Project: Sales Management Presented to: Sir Jamshed Khan.

Presented by: Abdul Wasay Muhammad Yousaf Khalid Waqas Ramzan Abdullah Altaf Khan Nouman Khurshid 2101121 2101123

National College of Business Administration & Economics, Gulberg III, Lahore.

SYNOPSIS This report is about a sales plan of RED BULL for year 2012 based on previous year sales for the East & West Zones. Sales plan has been developed after doing analysis of macro and micro factors. The forecasted demand has been decided to achieve the target of 200,000 raw cases for the East Zone and 142,500 raw cases for the West Zone annually. Efficient and on merit work force has been hired to meet the objectives of the company. Following topics are discussed in detail: Introduction of the Company Identification of Area of Sales Identification of Market Potential Target Market Business Channels Sales Potential Micro & Macro Factors Issues & Constraints SWOT Analysis Qualitative & Quantitative Objectives Sales Target Recruitment Process Sales Force Salary Structure Distribution Channel Promotional Budget Sales Forecasts

Introduction of Red Bull Red Bull is an energy drink sold by the Austrian Red Bull GmbH. It was created in 1987 by the Austrian entrepreneur Dietrich Mateschitz and on market share, Red Bull is the most popular energy drink in the world, with 3 billion cans sold each year. Dietrich Mateschitz was inspired by an already existing drink called Krating Daeng which he discovered in Thailand. He took this idea, and to suit the tastes of Westerners, modified the ingredients and founded Austrian Red Bull GmbH in partnership with Chaleo Yoovidhya. Chaleo Yoovidhya invented the Thai energy drink Krating Daeng; in Thai daeng is red, and krating is the reddish brown bovine, gaur, an animal slightly larger than the bison. Red Bull is sold in a tall and slim blue-silver can. Krating Daeng is sold in Thailand and in some parts of Asia in a wider gold can with the name of Krating Daeng or Red Bull Classic. Both are different products produced separately. Their slogan is "Red Bull gives you wings" and the product is aggressively marketed through advertising, tournament sponsorship (Red Bull Air Race, Red Bull Crashed Ice), sports team ownerships (Red Bull Racing, Scuderia Toro Rosso, EC Red Bull Salzburg, FC Red Bull Salzburg, Red Bull New York, RB Leipzig), celebrity endorsements, and with its record label, Red Bull Records, music. In 2009 it was discovered that Red Bull Cola exported from Austria contained trace amounts of cocaine. Red Bull has also been the target of criticism concerning the possible health risks associated with the drink. Introduction of Red Bull in Pakistan Born in Thailand, developed in Austria and sold throughout the world, Red Bull is now a global and leading brand for the energy drink category with a 70% share in the world market to date. The Red Bull story started in 1982 where an Austrian by the name of Dietrich Mateschitz tried and tested the idea of an energy drink and transformed that idea in a phenomenon now known as Red Bull. Red Bull now produces the world's most selling energy drink with more than a billion cans being sold every year in nearly 100 countries. Red Bull holds a substantial share of the world market for energy drinks, a category it was largely responsible for building. Its dominant position in the fastest-growing segment of the soft drink market in a number of countries has drawn a number of imitators. With unmatched success around the globe, Red Bull was finally launched in Pakistan in 2001 and it has ever since been the market leader in a market with relatively lesser competition than around the world and where the concept of energy drink is yet to be completely absorbed. Red Bull is currently being operated in Karachi, Lahore and Islamabad with the Asian head office being in the United Arab Emirates. It has set up its premises in all three cities where distribution and marketing operations are executed.

Target Market Description Target Market: The primary target market of Red Bull consists of teenagers and young adults who are sporty, funky, with a larger than life attitude. Red Bulls target market is concentrated on youth groups who have activities in sports and nightlife. The youth market primarily belongs to the generation Y, who are people born after 1981 and who are believed to be cynical to tradition marketing strategies. Market Demographics: Red Bulls customer base in Pakistan is identified on the basis of following geographic, demographic, behavior and life style characteristics: a) Geographic Variable Country: Provinces: Pakistan Sindh, Punjab Cities: Karachi, Lahore, Islamabad Density: Urban

