Professional Documents
Culture Documents
Red Bull Hard
Red Bull Hard
Red Bull Hard
ON
2010-2011
BY
SUDARSHAN JAGANNATHAN
Reg No.07YAC08122
UNDER GUIDANCE OF
BANGALORE-560024
DECLARATI0N
17. 95
Table showing Energy Drink Market share, (with
sales and availability in retail shops)
INDEX OF THE GRAPHS
GRAP GRAPH NAMES PAGE
H NO NO
1. Graph showing the profile of the respondents based 64
on age
17. 96
Table showing Energy Drink Market share, (with
sales and availability in retail shops)
CHAPTER 1
INTRODUCTION
INTRODUCTION TO MARKETING
Marketing is the process of performing market research, selling products and/or
which companies build strong customer relationships and create value for their
Marketing is used to identify the customer, to satisfy the customer, and to keep
the customer. With the customer as the focus of its activities, it can be concluded
caused by mature markets and overcapacities in the last 2-3 centuries. The
production to the perceived needs and wants of their customers as the means of
staying profitable.
The term marketing concept holds that achieving organizational goals depends
on knowing the needs and wants of target markets and delivering the desired
firm holds towards its product or service, essentially concerning consumers and
consumer tastes.
Contemporary approaches
New forms of marketing also use the internet and are therefore called internet
onemarketing.
Customer orientation
A firm in the market economy survives by producing goods that persons are
for a firm's future viability and even existence as a going concern. Many
companies today have a customer focus (or market orientation). This implies
that the company focuses its activities and products on consumer demands.
Generally, there are three ways of doing this: the customer-driven approach, the
In the consumer-driven approach, consumer wants are the drivers of all strategic
research. Every aspect of a market offering, including the nature of the product
itself, is driven by the needs of potential consumers. The starting point is always
the consumer. The rationale for this approach is that there is no reason to spend
R&D funds developing products that people will not buy. History attests to
breakthroughs.
(Solution, Information, Value and Access). This system is basically the four Ps
renamed and reworded to provide a customer focus. The SIVA Model provides a
demand/customer-centric alternative to the well-known 4Ps supply side model
Product → Solution
Price → Value
Place → Access
Promotion → Information
If any of the 4Ps were problematic or were not in the marketing factor of the
business, the business could be in trouble and so other companies may appear in
the surroundings of the company, so the consumer demand on its products will
decrease.
Organizational orientation
ascertain (via marketing research) that consumers desired a new type of product,
or a new usage for an existing product. With this in mind, the marketing
oppose the installation, support and servicing of new capital stock, which may
capital expenditure, since it could undermine a healthy cash flow for the
organization.
Marketing research
distributions, etc. to interpret their findings and convert data into information.
Market segmentation
persons with similar needs and wants. For instance, Kellogg's cereals, Fro sites
are marketed to children. Crunchy Nut Cornflakes are marketed to adults. Both
goods denote two products which are marketed to two distinct groups of
persons, both with similar needs, traits, and wants. Market segmentation allows
for a better allocation of a firm's finite resources. A firm only possesses a certain
amount of resources. Accordingly, it must make choices (and incur the related
for one purpose, but often used to support another purpose or end goal.
conducted into health foods, which is used solely to ascertain the needs/wants of
the target market for health foods. Secondary research in this case would be
unrelated product.
Primary research is often expensive to prepare, collect and interpret from data to
often can become outdated and outmoded, given that it is used for a purpose
other than the one for which it was intended. Primary research can also be
broken down into quantitative research and qualitative research, which, as the
research).
assumption.
occurrence.
research process.
Promotion (marketing)
2. To increase demand
3. To differentiate a product.
There are different ways to promote a product in different areas of media. Many
times with the purchase of a product there is an incentive like discounts, free
Marketing strategy
products. For example, a start-up car manufacturing firm would face little
success should it attempt to rival Toyota, Ford, Nissan, Chevrolet, or any other
large global car maker. Moreover, a product may be reaching the end of its life-
cycle. Thus, the issue of divest, or a ceasing of production, may be made. Each
scenario requires a unique marketing strategy. Listed below are some prominent
CUSTOMER SATISFACTION
It is seen as a key performance indicator within business and is part of the four
Furthermore, when these ratings dip, they warn of problems that can affect sales
or service has met or exceeded expectations. Thus, expectations are a key factor
behind satisfaction. When customers have high expectations and the reality falls
short, they will be disappointed and will likely rate their experience as less than
satisfying. For this reason, a luxury resort, for example, might receive a lower
satisfaction rating than a budget motel—even though its facilities and service
This is the most daunting and downright scary part of interacting with a
customer. If you're not used to this sort of thing it can be a pretty nerve-
wracking experience. Rest assured, though, it does get easier over time. It's
important to meet your customers face to face at least once or even twice during
This goes without saying really. We all know how annoying it is to wait days for
with all customers' queries within the space of a few hours, but at least email or
call them back and let them know you've received their message and you'll
contact them about it as soon as possible. Even if you're not able to solve a
problem right away, let the customer know you're working on it.
A fellow Site Pointer once told me that you can hear a smile through the
phone. This is very true. It's very important to be friendly, courteous and to
make your clients feel like you're their friend and you're there to help them out.
There will be times when you want to beat your clients over the head repeatedly
with a blunt object - it happens to all of us. It's vital that you keep a clear head,
respond to your clients' wishes as best you can, and at all times remain polite
and courteous.
