This document provides a marketing plan for expanding the Wild Bull energy drink brand into India. It includes an analysis of India's macroenvironment, target market segments, branding strategy, and proposed media strategy. The analysis finds opportunities in India's growing economy and changing western influences. It recommends an adaptation strategy to develop different energy drink flavors for various demographic and cultural segments. The media strategy proposes using outdoor advertising, online/social media, magazines, and sponsorships to effectively promote Wild Bull in India.
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1. Executive summary
The assignment provides a clear macro environment analysis, product stereo analysis and
media strategy analysis for new expand to India, where we selected the appropriate
adaptation decision according to the macro environment analysis. The forecasting for a new
expansion will be success of energy drinks.
The macro environment analysis some key factors such as political and legal, economic,
cultural and technological. It briefly discusses the opportunities and the threat of this
environment. Opportunities include changing government less focus on business rules,
business low system protecting the foreign investors, the less tax encourages investing and
unemployment gets positive a labor force in lower salaries, changing western way of life
boosting the economy and long-term investment success. And the threats include large
disparities among peoples, different law has to follow, different language, different culture &
region and states, maximum investment and changing global technology systems.
According macro environment, we decided adaptation strategy for strategic reasons. Other
analysis includes the Wild Bull’s most appropriate target market segment such as urban
consumer, male, age groups 18-35, sportsman, professional education students and hard
workers. Adaptation strategy decided the appropriate branding model, perceptual map of
energy drink of Indian markets.
The final task recommended for less cost and more attractive, innovative media strategy to
Wild Bull in Indain. I recommend the outdoor, online, magazine and sponsorship.
The report finds the current economy is positive to Wild Bull energy drink. The market
threats found solutions by using business strategy in India. Those recommendations include.
Adaptation produces innovative different energy drinks to different market segments.
Energy drink ensures product standard
Media advertisement evaluates cultures, cost, and media availability also government
regulations.
The organization goes a long-time business with Indian suppliers
4. 2. Introduction
The Wild Bull Energy drink has a good demand among the Sri Lankan population. Demand
of energy drink is growing due to increased consumer consumption, usages in the
manufactures of various flavors and flavor ingredients. The organization would expand to
one Asian country due to earn more profit, increase market segment, digital work and use
global unemployment.
The energy consumption has frequently increased India, Sri Lanka, Pakistan, Bangladeshi
and other Asian countries. The selected country India is located in South Asia. In India, more
than 1.23 billion population, approximately 30 languages and a fast growing economy. The
culture is different a peoples lives there such as Hinduism, Buddhism, Islam and Christianity.
Its economy faces market challenges such as poverty, changing political, unemployment and
bribery.
After 2008, the financial crisis is striking, India is a place in the fast grown country and it was
10th place in 1991. The long term business has been being a success than SME due to the
improving technology in the business sector. Some of the industry has been continuously
growing few years such as social sectors, infrastructure sector and food and beverage.
The energy drink has is so much demand in India where Red Bull is a market leader with
more than 40% market share. But, other every competitor is less than 10% market share.
Our organization has to enter into India, where it may good market opportunity reporting on
the market research.
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3. Acknowledgment
I express my sincere gratitude for Mr. Mohamed Imran to provide additional knowledge to
complete this assignment. As well as my thankfulness to the Sri Lanka institute of marketing
for providing changes to follow such as a valuable courses like this, finally I want to give
love acknowledgments for my family members.
6. 4. Task 01
I selected India due to the major population, different cultures, stable economy,
unemployment and various other factors are positive for the Wild Bull organization.
4.1 India
The huge population of India attracts opportunities for a new business organization that
includes 29 states and 7 regions. India is second most populous nation in the world where it is
more than 1.23 billion people and 65 % people's age is 35. Also, according to the forecasting,
India will be number one populated country in the world by 2025.
It is very strong economic country through the gross domestic products and purchasing
power. The current GDP growth rate is 6.4%, which are growing faster from 2012 to 2014.
The most attractive sector is service sector of the investment. Because, it generates high
return. Also, all the business sectors have opportunity availability of the labor pool at a lower
rate.