b) Demographic Variables Gender: Males and females both consume Red Bull with the latter, includes a percentage of females who do not like the taste of Red Bull. Age: Red Bull is a drink for people aged between 18 and 35. Children below that age are not recommended to have Red Bull and working adults aging 40 reduce consumption when they reach that age bracket and prefer tea and coffee more. Income group: Being a high priced luxury product, it can be afforded by upper-middle and the upper class of the society. Social class: The consumption of Red Bull has become a symbol of high class and status. c) Behavioral Variables Usage Rate: It is high in places of functionality of energy i.e. sports events, parties, concerts etc. Also high at cafes where Red Bull consumption in Sheesha has become a huge attraction for Sheesha lovers. Use Situation: Most popularly used at parties, concerts, gigs, sports events, university events and at cafes. It is also consumed at times of increased mental and physical strain. In our Pakistani culture where body and mind revitalizers are usually tea and coffee, Red Bull aims to provide a different option to people who do not consume tea or coffee. It is a beverage that is solely for energy revitalization. Red Bull primarily aims to provide energy boosters at times of increased mental and physical strain. For instance, the hectic traffic in Pakistan is never an easy thing to go through and a Red Bull after that helps energize you. Other instances are

consumption during intensive working days, sports activities and also for students before and after exams. The need for energy revitalization is already there in the Pakistani market and which is popularly being fulfilled by tea or coffee. However, Red Bull aims to provide an option to all those who are not tea or coffee lovers. Depicted as a cool, trendy drink it wants to be an effective option for people in need of an energy boost. Market Growth The concept of an energy drink is still new and is in the process of yet being absorbed in the market. Red Bull has been in the market for almost ten years and it has led remarkably because of the lack of performance by its competitors. The potential of growth in this market is yet to be achieved since the best out of any product category only comes out when there is stiff competition. Names like Blue Ox, Gatorade came and disappeared because they could not compete with Red Bulls strong brand name. However, new entrants like Pepsis Sting and also Speed understand the potential of growth in the market and have started aggressive marketing campaign to overpower Red Bull. The market for beverage energy drinks is growing and with increases competition, it is only expected to keep elevating. Market Players The main market competitors at the moment are Red Bull, Sting and Speed. Other brands like Blue Ox, Gatorade, Bomb etc. launched themselves but couldnt survive in the market. The market currently is very much in the growth stage and international brands may look to launch themselves in Pakistan in order to get hold of a market that is yet to absorb the concept of energy drink. Hence, the opportunity is there to be taken and many more market entrants in the energy drinks industry would not be a surprise.

Product: Red Bull is an energy drink and its components are B vitamins, mix of elements and most importantly Taurine. Taurine was one of its key ingredients that separates Red bull from other energy drinks. It is majorly responsible for the energy revitalization of the body and mind. The packaging of the drink itself is unique. Unlike an ordinary traditional soft drink, its not packaged in a 12-ounce can, nor sold in a bottle. Instead, it used an 8.3-ounce slim can. Price: A can of Red Bull is priced at Rs.135 in all retail stores. The on premise price i.e. price at cafes and restaurants varies between Rs.150-Rs.250 as per the allocated service cost of the respective caf. Place (Distribution): Red Bull is distributed in all big retail stores, cafes and restaurants. Plus, it is also distributed at clubs, gyms and fitness centers. Red Bulls distribution strategy is using a decentralized sales unit (sales persons) who are responsible for sales and distribution in their assigned area. They also hire their own workforce (usually students and teenagers), and provide Red Bull cars with the Red Bull logo to deliver their product. With this kind of system they are able to focus their entire energies on getting Red Bull fully stocked in stores with prominent shelf placement. Another strategy was to focus on sheesha cafes and trendy restaurants as their key on-premise accounts. As they buy a few cases, they receive a Red Bull branded cooler and other promotional items, thats when they start to do business officially. The reason why the sales team goes to on-premise accounts is because the product gets a lot of visibility and attention. It is also much easier and faster to deal with individual accounts as big chains have their authorization process. Promotion: Red Bull have adapted a very unconventional style of marketing in Pakistan which relies completely on Below-the-line activities. Unlike else where around the world, where there is a certain percentage of marketing activities done through TV, radio and print, they do not do ATL promotions in Pakistan. Some of the tools that Red Bull doesnt use in Pakistan are television, radio, billboards, banner ads, taxicab holograms, and blimps. Red Bull has strongly adapted the practice of viral marketing by paying students and young opinion formers to organize Red Bull events at colleges and universities. They have also hired three Student Brand Managers from IBA, SZABIST and CBM which are the top three institutes of Karachi and have done the same in the rest of the cities. With students acting as their representatives, Red Bull provides them free cases of Red Bull and encourages them to throw parties and events. This results as an effective