This may not be too important when you're just starting out, but a clearly
defined customer service policy is going to save you a lot of time and effort in
the long run. If a customer has a problem, what should they do?
If the first option doesn't work then what? Should they contact different people
for billing and technical enquiries? If they're not satisfied with any aspect of
your customer service, who should they tell? There's nothing more annoying for
a client than being passed from person to person, or not knowing who to turn to.
So make sure your customer service policy is present on your site -- and
5. Attention to Detail
Have you ever received a Happy Birthday email or card from a company
you were a client of? Have you ever had a personalized sign-up confirmation
email for a service that you could tell was typed from scratch? These little
niceties can be time consuming and aren't always cost effective, but remember
to do them. Even if it's as small as sending a Happy Holidays email to all your
customers, it's something. It shows you care; it shows there are real people on
the other end of that screen or telephone; and most importantly, it makes the
Out
Sometimes this is easier said than done! However, achieving this supreme
level of understanding with your clients will do wonders for your working
relationship.
It's possible this is the most important point in this article. The simple
disappointed. Sometimes, something may not get done, or you might miss a
deadline through no fault of your own. Projects can be late, technology can fail
and sub-contractors don't always deliver on time. In this case a quick apology
CUSTOMER LOYALTY
for the execution of the research at hand. For that, the development of customer
From these concepts, a definition of customer loyalty for use in this study will
be portrayed.
Since the beginning of the 1990s, customer loyalty has gained importance
In a first phase, firms tried to face these challenges by focusing on their internal
existing ones and to win over new ones (churning). Since “acquiring new
customers is much more expensive than keeping them”. And “loyal customers
are the bedrock of any business”. A loyal customer base represents a barrier to
volume, is highly correlated to market share, and can be used as the basis of
research, the focus shifted towards analyzing relationships states that the
‘traditional’ marketing concept of the marketing mix with its ‘4 Ps’, developed
in the middle of the last century, had been the established approach until the
1990s.
This approach, how-ever, focuses solely on transactions, a deficit tackled by the
can be nested.
1970s, it was not until the late 1980s that works from the ‘Nordic School of
Services’. Initiated a paradigm shift that geared marketing towards the creation,
quality. Our typical program assesses specific issues under each component, for
example:
Product Quality
• state-of-the-art technology
• competitive pricing
Procedural Quality
• ease of ordering
• accurate fulfillment
• inventory meets needs
• on time delivery
• environmentally friendly packing
• packaged to prevent damage in shipment
• ease of tracking
• appropriate adjustment/return policy
• order-through-delivery process bests competition
Relationship Quality
• product knowledgeable contacts
• knowledgeable about client needs
• communicates at client knowledge level
• one-stop problem resolution
• problems solved at the root cause
• legendary customer service benchmarks competition
The tailored Programs provide direct, statistically valid, comparison data of you
• Responsiveness
• Competitiveness
• Innovativeness
• Quality
• Customer Service
• Long Term Partnering
customers' perspective. Using the data, it will help you focus strategic efforts to
retain and increase market share. The programs also provide direct measure of
year (after first year's participation). That is, you will have quantifiable internal
previous 12 months.
Product
Sales Knowledge
Brochure detail
Marketing Mailing frequently
Order Delivery time
Distribution Order Completeness
Problem Response Time
Courtesy
HANDLING CUSTOMER COMPLAINTS
A complaint is any measure of dissatisfaction with your product or service, even
• Documentation • Personnel
• Billing • Communication
• Follow Up • Requests
If you can’t immediately solve the problem, respond to the customer and
identify an “owner” who will be responsible for final resolution. Complete the
make sure there’s closure. If you’ve left the customer hanging without a
tendencies, etc.
Use the database of complaints to define processes that are important from the
customer’s perspective and to improve the most critical ones. Based on analysis
customer complaints. If you can think of complaints as useful data for making
making changes that will differentiate you and make your work life easier, more
1. Listen carefully to what the customer has to say, and let them finish-Don't
get defensive. The customer is not attacking you personally; he or she has a
problem and is upset. Repeat back what you are hearing to show that you have
listened.
you can get from the customer, the better you will understand his or her
perspective. I’ve learned it’s easier to ask questions than to jump to conclusions.
3. Put yourself in their shoes-As a business owner, your goal is to solve the
problem, not argue. The customer needs to feel like you’re on his or her side
Whether or not the customer knows what a good solution would be, I’ve found
it’s best to propose one or more solutions to alleviate his or her pain. Become a
6. Solve the problem, or find someone who can solve it— quickly!-Research
indicates that customers prefer the person they are speaking with to instantly
solve their problem. When complaints are moved up the chain ofcommand, they
become more expensive to handle and only add to the customer's frustration.
MARKETING EFFECTIVENESS
goal of optimizing their spending to achieve good results for both the short-term
and long-term.
perfect information on how they act as well as how their competitors act.
to the need to segment them. Based on these segments, they make choices
based on how they value the attributes of a product and the brand, in
return for price paid for the product. Consumers build brand value
These can include the weather, interest rates, government regulations and
many others. Understanding the impact these factors can have on our
these factors or mitigate the risk of these factors if they take place in the
can achieve:
the market than competitors’ products/brands. Even with the best strategy,
results.
company growth rate soared from 12% prior to the campaign to 28%
following it.
improve their execution by making small changes in any or all of the 4-Ps
(e.g. TV, Radio, Print and Online), not just within each individual media
Ecosystems) Not only direct product experience, but also any stimulus
Improving the business of marketing can lead to significant gains for the
and improved results. The overall accountability for brand leadership and
business results is often reflected in an organization under a title within a
INDUSTRY PROFILE
BEVERAGE INDUSTRY
almost always largely consist of water. Drinks often consumed include: Water
(both flat or carbonated),Juice based drinks, Soft drinks, Sports and Energy
drinks, Alcoholic beverages like beer or spirits ,Coffee, tea ,Dairy products like
milk. Commonly, drinks are filled into containers, like glass or plastic bottles,
steel or aluminum cans as well as cardboard supported packages, like the "Tetra
Pak" or others. Filling of beverages can be done cold, hot, ambient and cold-
aseptic filling to mention the latest trend of beverage marketing and technology.
