Red Bull 
Energy Drink 
Submitted to: Prof. Nagasimha Balakrishna Kanagal

Marketing Management Project 

 

Group 5 
   

Amar Deep Singh    1111005  Chander Prakash     1111018  Irshad Ahamed M A         1111031  Niharika Bhatnagar   1111044  Sachin G                      1111057  Swati Murarka           1111071   

Table of Contents
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. A. B. C. 13. 14. 15. A. B. 16. 17. Energy Drinks Market in India - An Overview .............................................................................. 4 Indian Organic Food Industry - An Overview ................................................................................ 7 Problem Formulation ...................................................................................................................... 8 Rationale to Launch Organic Energy Drinks .................................................................................. 8 SWOT Analysis of Red Bull's Brand Equity .................................................................................. 9 4C Analysis of Red Bull Natural .................................................................................................. 11 Methodology for Launch Strategy of Red Bull Natural................................................................ 12 Inferences - Secondary Data and First Consumer Survey ............................................................ 13 Product Conceptualization ............................................................................................................ 14 Inferences - Second Consumer Survey (Concept Testing) ....................................................... 15 Product Specifications............................................................................................................... 16 Segmentation, Targeting and Positioning ................................................................................. 17 Market Segmentation ................................................................................................................ 17 Consumer Targeting.................................................................................................................. 19 Product Positioning ................................................................................................................... 19 Customer Value Proposition ..................................................................................................... 20 Brand Identity and Personality.................................................................................................. 22 Demand Estimation and Price Setting ...................................................................................... 23 Market Sizing - Demand Estimation ......................................................................................... 23 Product Pricing.......................................................................................................................... 24 Value Proposition Statement..................................................................................................... 25 Unique Selling Proposition ....................................................................................................... 25 2

18. 19. A. B. 20. 21. A. B.

Tag Line .................................................................................................................................... 25 Product Promotion .................................................................................................................... 25 Promotion Strategies ................................................................................................................. 25 Promotion Budget ..................................................................................................................... 28 Scope and Limitations............................................................................................................... 28 Appendix ................................................................................................................................... 29 First Consumer Survey ............................................................................................................. 29 Second Consumer Survey ......................................................................................................... 32

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business-standard.business-standard.1.2 Awareness among the consumers is on the rise. ubstantial The party-going segment is growing and youngsters are willing to try out something different.com/india/news/red standard.1 The response was not favourable and as a result the product result. entered the market in recent years and are giving it tough competition. Energy going something drinks have become an urban phenomenon with supermarkets being the primary sales channels. exited the market. which first entered in the 1990s with a drink called Shock. 25%.5 million cases of 24 cans. energy drinks are also sold in bars and pubs along with alcohol. undisputed leader of the energy drink segment in India.An Overview The energy drinks market in India.com/india/news/kit standard. Figure 1: Market share of various categories of soft drinks in India in 20113 : share Competitive Landscape and Market Share The introduction of energy drinks in Indian markets can be traced to Coca Cola. w Coca-Cola. In India. India is a young country and its impressive economic growth has pumped in enormous sums of money into the d middle and upper class households. The current market size is around Rs 500crores. 1 http://www. the total consumption of energy drinks stood nt 500crores. Apart from retail sales.com/india/news/kit-non-alcoholic-beverage-market-in-india/452713/ india/452713/ http://www. Energy Drinks Market in India . Red Bull.com/india/news/red-bull-to-bankf1-to-beefbrand-equity/147952/on equity/147952/on Report ‘Flavours in Soft Drinks in India – Euromonitor Flavours India’ 2 3 4 . though still in its infancy is expected to grow at a CAGR of 25% 1 infancy. its main competitor is Cloud 9 whose strategy is to directly attack Red Bull’s sha Coca Cola has also launched its premier share. numerous new brands have drinks. Since the very beginning Red Bull has nergy enjoyed a market share of around 60% amongst energy drinks However. at around 1. This has resulted in a substantial increase in lifestyle expenses. brand. an Austrian brand entered Indian markets in 2003 and has become the . In 2010.

