BRAND AUDIT- RED BULL

NISHANTH CHOTALIA A 015 ABHINAV GOEL A023 JEEVA MARIA JOY A028 APAAR MIGLANI A036 ABHISHEK SHRIVASTAVA A053

Index
Table of Contents
Introduction to brand audit.................................................................................................. 1 1.Background of energy drinks ................................................................................................. 3 2. Market analysis of energy drinks ………………………………………………………………………………. 4

3.Red Bull……………………………………………………………………………………………………………………………. 7 4.Integrated marketing communication channels………………….……………………………..………….13 5.Survey Analysis……….……………………………………………………………….…………………..……………….22 6.Red Bull brand………………………………………………………………………………………………………….……29 7.Competitor analysis………………………………………………………………………………………………………..38 8.Red Bull positioning…………………………………………………………………………………………………..….40 9.SWOT analysis……………………………………………………………………………………………………….………42 10.PESTEL analysis……………………………………………………………………………………………………..…….43 11.Supply and distribution of red bull………………………………………………………………………….…….45 12.Red bull in news…………………………………………………………………………………………………………....46 13.Reccomendations…………………………………………………………………………………………………………. 50 References Exhibit(survey questions)………………………………………………………………………………………………….53

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INTRODUCTION TO BRAND AUDIT
A brand audit is a thorough examination of a brand’s current position in an industry compared to its competitors and the examination of its effectiveness. When it comes to brand auditing, five questions should be carefully examined and assessed. These five questions are how well the business’ current brand strategy is working, what are the company’s established resource strengths and weaknesses, what are its external opportunities and threats, how competitive are the business’ prices and costs, how strong is the business’ competitive position in comparison to its competitors, and what strategic issues are facing the business. Generally, when a business is conducting a brand audit, the main goal is to uncover business’ resource strengths, deficiencies, best market opportunities, outside threats, future profitability, and its competitive standing in comparison to existing competitors. A brand audit establishes the strategic elements needed to improve brand position and competitive capabilities within the industry. Once a brand is audited, any business that ends up with a strong financial performance and market position is more likely than not to have a properly conceived and effectively executed brand strategy. A brand audit examines whether a business’ share of the market is increasing, decreasing, or stable. It determines if the company’s margin of profit is improving, decreasing, and how much it is in comparison to the profit margin of established competitors. Additionally, a brand audit investigates trends in a business’ net profits, the return on existing investments, and its established economic value. It determines whether or not the business’ entire financial strength and credit rating is improving or getting worse. This kind of audit also assesses a business’ image and reputation with its customers. Furthermore, a brand audit seeks to determine whether or not a business is perceived as an industry leader in technology, offering product or service innovations, along with exceptional customer service, among other relevant issues that customers use to decide on a brand of preference.
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valuable human assets. Some of these forms include skilled or pertinent expertise.A brand audit usually focuses on a business’ strengths and resource capabilities because these are the elements that enhance its competitiveness. valuable intangible assets. resource strengths. achievements and attributes that position the business into a competitive advantage. valuable organizational assets. a successful brand audit seeks to establish what a business capitalizes on best. 4 . and alliances or cooperative ventures. its level of expertise. while aiming to identify a business’ position and future performance. valuable physical assets. competitive capabilities. and strongest competitive capabilities. What’s more. The basic concept of a brand audit is to determine whether a business’ resource strengths are competitive assets or competitive liabilities. This type of audit seeks to ensure that a business maintains a distinctive competence that allows it to build and reinforce its competitive advantage. A business’ competitive strengths can exist in several forms.

inositol. targeting the promotion of energizing conception. maltodextrin. creatine and ginkgobiloba. expected to grow to an estimated US $10 billion by 2010. Austria-based Red Bull remains the market leader though with an approximate market share of 65%. Pepsi had earlier introduced AMP under the Mountain Dew brand and also Extreme Energy by Arizona Beverage Company was launched.S. some herbal components or specific vitamins including Vitamins B. Major producers are focusing heavily on marketing. various beverage companies including Coca-Cola and Pepsi entered the market. Energy drinks acting as an alternative to coffee were first introduced in Europe. carnitine. These may be prepared with a composition of methylxanthines. Most products include artificial sugar. 5 .1. the growth rate of this industry had been doubling every since the late 90s. ginseng. guarana. The primary active component is generally caffeine.8%. They include KMX of Coca-Cola. The current U. Growth of the current worldwide market for energy drinks is estimated at 17. resultoriented marketing and product positioning and a greater push into developing markets. and Adrenaline Rush of PepsiCo's SoBe. According to Beverage Marketing. glucuronolactone. The market received a significant boost when Red Bull entered the US market in 1997. BACKGROUND OF ENERGY DRINKS Energy drinks are non-alcoholic beverages which are intended to provide a quick burst of high energy to the consumer. Hansen's Energy. After this successful market introduction. Japan and Thailand have a longer history of energy drinks and the use of caffeine has been a key ingredient in those countries. 180 of Anheuser-Busch. natural flavors. domestic market may be approximately $4 billion. They may also contain taurine. caffeine. Recent years have witnessed the emergence of several new energy drinks.

In emerging market. Furthermore energy drinks with high sugar levels are more popular among children and women. 6 . Combining energy drinks with alcohol has resulted in new products including ―Hair of the Dog‖. however. Lucozade of UK was launched. By 2001. Recent studies also indicated that 65% of the energy drinks market consists of male consumers. with the launching of Lipovitan. Second are traditional energy drinks such as Red Bull and others. several producers have introduced new products. Market Analysis of energy drinks 2.S. The emergence of the energy drinks market dates back to the early 1960s. A recent survey estimates that around 35% percent of energy drink consumers are above 35 years old. Teenager and college students are core target market segments for the manufacturers and consist of the core age group of 12 to 30.2. Mixing energy drinks with smart drinks has also created new brand names such as NOS.1 MARKET METRICS Energy drinks were launched in the U. In 1929. There are several types of energy drinks products. in 1997 with Red Bull which has the largest market share. Different varieties of tea and coffee along with green tea forms one group. the energy drink market had developed to almost $400 million per fiscal year accounting the retail sales. Japan pioneered the energy drink phenomenon.2 MARKET STRUCTURE The primary consumers of this industry are under 35 years of age and are predominantly male. The current market valuation in 2005 is approximately $4 billion. while energy drinks with strong taste and flavor are more preferred by male consumers. 2.