The beverage is mainly categorized into two major categories based upon the
further o two types based upon carbon content. These beverages contain Fruit
juices, Coffee, Tea, Soda, Colas. The Alcoholic beverages are based upon the
Beverage
SECTOR
India is a growing and developing country which is having a very high
economic growth with the drastic increase into the population size. Due to the
The increase in the India population has given a high demand of beverage
market products. The Indian beverage market is segmented into the two major
Again these categories of beverages are sub-divided into the carbonated and
fruit based drinks. Tea and Coffee also contributed majorly into the Beverage
Industry.
and has a very approach to the customers. Due to the globalization and
the Indian Beverage markets which are appreciated by the Indian population.
In India, here are various forms of beverage market get to be seem in the form
There are certain factors which are driving developments into the Indian
Beverage sector:
Economic growth
Population growth
Competition for Raw materials
Power of retailers
Globalization / Regionalization
Technological Developments
cooling and cleaning during the production process. So when one considers that
India’s current water supply is approximately 740 billion m3, but it has been
estimated that by 2030 demand for water in India will grow to almost 1.5
trillion m3, the industry will clearly be facing a major problem there. There will
simply not be enough water. Yet China, India and Indonesia are all a focus for
beverage companies due to their lower market penetration. There can be little
doubt, however, that water security issues will be one of the biggest threats to
developing market potential. Let’s first take a look at the alcoholic drinks
reaching the legal drinking age and increased per capita income and
urbanization in countries such as India and China. The water bottles market is
also booming. The market for bottled water is developing rapidly in Asia.
shortages are expected to be key drivers of this, but wealth and the increase in
Asian middle classes will play the most significant role. Consumer demand for
expected to grow by 100 percent over the next five years and there are currently
more than 2,000 bottled water producers. Whilst there has been a backlash
increasing trend.
India Alcoholic Drinks Market to Grow Over 14% CAGR during 2011-
2015.
The sectors which are projected to achieve excellent growth of 20% from
wine.
Fruit/vegetable juice market will grow at a CAGR of around 30 per cent
The energy drinks segment which will grow at a CAGR of around 29 per
supposed to triple from 2.6 litres in 2000 to 8.7 litres in 2015. Demand
CHAPTER 2
RESEARCH DESIGN
INTRODUCTION
which enjoyed widespread popularity throughout Far East. His idea to market
these functional drinks outside Asia evolved whilst he sat at a bar at the
Mandarin Hotel in Hong Kong.In 1984, Mateschitz founded Red Bull. He fine-
tuned the product, developed a unique marketing concept and started selling
Red Bull Energy Drink on the Austrian market in 1987. This was not only the
launch of a completely new product, in fact it was the birth of a totally new
product category.Product range has widened and the customer has evolved.
generally much easier, takes less time and involves less expense. The reason for
this is that it takes more time to find new prospective customer. In this context
can earn more profits only when it has strong customer care towards product
and services offered by the company. So to have strong customer care it has to
consumer needs.
3. To study the level of consumer expectation.
4. To learn the perception of the public towards the Energy Drink relating to
its competitors.
This study includes Customer’s response and awareness towards the brand,
products and services of Red Bull. The results are limited by the sample size 75
numbers and therefore the opinion of only selected customers is taken into
limited.
OPERATIONAL DEFINITION
with the goal of optimizing their spending to achieve good results for
advertisement.
5. Objective- An end that can be reasonably achieved within an expected
RESEARCH METHODOLOGY
go deeper into the user’s psyche and develop a thorough understanding of what
The first phase is completely internal where it is stormed over the most effective
route of action, considering that it is product with minimal main stream
advertising.
The second phase is with some respondents who will be interviewed with the
The information relevant for study was drawn from Primary data collected
through survey method, which alone was not sufficient. Hence Secondary data
Primary data-
It will be collected using a questionnaire. A well laid out questionnaire
prospective buyers.
Secondary data-
This information will be obtained from secondary sources which include
published sources.
SAMPLE DESIGN
go deeper into the user’s psyche and develop a thorough understanding of what
the user looks for while buying an energy drink. For the customer satisfaction
study a sample of 75 persons was chosen from the in Bangalore city. The
Size of Sample 75
Sampling technique Convenient Random Sampling
method
Location from which samples were Bangalore city
taken
PLAN OF ANALYSIS
Raw Primary data has been collected with help of questionnaire. The raw
data has been tabulated with the help of table. From the tables, concept,
analysis and inferences are drawn which in turn was used for
industry.
Sample size was confined to 75 respondents keeping in view of time and
cost constraints.
Findings are based on sample survey. The information executed by
respondents may or may not be true because some respondents may not
be serious. However all possible has been made to collect the information
as authentically as possible.
All interview questions are undisguised or direct. Hence there is a scope
knowledge and experience of the student is limited and hence may not be
professional enough.