India is a multi-cultural and multi language, country where people use about 30 languages
such as Telugu, Urdu, Hindi, Tamil, Sanskrit, Punjabi, Kannada, Bengali, Hindi, English.
Both Hindi and English languages are considered as the official language.
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Macro environment of India4.1.1
The Macro environment analysis describes the external factors of the India, where it analyzed
the important tools of political and legal, economic, social cultures and technologies.
4.1.1.1 Political and legal
The political and legal environment is unit part of the successful business which has to
consider taxing, product standard, and organization registration and government laws.
India follows the common law systems from British where democratic rule is not positive to
among competitive organizations. The restriction of business law called company law that
protects the business investors from the debit, finance and public market.
The regularly changing government is opportunities to foreign investors. But, the government
has two parliaments of Rajya Sabha and Lok Sobha. The president of Pranab Mukherjee was
selected to Rajaya Sabha in 2012 when he may member of the Rajaya Sabha in 2017.
The Indian enforces various laws which are complex for business organization. Those are
employment trademark act 1969, consumer protection act 1960, essential goods and services,
law act 1955, enviromenr protect law, competition law, standard of weights and measure act
1969.
The Indian government has ensured good legal system after the economy liberalized since
1991 when Indian regular agencies are more careful about the production and banking
sectors.
4.1.1.2 Economic
The economic environment includes economic growth, risk, particular food and beverage
sector and career opportunities.
Calculating of Indian economy, the GDP has grown from 4.4% (2013) to 6.4% (2014 3rt
quarter) and the inflation rate was 7.96%.
India is an emerging country where it has various market potentials for business organization.
After 2008, the financial crisis was striking, India is in tenth place in the fast grown country
also, it has been first place since 1991.
8. The Indian economy is potential development and growth. But, the market needs longer time
for growing in particular fields where the long-time business is more successful rather than
short term.
The unemployment rate is valuable opportunities in lower wages. They are educated and
skill peoples.
High inequality among Indian people who take control in purchasing behavior. The less
consumer has high income and they have more purchasing capabilities.
The larger organization has been growing faster than SME due to the and expertise and
improvements of this business.
The market competition is high in energy drinks due to foreign organizations and local
organizations have capital and expertise.
Some of the business sector has been continuously succeeding this era where that are
manufactured, pharmaceutical and food and beverage.
4.1.1.3 Social cultures
The market has to adjust in the good respect to the cultural and belief. Because, Indian
consumer takes a purchasing decision according to the cultural and belief.
According to Hofsted’s dimension cultural analysis, Indian more interesting group work
rather than individual in their society. Male is the decision maker in the family also they high
unequal relationship between husband and wife also organizations employes. For example,
The manager avoids conversation with lower level staff.
The western lifestyle has accepted in Indian. Because, Indian youth’s life styles is changing
to the western way of lifestyles in drinking alcohol, familiar with the pub, leaving from
cultural belief and responsibilities, increase the female employe rate, changing music, eating
behavior at restaurants, avoid cultural dress and etc.
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There is so many languages such as Telugu, Urdu, Hindi, Tamil, Sanskrit, Punjabi, Kannada,
Bengali, Hindi, English. But the English and Hindi are the official languages.
The majority of youths segments favors energy drink, miners segments favor cool soda as
well as elder flavor to nutrition drink.
The organization has to adopt Indian cultures. Because, different religion involve in this
business such as the major population of Hindu peoples who does not eat meat, less Faver
two chickens and Muslim avoid porks.
Indian peoples are very broad-minded which clearly explained by business languages such as
yes means, yes or maybe or no, tomorrow means in a few days, in 10 days means in a month,
in 6 months means forget about this deal.
4.1.1.4 Technological
The current upgrading technology and using new latest technology is success for innovative
food and drinks
India organization has unlimited opportunity by using new technology which increases the
competitive advantage for the business organization.
After the using good technology, The Indian enhanced the security and testing on harvest,
food and drink and the testing and security system of local and foreign products.
The changing lifestyle and economic growth are encouraging for online business. Indian
intent subscriber increased 88 million (2008) to 137 million (2012). The mobile phone user
increased 44 million, smart phone user increased 4%, 59.38% users have a mobile internet
account. Desktops personal computer subscribers are 86.05%, computer user 57 million
(2013).
