink(R) as Proprietary Food and not as non-alcoholic carbonated water and to deal with the same on the basis that it is a Proprietary 4
  • 40. http://www.indiankanoon.org/doc/407536/ • Company incorporated under the } laws of Austria, • Red Bull Asia FZE } P.O. Box 54310 } Dubai Airport Free Zone, } UAE. } • The State Public Health Laboratory, } Pune, through its Public Analyst, } Pune 411 001. • The Central Food Laboratory, } Mysore, through its Director, } Mysore 570 020. } • Office of the Commissioner, } Food and Drug Administration, M.S., } Survey No.341, Bandra-Kurla } Complex, 2nd Floor, Bandra (East), } Mumbai 400 051. } • 5. The Port Health Organization, } through the Port Health Officer, } POC, JNPT, } Nhava Sheva, Tal. Uran, Dis. Raigad, } Maharashtra 400 707. } • 6. The Director, Public Health, } State of Maharashtra, } Mantralaya, Mumbai. } • 7. The Union of India, } through the Ministry of Health & } Welfare and the Department of } Revenue, Ministry of Finance, } Government of India, } Udyog Bhavan, } New Delhi 110 001. }... Respondents. Mr. Virag Tulzapurkar, Sr. Counsel, Mr. Suhail Dutt, Miss. Merlyn Monteiro, Mr. Abhixit Singh for the Petitioners. Mr. D.A. Nalavade for the State.
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  • 42. Level and channel of Distribution Manufactures / Marketers D i r e c t Wholesaler S e l l i n Wholesaler Retailer Retailer g CUSTOMER © 2010 Marching Ants All rights reserved
  • 43. Supply chain Management : – Direct to retailer: – Direct to the consumer: © 2010 Marching Ants All rights reserved
  • 44. Pricing Strategy: © 2010 Marching Ants All rights reserved
  • 45. Price INR 75 / - In 2009 INR 85 /- Present
  • 46. Price: Our Strategy Promotion Price High Low High Skimming Low Skimming Low Penetration Low Penetration © 2010 Marching Ants All rights reserved
  • 47. Pricing Strategy: © 2010 Marching Ants All rights reserved
  • 48. International Hierarchy CEO President President Domestic International VP EUROPE VP ASIA VP AMERICAS Country Manager Finance INDIA Production Country Marketing Manager Finance
  • 49. Advertising •Red Bull follows a policy that specifically excludes any print advertising •The advertisements are seen or heard and then disappear, thus creating interest and momentum. •The animated advertisements have achieved great success and represent the lighter side of the brand's profile. •Statement “Red Bull revitalizes body and mind”
  • 50. Promotion • The promotion strategy used by Red Bull is word-of-mouth or „Buzz –Marketing". • Reaching the youth is of great importance to Red Bull. • Promotional jobs are offered to young which are very social and have innovative ideas. • Until 2003, the company only produced one version of Red Bull. A sugar- free version was introduced in that year. • Red Bull did not stay at only sponsoring...
  • 51. • A brand image was created and cultivated which associated the drink with youth culture and extreme and adventure-related sports, – motor sports, – mountain biking – snowboarding – dance music
  • 52. Red Bull associates its brand with youth culture and extreme and adventure-related
  • 53. Promotion Strategy • Red Bull worked to ensure that their brand was visible on the street • Cans of the drink were also given out free to those who had been identified as being in need of energy • Red Bull was given to club DJs, empty cans would also be left on tables in hot spots such as trendy bars, clubs and pubs
  • 54. Entering into India • The brand came to India in 2003. • Marketed and distributed in India by Narang Hospitality Services (NHS), Red Bull currently dominates the Indian energy drink market • Although It is keeping a low profile compared to the Cola majors, It has created a category of energy drinks in the Indian market. • According to Economic Times the energy drink market in India is estimated to be around 100 crore. • The market now has two main players Red Bull and Power Horse. • Energy Drinks are not much popular in India or it can be said that this product is used mostly by sport persons . • People prefer more than of redbull. Examples are Glucose –D, Amul products • So far the use of these kind of drinks has not percolated to the mass market.
  • 55. Into Indian Markets Student Brand Managers : • These managers were given free Red Bull cans and was encouraged to organize parties for other youngsters. Identify Hot Spots : • The brand identified hot spots where the majority of consumers /opinion leaders gather. BAR OR PARTY AREAS Extreme Sports : • Red Bull chose to sponsor or associate with extreme sports. At one point of time the brand also owned a Formula 1 racing team. Athletes : • Rather than roping in expensive celebrities, Red Bull sponsors high performing athletes who are not celebrities. According to Forbes Magazine, Red Bull sponsors more than 500 athletes. Quirky Ads : • Red Bull is a brand which was built without depending too much on advertising. The brand used advertising for reinforce brand identity rather than for selling the product. The ads of Red Bull has the classical cartoon format with a touch of humor.