Chapter-1 Introduction- Its all about the Introduction part. It mainly consists
program. Also talks about the marketing effectiveness. Later about beverage
industry till date, Indian beverage industry and its recent trends.
methodology, data collection, sample design, plan of analysis and finally the
of the company Red Bull, company’s vision and objective, Red Bull products,
analysis and interpretation from the data collected through questionnaires, tables
findings drawn from the study and final conclusion about the whole project.
CHAPTER 3
COMPANY PROFILE
Company Overview
popularity throughout Far East. His idea to market these functional drinks
outside Asia evolved whilst he sat at a bar at the Mandarin Hotel in Hong Kong.
unique marketing concept and started selling Red Bull Energy Drink on the
Austrian market in 1987. This was not only the launch of a completely new
Natural. Very much in line with the needs of today's consumers, Red Bull Cola -
In 2009, Red Bull extended its product portfolio with Red Bull Energy Shots:
Around 4 billion cans of Red Bull are consumed every year. The responsibility
for the success of the world's No. 1 energy drink is shared by the company's
6,900 employees around the world. Today Red Bull has annual sales of approx.
4 billion cans in 160 countries..As of the end of 2009, Red Bull employed 6,900
plans for growth and investment in the business year 2010 remain - typically
for Red Bull - very ambitious, but continue to rest on a solid and conservative
financial footing.
Marketing Background
saw where Japan and Thailand were heading in the energy drink market and
decided they wanted a piece of the pie. By 1987, Austria proved to be a difficult
market for Red Bull to survive in and soon Mateschitz expanded into Hungry
and the rest of Germany. After expanding across Europe with a lot of trial and
Rather than scrapping Red Bull as a loss, Mateschitz fired all his staff and hired
a marketing firm to help him target nightclubs and students. Buzz marketing
became the main focus of Red Bull’s marketing plan, and soon students were
pounding campus pavement and driving around in Mini Coopers with a big Red
Bull can strapped on top with free samples. His buzzmarketing proved to be not
only cost effective, but the very thing that gave Red Bull its appeal. Although
Red Bull was not welcomed with open arms in all countries, such as France,
avenue to take Red Bull down. Red Bull started supporting approximately 500
extreme sports athletes and hosting exclusive parties for these rock star
the U.S. as well. Events are now hosed throughout the world ranging from
B.A.S.E. jumping to surfing. Their tagline, “gives you wings” is known worldwide
and Red Bull sponsors public and private events such as the X-games and the
Distribution/Penetration
Red Bull is distributed in most grocery store, convenience store, and gas station
across the U.S. such as HyVee, SuperSaver, Safeway, Trader Joes, Conoco, Quick
Red Bull completed its distribution share and the product is now available in all
Red Bull’s target market are young, on the go people, who enjoy extreme
sports and lead an active nightlife, anywhere from 18‐35, who lead an active
Pricing
The pricing of Red Bull varies from if the consumer is buying an individual can,
which the price is $1.99, compared to a case of Red Bull. The average price of a
case of 24 Red Bull is $65.99, but depending upon the distributor, the prices
may vary. Pricing for energy drinks vary by brand, but Red Bull is typically $1.99
(Dolan, Kerry).
The sale of Red Bull has only increased from the time Mateschitz introduced it
back in 1987. In 2008 Red Bull’s net sales was $4.28 billion, which was up 7.9%
from the previous year. A contributor to these sales is the fact that Red Bull
started to distribute more to the Middle East, Far East and South America
(DPA). In “some countries, Red Bull commands 80% of the market share. In the
U.S. where Red Bull enjoys a 47% share of the energy drink market, sales are
Competitive Analysis
Red Bull can be easily copied because the ingredients were printed on the can
and the drink was not patented. Even though the taste of Red Bull did not do
well in taste tests, it was the marketing strategy that made Red Bull so
In the late 80s, around the same time Red Bull was spreading across Europe,
American’s were drinking Jolt Cola, which was advertising as having “all the
sugar and twice the caffeine as Coke”. It can be said that Red Bull was the first
energy drink to be in competition with soft drinks but also created the new
energy drink category in most markets. After Red Bull hit the market hard in
the late 90‐the present, many other companies have tried to hop on the energy
drink bandwagon such as when Hansen, the natural soda company, created
Monster Energy.
Red Bulls has approximately 100 major competitors, such as 5 Hour Energy
Drink and Rock Star Energy Drink. Not only do energy drink companies fall in
these 100 major competitors of direct competition but, there is also the sector
Throttle & Monster), Pepsi (AMP Energy Drink) and Gatorade (Rebranded as G
Many celebrities have also taken on the role of putting their face to an energy
drink label, such as Ice‐T creating an energy drink called Liquid Ice, Nelly’s Pimp
However, in the end, no other energy drink has been able to claim Red Bull’s
70‐90% of the market share it has in over 100 countries worldwide, despite
Red Bull is known worldwide not only because of what’s inside the can but
because of the lifestyle the brand represents. Red Bull does not take advantage
of the traditional media, instead they rely on sponsoring extreme sporting
events and they give away free samples of Red Bull at the events. “Red Bull
relies heavily on bars and night clubs for its sampling events, alternative sports
Demand Analysis
The demand of Red Bull increases each year and that is evident with how
rapidly Red Bull has spread not only all over the United States but the world.
From just looking at the market share analysis of Red Bull, sales are increasing
every year and sales are expected to keep rising with each coming year. Even
though Red Bull’s demand has increased with each coming year, the “Red Bull’s
U.S. market share has fallen from 75% in 1998 to roughly 47% today” (Dolan,
Kerry).