The energy drinks market in India is pegged at Rs 250 crore and is growing annually at 20 per cent. under the direction of the customs authority at Chennai. Red Bull was in trouble again when regulations for proprietary food were amended in September 2008. The change in Rule 37-A(2) of the PFA Act states that proprietary foods have to conform to the standards under appendices of the PFA Act and Rules. The court ruled in favour of Red Bull. Since Red Bull made its debut in 2002. the caffeine limit in carbonated drinks was lowered to 145 ppm on the recommendations of the Central Committee for Food Standards. It pleaded that the drink be treated as proprietary product. There was lack of clarity on standards—the PFA authority at the Centre had registered the beverage as a proprietary product. for which there were no standards in the Prevention of Food Adulteration (PFA) Act of 1954. Monster) and Indian brands (Cloud. The amendment implied that energy drinks would have to conform to a caffeine cap of 200 ppm. tested Red Bull as a carbonated beverage. so far applicable to carbonated beverages. 7 . not carbonated beverage. tests by CFL showed these violated rules. 2. many imported brands (Burn. Six months on. Tzinga) have entered the market.3 CHALLENGES FACED BY ENERGY DRINKS IN INDIA Energy drinks made news in 2005 when the Central Food Laboratory (CFL) at Mysore. Energy drinks were put in the proprietary food category. the customs department at Chennai again seized consignments of energy drinks. for which a caffeine cap of 200 ppm was mandated. The company dragged CFL to court for contempt. After this amendment. the state food authorities conducted tests keeping in view norms for carbonated beverages. but CFL continued testing energy drinks as carbonated beverage. Red Bull challenged the findings of CFL in the Madras High Court. Red Bull again moved court. The consignment was seized as the drink did not conform to the standards for carbonated beverages. Red Bull‘s caffeine content was about 320 ppm.

which was extended in July 2010. which Red Bull claims is safe. Some of the manufacturers have limited the caffeine content in their product to 145 ppm while others are touching the 320 ppm mark. Hence it would be incorrect to categorise any beverage with that level of caffeine as an energy drink. on May 20. ―About 100 ppm is the typical level of caffeine in colas. The Madras High Court. till further notice. energy drinks continue to be sold as proprietary food and the number of players are increasing. Some brands are being sold with a caffeine content of 320 ppm. 2010.‖ says a statement issued by Red Bull. 8 . The JMJ group that owns the brand XXX energy drinks and claims 100 ppm caffeine in its products did not respond to mailed queries. With the stay.this time challenging the amendment. granted an interim stay on the amendment.

in fact it was the birth of a totally new product category. The Red Bull headquarters are based in Fuschl am See. which enjoyed widespread popularity throughout the Far East. around 30 billion cans of Red Bull have been consumed. started selling Red Bull Energy Drink on the Austrian market . The idea to market these functional drinks outside Asia came to him while sitting at a bar at the Mandarin Hotel in Hong Kong. 9 . While the consumption was doubling year on year in Austria. developed a unique marketing concept and in 1987. Austria. Since 1987. not far from Salzburg. more than 4. Singapore (1989) and Hungary (1992).294 employees around the world (compared to 7.758 in 2010). Meanwhile Red Bull is present in over 164 countries. Mateschitz founded Red Bull.Today Red Bull has annual sales of approx. The responsibility for the success of the world's No. This was not only the launch of a completely new product. Dietrich Mateschitz became aware of products called "tonic drinks".6 billion in 2011. He fine-tuned the product. In 1984. the UK followed in 1995 and in 1997. Red Bull has been available since 1987. WORLD WIDE EXPANSION Red Bull has been giving wings from the beginning – and has started to spread its own wings around the world quickly. The authorization for Germany was granted in 1994. REDBULL HOW IT ALL STARTED In 1982. 1 energy drink is shared by the company's 8. the US business started in California.3. 4 billion cans in more than 160 countries. Red Bull arrived in its first foreign markets.

productivity and operating profit. 10 . representing an increase of 11. In all key areas such as sales.Besides winning both the constructors' and drivers' Formula 1 championships. Red Bull employed 8. company turnover increased by 12. As of the end of 2011. India and China. In addition. 2011 also saw the extremely dynamic expansion of our media activities.In spite of the still very difficult and uncertain financial and global economic climate. for the second year running.4% from EUR 3.COMPANY FIGURES A total of 4.785 billion to EUR 4. however. In terms of further expansion. Red Bull is targeting the core markets of Western Europe and the USA.631 billion cans of Red Bull were sold worldwide in 2011. Owing to currency and price factors. France (+35%) and Scandinavia (+34%) combined with efficient cost management and ongoing brand investment. revenues.253 billion.The main reasons for such positive figures include outstanding sales especially in key markets such as the USA (+11%) and Germany (+10%) and also in other markets such as Turkey (+86%). as well as the growth markets of Brazil. more than 5.294 people in 164 countries (end 2010: 7.758 in 161 countries). Japan (+62%). the figures recorded were the best in the company's history so far. Japan.4% against 2010.000 students are gaining first work experience every year within our wings teams and SBM programs. Growth and investment will – as is customary at Red Bull – continue to be financed from the operating cash flow. our plans for growth and investment in 2012 remain just as ambitious and we envisage a continued upward trend.