energy drink makers are compelled to come up with innovative ways to promote their products.7 58.0 2.7 4.7 38. to further strengthen its brand equity. A brand image is created and cultivated which associates the drink with youth culture and extreme adventure sports.com/india/news/red-bull-to-bankf1-to-beefbrand-equity/147952/on http://brandactivationideas. launched the Burn Car – a vehicle designed by ace automobile designer Dilip Chhabria – to conduct sampling of the brand. Also.blogspot.9 4.0 Promotion Strategy of Existing Players Traditional promotion activities fail to engage Generation Now and Generation Next.niche energy drink ‘Burn’ in India. It is banking on the success of its F1 racing team in the first ever F1 race to be held in India.6 In another unique initiative.4 3. it invited participation from the creative 4 Report ‘Sports and Energy drinks – India’ – Euromonitor http://www. Danger and Youthfulness.2 100. Table 1: Market share (by volume) of leading energy and sports drinks in India4 2005 Red Bull (Red Bull GmbH) Gatorade (PepsiCo Inc.0 2007 43.5 100. motor sports. under which the firm will organize promotional events at Big Bazaar stores and its cars will sport Big Bazaar logo during the events.5 100.0 4.4 4. it has struck a barter deal with retail chain Big Bazaar.2 2009 46.9 18. there are other small players in this category like Monster. as part of the brand’s first on ground activation.) 100 Plus Isotonic Drink (Fraser & Neave Ltd.6 47.3 100.) Cloud 9 (Goldwin Healthcare Pvt Ltd.0 2010 41. They being the target consumers. The market share of these brands is very small compared to Red Bull.business-standard. Apart from these.0 2. Red Bull associates itself with the following brand qualities: Energy.0 3. mountain biking and snowboarding. XXX and Rockstar.) Others Total 95.com/2010/01/coca-cola-launched-its-energy-drink.1 34. termed ‘Burn Curate’.5 2006 38. Hence.0 6.html 5 6 5 .5 Burn (by Coca Cola).9 100.4 2008 47. the brand has chosen to sponsor and/or associate itself with extreme sports.8 7.5 4. such as dance music parties.8 100.0 41.

Reasons for Consumption of Energy Drinks Various reasons for consumption of energy drinks are stated below: • • • 7 To increase stamina and physical performance To reduce fatigue and improve concentration To remain awake for long hours http://www. consider themselves fashion-conscious. In case of XXX. mobile phones. this has changed among urban and high-income families. 50.html http://www. Twitter and Hi5 for brand communication and promotion. thus increasing their discretionary spending.community to showcase the best of fashion.burncurate. India’s rapid economic growth and better employment opportunities have put enormous money into the hand of Generation Now and Generation Next. Secondary groups developed on social networks exercise significant influence on their preferences and perceptions. parents and primary groups had a say in the consumption behaviour of the youngsters. Traditionally. famous celebrity Shah Rukh Khan unveiled and launched the product.000 each and an opportunity to be featured at Lakmé Fashion Week Summer/Resort and Wills India.8 Every other brand is using social networking sites like Facebook. painting. pressured by their peers and seeking to showcase their individuality.com/BurnGallery/whatson. and photography. fast food and soft drinks.com/news/xxx-launches-fat-burner-%5Cenergy%5C-drink/729821/ 8 6 .financialexpress. The common source of income for teens in India is pocket money which they end up spending on music. installation. Consumer Preferences and Perception Today most Indian teens. Industry Standards on Pricing The retail price of Red Bull is INR 75 and for similar energy drinks it ranges from INR 65 to INR 80. bombarded by advertising. Efforts to reduce high-stress lifestyles. Considering the price point.7 The winning creations were awarded Rs. However. penetration in to rural markets is not feasible for the time being. improved disposable incomes and a growing emphasis on health have led to a growing preference for natural alternatives of energy drinks.

html http://www. consumers prefer organic strawberry. There is growing awareness about the environment and the dangers of chemically grown products.An Overview Organic energy drinks as a concept are very new to Indian consumers. This trend seems to be encouraging for the launch of organic energy drinks. Indian Organic Food Industry .9 As per a survey conducted by ACNielsen.organicfacts. Hence. According to ASSOCHAM.10 Another key factor driving demand has been the change in the consumer perception from organic products being elitist to healthy.shtml#Table10 http://www. with a considerable number of retailers offering various organic products. their visibility had increased and therefore. The pattern of organic food consumption in India is much different than in the developed countries. are more likely to generate demand. including organic food. further penetration of organic product consumption has been jostling with lack of awareness.• • • To boost energy during workouts or jogs To look stylish drinking a premium energy drink in public places For partying and lifting the spirits.com/organic-farming-india-2015. organic tea. organic farming in India is likely to be worth Rs 10.net/organic-food/organic-food-trends/organic-food-consumption-in-india. There are many 9 http://indiamicrofinance. Indian organic food market is growing at an annual rate of 40% due to significant growth in consumers with high disposable income and health consciousness. Besides.html 10 11 7 .co.11 However. growth prospects and consumer behaviour and preferences. organic cashew butter and various organic flours.acnielsen.in/news/20060220. Other incidental benefits such as better taste and better environment are also driving growth. the organic food industry was studied to gauge the prevailing situation. In India.500crores. sometimes addiction as well 2. organic honey. India is among the top ten countries where health food. is demanded by consumers. knowledge and confidence about food products among consumers.000crores by 2015 from the current levels of about Rs 2.