Purchase Rates and Buying Habits Red Bull consumers are loyal purchasers.
They buy Red Bull for its high energy kick before a class, before a work‐out,
boost to perform at top level. Red Bull is also purchased to drink recreationally
during social functions and at nightclubs and bars to create various alcoholic
beverages.
Problems: Red Bull is not a patented drink product, therefore anyone is able to
pick up a can, read the ingredients and go into business for themselves. This is
one of the reasons the market is flooded by competition. In addition to this Red
Bull, along with all energy drinks and supplements, has received negative press
High levels for caffeine and sugar can create negative effects on heart rate and
Opportunities: Red Bull is one of the most popular energy drinks in the world.
They earned this title by intelligent, consistent marketing. Red Bull has the
This will not only maintain their dominance in the energy drink market, it will
SWOT Analysis
Strengths
• Red Bull represents a specific, edgy subculture, while still being consumed by
a variety of demographics.
• Three different versions (Regular, Sugar‐Free, and Cola) allow for variety
Opportunities
• Increase Red Bull’s sales in specific markets such as the Dakotas, Tennessee &
Ohio.
Weaknesses
Threats
• Competition is increasing.
Marketing Plan-
Sales Objectives
We want to maintain our position as the leader in energy drinks and the face of
extreme sports worldwide, while expanding our reach in the U.S. Currently
North Dakota, South Dakota, Tennessee, and Ohio are lagging in Red Bull
Target Market
The uniqueness of Red Bull is that the company does not follow traditional
media guidelines and that is why they chose the untraditional platform (Hein,
Kenneth). Their target audience is very receptive to this. As stated above, the
target audiences of Red Bull are people between the ages of 18‐35, who lead
but in an untraditional way. But there is much more to Red Bull’s target
audience. Not only do they not trust traditional media they are turned off by it.
the rules and needed Red Bull needed buzz marketing/extreme sports in order
Theytake their profession very seriously but like to have fun in their free time.
From the college classroom to the boardroom, these people don’t check out of
life at five o’clock. The common thread connecting Red Bull consumers is that
Dakota, Ohio, and Tennessee. These events will feature some of our sponsored
athletes making guest appearances and free give‐a‐ways of Red Bull and Red
Bull products. We will host a Soapbox Race and a FlugtagFlightlab event the in
major cities in these states in order boost awareness and consumption of Red
Bull in those areas. In addition, Red Bull vehicles will make their way across the
United States, specifically in larger cities, promoting the brand and giving away
free samples. The Red Bull vehicle routes will travel with reps to college
campuses in major cities promoting the brand and its lifestyle. A million
samples will be distributed by these Red Bull Reps and have a code on the
bottom of each can. Also, an additional million cans will be distributed across
the U.S. to be sold by retailers. Thesecodes can be entered online to win free
Red Bull, a VIP trip for two to the 2010 winter X Games in Aspen, CO, a VIP trip
for two to the summer X Games in Los Angeles, CA, or free entry passes to the
Soapbox Races, or Flugtag Flight lab events hosted in our target states.
National, one in 50 can codes will give away free Red Bull, four in two million
will give away the two winter and two summer X Game packages. In our target
states, 200 cans will award recipients with passes to their local Soapbox Racing
As well as targeting North Dakota, South Dakota, Ohio and Tennessee, there
will also be two groups of two people assigned to each state. These Mini
Cooper teams will go to colleges and major cities promoting Red Bull and
Positioning Strategy
R&A Agency will continue to position Red Bull and Red Bull events as a unique,
off the radar subculture. Spotting the Red Bull vehicle will be an event in itself,
creating buzz on the streets and water cooler talk. By using Red Bull to guide
awareness in lagging markets and stay consistent across the U.S. The events
will be a place where like minded people can come together, have fun, be
creative, blow off some steam and feel like a part of the exclusive Red Bull
family. R&A Agency will not change Red Bulls existing tagline, Red Bull Gives
You Wings, because we feel the company has already established a tag line that
many people already know about. R&A Agency will continue to use the tag line
on products and just make the tag line more evident on products, such as on
“Red Bull Gives You Wings” across the United States Red Bull is an energy drink
that represents a lifestyle, and we want to bring that lifestyle to the masses.
this mix, we will attract traditional media to cover our product without creating
traditional ads ourselves. We plan to keep the price of Red Bull the same as it is
now, but do free give away during PR events and during sponsored events.
Our PR event is a cross‐country road trip in Red Bull’s Mini Coopers. The road
trip will consist of 100 two‐men teams that will be making stops at major
colleges and universities across the U.S., including Yale, Berkley, Notre Dame,
special attention will also be given to North Dakota, South Dakota, Ohio, and
Tennessee to increase consumption and brand awareness. During their stops,
they will host events that give‐a‐way free Red Bull and Red Bull products as
well as other prizes such as flat screen T.V.s and Play station 3s. It will be a year
long event of appearances by the Red Bull Mini Coopers at college campuses in
major cities. These colleges will be contacted ahead of time to arrange free
interns to help plan and set up the events. Students will be able to play video
Red Bull will continue to have heavy sponsorship of their 500+ athletes and at
the Winter and Summer X Games. Clothing, banners, mini events will be the
main tools during these sponsorships that will be picked up by the local and
national television and radio stations covering these athletes careers and
sporting events.
meant to focus on North Dakota, South Dakota, Tennessee and Ohio to make
them feel more as if they are part of the Red Bull community by tying them
into major events that Red Bull sponsors. The bulk of our 50 million dollar
budget will be going towards sponsoring the Winter and Summer X Games as
- increases performance
- improves vigilance
- stimulates metabolism
Red Bull’s effects are appreciated throughout the world by top athletes, busy
extracts.