3. sucrose and glucose. young adults. 250 ml and 355 ml cans in India. which is abundant there. Red Bull has only one product. Red Bull Energy Drink is marketed as a functional beverage with a combination of ingredients. 80% of the energy used in production comes from renewable sources. The products that are included in Red Bull‘s portfolio are: ● Red Bull Energy ● Red Bull Sugar free ● Red Bull Energy Shots ● Red Bull Cola Red Bull markets its non-alcoholic drink in 164 countries across the world. taurine (an amino acid). ―Red Bull‖. B group vitamins. mainly the 18 to 34 years old age group. However. Hence Red Bull is only produced in factories in the Austrian and Swiss alps. The targeted demographic group is teenagers. The company claims that the Red Bull energy drink Increases performance Increases concentration and reaction speed Improves mental alertness Stimulates metabolism 11 . in a base of alpine spring water specially sourced from springs in the Swiss alps. The energy drink contains caffeine. glucuronolactone (sugar derivative). in India. Red Bull Energy.1 PRODUCT PORTFOLIO Red Bull is a privately held company that produces and markets energy drinks under the brand. The drink is offered in two sizes.

3. strength and life. 3.2 LOGO The Red Bull logo has two thick necked Herculean crimson bulls charging each other in the backdrop of the sun. and it encourages you to play and live with intensity.‖ They created a new category – a fiery bull that flies.4 TARGET GROUP Targeting broad range of consumers based on their need of Stimulating drink. This is precisely the sort of animal that never stays quiet. •Mentally fatigued •Physically fatigued •Both 12 . It flies. Red Bull has wings. energy.‖ 3.3 SLOGAN “Red Bull gives you Wings” A good deal of care went into choosing Red Bull‘s logo and its slogan – ―gives you wings. It symbolizes power.

it can be said that the can is an ideal transport packaging. ‘Tzinga’ by Hector Beverages which is available for just 25 rupees! This could potentially tap the price conscious and the virgin market who haven’t explored the energy drinks segment yet. However. Burn are all available for 75 rupees for 250 ml cans. Red Bull with its premium pricing. 3. XXX.As a result the broad consumer categories are •Students •Drivers •Clubbers •Business People •Sports People 3. 13 .5 PRICING Red Bull uses a premium pricing strategy. Its competitors in the Indian market – Edge.6 PACKAGING The blue and silver can of Red Bull is distinctively slimmer than normal cans. The slender container is used to suggest a "sexier" image than its competitors. there is a new entrant in the Energy drinks market recently. especially when compared to other forms of packaging: it saves about 40% in truck loads compared to glass bottles and about 30% compared to PET bottles. is available for 95 rupees for 250 ml can and 120 rupees for its 355 ml can. it is easier to transport because of its form and low weight. However. Cloud 9. Also. Thus.

The best scripts would be produced an aired on TV as 15 second commercials. Red Bull has launched a new campaign.4. The objective was to strengthen brand identity rather than create interest. ―Red Bull decide the story‖ where users send scripts with the animated ―anchor‖ cartoon as the main character. Of late. 14 .1 Television Commercials Red Bull designed a series of cartoon/pencil sketched television commercials centred around their slogan – Red Bull gives you wings. INTEGRATED MARKETING COMMUNICATION CHANNELS 4.

2 SOCIAL MEDIA Red Bull is among the top 10 biggest brands on Facebook by sheer numbers (29. breaking out from the clutter by providing fun content that encourages fans to connect with the brand. Its fan page is listed as an example in every tutorial of how to build amazing brand pages. It has been extremely innovative in this area. instead of linking the corporate account. They have lots of gaming apps which are linked to their website. as well as encourages additional fan engagement. 15 . they have linked accounts of all their sponsored athletes who are extremely popular and included them directly. They have also integrated twitter into their facebook page. which get them thousands of re-shares and reach.4. It never promotes its products on the Facebook page. However. It‘s hilarious. Their extremely popular posts are extreme sports and videos.456.957 likes at the last count). One of their more popular app on facebook is where fans can rate phone calls of people who ‗drunk dial‘ their 1-800 number.

aerial. Red Bull Records. videos. Music & Culture – Here. videos. It also offers company history information. and calendar of events. bike. photos. they offer a variety of music and cultural activities.redbull. The sports featured are adventure. Products and company.3 WEBSITE The website of redbull (www. 16 . photos.This link offers information about the product with descriptions of the products. ball. skate.This link offers users to watch video documentary and footage of a variety of sporting events. water. Events – This provides information on Red Bull sponsored events (usually sporting) across the world. Videos. articles etc. Sports – It provides articles. They have a recording label as well. and winter. motor. It provides information on the product as well as other interactive content.in) is user friendly and extremely content heavy.This link offers information about athletes and teams that are endorsed by the Red Bull Company. The links that can be seen on the website are – Athletes and Teams .4.

Photos. dates. gloves. The products are shirts.This link offers a variety of sports themed games.com.This link offers announcements. even featuring augment reality games. hats.This link offers Red Bull TV that gives the user a chance to view everything that Red Bull is involved with. and current winners of sporting events. Red Bull TV also offers interviews with athletes and Red Bull employees because Red Bull recognizes their employees as being a key contributor to their success.This link offers consumers to purchase products from the Red bull company. Just Epic. key chains. Redbullshop. and bull fighting picture.This link offers many photos of all over world particularly athletes that are participating in the sporting events. Red Bull TV. logo. Games. Red Bulletin. 17 .This link offers amazing and unbelievable footage of events that Red Bull considers out of this world. and posters all include the Red Bull name.

and the Red Bull BC One individual breakdance competition. kayaking. its own version of the soapbox derby called the Red Bull Soap Box Race which was recently held in Cincinnati. music.It also organizes its own competitions like the Flugtag ("flight day" in German). Formula 1 racing. the Red Bull Art of the Can Competition. cliffdiving. Red Bull Illume is an international action and adventure sport photography contest that occurs every three years. BMX. surfing. freestyle motocross. windsurfing. wakeboarding. and break dancing to art shows. a competition where entrants launch themselves off a 10 metre ramp in homemade "flying machines" into a body of water. rally.4. an international art competition in which artists are asked to create works using the Red Bull can. skating. snowboarding. Ohio. 18 . Also. It sponsors over a hundred athletes.4 SPORTS SPONSORSHIPS Red Bull sponsors activities ranging from extreme sports like mountain biking. Its purpose is to showcase the most exciting and creative action sports photography from around the world and bring the public into the world of action sports. and video games. motocross. skateboarding.