the customer value proposition and the promotion strategy to showcase Red Bull Natural to the target audience. Problem Formulation The project aims to study three main aspects of the launch of Red Bull Natural. an organic variant of Red Bull in the Indian energy drink market.this can cause heart complications and kidney problems Sleep Deprivation http://www. Rationale to Launch Organic Energy Drinks There are three main rationales for launching organic energy drinks in India: Issues with Energy Drinks Currently Available Presently. Some of the negative effects are as follows: • • • • 12 High Caffeine Content . India has low organic food consumption among the educated and health conscious in metros because of its high cost. Drawing upon the results of this study. the project aims to propose the right mix of product features for an Organic Energy Drink that targets the Indian consumers. Out of these. energy drinks are perceived to be detrimental to health and people have apprehensions towards their consumption. Key players in Indian market are Reliance. 4. There is also limited expertise in marketing of organic products. The first is the pre-launch study of the existing energy drink market to understand the unaddressed consumer concerns. Product launch process involves various stages of analysis and execution by the marketing team.this can lead to complications like diabetes and Insulin resistance High Sodium Content . ITC foods. FabIndia and Organic India.12 3.this is harmful to the health High Sugar Content . the project will focus on the segmentation.consumers who are unaware of the concept of organic food. targeting and positioning of Red Bull Natural.com/news/home/20110617005043/en/Research-Markets-Organic-Food-Industry- India-- 8 . Godrej Agrovet.businesswire. Additionally.

celebrity endorsements. The organic energy drinks market is untapped and there is an immense opportunity for Red Bull to extend its product line and gain first mover advantage.Buzz marketing. positioned and marketed to suit the needs of Indian consumers. Tropicana juices. Most of the energy drinks sold in the market have caffeine more than double this limit. People are becoming more health conscious in India and are slowly switch to natural alternatives e. tournament sponsorship. organic energy drinks. There are many countries which have either banned the energy drinks altogether or have implemented strict regulations on the ingredients being used.g.Successfully established as fashion and lifestyle brand identity using ad campaigns which emphasized the functional benefit of the product saying “Red Bull gives you wings” • Association with sports . music concerts and college festivals • Strong brand establishment . thereby spurring the need for healthy.Increasing Health Awareness and Non-availability of Organic Energy Drinks Currently. world championship winning Formula 1 racing team ownerships. SWOT Analysis of Red Bull's Brand Equity Strengths • • Market leadership . 5. there is no prominent organic energy drink available in the Indian market. 9 .Helped Red Bull to position itself amongst youngsters and claim the sports drinks market. The few available are not properly developed.First and largest player in energy drinks market in India Aggressive marketing . Regulations on Caffeine Levels in Energy Drinks The Central Committee on Food Standards (CCFS) had set a standard of 145 ppm for caffeine in carbonated beverages as a safe limit.

A large segment is wary of the adverse health impact of energy drinks Misconception -It is widely believed that Red Bull provides instantaneous and artificial energy with no natural ingredients • Competition . Expansion to organic products will attract health conscious consumers • Corporate tie-ups .Red Bull does not have any patent on its recipes making it prone to copying Packaging . glass bottles.Red Bull products are usually available in big general stores and super stores. plastic bottles and cans of different volumes Opportunities • Extension of product line .Red Bull is currently targeting urban youngsters from Generation Next and Generation Now.Red Bull can further explore corporate tie-ups to increase sales Threats • On-going legal battles . Norway.Red Bull is strongly dependent on a single product line.Weaknesses • • High pricing . Opportunities can be explored in universities which have a large target market • Expansion of target markets .Due to high levels of caffeine and other chemical ingredients. each with its own USP to strongly position itself • • Lack of patent .Categorized as an expensive energy drinks with above average prices Adverse health effects .g. only single kind of packaging is offered. expansion to organic energy drinks segment will help Red Bull expand its existing customer base • Availability of the product .Red Bull is facing strong competition from other energy and sports drinks 10 . Denmark and parts of Germany have banned energy drinks • Lack of innovation .Red Bull is currently facing law suits in various countries regarding the ingredients used in the product • • Health concerns . Market has evolved with many strong players. many countries like France. There is a strong need for different packaging to suit the needs of customers e.Currently.Besides introducing new flavors and versions.

