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    Red Bull in India

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    Kshitij Gopal
    A study on market leadership in the energy drinks space for Red Bull. Covers all standard analysis and recommendations - presented in Marketing Management (MBA)

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    Red Bull in India

    Uploaded by

    Kshitij Gopal
    531 views20 pages
    A study on market leadership in the energy drinks space for Red Bull. Covers all standard analysis and recommendations - presented in Marketing Management (MBA)

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    © Attribution Non-Commercial (BY-NC)

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    PPTX, PDF, TXT or read online from Scribd

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    A study on market leadership in the energy drinks space for Red Bull. Covers all standard analysis and recommendations - presented in Marketing Management (MBA)

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    531 views20 pages

    Red Bull in India

    Uploaded by

    Kshitij Gopal
    A study on market leadership in the energy drinks space for Red Bull. Covers all standard analysis and recommendations - presented in Marketing Management (MBA)

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 20
    At a glance
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    Red Bull is analyzing its business environment in India using various frameworks like Porter's 5 Forces, SWOT analysis and the 4Ps of marketing. It is considering strategies like expanding to tier 2 cities, launching new products and increasing its marketing expenditures.

    Red Bull's main strengths according to the SWOT analysis are its high market share and growth in India, its global brand image and the utility of its product. Its main weaknesses are that it only offers one product, it has a high marketing budget and it is associated with extreme sports.

    Red Bull is considering strategies like expanding to tier 2 cities, launching line extensions like Red Bull Shot, increasing awareness of new uses of its product, and boosting profitability by localizing production.

    presented by : AMRIT DUREJA KSHITIJ GOPAL MASAKATA SATO SAHIL MALHOTRA YOSHIYUKI KIMURA

    Environmental Analysis - 5 Cs
    Customers Context Company Collaborators Competitors
    Seek multiple benefits Growing high income groups Extreme sports and thrill
    Wall-to-Wall production very few suppliers
    3 main competitors in similar price category

    Environmental Analysis Porters 5 forces


    Potential Entrants
    Low barriers - Monster, Kamasutra and Restless Action

    Supplier Power
    Low tertiary supply

    Competitor rivalry
    High in industry

    Buyer Power
    High from retailers and customers

    Availability of substitutes
    High - Sports drinks (Lucozade, Gatorade)

    Environmental Analysis SWOT


    Strengths
    High market share and growth in India Red Bull global brand image Product utility

    Weaknesses
    Single product offering High marketing budget Associated with extreme sports Re-building distribution network

    SWOT
    Opportunities
    Expanding energy drink market Rising incomes of target groups Increasing consumer sentiment towards energy drinks Hub for Asia

    Threats
    Health issues and political restrictions Several new competitors Sports drinks as possible substitutes Repercussions of negative publicity abroad Higher relative price to competitors

    Segmentation Targeting Positioning


    Demographic
    Gender Age Income Job

    Geographic
    Region

    Behavioral

    Sports

    Party

    Segmentation Targeting Positioning


    Price Red Bull

    POP
    Size&Effect
    Positioning Size

    POD
    Brand Image

    RED BULL GIVES YOU WINGS

    Brand Mantra

    4P & Marketing Mix


    Product
    Red Bull ENERGY DRINK Red Bull SUGAR FREE
    Supermarket Department store Restaurant Club

    Price Rs 85 /250ml

    Media advertising Sponsoring Free sampling

    Place

    Promotion

    Challenges
    New Entrants

    Source: Euromonitor International

    Challenges
    Substitutes
    Off-trade Volume
    120.0 120.0

    Off-trade Value

    100.0

    100.0

    80.0

    80.0

    60.0

    60.0

    40.0

    40.0

    20.0

    20.0

    0.0 2009 Red Bull Gatorade

    2010 Lucozade Tzinga 100 Plus

    2011 Cluod 9 Burn XXX

    2012 Others

    0.0 2009 Red Bull Gatorade

    2010 Lucozade Tzinga 100 Plus

    2011 Cluod 9 Burn XXX

    2012 Others

    Source: Euromonitor International

    Challenges
    Price
    Rs. /ml
    0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 Red Bull Burn Cluod 9 XXX Tzinga Lucozade Gatorade

    Source: Euromonitor International

    Challenges
    Health Concern
    - Banned in Tamil Nadu - Ordered to label as caffeinated beverages

    Local Production & Distribution


    - All imported from Austria - Broke up with a long-allied distributor

    Expanding the Market


    Tier 2 cities are the next focus
    Coimbatore, Indore, Chandigarh
    Colleges & Workplaces with high % of young populace

    Distribution Strategy
    Split between self distribution (Tier 1) & Outsourced Distribution (Tier 2)

    Expanding the Market


    Line Extensions
    Red Bull Shot

    New uses
    Sex

    Increased Awareness
    Long Drives Academics At work Sports

    Expanding the Market


    Boost Profitability
    Reduce Costs localize production and serve as a hub for Asia

    Bundling
    Buy 4 get 1 free in Tier 2 to increase initial adoption

    Innovation product, distribution & promotion Most profitable market share rather than the whole market!

    How do we get there??


    1. New product introduction 2. Improving the relative product quality 3. Increasing marketing expenditures relative to market growth

    Strategies to gain market share


    Launch the new variants, Indian consumers appreciate variety
    Requires global marketing team approval

    Work on the drink can


    Eco-friendly materials and branding on the drink can Introduce an exciting new shape to create buzz

    Add a touch more local to the promotion efforts


    No more Indian Grand Prix sponsor other local racing events Establish an active Facebook India page crucial to connect with the target segment Robby Nash and Thierry Henry are less known figures - Virat Kohli and Karun Chandhok would create better brand associations

    Increasing marketing expenditures


    Indian grand prix uncertain in the coming years
    Bigger promotional spends on local events - MRF Challenge car racing, college kart racing

    Establish a larger presence on social media very low cost


    No Facebook presence crucial to connect with the targeted segment. Social media gaming platforms

    Thierry Henry, Robby Nash endorsements not relevant in India


    Virat Kohli (cricketer) and Karun Chandhok (Formula 1 driver) establish a better connect with the local audience.

    Vending machines and fridges in offices and BPOs in top cities Delhi, Mumbai, Bangalore

    Defending Market Share


    Kotler quotes Sun Tzu : Leaders should not rely on the enemy not attacking, but have to become unassailable Improve customer service and experience
    Setup a customer service call centre immediately address queries on quality & health concerns Cost of a 10 person call centre/month : USD 5000

    Leverage new distribution network


    Pass savings from new network to the retailers to gather optimum shelf space

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