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5 SPORTS OWNERSHIP AS A BRANDING EXERCISE In motorsports. It also owns an Ice Hockey team EC Red Bull Salzburg. These ownerships create a strong sense of association with the fans. it owns two F1 teams. It also owns football clubs Red Bull Salzburg.4. Red Bull Brasil and RB Leipzig. Red Bull Racing. New York Red Bulls. and one NASCAR team. 20 . Red Bull racing and Scuderia Toro Rosso.

21 . Red Bull is displayed on virtual track-side billboards during gameplay and in the opening cinematic in the video game Wipeout 2097. In the video game Worms 3D.6 InGame Advertising Red Bull was also one of the pioneers in advertising inside video games. Red Bull allows the worms to move more quickly. It has its own ingame island inside PlayStation Home and its own Red Bull air race event.4.

e. it does not go for mass distribution immediately.4. First. When Red Bull enters a new market.7 PRINT ADS Print advertisements are on brand. The Red Bull advertisements are aimed to strengthen brand identity rather than create brand awareness. As can be seen from the marketing mix. i. it allows selected outlets to carry their product. you tend to want it and definitely want to talk about it. most of Red Bull‘s advertising revolves around “Buzz-marketing”. This advertisement is of a plane flying in the air with a tagline that states the claim that Red Bull gives you energy. Red Bull uses a well known phenomenon called ―uneven distribution‖ of information. word of mouth marketing. Its content is centred on interactivity and allowing users to be creative. When something is not available to you. Its advertising focuses on reinforcing a message rather than introducing the product in the marketplace. 22 .

5. SURVEY RESPONSES 1) What is the age of the respondents? Age of Respondents 100 0 20-24 25-29 >30 Age of Respondents 2) What is the gender of the respondent? Gender Gender Female Male 30 48 0 20 40 60 3) When you think of energy drinks which brand comes to mind? Brand Recall Red Bull Tzinga Cloud9 22 76 23 .

4) Views about pricing of Red Bull Pricing Over priced 20% 80% Reasonably priced 5) Do you think energy drinks are harmful to health Harmful to health Harmful to health 100 0 16 58 No Yes 6) Most preferred Energy drink brand Most preferred Brand Most preferred Brand 4 4 2 0 0 62 Cloud XXX Red Bull 0 20 40 60 80 24 .

7) When do you consume energy drinks? Point of consumption 40 35 30 25 20 15 10 5 0 Study/Pulling… Partying On the road Stress buster Not unless… Sports Point of consumption 8) Which product size do you prefer? Product Size Product Size 58 16 250ml 355ml 9) What is the perception about Redbull? Perception of Brand 10 12 50 Energy Drink Sports Drink Lifestyle Drink 25 .

10) Where do you purchase energy drinks? Point of Purchase Bars/Clubs 18 Local Stores 25 Point of Purchase Supermarket 35 0 20 40 11) Customer perceptions about benefits expected from energy drink and benefits derived from Red Bull ( Lower cells have the most gap in perceptions) Attributes Endurance Improvement Reaction Alertness Concentration Metabolism Performance RED BULL 26 .

12)How will you rate the following with Red Bull? Attribute ratings Marketing activities Identification with slogan Taste Delivering on brand promise Design 12% 19% 31% 19% 19% 12) How often do you purchase energy drinks? Frequency of Purchase 40 20 0 once a once in once in month six a week months Frequency of Purchase 13) Which promotional activities are most effective? Effectiveness of Promotional Activities Sponsorships Merchandising F1 TV ads 0 5 10 15 27 .

145 . taste and also get influenced by the promotional activities like advertisements and word of mouth 28 .440 -.250 -.195 .019 .335 .812 .870 .794 .728 .902 Extraction Method: Principal Component Analysis.080 .013 .681 .696 .322 .122 2 .197 .14) What influences purchase decisions of Red Bull? Rotated Component Matrix a Component 1 SMEAN(WBrandloyalty) SMEAN(Price) SMEAN(CanSize) SMEAN(Health) SMEAN(Taste) SMEAN(Effectivenessofthedri nk) SMEAN(Thirstquenching) SMEAN(Advertisements) SMEAN(Wordofmouth) . a.678 . From the factor analysis it can be inferred that the customers are focused on the tangible benefits ie.629 . Rotation converged in 4 iterations.367 . can size. Price.310 .064 .000 . Rotation Method: Varimax with Kaiser Normalization.183 .069 .184 3 -.

122 .399 3 -.717 . innovative and non conformist image associated with the brand appeals to another section.646 .030 .544 . Rotation converged in 4 iterations. a.056 .693 .520 2 .519 .803 .201 .011 .953 .115 .197 .226 -. 29 .090 .303 Extraction Method: Principal Component Analysis. From factor analysis it can be inferred that the Sporty & adventurous attributes appeal to a major section of consumers and also the daring. Rotation Method: Varimax with Kaiser Normalization.287 .851 .518 .496 .142 .012 .296 .163 .15) What are the most prominent brand attributes of Red Bull? Rotated Component Matrix a Component 1 SMEAN(Innovative) SMEAN(Youthful) SMEAN(Nonconformist) SMEAN(Unpredictable) SMEAN(Daring) SMEAN(Energetic) SMEAN(Adventurous) SMEAN(Sporty) SMEAN(Masculine) SMEAN(Exciting) SMEAN(Outgoing) SMEAN(Funloving) SMEAN(Independent) .849 .762 .356 .485 .735 .584 .702 .082 .148 .730 .046 .068 .