  • 56. SWOT Analysis: Strength Weakness Opportunities Threats © 2010 Marching Ants All rights reserved
  • 57. SWOT ANALYSIS • Strength: Market Leadership : Within the energy drinks market , red bull is the leader. High Promotion around the globe Strong Brand identity, statement of style
  • 58. Weakness : • High price • Lack of innovation : USP, Advertisements in TV or Newspaper • Small Product Base: One brand Product with some colas and sugar free varieties • Only seven years in India
  • 59. Opportunity: • High Potential market in India: Positive response from the consumers and trade. • Product mostly targeted towards all those who lead an active lifestyle and India a best place for this. • Active participation on Face book and other networking sites. • Tie- up with sports stadium and health clubs
  • 60. Threats: • Amul recently launched India's first domestically-produced energy sports drink `Stamina. • Tougher rules on high caffeine content. • Organic energy drink might capture market share. • Many controversies may lead to loose its identity.
  • 62. Market Environment Political Environment: Technological Environment: Economic Environment: •Banning of beer in different •Online sales of beers by states •Delhi is Special competitors Economic zone •Legal ages bar difference •Mixing ingredients in different states •Increasing middle class technology by other beers number •Banning drinking during • Different flavor and color election time Cultural / social Environment: Marketing legal Environment: Environment •Family background •Legal age above 20 in Delhi •Living style •Banning in advertising in •Income TV and newspaper Competitive Environment: •High Tax •Increasing female consumers •Local and other Franchise •Banning drinking habits on •More social gathering Brands public places •India co native market •International Imported •Limited retailer shop •Religious Issues Brand •Transportation © 2010 Marching Ants All rights reserved
  • 63. Conclusion: • The Indian beer industry is showing steady growth during the last decade. Strong economic growth resulting in high disposable incomes, an increase in beer sales in the next two or three years is expected. • The beer market in India is pegged around 12 million hectoliters per year and is expected to double in the next five years or so. • The brand is a fresher entering into market with an Indian label stating itself to be the most different and most satisfactory beer for the customer ever found in an Indian market. © 2010 Marching Ants All rights reserved
  • 64. Recommendation Teamwork Together Everyone Achieves More. Teamwork and success go hand- in-hand. Excellence We offer nothing but the best through a focus on delivering high quality service and continuously improving ourselves and our work. Integrity Integrity is a necessity - honesty, open communication and professionalism drive each and every interaction. Dedication Every individual is committed to the success of each interaction to the best of his ability. Creativity The environment at MAC enables individuals to be imaginative, innovative and to think outside of the box Fun Work hard, play harder © 2010 Marching Ants All rights reserved
  • 65. Product Mix (Red Bull): Product Line Product Red Bull Red Bull Red Bull Cola Energy Shots Product Item Red Bull sugar Free © 2010 Marching Ants All rights reserved
  • 66. Bibliographic References: http:// www. bio-medicine.org/medicine-news/Beer-Found-To-Be-Effective-In-Fighting-Cardiovascular-Disease-2598-1/ http://www.rediff.com/money/2007/dec/04bspec.htm http://www.netmba.com/marketing/product/lifecycle/ http://www.team-bhp.com/forum/route-travel-queries/38655-delhi-saharanpur-route-quick-info-req.html http://tutor2u.net/business/marketing/pricing_strategy_penetration.asp http://www.marketingteacher.com/Lessons/lesson_pricing.htm http://www.morebusiness.com/running_your_business/marketing/id- http://www.eufic.org/page/en/faqid/which-beer-contains-energy-per-volume-alcohol http://www.bio-medicine.org/medicine-news/Beer-Found-To-Be-Effective-In-Fighting-Cardiovascular-Disease-2598-1/ http://www.rediff.com/money/2007/dec/04bspec.htm http://www.reportbuyer.com/food_drink/alcoholic_drinks/beer/beer_market_india.html http://in.rediff.com/cms/print.jsp?docpath=//money/2008/mar/06beer.htm http://www.rhythmicdissonance.com/funny/why-do-people-drink-beer/ http://www.netmba.com/marketing/product/lifecycle/ http://www.team-bhp.com/forum/route-travel-queries/38655-delhi-saharanpur-route-quick-info-req.html http://tutor2u.net/business/marketing/pricing_strategy_penetration.asp http://www.marketingteacher.com/Lessons/lesson_pricing.htm http://www.authorstream.com/Presentation/Yuan-51270-VesnaDamnjanovic -MARKETING-LIFE-CYCLE-ANALYSIS-Objectives-Context-Introduction-Example-vesnadamnjanovi-Education-ppt-powerpoint/ © 2010 Marching Ants All rights reserved
  • 67. © 2010 Marching Ants All rights reserved