250 ml flagship product Red Bull Cola – 250 ml sugar free variant Red Bull Energy Shots. By being the first major player to enter the market Red Bull will gain first mover advantage that will help us in cementing our position and thwart any competition. This has played a significant role in the product’s success across geographies. 4C Analysis of Red Bull Natural Customer Organic energy drinks as a concept are new to India and hence to understand the consumer’s profile and preferences. The standards of carbonated water under PFA Rules. Red Bull has maintained a dedicated one brand distribution network across the country operated by self. 1954. Context In India. Scientific review of energy drinks has thrown up series of health concerns due to the high levels of caffeine. In the wake of these developments. there is a strong possibility for the existing energy drink players to enter this space.6. Red Bull’s product line-up includes: • • • Red Bull energy drink. 1955 specify the maximum limits of caffeine as 145ppm. there are yet no defined standards for energy drinks under PFA Act. we will conduct a consumer survey and interview a organic products’ dealer.60 ml SKU Since its launch in India in 2003. we could confirm that consumers are moving towards organic foods. However. preferences. Red Bull’s brand equity and distribution network will significantly support the launch of the organic variant. decision making and the influences of personal. social and cultural factors. there are no significant players in the organic energy drink market. Company Presently. From secondary study. Competition Today. Food Safety and Standards Authority of India (FSSAI) 11 . This would analyze the consumer buying behavior.

Considering that people have varied perceptions and understanding of organic products. Analyzing the above criteria and constraints. This will enable fixation of the ingredient levels and caffeine content. along with their main objective were as below: • Consumer Survey 1 . Methodology for Launch Strategy of Red Bull Natural Secondary data was used to study the evolution of the Indian energy drink segment. it can be concluded that Red Bull should consider diversification of its portfolio by entering the Organic Energy Drinks segment. what would be expected of an organic energy drink when it was launched. Primary data was used to get real-time estimate of consumer choices and preferences. Ayurvedic energy drinks .The first survey was intended to study the existing market for energy drinks in India.Made only from natural herbs and no chemicals 3. No-pesticides energy drinks . data about the strategy of the existing players on promotion and pricing. It also aimed to understand what the Indian consumer related with the word 'organic' and hence. 7. the current market scenario. The survey also aimed to explore whether a latent need for healthy or organic energy drinks existed among Indian consumers and whether such a product would be supported by the market.has proposed a regulation for energy drinks in India.Uses Ayurvedic ingredients to boost the energy 12 . to understand the current consumption pattern of energy drink consumers and to gather insights into the features they perceived to be absent. the position of various competitors.Natural ingredients grown without pesticides 2. The various sources of primary data. market share of various energy drinks in India. consumer preferences and perceptions and industry standards on pricing. address other risk factors and will lead to appropriate regulation of the product. possibilities of the following types of organic energy drinks were explored– 1. Herbal energy drinks .

The second survey was conducted to record consumer responses to Red Bull Natural and to get target consumers to rate product features. in recent years.Secondary Data and First Consumer Survey As seen through secondary data analysis. the organic variant of Red Bull targeting people between 18 and 35 years of age living in urban India. Inferences . flavour and scent. product colour. packaging. 39% cited 'Adverse health effects' as the major reason.30 years age group. • The most effective way of marketing for energy drinks so far has been TV commercials and friends (encompassing 92% of the respondents). Key findings and inferences were: • 41% of the survey respondents were either always or frequently under stress. the energy drinks market in India has shown tremendous growth potential and has witnessed the rise of many new players. The new product proposed is going to be a healthy variant of Red Bull and thus. television advertisements and buzz marketing should be used when launching the new product. • 38% of the respondents indicated that they understood an Organic Energy Drink to be one that had only natural extracts. it would be profitable to launch Red Bull Natural. The key features that were explored were quantity per serving. The results of the primary study support this hypothesis. Thus. 8. It is imperative to retain this functionality in the new product. a large subset of the population would be willing to consider having an energy drink while working.• Consumer Survey 2 . • The primary reason for consumption of energy drinks emerged to be the energy boost they give and the resulting decrease in fatigue. Thus. This was aimed at estimating the demand for Red Bull Natural and finalizing product aesthetics as per consumer preferences. will aim to capture this consumer segment. • Out of the respondents who had never consumed energy drinks. 13 . As per this study. The respondents who experienced high stress levels and over 76% of respondents who experienced stress frequently were in the 21 .