way to spread the good word about Red Bull as it doesnt require a huge amount of money, its quick and the student advocates offer credibility to a product competing in the beverage market. Another advantage is that the student also provides research data that are valuable for the company. Red Bull in Pakistan is still in the process creating a market. People still have to be educated about the concept of energy drink. Another promotional strategy involved in educating consumers is that Red Bull deploys staff that drives around in shiny silver off-roaders with giant, phallic cans of Red Bull strapped in the back. This in itself creates an impact considering the nature of Pakistani consumers who get attracted by glittery promotional stunts. Their mission is to find people who need energy and give them a free can of Red Bull. As clich as it sounds, this strategy worked quite well on the basis of introducing the brand to the masses. By sampling Red Bull, consumers are being educated of the actual functionality of Red Bull which at the moment is lacking in Pakistan. They also organize promotional events involving university and college going students with themes like sports, art, part and music. Although this serves to attract only a certain percentage of the market, this is all Red Bull relies on to communicate with its target market. Red Bull, going by what they do around the globe, have adopted the same strategies in Pakistan as well. Despite the fact that majority of the population can be communicated to through mass-media, it still sticks to its strategies of unconventional marketing.

Hierarchy: Abdul Wassay Muhammad Yousaf Khalid Waqas Ramzan Adbullah Altaf Khan Nouman Khurshid Zonal Manager (East) Zonal Manager (West) Territory Manager Territory Manager Territory Manager

Financial Analysis Since Red Bull only imports and distributes in Pakistan, the level of liquidity is high. Cash flow is not stagnant as they have adapted a no credit policy and take advance payment on booking and complete payment on delivery of stock to on premise accounts i.e. cafes, restaurants, fitness centers, gyms, clubs, university campus canteens etc. They buy in bulk monthly. Average turnover out of the three cities is highest in Karachi. Total sales in Karachi in terms of the number of cans is 220,000 cans and is sold at a price of Rs.114 giving a total monthly turnover of Rs.25,080,000. Retail price of Red Bull is Rs.130. These figures show trends of the last 12 months for Red Bull sales in Karachi. All the figures show that Red Bull is financially sound and performing pretty good in terms of sales, and above all the earnings are directly going into the business and operations are being run on pure equity since the inception, which also indicates sound working capital, hence efficient operations.Following is a breakup of the monthly sales of Red Bull in Karachi. We were able to get these figures from the marketing head of Karachi, Mr. Ali Hyder. According to him, the data below has remained consistent for the last 12 months.

Category On premise accounts (clubs, fitness centers, cafes, gyms) Retail outlets

Retail outlets 150,000 70,000 Total

Sold at Price Rs.114 Rs.114

Total Sales Rs.17,100,000 Rs.7,980,000 Rs.25,080,000

Competitive Analysis Red Bull was the first successful energy drink in the market. But afterward companies realize that it is a very big market of those people who like energy drinks. So other companies also jumped in to share their part. Recently we have seen many companies in Pakistan, like Pepsi and Shezan, who have jumped in energy drinks business. One thing is common in all energy drinks that they are costly then other drinks; juices, malt, carbohydrate drinks etc. They have a special market which is increasing day by day. I havent seen a shift of people from their regular drink to energy drink but it acts as an add on in drink list. However some people prefer to go for energy drinks only. After lots of energy drinks in market, all are trying to compete each other in any way possible. They are trying to give a better taste because taste is the most prominent change in these energy drinks. Taste is not acceptable in mass market, however many are trying now to increase their market share by giving a different taste. Second thing is their price, they are trying to reduce the price to gather a larger share like a big company Pepsi have introduced their energy drink Sting in just Rs. 60/- as compare to Red Bull the most famous energy drink costs above Rs. 100/- Thirdly they are working on distribution, trying to make their drinks available in all parts of the city, in every shop. Few energy drinks have different strategy to remain with their specific market. Booster Booster is a German energy drink brand. It attracts one from the start as one looks to its packing. Like all other energy drinks available in long think tin packs, this is available in small, fat plastic bottle. Its packing is different from all energy drinks in the market so it appeals you at the first place. Second important thing is its price, it is one of the cheapest energy drink in market after Ozo. But this is an imported drink which is based in Germany so people would likely to trust the quality of drink. Ozo There are two kinds of energy drinks in the market. One is the red family and other is the yellow family. Red family has its own taste and there are very few in this, for instance only Red Bull and red Sting. All other energy drinks in market are from yellow family which has almost a same taste with little variations.

