Professional Documents
Culture Documents
Red Bull
Energy Drink
Marketing Management Project
Submitted to: Prof. Nagasimha Balakrishna Kanagal
Group 5
Amar Deep Singh 1111005
Chander Prakash 1111018
Irshad Ahamed M A 1111031
Niharika Bhatnagar 1111044
Sachin G 1111057
Swati Murarka 1111071
Table of Contents
1. Energy Drinks Market in India - An Overview .............................................................................. 4
B. Consumer Targeting.................................................................................................................. 19
B. Product Pricing.......................................................................................................................... 24
2
18. Tag Line .................................................................................................................................... 25
3
1. Energy Drinks Market in India - An Overview
The energy drinks market in India, though still in its infancy, 25% 1
infancy is expected to grow at a CAGR of 25%.
The current
nt market size is around Rs 500crores.
500crores. In 2010, the total consumption of energy drinks stood
at around 1.5 million cases of 24 cans.2 Awareness among the consumers is on the rise. India is a
young country andd its impressive economic growth has pumped in enormous sums of money into the
The party-going
going segment is growing and youngsters are willing to try out something
something different. Energy
drinks have become an urban phenomenon with supermarkets being the primary sales channels. Apart
from retail sales, energy drinks are also sold in bars and pubs along with alcohol.
the 1990s with a drink called Shock.1 The response was not favourable and as a result,
result the product
entered the market in recent years and are giving it tough competition. In India, its main competitor is
1
http://www.business-standard.com/india/news/kit
standard.com/india/news/kit-non-alcoholic-beverage-market-in-india/452713/
india/452713/
2
http://www.business-standard.com/india/news/red
standard.com/india/news/red-bull-to-bankf1-to-beefbrand-equity/147952/on
equity/147952/on
3
Report ‘Flavours
Flavours in Soft Drinks in India’
India – Euromonitor
4
niche energy drink ‘Burn’ in India. Apart from these, there are other small players in this category like
Monster, XXX and Rockstar. The market share of these brands is very small compared to Red Bull.
Table 1: Market share (by volume) of leading energy and sports drinks in India4
Red Bull (Red Bull GmbH) 95.5 38.7 43.6 47.0 46.7 41.1
Traditional promotion activities fail to engage Generation Now and Generation Next. They being the
target consumers, energy drink makers are compelled to come up with innovative ways to promote
their products. A brand image is created and cultivated which associates the drink with youth culture
and extreme adventure sports, such as dance music parties, motor sports, mountain biking and
snowboarding. Red Bull associates itself with the following brand qualities: Energy, Danger and
Youthfulness. Hence, the brand has chosen to sponsor and/or associate itself with extreme sports. It is
banking on the success of its F1 racing team in the first ever F1 race to be held in India, to further
strengthen its brand equity. Also, it has struck a barter deal with retail chain Big Bazaar, under which
the firm will organize promotional events at Big Bazaar stores and its cars will sport Big Bazaar logo
during the events.5 Burn (by Coca Cola), as part of the brand’s first on ground activation, launched the
Burn Car – a vehicle designed by ace automobile designer Dilip Chhabria – to conduct sampling of
the brand.6 In another unique initiative, termed ‘Burn Curate’, it invited participation from the creative
4
Report ‘Sports and Energy drinks – India’ – Euromonitor
5
http://www.business-standard.com/india/news/red-bull-to-bankf1-to-beefbrand-equity/147952/on
6
http://brandactivationideas.blogspot.com/2010/01/coca-cola-launched-its-energy-drink.html
5
community to showcase the best of fashion, installation, painting, and photography.7 The winning
creations were awarded Rs. 50,000 each and an opportunity to be featured at Lakmé Fashion Week
Summer/Resort and Wills India. In case of XXX, famous celebrity Shah Rukh Khan unveiled and
launched the product.8 Every other brand is using social networking sites like Facebook, Twitter and
Today most Indian teens, bombarded by advertising, pressured by their peers and seeking to showcase
their individuality, consider themselves fashion-conscious. Traditionally, parents and primary groups
had a say in the consumption behaviour of the youngsters. However, this has changed among urban
and high-income families. Secondary groups developed on social networks exercise significant
influence on their preferences and perceptions. India’s rapid economic growth and better employment
opportunities have put enormous money into the hand of Generation Now and Generation Next, thus
increasing their discretionary spending. The common source of income for teens in India is pocket
money which they end up spending on music, mobile phones, fast food and soft drinks. Efforts to
reduce high-stress lifestyles, improved disposable incomes and a growing emphasis on health have led
The retail price of Red Bull is INR 75 and for similar energy drinks it ranges from INR 65 to INR 80.
Considering the price point, penetration in to rural markets is not feasible for the time being.
7
http://www.burncurate.com/BurnGallery/whatson.html
8
http://www.financialexpress.com/news/xxx-launches-fat-burner-%5Cenergy%5C-drink/729821/
6
• To boost energy during workouts or jogs
Organic energy drinks as a concept are very new to Indian consumers. Hence, the organic food
industry was studied to gauge the prevailing situation, growth prospects and consumer behaviour and
preferences.