10. 5. Task – 02
5.1 Standardize or adapt
International organizations selected standardize and adaptation due to cultural differences and
strategic reason, economic reason and etc.. The standardize is the same product which
focuses all the costumes are the same and less cost for the organization. The adaptation
selected for the strategic reason in the nternationla marketing. Accoditing to macro analysis,
The new entrance need adaptation in India.
Adaptation strategy for India5.1.1
According to macro environment analysis, I recommend the adaptation for the strategic
reason in India. Following reason are.
To produce the different taste of energy drink
We plan to target three types of market segment (youth, children and elder) by changing
the marketing mix which should be economic of scale.
To satisfy the different religion and belief of the population.
To successfully obtain the available technology
To satisfy different income consumers
To switch the existing consumers from competitors to our organizing and capture the new
chapter to easy way
When we decide the adaptation strategy, it can gain more revenue and capture the different
type of market segment. But, it is expensive than standrazie strategy.
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5.2 Target market segments of India
The major appropriate target market segments are urban consume and middle income
consumer, male, age groups 18-35 and occupation is an athlete, professional education
students, cricket players and hard workers.
Demographic segmentation5.2.1
It included various factors such as age, gender, income, occupation and etc. the following
appoprtiate demographic segments are below.
Age - 18 – 35
Gender - Males are the major target audience also female is very less part
Incomes - Urban consumers and middle income consumers
Education – Young professionals
Occupation - Hard workers, working professionals and sports person
Geographic segmentation5.2.2
In India, Various segments have identified from states, city, and regions. Following the
geographic market segment are below.
Area - Urban area, middle urban areas
Region – All the region
Psychographic segmentations5.2.3
Psychographic Segmentation is based on personality, attitudes, interest or lifestyle of the
potential customer group. Following appropriate psychological factor segmentation below.
Lifestyle - Hard work, sportsman,
Personality - Ambitious, aggressive
Benefits - Superiority energy
Behavioral5.2.4
12. Behavioral role is an important factor of energy drink. It can be identified the behavioral
segments of angry drink.
Level Energy and fresh
Benefits sought
Brand loyalty
Produce user rate
5.3 Branding (Name, Logo, colors, Label & Trademark Registration)
Selecting the brand name is an important part in global business. It has adapted the cultural
and belief of people, can easily identify from the competitor’s brand and should be good
remained in consumer minds.
Brand name5.3.1
The current energy drinks make the best impression to existing customers who don’t know
about our brand and our company. So, we have to select easily remember names that follow
common languages such as English.
The consumer belief, the energy drink reduces the tiredness and making new impression
when consumers drinks. So, our product name should be positioned the meaning as “increase
your strength and your power”.
A brand name which isn't taken a meaning in the dictionary, is a common language (English)
and it should suggest the characteristics engery and impression.
Logo5.3.2
The logo is an important to remain in consumer's mind. Our logo, which relate to being bull
products, differentiate and identify very easily compare then competitors’ brand. The logo
should express the strong energy in consumer minds.
The energy drink purchase needs a fresh and extra energy. So, The logo should give strong
recognize for the fresh and strong energy.
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Colour5.3.3
Color effects country societies. It expresses the positive value and negative value of to
business. In business, colours use different in different societies. Selecting the appropriate
color, It maximizes the target audience and accetaple the cultural impact. The yellow is the
“Symbol of a Merchant” color in India, where it is appropriate to all religion and cultures.
Labelling5.3.4
The label should clearly describe the received soft drink standard from India, integrations,
nutrition facts, produced date, expire date, brand logo, price and etc.
Trademark Registration5.3.5
The Indian foot and beverage brand register in the act 1999 [under the rules 24 (1)]. The
registration must for every drink, which can confidently among the costumes. And it avoids
the fake drink from local producers as a same name in India.
5.4 Perceptual map
There are several energy brand in India such as Red bull, Cloud 9, power hose, Rhino,
Current bullet, Amway xl, Pepsi sobe, coca cola burn, Gatorade and etc. The Austria’s red
bull is a market leader that brand is a higher health benefit and high brand awareness.
I have decided to show the high brand image and high health benefits of our products.