• 83% of the respondents indicated an equal to or increased consumption of an organic energy drink indicating good potential for the new product. This need was partially tapped by Red Bull. but with limited market penetration due to reasons such as adverse health effects. Red Bull Natural will be a product prepared using only natural ingredients. high price and a unique taste that was popular with a limited customer segment. Shark and Burn energy drinks in the recent years. where 54% of the respondents chose the 'Health Factor'. This was also emphasized by the response to the question of the main factor that was missing in energy drinks. the most negative feature of energy drinks is perceived to be the adverse health effects. Most utility-based products in the market are introduced because there exists a need for such a product. a new product to be launched in the Indian energy drink space. There was a need for an energy drink in the Indian market because of increased stress levels in individuals. Apart from being an instant energy drink. Red Bull Natural was proposed with the aim of addressing a wider market. good for better body metabolism Ginseng. the roots of which are consumed to enhance body’s resistance to stress Brazilian guarana for improved physical and mental endurance Elderberry juice which contains anti-aging anti-oxidants and other natural extracts Natural crystal sugar Natural fruit juice for flavour 14 . The key takeaways from the secondary study and the first survey were used to build the concept of Red Bull Natural.• Taking into consideration the entire respondent set. both stated and latent. The natural ingredients would include the following: • • • • • • Raw Brazilian coffee seed to replace caffeine. Product Conceptualization Need can either be recognized or generated. thereby reinforcing the need to launch a healthy variant. launch of a new product. Hence. 9. The concept of Red Bull Natural is a combination of features that address the needs of consumers.

there was a clear indication for need of new flavours. it is expected that the product would find greater acceptance by the day. drink colour. • In terms of colour and scent. majority of the respondents favoured berry – red colour with a sweet and citrus scent. there was no strong preference for one particular flavour. • Amongst flavours. indicating high segmentation.e. Each and every product attribute would be designed to address nothing but the health benefits to consumers.This was in line with Generation Y's stylish attitude. • There was a clear preference towards cans for the packaging of the new product . the consumption frequency per week increased as stress experienced per week increased. 15 . as people ranked the existing Red Bull flavour the lowest. 10.Second Consumer Survey (Concept Testing) Key findings and inferences from the survey were: • Two distinct quantity per servings were endorsed by respondents – 150 ml and 250 ml. This would segment the organic energy drink market into light users and heavy users. Attributed such as packaging type and size.The drink would be launched in multiple flavours using natural fruit extracts and without any artificial preservatives. As the stress levels are constantly on the rise in Indian urban population due to increased corporate workloads and competitive environment. At the same time. Inferences . • The results showed positive correlation between the frequency of consumption and stress levels i. as indicated in the second survey. taste and scent were finalized based on consumer preferences. This is consistent with the results of the first survey.

6 0 0 10 16 . Elderberry juice. Folic Acid. Natural crystal sugar. 250 ml Specifications Key Nutrients Packaging Serving size Table 3: Nutritional Content of Red Bull Natural Units Energy Carbohydrate Protein Fat Caffeine kcal g g g mg Amount per 100 ml 42 10. Vitamin B6. Vitamin C. Product Specifications Red Bull Natural will have the following product specifications: Table 2: Red Bull Natural Specifications Features Appearance Colour of drink Flavours Scent Carbonation Key ingredients Liquid Berry Red Berry and Orange Sweet and Citrus Light Caffeine from raw Brazilian coffee. Ginseng extract. Sparkling filtered water Citric acid.11. Brazilian guarana extract. Vitamin B12 Can 150 ml. Sodium citrate.

Hence. the launch of Red Bull Natural would be aimed at urban areas and the product would be made available in the market through modern retail stores. In urban areas. This was supported by the survey numbers.12. It also resonated with their idea of a style statement. Analysis of the first survey indicated that 65% of consumers from metros. Demographic Segmentation Age Red Bull Natural would be focussed towards the young and the middle age group people i. Gender and Income) Psychographics (Lifestyle) Behavioural (Usage rate) Geographic Segmentation The major demand for energy drinks came from metropolis. students and young executives need to work hard and remain awake for long hours. For example. A. with purchasing power to spend Rs. stressful life and are in the constant need of energy. Local kirana stores would not be suitable for selling this product as they would not gel with its premium-product image. 70% 17 . Segmentation. 75-85 on an energy drink and who are health conscious. Market Segmentation The data collected was used to profile the target market on the following dimensions: • • • • Geography Demographics (Age. about 70% showed inclination to switch to organic energy drink were it made available. Targeting and Positioning The target market for Red Bull Natural would be defined through more than one dimension and would be targeted towards Generation Y. Of this.e. Tier I and Tier II cities where people lead a fast. between the ages of 18-35 as the main benefits and features would cater to their needs. Another significant use is as a mixing beverage during parties. tier 1 and tier II cities were users of energy drink.