Indian organic food market is growing at an annual rate of 40% due to significant growth in
consumers with high disposable income and health consciousness. According to ASSOCHAM,
organic farming in India is likely to be worth Rs 10,000crores by 2015 from the current levels of
about Rs 2,500crores.9 As per a survey conducted by ACNielsen, India is among the top ten countries
Another key factor driving demand has been the change in the consumer perception from organic
products being elitist to healthy. Other incidental benefits such as better taste and better environment
are also driving growth. There is growing awareness about the environment and the dangers of
chemically grown products. Besides, with a considerable number of retailers offering various organic
products, their visibility had increased and therefore, are more likely to generate demand.
The pattern of organic food consumption in India is much different than in the developed countries. In
India, consumers prefer organic strawberry, organic tea, organic honey, organic cashew butter and
various organic flours. This trend seems to be encouraging for the launch of organic energy drinks.11
However, further penetration of organic product consumption has been jostling with lack of
awareness, knowledge and confidence about food products among consumers. There are many
9
http://indiamicrofinance.com/organic-farming-india-2015.html
10
http://www.acnielsen.co.in/news/20060220.shtml#Table10
11
http://www.organicfacts.net/organic-food/organic-food-trends/organic-food-consumption-in-india.html
7
consumers who are unaware of the concept of organic food. There is also limited expertise in
marketing of organic products. Additionally, India has low organic food consumption among the
Key players in Indian market are Reliance, Godrej Agrovet, ITC foods, FabIndia and Organic India.12
3. Problem Formulation
The project aims to study three main aspects of the launch of Red Bull Natural, an organic variant of
Red Bull in the Indian energy drink market. The first is the pre-launch study of the existing energy
drink market to understand the unaddressed consumer concerns. Drawing upon the results of this
study, the project aims to propose the right mix of product features for an Organic Energy Drink that
targets the Indian consumers. Product launch process involves various stages of analysis and
execution by the marketing team. Out of these, the project will focus on the segmentation, targeting
and positioning of Red Bull Natural, the customer value proposition and the promotion strategy to
There are three main rationales for launching organic energy drinks in India:
Presently, energy drinks are perceived to be detrimental to health and people have apprehensions
• High Sugar Content - this can lead to complications like diabetes and Insulin resistance
• High Sodium Content - this can cause heart complications and kidney problems
• Sleep Deprivation
12
http://www.businesswire.com/news/home/20110617005043/en/Research-Markets-Organic-Food-Industry-
India--
8
Increasing Health Awareness and Non-availability of Organic Energy Drinks
Currently, there is no prominent organic energy drink available in the Indian market. The few
available are not properly developed, positioned and marketed to suit the needs of Indian consumers.
People are becoming more health conscious in India and are slowly switch to natural alternatives e.g.
Tropicana juices. The organic energy drinks market is untapped and there is an immense opportunity
for Red Bull to extend its product line and gain first mover advantage.
The Central Committee on Food Standards (CCFS) had set a standard of 145 ppm for caffeine in
carbonated beverages as a safe limit. Most of the energy drinks sold in the market have caffeine more
than double this limit. There are many countries which have either banned the energy drinks
altogether or have implemented strict regulations on the ingredients being used, thereby spurring the
Strengths
• Market leadership - First and largest player in energy drinks market in India
winning Formula 1 racing team ownerships, celebrity endorsements, music concerts and
college festivals
• Strong brand establishment - Successfully established as fashion and lifestyle brand identity
using ad campaigns which emphasized the functional benefit of the product saying “Red Bull
• Association with sports - Helped Red Bull to position itself amongst youngsters and claim the
9
Weaknesses
• High pricing - Categorized as an expensive energy drinks with above average prices
• Adverse health effects - Due to high levels of caffeine and other chemical ingredients, many
countries like France, Norway, Denmark and parts of Germany have banned energy drinks
• Lack of innovation - Red Bull is strongly dependent on a single product line. Market has
evolved with many strong players, each with its own USP to strongly position itself
• Lack of patent - Red Bull does not have any patent on its recipes making it prone to copying
• Packaging - Currently, only single kind of packaging is offered. There is a strong need for
different packaging to suit the needs of customers e.g. glass bottles, plastic bottles and cans of
different volumes
Opportunities
• Extension of product line - Besides introducing new flavors and versions, expansion to
organic energy drinks segment will help Red Bull expand its existing customer base
• Availability of the product - Red Bull products are usually available in big general stores and
super stores. Opportunities can be explored in universities which have a large target market
• Expansion of target markets - Red Bull is currently targeting urban youngsters from
Generation Next and Generation Now. Expansion to organic products will attract health
conscious consumers
• Corporate tie-ups - Red Bull can further explore corporate tie-ups to increase sales
Threats
• On-going legal battles - Red Bull is currently facing law suits in various countries regarding
• Health concerns - A large segment is wary of the adverse health impact of energy drinks
• Misconception -It is widely believed that Red Bull provides instantaneous and artificial
• Competition - Red Bull is facing strong competition from other energy and sports drinks
10
6. 4C Analysis of Red Bull Natural
Customer
Organic energy drinks as a concept are new to India and hence to understand the consumer’s profile
and preferences, we will conduct a consumer survey and interview a organic products’ dealer. This
would analyze the consumer buying behavior, preferences, decision making and the influences of
personal, social and cultural factors. From secondary study, we could confirm that consumers are
Company
Since its launch in India in 2003, Red Bull has maintained a dedicated one brand distribution network
across the country operated by self. This has played a significant role in the product’s success across
geographies. Red Bull’s brand equity and distribution network will significantly support the launch of
Competition
Today, there are no significant players in the organic energy drink market. However, there is a strong
possibility for the existing energy drink players to enter this space. By being the first major player to
enter the market Red Bull will gain first mover advantage that will help us in cementing our position
Context
In India, there are yet no defined standards for energy drinks under PFA Act, 1954. The standards of
carbonated water under PFA Rules, 1955 specify the maximum limits of caffeine as 145ppm.