In India. Red –Bull has competition from Cloud 9 which follows the same strategy of positioning the drink as an ―All-Purpose‖ drink. Red Bull is positioned as an ―All purpose‖ drink whereas its international competitor ―Burn‖ by Coke is primarily considered a ―clubbing-purpose‖ drink In terms of positioning. Sports drinks are primarily used by athletes to replenish lost electrolytes. It is therefore also popular with college students as well as working professionals. RED BULL BRAND 6. 30 . Also. Red-Bull tries to projects itself as a drink meant for both physical agility as well as mental alertness. 6. there is really no competition with Gatorade and the likes. it launched a huge marketing campaign to coincide with the F1 race. more so. So much so.2 BRAND PERCEPTION Red Bull‘s perception is that of a caffeine based energy drink whereas Cloud 9 is perceived as a ―natural‖ energy drink with flavours like pomegranate commanding an extra premium of Rs. because it is already famous for having a team of its own called the ―Red Bull Racing‖. Energy drinks like Red-Bull are caffeinated drinks whereas sports drinks like Gatorade have no or very low caffeine content.6. newer entrants like Tzinga and Monster are primarily positioning their drink as an ―AllPurpose‖ drink Red Bull doesn‘t compete with the likes of sports drink like Gatorade. an athlete might choose to have both the drinks than prefer one over the other.1 BRAND POSITIONING Primarily targets the age group of 18-30 which accounts for a majority of its sales An important segment of the target group consists of ―Party-goers and clubbers‖ for which the brand tries to maintain contracts with clubs and lounges Red-Bull has also made a deliberate attempt to associate itself with sports so as to enhance its perception of a drink enjoyed by sportsmen.15. Therefore.

The above aim and perception is promoted through its tagline –―red bull gives you wiiings with stress on additional I’s in wings‖. brand is hit by its perception of providing temporary energy through stimulants which can have a harmful effect on health 31 . However. Red and Blue color are quite prominent and are always the color in their promotional campaigns and cartoons even when the brand ―red-bull‖ is not mentioned.Company‘s aim is to educate consumers which helps in physical agility as well as mental alertness.

32 . however the sales and marketing efforts to make it a popular brand are just 3 years old. it has a YouTube account which does media promotion and is targeted to increase its brand loyalty among the select group of fans and loyalists. Brand promotion is done primarily through creating live events. radio etc. Prior to this.3 BRANDING EFFORTS It does not make much use of famous media like print media. it was caching on its already popular global branding. WTM – Wings Team Member is appointed to take care of colleges. twitter which report webcasts and upcoming events. It puts comparatively less focus on ATL strategy and has largely been inclined towards making marketing efforts which resemble that of a BTL strategy. However. corporate offices where he/she provides free red bull cans and is also a method through which company conducts sampling Student brand manager (SBM) . These channels are used to create a direct interactive involvement with the consumer.6. run contests and showcases cartoons. Red bull has its own sports competitions and culture events which are organized by red bull itself. It does not partner as a sponsor for events which are not created by it.Each campus has an appointed student who is designated by red bull as its brand manager. The student also helps spread awareness through the college by helping conduct surveys and providing free samples Use of social media – Facebook. The Red-Bull drink has been here for the past 9 years. TV.

6.4 KAPFERERS BARND IDENTITY PRISM 33 .

Aspirational High quality product’ Energy benefits Brands credibility-sportspersons Physical endurance Mental alertness. then Red Bull‘s marketing campaign wins hands down as it is the first thing that comes to mind when someone thinks of an Energy Drink. This is evident from the following customer response. ―It really works‖ 34 . Salience Dimensions a) Depth of Brand Awareness-Ease of Recognition & Recall If a brand‘s value is to be judged by the ease with which it can be recalled. Heading the dance floor he said.Reaction speed and concentration Energizing stimulating drink CBBE is formally defined as “The differential effect that brand knowledge has on customer response to the marketing of that brand” 1. Energetic.6. Youthful.5 CUSTOMER BASED BRAND EQUITY PYRAMID High market share Brand loyalty and awareness Rejuvenated High self esteem Culturally elite Personality-Mysterious. ―I was working all day and I needed something to get me going‖ said a young lad after sipping the Red Bull at a party at New York Club. Non-Conformist.

has more than double the dose found in larger coke serving. freestyle motocross. There simply can‘t compromise. The berry flavored is spiked with mysterious additives like Taurine and Glucuronolactone. snowboarding. others just shake their heads saying ―No‖. ―If you don‘t create the market. Performance Dimensions a)Primary characteristics & supplementary features Quality No brand survives long if its quality does not equal or exceed what the buyer expects. better known as kids in their 20s. cliffdiving. it doesn‘t exist‖ says Dietrich Mateschitz. b)Style and design Red Bull has aggressive international marketing campaign. 2. That‘s the essence of the contract. Its very famous amongst the so called Young Adults. a former toothpaste salesman of a toothpaste company who built a $1. and break 35 . Red Bull is the energy drink that doesn‘t do well in the taste tests.b) Breadth of brand awareness – Purchase consideration In the past 15 years. with 80 mgs of caffine. surfing.6 Billion energy drink company with creative selling ideas that made him incredibly rich. this energy drink company has quietly captured more than 70% market share in over 100 countries. Red Bull‘s prime consumers are young adults.Red Bull is the ultimate Energy Drink which gives you a long stint without Sleep. But it does pack some energy. But still it has the maximum market share in the Energy Drink Market. Formula 1 racing. Never before has any brand been covered so quickly on the Top Selling magazine of US (Selling Power). (Energy Drinks are not recommended for Children). skateboarding. skating. some say it‘s too sweet. The numerous sponsored activities range from extreme sports like windsurfing. rally. and it has 110 calories per serving versus Coke‘s 140. Consumption consideration Red Bulls is the first thing that comes to the mind when any Energy drink is considered. Red Bull.