However. Gender Historically. Since it would be priced in the Rs.of the people from 20 to 30 years of age consumed energy drinks. Income Red Bull Natural will be a premium energy drink with added health benefits. Red Bull Natural will gain an image that reflects high class. 18 .150 ml and 250 ml. fashion icon and trend setter with added benefits on the health front. 80-85 range. the product will be launched in two can sizes. to students and young professionals who stay up long hours and lead a stressful life and to adventurous.Lifestyle With the pricing. Psychographic Segmentation . there is a rising consumption trend among the young. packaging and promotion strategies and the brand image of Red Bull. energy drinks had appealed only to the male consumer segment. Hence.light users and heavy users. 3 lacs p. 66% were willing to shift to organic energy drink if available. Essentially. Behavioural Segmentation . top-level achiever. It is suited to the lifestyle of party-going social animals as a source of energy with health and style. This will also be in-line with the lower consumption capacity of females and would increase penetration in this segment. the higher and upper middle class people would find it affordable. female population.Consumption Rate Based on the survey. it is also well suited to the lifestyle of people with lot of indulgence in sports. Hence. Of this. the product is expected to find higher consumption with people whose family income is greater than Rs. Being natural. both genders would be targeted as potential consumers.a. two major groups were identified . fun-loving people.

To cater to the different consumption capacities of individuals. Tier II cities Both genders would be targeted as it is believes that more females would be attracted to the product once the brand goes organic. Red Bull Natural. This will enable the product to gain entry in the energy drinks segment of the country. Positioning Statement To the urban youth and office-going professionals. 19 . Points of Parity and Points of Differentiation ‘Red Bull Natural’ has been designed to ensure that the following points of parity and points of differentiation are established with other energy drinks available in market. Tier I. an organic energy drink made of natural extracts will be positioned as a ‘Value for Money’ product that offers instant energy to keep the mind alert and provides fun for party lovers with no adverse affect on health. the product would be introduced in two sizes. Consumer Targeting Based on the segmentation and survey results. C. Red Bull Natural will target consumers with the following profile: • • young and middle-aged people belonging to the 18-35 age group people living in urban areas – Metros. The product aims to occupy the minds of consumers as a source of instant energy and wellness. Product Positioning Red Bull Natural will be positioned towards health conscious minds who want energy and benefits of an energy drink without any of its adverse effects. Red Bull Natural will be positioned as an organic drink with natural extracts and no added artificial flavours.B. In line with consumer perception derived from the first survey. This would tap the existing market space unoccupied by energy drinks due to concerns around health issues associated with energy drinks.

a serving of 150 ml was the preferred option in our survey and simultaneous launch of 150 ml and 250 ml of Red Bull Natural in 150 ml was proposed. • Natural Extracts – Our product will not have any artificial ingredients or preservatives. • Lifestyle Drink – A considerable segment of customers consume energy drinks during parties or drink for style statement and Red Bull Natural will carry with the same identity. Red Bull Natural’s organic nature will differentiate it from normal energy drinks. • Can Packaging – ‘Can Packaging’ was the most preferred packaging. Points of Parity • Instant Energy – The core benefit of energy drinks is the instant energy on consumption and since a large (%) number of people consume energy drinks to fight fatigue. will not. Its lightly carbonated form 20 . would make Red Bull Natural the first of its kind in India. by virtue of being natural. Customer Value Proposition Using the Resonate Focus Approach to Customer Value Proposition ("CVP") as opposed to the All Benefits Approach or the Points of Difference approach. certain captivating features of Red Bull Natural and a point of parity associated with Classic Red Bull are highlighted below: 100% Natural All natural ingredients.. It will be completely made of natural extracts unlike other energy drinks available in market. from naturally extracted caffeine from raw Brazilian coffee seeds to zero preservatives. However. • Smaller Can Size – All available energy drinks come in a can size of 250 ml or greater.Points of Differentiation • Organic Nature – Currently there is no prominent organic energy drink available in the Indian market. 13. • Health Appeal – Regular energy drinks are perceived to have an adverse effect on health while Red Bull Natural. Thus we will continue with the same Can Packaging like other energy drinks. Red Bull Natural will keep the instant energy appeal while launching and promoting it.

high physical performance stamina. Red Bull Natural would be packaged in cans of two quantities. Indeed. It would no compromises on health of the consumer and would aim to provide a sustained balance of natural energy in the consumer's everyday life. filled with goodness of berries and its extracts and ‘Juicy Orange’. Instant Energy Red Bull Natural. filled with the healthy citrus extract. Two Vibrant Flavours Red Bull Natural would be available at stores in two attractive flavours and vibrant tastes: the new and refreshing ‘Berry Red’. but with more health benefits than a consumer could imagine. an all-natural energy drink. it would be fortified with a shot of Vitamin-B to provide that extra special kick with all-natural energy. increased reaction speed. would be based on Red Bull's formula of providing the much-needed spurt of instant energy in everyday stressful life. are dynamic and performance-oriented whilst wanting to balance this with a fun and healthy lifestyle. Adding more to the drink. 21 . the highly successful energy drink. Healthy Lifestyle Red Bull Natural has been developed for people who want a clear and focused mind. improved mental alertness and increased metabolism.would be finely balanced to ensure that there is not too much fizz to spoil the refreshing experience of energy while still retaining the fun of a light beverage. Red Bull Natural would serve the purpose of keeping up one’s healthy lifestyle energetic by its innovative approach to the energy drink concept. 150ml and 250ml to serve an individual's thirst for instant energy. increased concentration. as Red Bull. Red Bull Natural would provide the same performance benefits of increased energy.