Available in
AUSTRIA,SWITZERLAND,UNITEDKINGDOM,ITALYIRELAN
D,RUSSIA.USA, BELGIUM/LUXEMBURG
RED BULL ENERGY SHOTS
only 2 calories.
In 2008, the UK Energy and Sport drink market is estimated to be worth £650
million, with growth projected for the future. Red Bull stands as the market
leader in not only the UK market, but also worldwide. The market is decidedly
young, focusing mainly on the 16 to 24 year old segment. The product itself
brand image and health knowledge. Research has shown that these factors
play a role in not just the perception of energy conferred by the product, but
also the actual effectiveness. This study hopes to quantify the multitude of
factors shaping the consumer buying and usage process with respect to the
product and the market. To analyze this effectively, the study focuses on the
consumer perceptions of the energy and sport drink market, which are closely
related, the perception of Red Bull with respect to its current competitors and
the attitudes and opinions specific to the product. In order to explore our
female and 2 male. The group, with respect to age, was firmly rooted in the
core demographic of product users. Questioning was guided along the lines of
the three research groupings and utilized an open ended style to illicit valuable
insight about the product. Data was also gathered with respect to quantifiable
values on taste, image and other factors relative to the product and its
competition.
chain and the consumer decision process. Findings illustrated the image of Red
involvement and highly contingent on the image and perceived efficacy of the
product. Consumer value perception played a lower role than assumed from
Cloud 9; 6.01%
TOTAL 75 100%
Analysis
From the above table it is clear that 45% of the respondents are aged between
20 and 24, 26% between 25 and 29, 18% between 30 and 34 and only 11% aged
above 35 years.
Interpretation
this we can conclude younger generation and middle age are more interested in
11.00%
18.00%
45.00%
26.00%
20-24
25-29
30-34
Above 35
TABLE No.2
TABLE SHOWING-THE PROFILE OF THE RESPONDENTS BASED
ON GENDER
FEMALE 26 35%
TOTAL 75 100%
Analysis
From the above table it is clear that 49% of respondents were male and female
Interpretation
It is clear that most of the users of Red Bull are males mostly because men are
addicts to it.
GRAPH No.2
GRAPHSHOWING-THE PROFILE OF THE RESPONDENTS BASED
ON GENDER
35.00%
65.00%
Male
Female
TABLE No.3
TABLE SHOWING-THE OCCUPATION OF RESPONDENTS
OCCUPATION NO.OF PERCENTAGE
RESPONDENTS
STUDENT 29 38%
GOVERNMENT 9 12%
SERVICE
EX-SERVICEMEN 3 4%
PROFESSIONAL 21 28%
SELF-EMPLOYED 13 18%
TOTAL 75 100%
Analysis
From the above table it is clear that 38% of the respondents were students
Interpretation
It is clear that users are mostly Professional males, 20-35 years of age including
40%
35%
30%
25%
20%
15%
10%
5%
0%
Student
Govt service
Ex-servicemen
Proffesional
Self-employed
TABLE No.4
TABLE SHOWING-THE ANNUAL INCOME GROUP OF
RESPONDENTS
INCOME GROUP NO. OF PERCENTAGE
RESPONDENTS
LESS THAN 1,20,000 39 52%
1,20,001-3,60,000 10 14%
3,60,001-7,20,000 14 18%
TOTAL 75 100%
Analysis
From the above table it is clear that 52% of the respondents had an annual
income of lesser than 1,20,000, 18% had income between 3,60,001 and
7,20,000, 16% earned more than 7,20,000 per annum and 14% had income
Interpretation
It shows that Red Bull is placing their products in the appropriate and
reasonable price range and the people of income bracket less than 1,20,000 can
16.00%
18.00%
52.00%
14.00%
Less than
1,20,000
1,20,001-
3,60,000
3,60,001-
7,20,000
TABLE No.5
TABLE SHOWING- THE RESPONDENTS INVOLVEMENT WITH
ANY EXTRACURRICULAR ACTIVITIES ON CAMPUS OR OUT OF
OFFICE
YES 23 30%
NO 52 70%
TOTAL 75 100%
Analysis
From the above it is clear that 30% of the respondents are involved in
extracurricular activities and 70% of them do not participate.
Interpretation
70
60
50
40
30
20
10
Yes No
0
No. of Respondents
TABLE No.6
TABLE SHOWING-THE RESPONDENTS CONSUMPTION OF RED
BULL
Analysis
From the table it clearly shows that 19% of the respondents consume Red Bull
everyday, 27% of them 2-3 days a week, 16% of them 4-5 days a week, 10%
once a week, 12% every 2-3 weeks, 9% once a month and 7% less than above.
Interpretation
customers in a week.