Power Full Power Full is also a new energy drink in market. They have came in the market last year except few like Red Bull, Booster and Ozo which were already available last year. Red Bull would be the oldest one but new energy drinks are taking their share and at one side they are reducing the share of Red Bull but at the other side they are creating a larger market for energy drink users.

Speed After seeing lot of potential in energy drinks market, Shezan also introduced its energy drink with the name of Speed. Their packing is cool. Sting Pepsi introduced energy drink in Pakistan with the name of Sting. They must have come in the market after lot of research. They checked the loop holes in energy drinks market and try to fix it from the product. Earlier energy drink was considered as a sour drink which people take to energize them. Sting has added better taste in it. They have made it full of flavor. People in large loves its taste. Biggest Threat We identified Pepsis Sting as Red Bulls only big threat as a competitor and have analyzed both of them against all relevant industry factors. Although Red Bull was first mover of energy drink product category in Pakistan and enjoys a substantial market share, it still is second best to Sting when analytically compared. Where Red Bull has the advantage of being the pioneer of energy drinks in Pakistan and also the backing of a very strong international brand image, Sting over powers Red Bull with its association with Pepsi, and hence, an extremely strong and wide distribution network which is second to none. Also, Red Bulls marketing strategy of only promoting through BTL activities limits the number of consumers it can reach. On the other hand, Sting has been running an aggressive marketing campaign using all channels of communication, most significantly television, radio and print. Therefore, they have an edge over Red Bull when we talk about reaching new consumers, attracting them and finally acquiring them. Also, price factor plays an important role because Pakistani consumers are susceptible to be inclined towards low priced products. Hence Sting which is priced at half less than Red Bull offers an attractive package to consumers. Of course, we know that these ratings are relative but they give a clearer idea in regards to Red Bull bucking up and taking some extensive actions to establish their claim in Pakistan as Sting has been aggressively campaigning and started capturing the very much unexplored market of energy drink consumers.

Constraints: Poor Distribution Network: The reason why competitors might develop an edge over Red Bull is because Red Bulls distribution network is not as strong as other competing brands like Pepsis Sting. Red Bull is only made available in posh areas at expensive retail stores and at major hyper markets. One will hardly find Red Bull at stores in the low profile areas of the city and that is why Red Bull looses on its sales. When you compare that to its biggest competitor Sting, they are backed up by Pepsis extensive distribution network and are available in as much quantity in areas like Gulistan-e-Jauhar or Nazimabad as they are in Clifton or Defence in Karachi. For Red Bull, they may have as big a brand name as they have, but that will count to nothing if customers do not find it at their nearest store to buy it. Non-diversified Product Line: Although this is a more long term problem, Red Bull still should always keep its non diversified product in line. The only two variants available are the regular Red Bull and the sugar free one. Any adversary with the brand could prove detrimental conserving its over reliance on just one product. Also, this limits the number of market segments Red Bull can potentially target. Women for instance, do not like the taste of Red Bull. They would prefer a flavor that is sweeter. Unfortunately Red Bull, unlike its competitor Sting that has sweeter flavors available, doesnt offer any. Lack of Marketing Staff: Currently, the marketing departments in all three cities only consists of one Marketing Head and three to four Student Brand Managers who work part time and represent the most popular universities of the city. The marketing head is also responsible for keeping a check on the sales in collaboration with the sales department which is not his job. The fact that Red Bulls campaigns in Pakistan are not so extensive comes down to the fact that they have lack of staff who can dedicatedly work to enhance marketing activities of Red Bull in Pakistan. There is dire need of more staff and also people who have expertise in Brand Management so that they can further enhance the performance of Red Bull in Pakistan. Implications of Import Duty and Taxes: The fact that Red Bull is manufactured in Austria and is imported from Asian Red Bull head quarters in Dubai is a problem because the price of Red Bull, which is already deemed as very high, can face serious issues if import duty or taxes change. Any small change in these figures forces Red Bull decision makers to fiddle with the price and increase it. Red Bull when introduced in Pakistan was priced at Rs.70 and now because of the ever increasing taxes and import duties and also the diverse effects of inflation it is not priced at Rs.130. This is way to high than competitors like Sting (Rs.60) who manufacture in Pakistan and are not effect by any import duties. Red Bulls ban in some countries: Although Red Bulls ingredients have been officially approved by European Commissions health wing, health ministries of countries like France, Denmark and