Austria. the company seeks to promote a "cool" public image and raise brand power. New York. the type who will surf in Nova Scotia in January or jump out of a plane to ―fly‖ across the English Channel. this one energy drink has helped create a market for over 150 related types of merchandise. 4. By associating the drink's image with these activities.dancing to art shows. music. Leipzig. like Red Rooster (drink) and Blue lightning. 3.7. Red Bull sponsors some 500 athletes around the world. USA and Brazil and have included their company name in the club's names. as well as cultural events like break-dancing contests and rock music jam sessions.Judgment Dimensions Brand quality Fun Energizing Good to taste 36 . Germany. a fleet of 15 show planes that appear at Air show around the world. Every year the company stages dozens of extreme sporting events like the climbing of iceddown silos in Iowa or kite sailing in Hawaii. in Salzburg. Then there is a Hangar. Mateschitz has invested heavily in building the brand. It also hosts events like the "Red Bull Flugtag" (German for "flight day" or "flying day") and other such contests. Mateschitz latest indulgence: The purchase of formula one racing tea006D. Hence. Austria. and video games. an extravagance that will absorb $ 100 million an year to keep on the track while generating only $70 million for revenue. All these activities are geared to one objective: to expand Red Bull‘s presence amid a deluge of new energy drinks being introduced and beverage behemoths like Pepsi and Coke. Imagery Dimensions Since introducing Red Bull in 1987. an eye popping structure of glass that Mateschitz erected next to the airport in Salzburg. Red Bull is also sponsoring soccer teams. The building serves the chic eatery for club crawlers and provides shelter for the flying bulls.

Attitudinal attachment The brand represents strength and vigor because of which consumers purchasing it stick to it. High recall when compared to its competitors High recommendations by category intenders and category users. 37 . People purchasing Red Bull will never substitute it with any other energy drink like power horse or Gatorade. Resonance Dimensions Behavioral loyalty Frequency and amount of repeat purchases.Brand credibility Expertise High Energy Likeability Brand consideration Stands strong in the Energy drink industry. Brand superiority Different from Conventional Colas Better to taste when compared to Gatorade & Power Horse Can be used to make a Cocktail with Vodka Masculine Brand 7. Feelings Dimensions Sexy Fun Excitement Hip Youth Sporty 8.

Evolves as group brand. The company considers everyone that works for them along with their families‘ part of their network. ● Staff is on brand. Active engagement Resorts Sports club Web site Chat rooms Health Clubs Gym Swimming Pools Music & Entertainment 6.Delivery Trucks are blue with Red Bull in red font located on the sides of the truck.Sense of community A brand representing Kinship as it is a party drink as well. Lots of youngsters affiliate themselves with the brand as it a symbol of masculinity. This gives Red Bull a advantage of Positive reinforcements. The Red Bull company treats all employees like family. The drivers wear uniforms that are navy blue jumpers. Drivers are on brand because they are representing Red Bull at their full capacity. The picture of the red bulls fighting in front of the yellow is located in the front part of the truck located on both sides and in the rear of the truck.6 INTERNAL BRANDING ● Drivers are on brand. ● Truck. The Oriental bull fighting picture is located on the back side of the uniform. If the employees 38 . The Red Bull name is located on front upper left side of the uniform.

The name of the product is in Red bold font with a white outline located in the upper left hand corner. Business cards.and their families are treated as if they are family then they will give believe in the products and give Red Bull a positive reputation. 39 .The business cards for Red Bull Energy Drink are on brand. The business card has employee name and title of position he hold through Red Bull. The picture of an oriental themed depiction has two red Bulls about to collide head on in front of yellow sun.

XXX. Cloud 9 has tried to distinguish itself from the rest of the energy drinks market by introducing natural flavours and keeping the caffeine content low to promote it as a healthy drink. 28Black. a perception which is unique to Cloud 9 in the energy drink market. Competitor Analysis Column1 Energy Drink Red-Bull Cloud 9 Others (Burn. It is interesting to note that the name ―Cloud 9‖ also seems like a dig on RedBull‘s tagline ―red bull gives you wings‖.7. SoBe) Column2 Market Share 90% 5-7% 3-5% Red Bull Vs. Cloud 9 is the primary competitor with a market share of around 5 -7 % Red Bull is positioned as an ―all-purpose‖ drink which is the same strategy Cloud 9 has followed. Monster. where Cloud 9‘s name seems to suggest that the energy drink already makes you feel on Cloud 9. Its 40 . Cloud 9 Red-Bull is a clear market leader with a staggering 90% market share in the energy drinks market.

However.95 Premium : Rs. XXX.Pomegranate flavour has especially been very successful and is what has made Cloud 9 as the primary competitor in the market Pricing: Red Bull is priced at Rs. Red-Bull with its cult following has been able to command a premium of Rs. Burn.95 for the 250 ML can. who charge a price of Rs.75. Red-Bull used to be priced at the similar price point of Rs. Tzinga etc. This point is therefore an important price break point.75 per 250 ml can. In spite of the price increase.75 Red Grape : Rs.95 over it other competitors like Cloud 9(Basic Variants). the sales have grown substantially owing largely to the fact that energy drinks market in itself is growing at a substantial rate of 50% Other Competitors 41 .75 Pomegranate : Rs.20 (27%) over the other brands. Cloud 9 comes in four variants: Wild Berry : Rs. 85 Red – Bull charges a premium price of Rs.