GRAPH No.6
GRAPH SHOWING-THE RESPONDENTS CONSUMPTION OF RED
BULL
20
18
16
14
12
10
No. of Respondents
8
0
ay ek ek ek ek
s th ov
e
r yd we we we we on a b
e a a a m
Ev ys ys ce 2-
3
ea
n
a a ha
3
d
5
d On er
y
On
c
s st
2- 4- Ev Le
TABLE No.7
TABLE SHOWING- THE INCREASE IN CONSUMPTION OF RED
BULL BY THE RESPONDENTS AFTER ADVERTISEMENTS
NO 28 38%
TOTAL 75 100%
Analysis
From the table it clearly shows that 62% of the respondents are affected by the
Interpretation
70%
60%
50%
40%
62%
30%
20%
38%
10%
0%
YES
NO
No. of Respondents
TABLE No.8
TABLE SHOWING- THE SOURCE OF AWARENESS OF RED BULL
MEDIA NO. OF PERCENTAGE
RESPONDENTS
MAGAZINES 24 32%
FRIENDS 19 25%
TV ADS 11 15%
WEBSITE/BLOGS 15 20%
OTHER SOURCES 6 8%
TOTAL 75 100%
Analysis
As we can see here the major promotional tool which is influencing the
customers is Magazines and friends which is around 32% and 25% respectively,
after that the source of awareness among customers is a mixed response where
in 20% from website/blogs, 15% from TV ads and 8% from other sources.
Interpretation
It clearly shows that magazines and friends create high awareness of Red Bull
amongst people.
GRAPH No.8
GRAPH SHOWING- THE SOURCE OF AWARENESS OF RED BULL
35%
30%
25%
20%
15%
10%
5%
0%
magazines
friends and relations
TV adds
Website
Other sources
TABLE No.9
TABLE SHOWING- THE FACTORS INFLUENCING TO BUY RED
BULL
FACTORS NO. OF PERCENTAGE
RESPONDENTS
RELIEVING 15 20%
FATIGUE
FOR STAYING 18 24%
AWAKE
DAILY ROUTINE 13 17%
INCREASE 18 24%
CONCENTRATION
HANGOVER 11 15%
REMEDY
TOTAL 75 100%
Analysis
From the above table it is clear that 20% of respondents buy Red Bull for
relieving fatigue, 24% of them for staying awake, 17% of them daily routine,
24% of them for increasing concentration and 15% for hangover remedy.
Interpretation
It is clear that there are majority of reasons supporting the consumption such as
fatigue, for staying up and to increase the level of concentration.
GRAPH No.9
GRAPH SHOWING-THE FACTORS INFLUENCING TO BUY RED
BULL
20
18
16
14
12
10
0
Relieving fatigue For staying awake Daily routine Increase concentration Hangover remedy
TABLE No.10
TABLE SHOWING-PURCHASING PLACE OF RED BULL BY
RESPONDENTS
PLACE NO. OF PERCENTAGE
RESPONDENTS
CONVINIENCE 16 22%
STORE
SUPER MARKET 44 58%
DRUG STORE 6 8%
OTHERS 9 12%
TOTAL 75 100%
Analysis
From the above table it is clear that 22% of the respondents buy Red Bull in
nearby convenient store, 58% of them in super market, 8% of them in drug store
Interpretation
It is clear that super markets are on top of retailers in the sales of Red bull
energy drink.
GRAPH No.10
GRAPH SHOWING- PURCHASING PLACE OF RED BULL BY
RESPONDENTS
12.00%
22.00%
8.00%
Convinient
store
Super market
Drug store
58.00%
Others
TABLE NO.11
TABLE SHOWING- THE RESPONDENTS FACTORS INFLUENCING
TO CHOOSE RED BULL
FACTORS NO. OF PERCENTAGE
RESPONDENTS
ENERGY 25 34%
PRICE 13 17%
TV COMMERCIALS 9 12%
ADS ON NEWSPAPER 4 6%
MARKETING 7 10%
CAMPAIGN
PACKAGE 4 5%
BRAND 6 7%
TASTE 6 7%
WORD OF MOUTH 1 2%
TOTAL 75 100%
Analysis
34% of the respondentsprefer to buy their bike drink for energy, 17% of them
10% due to marketing campaign, 5% from package, 7% each for brand and taste
Interpretation
It is clear that the energy drink provides rejuvenation and replenishes energy
25
25
20
15 13
9
10 7
6 6
4 4
5
1
No. of Respondents
TABLE No.12
TABLE SHOWING- THE WEEKLY EXPENDITURE ON RED BULL
BY RESPONDENTS
AVAILABILITY NO.OF PERCENTAGE
RESPONDENTS
RANGE OF RS.100 13 17%
RANGE OF RS.200 9 12%
RANGE OF RS.300 12 16%
RANGE OF RS.400 6 8%
RANGE OF RS.500 19 26%
MORE THAN ABOVE 16 21%
TOTAL 75 100%
Analysis
From the above it is clear that 17% of the respondents spend Rs.100 on Red bull
weekly, 12% of them spend Rs.200, 16% of them spend Rs.300, 8% of them
spend Rs.400, 26% of them spend Rs.500 and 21% of respondents spend above
Rs.500.
Interpretation
It is clear that majority of the respondents are around the 500Rs mark and spend
around 500Rs on the energy drink.
GRAPH No.12
GRAPH SHOWING- THE WEEKLY EXPENDITURE ON RED BULL
BY RESPONDENTS
20%
Range of Rs.400
15%
Range of Rs.100
Range of Rs.300
10% Range of Rs.200
NO 58 77%
TOTAL 75 100%
Analysis
Maximum number of people (77%) doesn’t prefer any other energy drinkover
Red Bull and 23% of respondents prefer other energy drink also.