Norway have still banned Red Bull sale and consumption. This could well leave the current and potential customers of Red Bull in doubts about the safety of the ingredients being used in Red Bull. Also, this could lead to campaigns against sales and consumption of Red Bull in Pakistan which could prove devastating for the brand. Red Bulls false association with Alcohol: There still exists are portion of customers in Pakistan that believes that Red Bull is nothing but another form of alcohol. In country that is filled with Islamic extremists, such a false association with alcohol can lead the detrimental problems. Campaigns against Red Bull sale can well take place at the hands of the extremist religious groups of Pakistan and that could become a major obstacle for Red Bull to recover from.

East Zone Identify the Area for Sales Three territories of East Zone Territory 1 2 3 Target Markets Territory Cant Routes for Cant territory are as follow: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Alfaisal Town Sadar Bazar Day Building Market Mall of Lahore Munir Chowk Fortress PAF Market RA Bazar Cavalry Bhatta Chowk Name Cant DHA Gulberg

Territory DHA Routes for DHA territory are as follow: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) H Block XX Block Y Block DHA Main Boulevard W Block A Block B Block C Block D Block E Block

Territory Gulberg Routes for Gulberg territory are as follow: (1) (2) (3) (4) (5) (6) Main Market Mini Market MM Alam Road Ghalib Market Liberty Firdous Market

Forecasted Demand For 2012

East Zone Year 2007 300,000

Year 2008 250,000

Year 2009 500,000

Year 2010 700,000

Year 2011 800,000

Target Sales = (300,000+250,000+500,000)/3 = 350,000 Actual Sales = (700,000+800,000)/2 = 750,000 Now, Next Year Sale =Actual Sales-Target Sales x 100 Target Sales

=750,000-350,000 x 100 350,000 = 114% Incremental Business

Increment in Sales 800,000 x 114/100 = 912,000 The increment in the sales for the year 2012 would be 912,000

800,000 + 912,000 = 1,712,000 The total forecasted sale of raw cases would be 1,712,000

Sales Potential of Territories

Territory Cant Total Markets = 10 Market Potential = 40% Sales Potential = 1,712,000 x 40% = 684,800 Target For 2012 = 684,800 Raw Cases Monthly Potential = 684,800/12 = 57,067 Raw Cases Daily Potential = 57,067/30 = 1,902 Raw Cases

Territory DHA Total Markets = 10 Market Potential = 35% Sales Potential = 1,712,000 x 35% = 599,200 Target For 2012 = 599,200 Raw Cases Monthly Potential = 599,200/12 = 49,933 Raw Cases Daily Potential = 49,933/30 = 1,664 Raw Cases

Territory Gulberg Total Markets = 6 Market Potential = 25%

Sales Potential = 1,712,000 x 25% = 428,000 Target For 2012 = 428,000 Raw Cases Monthly Potential = 428,000/12 = 35,667 Raw Cases Daily Potential = 35,667/30 = 1,189 Raw Cases