Burn has been present in the Indian market for some time. as so far. it has been present only in the North-Indian market  28Black is an Australian brand which entered the energy drinks market in 2011.  Tzinga is an Indian brand which has recently made its foray into the energy drinks market. Red Grape. All the other competitors enjoy only a minor share in the energy drinks market in India  Monster energy and Burn are U. Premium Basic Variant priced at Rs.95 Cloud 9 follows ATL marketing whereas Red-Bull is more inclined towards BTL strategy Burn is primarily a "Clubbing-Purpose" drink Distribution limited to pubs and lounges Basic Variant priced at Rs. Column1 Column2 Red-Bull POP POD Column3 Cloud 9 All-Purpose Drink Caffeinated Drink Similar Packaging in 250 ml cans Target Group positioning at 18-30 years Distribution at Pan-India retail outlets Cloud-9 comes in natural flavours Has 4 variants : Pomegranate.S brands with Monster having recently made an entry into the Indian markets. However. Its is yet to make its presence felt in the Pan-India market.75 which is lower than Red-Bull's premium price of Rs. Wild Berry.75 unlike Red-Bull's premium price of Rs.95 Burn Caffeinated Drink Both Follow BTL strategy Similar Packaging in 250 ml cans Tagert Group positioning at 18-30 years Tzinga All-Purpose Drink Caffeinated Drink Tagert Group positioning at 18-30 years 42 Packaging more similar to that of Sports Drinks like Gatorade Tzinga comes in Natural Flavours Follows ATL strategy unlike Red Bull's BTL strategy . it is accessible primarily at clubs and lounges as its primary target group is the “party-goers” segment.

sodium citrate. acacia. this energy drink sparks one up and packs quite a vicious punch.95 Has 2 variants . pyridoxinehydrochloride (vitamin B6). d-ribose. (vitamin B5). caffeine. With ingredients like guarana. The USP of ―NICOFIX" is that it is formulated with NPR which reduces the Nicotine urge and ―REJUVE" is an exciting energy drink specially formulated to suit India taste buds. Available in great flavorslike citrus. Corona California.for 250 ml. This energydrink contains ingredients such as carbonated water. Monster energy drink is distributed by distributedby Hansen Natural Corporation.75/. full throttle energy drink has great flavors. thus increasing stamina.Distribution limited to Delhi and Bangalore outlets whereas Red-Bull has a Pan-India presence Basic Variant priced at Rs. Monster energy drink Depicted by a logo of three claws. calciumpantothenate. Full Throttle debuted in late 2004. natural and artificial flavors. citric acid.Lemon Mint and Tropical Trip Brand XXX The brand XXX energy comes in two variants currently." REJUVE‖ rejuvenates the mind and body and enhances your immunity.caffeine and glucose.REJUVE and NICOFIX. ThoughMonster Energy is not widely advertised in the media it receives a large amount of recognition from its sponsorship of various sporting events. cyanocobalamin (vitamin B12). With a fairly tolerabletaste. 43 . high fructose corn syrup and/orsucrose. Both the cans are very competitively priced at Rs. Full Throttle Produced by the Coco Cola company. niacinamide (vitamin B3). yellow 5. glycerol ester of wood rosin.75 which is lower than Red-Bull's premium price of Rs. sodium benzoate (toprotect taste). monster artificially stimulates energy.

with its global brand equity and the first-movers advantage in India can exploit the market further and make it a tough challenge for the other players to capture its existing market 44 . however.Conclusion: The primary reason why the energy drink market has been attracting foreign as well as home-grown players is primarily the growth and current penetration level of the Indian market which could eventually provide a fair share to all the players involved. Red-Bull.

unpredictable and unique. Positioning through market strategy In every market.The broad positioning was designed to enable growth into a variety of market segments. Red Bull develops relationships with them and treat them like friends. COMMUNICATION CONCEPT Above-the-line Advertising To build up awareness and image Aim of the campaign is to reflect the brand personality: Cheeky. Red Bull doesn´t sponsor events. organizes and supports new. Red bull‘s advertising did not specify any consumption occasions. Red bull positioning Genaral positioning strategy The brand is positioned as something that.It was also intended that red Bull be drunk whenever consumers needed a lift. witty.‖revitalized body and mind‖. Red Bull creates. are a perfect target group for Red Bull. Event Marketing To prove that the brand is up-do-date and different Red Bull´s event marketing also covers both areas. sports and culture. self-ironic. Music Academy. While the distinctive execution style helps establish it as beyond fashion.noon or night. but not one written contract. especially in the sport and cultural area. innovative and image building events. through a variety of events like Flugtag.The 250 ml can of Red bull cost upto 300 percent more than traditional soft drinks.whether it was morning. which further facilitated an elastic positioning. Red Bull worldwide has over 250 agreements with top athletes. Local Hero Tour and many more.8.Red bull set a price at least 10 percent greater than the most expensive competitor in order to maintain a ―best of class‖ positioning. Creative Contest. Opinion Leader Marketing To support credibility of the product and the brand Opinion Leaders. 45 .

Sampling Sampling is done by highly motivated and welleducated emloyees of Red Bull and not ―professional‖ promotion teams. 46 . Their briefing is simple: Find tired and exhausted people. All is given to them is the product. non offensive way. a free range of clothes and a tiny. They do it in a charming.

F1 helps to expand Red bull brand and increase customer brand awareness and recall Strong. Consumer awareness of health and well being-people may start to drink other alternatives as red bull is not associated with healthy lifestyle.Red bull energy drink(along with a sugar free variety) Lack of patent on its recepie means anyone can copy it Opportunities: Extension of product line-This will help to retain market share.9. SWOT Analysis Strengths Market leadership-Within the energy drink market. 7.it is the industry leader.fresh and fashionable brand identity Weakness Above average prices Reliant on small product base-the company only markets one branded product. PESTEL Analysis New ventures like partnership with Facebook.1 Political and Legal Factors: 47 . Marketing efforts-Many promotions and well targeted campaigns and sponsorship eg. Hardcore advertising and promotions Consumer recognition through sponsorship of events Threat Health concerns-Tougher rules from government on high caffeine content Organic energy drinks might take away red bull‘s market Drinks might not be accepted in the new markets.throughout the world.

10 .PESTEL ANALYSIS

Political factors and legal factors:
In India, there are no standards for energy drinks under PFA Act,1954. The standards of carbonated water under PFA Rules, 1955 specify the maximum limits of caffeine of 200ppm which subsequently on recommendations by Central Committee on FoodStandards were reduced to maximum level of 145ppm.Food Safety and Standards Authority constituted an expert group to examine the scientific literature and global position on use of caffeine and non-carbonated beverages and their labelingand to recommend the limit of caffeine in energy drinks and non-carbonated beverages under Food Regulations. The Group was also asked to suggest whether any standards need to be laiddown for energy drinks keeping in view the assessment of risk. It made the observation thatCaffeine is not an additive but a chemical with addictive property. Caffeine up to 200 ppm isadded as a flavouring agent but above 200 ppm it is a functional ingredient. The functionality of caffeine at 320 ppm needs to be ascertained along with justification for fixing a cut-off limit at320ppm.