Berry and Orange Benefits Values Brand Personality Phrase Brand User 100% natural ingredients. It will be effective when synchronized with brand campaign elements and the consumers’ expectations. Brand Identity and Personality Red Bull Natural's brand identity can be anchored at various levels of brand meaning as tabulated below: Table 4: Red Bull Natural's Brand Identity Brand Meaning Ingredients Brand Identity Caffeine from raw Brazilian coffee. Mentally Alert Adventurous. Health. Ginseng extract. Healthy Lifestyle Fresh and Active Ambitious and fun-loving youth with healthy lifestyle Attributes Red Bull Natural's brand personality is defined by the following unique set of human attributes that can be attached to it for recognition and resonance with the targeted customer segment of ‘Generation Next’ and ‘Generation Now’: • • • • • • • Promise for health Purely natural Full of energy Fun-Loving Confident and Strong Out-going and Active Passionate and full of esteem Brand personality will be supported by product aspects and features and will be portrayed in brand advertisements. Instant energy. 22 .Berry Red Scent . Sparkling filtered water Colour .14.Sweet and Citrus Flavours . Fun-Loving. Natural crystal sugar. Brazilian guarana extract. Elderberry juice.

15.com/2010/03/08/income-distribution-and-consumer-pattern-in-india/ 23 . of which 67% would be the 150 ml cans. as per calculation. the total annual demand faced by Red Bull Natural in the first year would be 4. This is a conservative estimate considering the significant brand equity enjoyed by parent brand ‘Red Bull’ and increasing need for organic products by Indian consumers Thus. Table 5: Demand Estimation Steps Total country population in Generation Now and Generation Next segments Percentage of the population with income > 3 lacs per annum 13 Size 600 million 42.0% 13 http://greenisfuture.8% 70 million 5. thereby estimating the size of the target consumer base. • Assuming a conservative penetration level of 5% based on secondary study to estimate the total number of energy drink consumers • Demand estimation by assuming Red Bull Natural will capture 3% of market share in the launch year.0% 252 million Generation Now & Generation Next population with income > 3 lacs per annum Urban population percentage in India Gen Now and Gen Next population with income > 3 lacs per annum in urban areas Penetration of energy drinks in Target Population (%) 14 27. • Refining data set further to target population in urban areas.96 million cans.Demand Estimation Estimate of Red Bull Natural's demand was calculated is the steps listed below: • Estimation of total population falling in Generation Now and Generation Next segments and calculation of the number of consumers in these segments that have annual household income greater than Rs. Market Sizing . 3 lacs. Demand Estimation and Price Setting A.wordpress.

The price will be initially set at a high level and then reduced systematically over time with the objective of capturing a part of consumer surplus till other players come up with a similar product. A lower price will increase sales volume and will discourage the actual and potential competition. thereby increasing competition and lowering prices.63 million B.10 over the common variant of Red Bull. with emphasis on gaining market share by lowering prices. 80 for other energy drinks.Steps Total target population consuming energy drinks Using the consumption data from Survey 2 .96 million 3.aspx 24 . Product Pricing The retail price of 250 ml of Red Bull is Rs. 55. 85. When competition intensifies.censusindia. 150 ml of Red bull Natural will be priced at Rs.5 million 165. The premium was arrived at on the basis of the calculation below: • As per the primary survey.gov. total annual consumption of all energy drinks (cans per annum) Initial Market segment captured by Red Bull Natural (Assumption) Total annual consumption of Red Bull Natural (Can Per Annum) Annual Consumption of 150 ml Cans Annual Consumption of 250 ml Cans Size 3.3 million 3. 65 to Rs. Initially.32 million 1. Similarly. Red Bull Natural will be able to capitalize on its first-mover advantage and the Price Skimming Approach will be used. the Market-Penetration Pricing Strategy will be adopted. 14 http://www. 75 and it ranges between Rs. Factoring a premium of Rs. 70% of the respondents were willing to pay a price equal to or more than the current price of energy drinks • Factoring in strategy to capture a part of consumer surplus and maximize current profits before competition set in.in/Census_Data_2001/India_at_glance/rural. 250 ml of Red Bull Natural will be priced at Rs.00% 4.