CHANNELS FOR SALES

Cant (1) Alfaisal Town 10% = 190 cases (10 corners, 5 departmental stores, 10 general stores) (2) Sadar Bazar 15% = 285 (10 super stores, 8 departmental stores, 3 tuck shops) (3) Day Building Market 7% = 133 (3 general stores, 2 tuck shops, 2 cold corners) (4) Mall of Lahore 5% = 95 (4 departmental stores, 3 super stores, 4 bakers) (5) Munir Chowk 10% = 190 (9 general stores, 2 corners, 5 tuck shops) (6) Fortress 7% = 133 (1 departmental store, 7 tuck shops) (7) PAF Marktet 8% = 152

(3 general stores, 2 tuck shops, 3 cold corners) (8) RA Bazar 15% = 285 (3 departmental store, 5 general stores, 5 tuck shops 2 bakeries) (9) Cavalry 13% = 247 (3 departmental stores, 5 general stores, 3 corners) (10) Bhatta Chowk 10% = 190 (4 departmental stores, 5 corners, 3 general stores)

DHA (1) H Block 10% = 166 cases (5 general stores, 9 corners, 5 tuck shops) (2) XX Block 7% = 116 (5 departmental stores, 3 tuck shops, 2 bakeries) (3) Y Block 17% = 283 (8 departmental stores, 5 tuck shops, 4 bakeries, 4 general stores) (4)Main Boulevard 13% = 216 (5 general stores, 4 bakeries, 5 tuck shops, 7 corners) (5) W Block 7% = 116

(8 corners, 2 general stores, 3 tuck shops) (6) A Block 7% = 116 (5 corners, 3 general stores, 1 departmental store) (7) B Block 8% = 133 (2 departmental stores, 2 corners, 1 general store) (8) C Block 10% = 166 (4 departmental stores, 3 corners, 1 general store) (9) D Block 6% = 100 (3 corners, 1 general store, 1 departmental store) (10)E Block 5% = 83 (1 general store, 1 departmental store)

Gulberg (1) Main Market 25% = 297 cases (5 corners, 2 departmental stores, 3 tuck shops) (2) Mini Market 10% = 119 (3 corners, 1 bakery) (3) MM Alam Road 20% = 238

(2 bakeries, 3 departmental stores, 2 tuck shops) (4) Ghalib Market 20% = 238 (3 bakeries, 2 departmental stores, 2 tuck shops) (5) Liberty Market 15% = 178 (2 bakeries, 3 corners) (6) Firdous Market 10% = 119 (4 corner shops, 1 departmental stores, 1 bakery)

West Zone

Identify the Area for Sales Three territories of West Zone. Territory 1 2 3 Target Markets Territory Gulshan-E-Ravi Routes for Gulshan-E-Ravi territory are as follow: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Taj Park Mian Market Tohid Park Muqaddas Park Mohra Shareef F Block G Block Manzoor Park Rustom Colony Gulfishan Colony Name Gulshan-E-Ravi Samanabad Allama Iqbal Town

Territory Samanabad Routes for Samanabad territory are as follow: (1) (2) (3) (4) (5) (6) LDA Sports Complex Zubaida Park Pakki Thathi Sharif Park Sheraz Park Faruqia Colony

Territory Allama Iqbal Town Routes for Allama Iqbal Town territory are as follow:

(1) (2) (3) (4) (5) (6)

Nishtar Block Mehran Block Kamran Block Kreem Block Sikandar Block Raza Block

Forecasted Demand For 2012

West Zone Year 2007 500,000

Year 2008 650,000

Year 2009 800,000

Year 2010 900,000

Year 2011 970,000

Target Sales = (500,000+650,000+800,000)/3 = 650,000

Actual Sales = (900,000+970,000)/2 = 935,000 Now,

Next Year Sale =Actual Sales-Target Sales x 100 Target Sales

=935,000-650,000 x 100 650,000

= 44% Incremental Business

Increment in Sales 970,000 x 44/100 = 426,800 The increment in the sales for the year 2012 would be 426,800

970,000 + 426,800 = 1,396,800 The total forecasted sale of raw cases would be 1,396,800

Sales Potential of Territories

Territory Gulshan-E-Ravi Total Markets = 10 Market Potential = 50% Sales Potential = 1,396,800 x 50% = 698,400 Target For 2012 = 698,400 Raw Cases Monthly Potential = 698,400/12 = 58,200 Raw Cases Daily Potential = 58,200/30 = 1,940 Raw Cases

