Red Bull Final International Business

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


Group Members:

Speaking on :
Corporate culture
Promotion
General overall

Binod Hyoju


Group Members:

Speaking on :
TSTP

Trevor Pandi


Group Members:

Speaking on :
HRM
General overall

Suman Baniya


Group Members:

Speaking on :

History
SWOT Analysis
General Overall

Jayant Basnet


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.

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


Supply chain Management :
– Direct to retailer:
– Direct to the consumer:


Pricing Strategy:


Price

INR 75 / - In
2009

INR 85 /-
Present

Price:
Our Strategy

Promotion

Price High Low

High Skimming Low Skimming

Low Penetration Low Penetration


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


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.

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


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.


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


Product Mix (Red Bull):

Product Line

Product Red Bull Red Bull

Red Bull Cola Energy Shots

Product Item

Red Bull sugar Free


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/


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