Promotion Strategies Red Bull Natural's promotion strategy is based on the following findings from of the primary and secondary studies: • Potential customers include urban consumers aged between 16 years and 35 years who have stressful routines and are looking for healthy energizing drinks to improve their performance. Value Proposition Statement 'Red Bull Natural – An organic energy drink made purely of natural extracts for providing instant energy to keep the mind alert and body active for the wellness of your health.' 17. Instant energy will be a point of parity with energy drinks but the added ‘health’ and ‘wellness’ aspect will be the product's Unique Selling Proposition ("USP"). Tag Line On the basis of product attributes and brand personality that is to be in resonance with customers. the following tag line is proposed for Red Bull Natural: ‘Natural Energy. Product Promotion A. This differentiates it from the other energy drinks available in the market. active and out-going aspects of the product's brand personality. 18. This fits perfectly with the personality of the youth being targeted while proposing the health value add. energetic.16. 19. while Amazing Attitude brings out the confident. 25 . Unique Selling Proposition ‘Red Bull Natural’ is purely organic and made only of natural extracts. Amazing Attitude’ Natural Energy resonates with the health factor and natural ingredients of the product.

Also. will be the main differentiating factor with respect to other existing energy drinks. as a result of using only natural ingredients. Hence. branding through social networking sites. these will be our USP and the marketing and promotion activities will emphasize on these factors apart from the instant energy delivery aspect. celebrity endorsements. Therefore. 26 . The main objectives of Red Bull Natural's promotion campaign will be to: • • • • • Grab consumer’s attention and create awareness about organic energy drinks Establish the brand identity of Red Bull Natural Emphasize the promise of healthy energy drink with natural ingredients Create buzz marketing about the organic nature and related benefits of Red Bull Natural Pay special attention to students and young executives Based on the above the following Integrative Marketing Communication strategy is proposed for Red Bull Natural: Advertising through Celebrity Endorsements The product's appeal to the youth and carries an adventurous and energetic brand personality with an added health value. • Secondary study showed that electronic and display media. The health and wellness factor of the product offering. College Tie-up Promotional Programmes & Sponsorships Various events like slogan-writing and logo-design will be organized through tie-ups with colleges. etc have been fairly impactful. opportunities of sponsorships with the college festivals will also be explored to pitch the product directly in front of potential consumers. association with sports and fashion events. Red Bull Natural will be promoted with the involvement of a young celebrity whose personality can resonate with that of the product.• Primary survey results confirmed that broadcast media and buzz marketing were the principal source of information for consumers regarding energy drinks.

Special training sessions will be organized for traders and distributors while press relations will be used so as to make consumers aware about the concept of organic energy drinks through media reports and articles. including the IPL and Bollywood Blockbusters). spas. pubs. Special discount offers to the college students on production of student I-cards The promotion strategy will look at marketing as a 360 degree solution. Red Bull can plan to tie-up with famous sports events like F1 Formula Racing. Therefore. IPL and Cricket World Cup so as to pitch Red Bull Natural to the youth.g. Technology will also be leveraged via using social media marketing. Each tie-up will be supported with promotional and merchandising materials. Buzz marketing Since Red Bull Natural will be introducing a new concept. An experienced and dedicated marketing team will be setup to focus on market segments like malls. retail stores. 5 Star hotels and restaurants. the company will emphasise on developing relations with consumers.Public Relations Being a new product. traders and distributors. discotheques. gym. 27 . multiplexes. consumers will need to accept the concept of an organic energy drink before consumption. buzz marketing will play a significant role in passing on the message amongst the youth. Events The parent company. from movies to sports(e. Events based on the ‘Green Theme’ and ‘Health Consciousness’ will also be organized to emphasise on the point of differentiation of the product. It will also help establish the product against the other energy drinks in the market that are considered to have adverse health effects. that will include innovative branding. cafes and airlines. Sales Promotion The following schemes will be used for promoting sales: • • Bulk discount of 10% on purchase of more than a dozen cans. loyalty programmes and consumer offers.

28 . The survey respondents base might not have been a true representative sample of the consumer base. Promotion Budget In line with the requirements of a new product and new concept launch. Scope and Limitations The project is hypothetical in nature and the following limitations were likely encountered: • • The consumer base studied was restricted to a few geographical areas. This will be based on the targeted market share. 20. • • Consumer biases towards energy drink brands could not be eliminated in the primary study. the target increase in tester percentage and the target reach/awareness about the product. Change in the competitive landscape of the energy drink segment during the course of study was not considered.B. the Objective and Task Method will be used to budget for promotion.

21. First Consumer Survey The first survey to study the current energy drink market was composed of the following questions: 29 . Appendix A.

30 .

31 .

B. Second Consumer Survey The second survey to study the response to Red Bull Natural was composed of the following questions: 32 .

33 .

34 .

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