Territory Samanabad Total Markets = 6 Market Potential = 25% Sales Potential = 1,396,800 x 25% = 349,200 Target For 2012 = 349,200 Raw Cases Monthly Potential = 349,200/12 = 29,100 Raw Cases Daily Potential = 29,100/30 = 970 Raw Cases Territory Allama Iqbal Town Total Markets = 6

Market Potential = 25% Sales Potential = 1,396,800 x 25% = 349,200 Target For 2012 = 349,200 Raw Cases Monthly Potential = 349,200/12 = 29,100 Raw Cases Daily Potential = 29,100/30 = 970 Raw Cases

CHANNELS FOR SALES

Allama Iqbal Town (1) Moon Market 33% = 320 cases (4 corners, 3 departmental stores, 5 bakeries) (2) Mehran Block 15% = 146 (2 departmental stores, 4 corners, 1 bakery) (3) Kareem Block 27% = 262 (2 departmental stores, 4 bakeries, 2 tuck shops) (4) Kamran Block 10% = 97 (2 cold corners, 2 tuck shops) (5) Sikandar Block 8% = 78 (1 departmental store, 2 corners) (6) Raza Block 7% = 68 (1 bakery, 1 departmental store)

Macro & Micro Factors The Macro & Micro factors are Macro Factors Political Factors Cultural Factors Economic Factors Social Factors Natural Disasters Technological Factors Law & Order Government Policies Energy Crises Micro Factors Internal plant issues. High energy costs. High prices of generators. Product shortages. Other suppliers of beverages. Service issues. Transportation problem. Competition between brands

SWOT Analysis : Strengths Weakness Weak distribution network in Pakistan Non-diversified product line A certain percentage of market (especially females) believes it has foul taste Significantly high priced as compared to competitors in the market Planning phase of organizing high budget activities is always a problem considering law and order situation in Pakistan. Plans have to be written of because of that. Energy drink pioneers in Pakistan Strong brand image (nationally & internationally) High brand equity (well-positioned) Effective communication strategies with the consumers Unique method of free sampling to educate consumers Ingredients approved by European Commission Minimal external investment due to substantial turnover from Pakistan

Opportunities Threats Competitors (New entrants like Sting, Speed etc) Strong International Brands may launch their drinks in Pakistan As youth become working adults, consumers are lost and the process of acquiring new customers never guarantees you success. Potential campaigns against Red Bull Ingredients Increase in import duty and taxes Red Bulls assumed false association with alcohol Catering unexplored markets (new segments like working women, adults etc.) Product diversification Become official sponsor of the Pakistani cricket team Financially support sports based events in Pakistan Improve distribution network ATL activities should be introduced. Celebrity endorsements to increase associations New ventures: Permanent Association with entities (facebook, resorts, Go Aish, Hot Spot etc) Financially support student projects

Increase in consumer awareness of health and increasing preference of pure water Red Bulls ban in some countries Risk of holding high budget promotional events because of bleak nature of terrorism Major chunk of market prefers substitutes to Red Bull like tea and coffee for energy

Qualitative & Quantitative Objectives

Our objectives are

Qualitative Objectives

Time management Attitude towards work Team motivation Negotiation skills Presentation skills Communication skills Punctuality of workers To gain loyalty of customers with quality services To increase sales volume To Cover more areas To increase market potential To achieve targets Customer acquisition & contact management We will try to focus on customer contact management to increase our sales.

Quantitative Objectives

Resource Planning Route Planning for the East Zone Cant Total routes = 10 Territory Manager (TM) = 1 Sales promotional officer = 2(1 for 5 route) Sales persons =10(1 for each route) Driver = 2 Loaders =4 Vehicle = 2 (Hino) DHA Total routes = 10 Territory Manager (TM) =1 Sales promotional officer = 2(1 for 5 routes) Sales person=10 (1 for each route) Driver = 2 Loaders = 4 Vehicle = 2(Hino) Gulberg Total routes = 6 Territory Manager (TM) =1 Sales promotional officer = 1(1 for 6 routes) Sales person =6 (1 for each route) Driver = 1 Loaders = 2

Vehicle = 1(Hino)