Interpretation
It is clear that red bull energy drink dominates the energy drink market and
23.00%
77.00%
Yes No
TABLE NO.14
TABLE SHOWING- THE RESPONDENTS OPINION IF RED BULL
IS OVER PRICED OR NOT
RATING NO. OF PERCENTAGE
RESPONDENTS
YES 16 22%
NO 59 78%
TOTAL 75 100%
Analysis
From the above table it is clear that 78% of the respondents felt Red Bull is not
Interpretation
It is clear that majority of the respondents feel red bull is money to worth
product and not over priced for the quality of the drink.
GRAPH No.14
60
50
40
30
20 No
10
0 Yes
No. of Respondents
TABLE No.15
TABLE SHOWING-THE OPINION OF THE RESPONDENTS OF
FACING DIFFICULTIES IN FINDING RED BULL AND THEIR
SATISFACTION LEVEL WITH RESPECT TO AVAILABILITY OF
RED BULL
The above table shows that 82% of the respondents accept that there are no
difficulties in finding Red Bull in market and 18% felt they have difficulties.
Also the satisfaction level is 85% of the respondents are extremely satisfied and
34% are not satisfied with respect to availability of Red Bull.
Interpretation
It is clear that there is ample availability of the drink in the market and not much
difficulty to access it.
GRAPH No.15
70
62
60
50
40
30
20 13
10
0
Yes
No
No. of Respondents
G
RAPH SHOWING-THE OPINION OF THE RESPONDENTS OF
FACING DIFFICULTIES IN FINDING RED BULL AND THEIR
SATISFACTION LEVEL WITH RESPECT TO AVAILABILITY OF
RED BULL
Point of Satisfaction
No; 15.00%
Yes; 85.00%
TABLE No.16
TABLE SHOWING-THE RESPONDENTS OPINION ABOUT THE
RED BULL SUPREMACY OVER THE COMPETITORS IN THE
MARKET
FACTORS NO. OF PERCENTAGE
RESPONDENTS
PRICE 13 18%
TASTE 28 37%
PROMOTION 10 13%
TOTAL 75 100%
Analysis
From the above table it is clear that 18% of the respondents felt price as the
answer, 37% of them felt taste is the reason for the supremacy, 32% of them felt
Interpretation
It is clear that red bull is chosen unanimously for its taste over other factors that
30
25
20
15 28
24
10
13
10
5
0
Price Taste Brand Image Promotion
No. of Respondents
TABLE NO.17
Analysis
From the above table it can be analyze that out of 326 retail shops, Red Bull has
maximum sales and availability (163 shops), followed by Cloud 9 (40 shops)
and then SJ XXX (30 shops) (being in the introductory phase of its life cycle).
Interpretation
From the above data it can be interpreted that Red Bull has the maximum
180
163
160
140
120
100
65
80
41 11
60 10 16
11 49 17 40
6 18
40 20 5 26
27
6
5
20 8
5 30
5
0 3 9
North
East
West
South
Central
Total/326
From this we can conclude younger generation and middle age are more
product.
2. It is clear that most of the users of Red Bull are males mostly because men
reasonable price range and the people of income bracket less than
extracurricular activities.
6. It is clear that in customers there is a high regularity amongst consumption
by customers in a week.
7. It is clear there is an increase in consumption of Red Bull after
energy drink.
11.It is clear that the energy drink provides rejuvenation and replenishes
product and not over priced for the quality of the drink.
15.It is clear that there is ample availability of the drink in the market and not
CONCLUSION
From the study it is clear that majority of users are between 20 and 29
years i.e. younger generation and users of Red Bull are Professional males
including some students because it helps in focusing and staying awake.
Red Bull is placing their products in the appropriate and reasonable price
range and in customers there is a high regularity amongst consumption by
customers in a week. Also there is an increase in consumption of Red Bull after
advertisements with magazines and friends creating high awareness of Red Bull
amongst people.
There are majority of reasons supporting the consumption of Red Bull
such as fatigue, for staying up and to increase the level of concentration. Super
markets are on top of retailers in the sales of Red bull energy drink. The energy
drink provides rejuvenation and replenishes energy into the people consuming it
and customers are around the 500Rs mark and spend around 500Rs on the
energy drink. So v can say Red Bull energy drink dominates the energy drink
market and consumers prefer red bull over other energy drinks.
Red Bull is money to worth product and not over priced for the quality of
the drink and there is ample availability of the drink in the market and not much
difficulty to access it. From this we can conclude that Red Bull is chosen
unanimously for its taste over other factors that support to the strengths of the
energy drink.
CHAPTER 6
SUGGESTIONS
SUGGESTIONS
1. The company should come up with new, better and attractive flavors
energy drinks.
3. The company can reduce prices and introduce promotional
which it is tasteless.
ANNEXURE
QUESTIONNAIRE
This information is required for the successful completion of a project based on-
energy drink, Bangalore.’ I would appreciate all your help in generating the
RESPONDENT INFORMATION
Name:
1. Age:
3. Occupation:
4. Annual Income:
Yes No
Yes No
Yes No
Yes No
Others
13.What are important factors to choose Red Bull? Please provide your top 3
answers.
Package Brand
Taste Word of Mouth
15.Would you prefer any other energy drink over Red Bull?
Yes No
If Yes why?
16.Do you think Red Bull is over priced?
Yes No
market?
Price Taste Brand Image
Promotion
19.Which company do you think has the highest market share in the energy
drink segment?
Red Bull XXX
Cloud 9 Others
20.Any Suggestions
BIBLIOGRAPHY
BIBLIOGRAPHY
Books Referred
Magazines Referred
Websites Referred
www.google.com
www.wiiings.com
www.redbull.com
www.wikipedia.com