Economic Factors:
Economic factor affects the purchasing power of potential customers and firm‘s cost of capital. The following are the examples of factors in macro-economy: economic growth, interest rates, exchange rates, inflation rate. The inflation rate in India was last reported at 13.73 percent in June of 2010. The economy is not much developed and wide variations among states and regions within states are there due to which we might have to make different promotional strategies.

Socio- Cultural Factors:
The key emerging health concerns amongst Indians include diseases of the heart and digestive system, obesity, bone and joint pain, depression and anxiety, lack of energy and stamina and sleeplessness. The growing awareness amongst Indian consumersregarding several ingredients and their associated health benefits is making them more inclinedto use nutritional information very often to make product choices. Hence there is a demand forfood and beverages with health claims.
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Technological Factors:
The technological factors can lower barriers to entry, reduce theminimum efficient production levels and influence outsourcing decisions.

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11. SUPPLY AND DISRIBUTION OF REDBULL

The annual supply for India is 40 containers per month and each container has 2659 cases of 24 cans each. The distribution of Red-bull in India is outsourced to Narang Enterprises. Narang Enterprises established in 1997 is a professionally managed company, which is an importer and distributor. Narang has 14 Depots across India, including the major metros Mumbai, Kolkata, Delhi and Chennai.Red bull strategically located all its warehouses just nearby the existing Narang‘s Depots

Narang provides specialised logistics service to Red Bull including - sales forecasting and demand management - logistics operations - production handling They also help in reverse logistics, for Red Bull's recycling campaign Intensive distribution aims to provide saturation coverage of the market by using all available outlets such as: Supermarkets Gyms Coffee houses Restaurants Discotheques &pubs

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12. REDBULL IN NEWS 51 .

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53 . The company does not make much use of mass media unlike its primary competitor Cloud 9 which is heavily into TV and print advertising. a strategy which Red-Bull is currently following. We suggest Red-Bull not to push its brand through the mass-media channels as it already is a brand leader in its segment.13. Also. It must however be said that the company’s marketing efforts are currently self-sufficient and have helped it to grab a staggering share of close to 90% in the Indian energy-drinks market.Recommendation: Red-Bull’s marketing efforts have primarily been inclined towards following a Below-the-line strategy which has helped create itself as a cult-brand among its fans and loyalists. Red-Bull could however increase its presence by associating itself with various events and not just be restricted to creating its own events. it could try to extend its target group beyond the current age group of 18-30 by building and enhancing its perception of an All-purpose drink.

References: Websites: http://www.com/blog/73-facebook-battle-red-bull-vs-monster-energy/ http://www.socialbakers.socialbakers.com/project-id/2835-strategic-brand-management-red-bull-energy-drink Databases: TAM database Research Papers Newspaper articles 54 .scribd.com/doc/63623217/Red-Bull-Internet-Marketing-Analysis http://socialmediatoday.com/facebook-pages/14226545351-red-bull http://www.com/larry-weintraub/461766/red-bull-facebook-timeline-timewarp http://www.kgsepg.

which is the first that comes to your mind? (most prominent) * Red Bull Edge XXX Cloud 9 Burn Tzinga 4.Do you consume energy drinks? * Yes No 3.Exhibit: 1 SURVEY QUESTIONANNAIRE 1.When you think of energy drinks.Which of these energy drinks do you know about * 55 .What is your age? * <19 20-24 25-29 >30 2.

Rate the energy drinks on preference * 1 Least preferred Red Bull Edge XXX Cloud 9 Burn Tzinga 6.Red Bull Edge XXX Cloud 9 Burn Tzinga Other: 5.Rank Red Bull according to your perception * Least in sync It's an energy drink It's a sports drink Most in sync 2 3 4 5 Most preferred 56 .

How much do you identify Red Bull with the following attributes? * Don't identify at all Innovative Youthful Non-conformist Unpredictable Daring Energetic Adventurous Sporty Reasonably identify Strongly identify 2 4 57 .Do you think Red Bull is * Under priced Reasonably priced Over priced Most in sync 8.Least in sync It's a lifestyle drink 7.

Don't identify at all Masculine Exciting Outgoing Fun loving Independent 2 Reasonably identify 4 Strongly identify 9.Which of the benefits do you expect from energy drinks? Least expect 2 Endurance improvement Improvement in alertness Improvement in concentration Reaction speed Stimulating metabolism Performance 3 4 Most expect 58 .

Which factors affect purchase decision of energy drinks? of energy drinks 1 least Brand loyalty Price Can Size 2 3 4 5 most 59 .Rate Red Bull on the following attributes 1 least Taste Design Delivering on brand promise Identification with slogan Marketing activities 2 3 4 5 most 12.10.Which of the benefits do you get from Red Bull? Which f the benefits do you get from Red Bull? Least Endurance improvement Improvement in alertness Improvement in concentration Reaction speed improvement Stimulating metabolism Performance improvement 2 3 4 Most 11.

Which can do you prefer? 250 ml 355 ml 15.Where do you purchase? 60 .Rank the promotional activities of Red Bull in terms of effectiveness 1 least 2 3 effective TV ads Campus ambassadors F1 association Sponsoring Xtreme games Merchandising Social media (Facebook activities and so on) Sponsoring campus events 4 5 most effective 14.1 least Health Taste Effectiveness of the drink Thirst quenching Advertisements Word of mouth 2 3 4 5 most 13.

When do you consume energy drinks? Study/Pulling an all nighter On the road Sports Partying Other: 61 .Do you think energy drinks are healthy? Yes No 17.Don't purchase at all Supermarket Bars/Clubs/Lounges Local Stores Other: 16.

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