Route Planning for the West Zone Gulshan-E-Ravi Total routes = 10 Territory Manager (TM) = 1 Sales promotional officer = 1(1 for 5 route) Sales persons =10(1 for each route) Driver = 2 Loaders =2 Vehicle = 2 (Hino) Samanabad Total routes = 6 Territory Manager (TM) =1 Sales promotional officer = (1 for 6 routs) Sales person=6 (1 for each route) Driver = 3 Loaders = 6 Vehicle = 3(pick ups) Allama Iqbal Town Total routes = 6 Territory Manager (TM) =1 Sales promotional officer = 1(1 for 6 routes) Sales person =6 (1 for each route) Driver = 1

Loaders = 2 Vehicle = 1(Hino)

Salary Structure of Sales Force Zonal Manager Basic Salary = 20,000 House Rent = 4000 Utilities = 3000 Medical Allowance = 2000 Vehicle Allowance = 10,000 Mobile = 2,500 Fuel Allowance = 5,000 O.P.D Allowance= 2,000 Total = 48,500 Net per Month Income Tax Deduction = 4500 Net Salary = 44,000 Territory Manager Basic Salary = 16,000 House Rent = 3500 Utilities = 2500 Medical Allowance = 2000 Vehicle Allowance = 7,000 Mobile = 2,500 Fuel Allowance = 3,000 O.P.D Allowance= 1,000

Total = 37,500 Net per Month Income Tax Deduction = 4500 Net Salary =33,000 Incentive On achieving 80% target, territory manager will get increment of 2.5% on his basic salary and on achieving 100% target, he will get 3% increment on basic salary.
Sales Promotion Officer (S.P.O) Basic Salary = 8,500 House Rent = 3,000 Utilities = 2,500 Medical Allowance = 2,000 Vehicle Allowance = 5,000 Mobile = 1,500 Fuel Allowance = 2,500 Total = 25,000 Net per Month Income Tax Deduction = 3000 Net Salary = 22,000 Incentive On achieving 80% target, S.P.O will get increment of 2% on his basic salary and on achieving 100% target, he will get 3% increment on basic salary. Rest of the Sales Force Salesman = 12,000 Driver = 7,000 Loader = 5,000

RECRUITMENT & SELECTION PROCESS SELECTION PROCEDURE

(1) We have recruited people on merit which are suitable for job. (2) Salesman having sound market knowledge has been hired for the job. (3) Sales officer with minimum 3 years sales experience have been hired. (4) Territory managers are hired with 5 years experience. (5) Drivers and loaders are hired which are quick/efficient. FORECASTING SALES TURNOVER

For West Zone

SALES TURNOVER (2012) 44% increase of 2011= 1,396,800 raw cases. After the calculation of 2011s sales turnover we apply increment of 30% every year. SALES TURNOVER (2013) 30% increase = 1,815,840 raw cases SALES TURNOVER (2014) 30% increase = 2,360,592 raw cases. SALES TURNOVER (2015) 30% increase = 3,068,796 raw cases SALES TURNOVER (2016) 30% increase = 3,989,426 raw cases

Future Outlook Some of the future plans of Red Bull in Pakistan amidst the current situation. They started off the plan to expand their staff and hire more people with expertise of Marketing and Brand Management. The staff currently handling marketing operations right now is clearly inadequate and not much can be expected from the Student Brand Managers as they are still students. There are two short term and long term plans Red Bull has in the pipeline in Pakistan. For short term, they plan to invest more in improving their current distribution system. Their current distribution network is bleak and resulting in lack of sales. Hence, they are planning to get distribution agencies on board who can make sure that Red Bull is being made available in all parts of the city. Also, they will be improving their ware house facility as well as their own transportation by buying new carriers. This way they can ensure they are taking adequate care of its distribution themselves. The biggest issue of Red Bull in Pakistan is, that they do realize they need to start using mass-media to promote Red Bull and not rely on BTL promotion completely. However they have to stay in line with marketing strategies of Red Bull around the world. Not just that, but they also are making long term plans of churning out new communication strategies. They are planning out ways of promoting through mass-media and how advertisements can be customized to match the Pakistani consumers. Their honest admission of the stiff competition is a clear indication in itself that they are concerned about their current strategies and what they will have to do in future to sustain and perhaps enhance their position in the market of energy drinks in Pakistan.