14. Bild Bll
Red Bull
Cloud 9
Gatorade Amway Xl
Coca Cola Power Hose
Pepsi Sobe Current Bullet
High Health
Benefit
High Brand
Awareness
Low Brand
Awareness
Low Health
Benefit
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6. Media strategy
Advertising is an important strategy, however success of a global advertising campaign
depends on regulatory environment, media availability, cultural differences, and cost of
media. The media advertisement is less cost that can reach more target audience in global
marketing. The following media advertisement appropriates to Wild Bill Brand.
6.1 Outdoor / Billboards
The billboard advertisement is the most effective media and less cost. We can design the
billboard positive technology and hiring graphic designers. The billboards adverisment place
takes in the displays, road billboards, poster and playground stadium.
It is most effective methods due to the very least cost medium and reach millions of people
every day, continuously reminding for our products, easily identifying the brand, increase
reputation of the company and products, design can attract a potential customer, work for a
guide to new customers and fixed brand image.
6.2 Online and Social media advertising – WWW, Facebook, Twitter and YouTube
The consumer has been a day to day using social media advertisement such as Facebook,
Twitter, YouTube and Google which are more attractive advertisement to youths. The
organization should make an interesting to consumer about the brand and organization. The
advertisement is very less or no cost to organize, it can reach a larger type of consumer and
most of the users are same of our market segments.
Facebook is most popular social media over the 500 million users around the world. The 50%
of people login with each day also the one user has a friendship with 130 persons and liked
with 80 public pages.
YouTube is another well-known social media advertisement in video. The 18-34 age segment
people are sharing more videos and more than 50% login with each week.
Companies promote the brand to lager costumers via the twitter social media also it linked
with companies' websites.
16. 6.3 Magazine
The most effective advertising commonly uses in the professional group who get an interest
of the organization offers. The magazine has so many opportunities in India. Because, its
focus special professional target segment, long time being with customers compare with
newspapers, it's used as office, classroom and doctor's waiting room, the same magazine,
including sport interest advertisement and information about sports, people passing to another
when read interesting information.
6.4 Sponsorship
The organization pays or providing free resources to the new sports team. More companies
spending money to increase consumers in future. The bull is strong energy drink in consumer
minds a and the target consumers are sporsmnet so, we can sponsor to one or two of car race
bike races, horse race football, running games. When you selection effective sponsor, you
plan about the cost and market segments.
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7. Conclusion
The assignment provides a clear market analysis of India. The suitable adapt decision has
selected according to the macro environment analysis. The forecasting for a new expansion
will be provided a market success in India.
The new expansion will be successful in India, where have various opportunities as well as
some threats. The benefits are described the changing government less focus on business
rules, business low system protecting the foreign investors, the less tax encourages investing
and unemployment gets positive a labor force in lower salaries, changing western way of life
boosting the economy and long-term investment success.
Also, the new entry has various threats which describes the large disparities among peoples,
different law has to follow, different language, different culture & region and states,
maximum investment and changing global technology systems.
The adaptation is an appropriate strategy for expansion in India. The research identified
target segments who are sportsman, high educates students, hard workers and etc. The
consumers do not purchase an energy drink every time but they recommend a good brand to
their family and friends. But, less consumers know the benefits of energy drinks.
The international media advertisement is influenced by many factors such as media
availability, cost of media, legal barriers and various other micro environmental factors. The
TV advertisement is a great attraction, but it more cost likes India, we decide billboards,
online advertising, sponsorship advertisement for our new expansion.
18. 8. Recommendation
The recent years, The current energy demand belongs to the ingredients of non alcohol drink.
Because, Indian consumer is very religion. So, the energy drink ingredients should avoid the
alcohol as well as your packaging should clearly explain the ingredients to market segments.
The changing the lifestyles and income level deciding good energy of drink in differing test
two different market segments. Your drink should target young consumers as well you
decided cool soda and nutrition milk to other segments. So, you can reach more market
segments and reduce the cost and gain economies of scale.
The boosting Indian economy is not success in short time business, the organization will
select a long time investment.
The large population of India has different cultures and different languages. So, when you
select an appropriate advertisement media access the indian borders. You decide lower cost
and more effective advetisment such as bill borders, online advertisement, sponsorship and
magazine rather than television.