Scientific review of energy drinks has thrown up series of health concerns due to the high levels of
caffeine. In the wake of these developments, Food Safety and Standards Authority of India (FSSAI)
11
has proposed a regulation for energy drinks in India. This will enable fixation of the ingredient levels
and caffeine content, address other risk factors and will lead to appropriate regulation of the product.
Analyzing the above criteria and constraints, it can be concluded that Red Bull should consider
Secondary data was used to study the evolution of the Indian energy drink segment, the current
market scenario, market share of various energy drinks in India, the position of various competitors,
data about the strategy of the existing players on promotion and pricing, consumer preferences and
perceptions and industry standards on pricing. Primary data was used to get real-time estimate of
consumer choices and preferences. The various sources of primary data, along with their main
• Consumer Survey 1 - The first survey was intended to study the existing market for energy
drinks in India, to understand the current consumption pattern of energy drink consumers and
to gather insights into the features they perceived to be absent. The survey also aimed to
explore whether a latent need for healthy or organic energy drinks existed among Indian
consumers and whether such a product would be supported by the market. It also aimed to
understand what the Indian consumer related with the word 'organic' and hence, what would
be expected of an organic energy drink when it was launched. Considering that people have
varied perceptions and understanding of organic products, possibilities of the following types
2. Herbal energy drinks - Made only from natural herbs and no chemicals
12
• Consumer Survey 2 - The second survey was conducted to record consumer responses to Red
Bull Natural and to get target consumers to rate product features. This was aimed at
estimating the demand for Red Bull Natural and finalizing product aesthetics as per consumer
preferences. The key features that were explored were quantity per serving, packaging,
As seen through secondary data analysis, in recent years, the energy drinks market in India has shown
tremendous growth potential and has witnessed the rise of many new players. As per this study, it
would be profitable to launch Red Bull Natural, the organic variant of Red Bull targeting people
The results of the primary study support this hypothesis. Key findings and inferences were:
• 41% of the survey respondents were either always or frequently under stress. Thus, a large
subset of the population would be willing to consider having an energy drink while working.
The respondents who experienced high stress levels and over 76% of respondents who
• The most effective way of marketing for energy drinks so far has been TV commercials and
friends (encompassing 92% of the respondents). Thus, television advertisements and buzz
• Out of the respondents who had never consumed energy drinks, 39% cited 'Adverse health
effects' as the major reason. The new product proposed is going to be a healthy variant of Red
• The primary reason for consumption of energy drinks emerged to be the energy boost they
give and the resulting decrease in fatigue. It is imperative to retain this functionality in the
new product.
• 38% of the respondents indicated that they understood an Organic Energy Drink to be one
13
• Taking into consideration the entire respondent set, the most negative feature of energy drinks
is perceived to be the adverse health effects, thereby reinforcing the need to launch a healthy
variant. This was also emphasized by the response to the question of the main factor that was
missing in energy drinks, where 54% of the respondents chose the 'Health Factor'.
The key takeaways from the secondary study and the first survey were used to build the concept of
Red Bull Natural, a new product to be launched in the Indian energy drink space.
9. Product Conceptualization
Need can either be recognized or generated. Most utility-based products in the market are introduced
because there exists a need for such a product. There was a need for an energy drink in the Indian
market because of increased stress levels in individuals. This need was partially tapped by Red Bull,
Shark and Burn energy drinks in the recent years, but with limited market penetration due to reasons
such as adverse health effects, high price and a unique taste that was popular with a limited customer
segment. Hence, launch of a new product, Red Bull Natural was proposed with the aim of addressing
a wider market.
The concept of Red Bull Natural is a combination of features that address the needs of consumers,
both stated and latent. Apart from being an instant energy drink, Red Bull Natural will be a product
prepared using only natural ingredients. The natural ingredients would include the following:
• Raw Brazilian coffee seed to replace caffeine; good for better body metabolism
• Ginseng, the roots of which are consumed to enhance body’s resistance to stress
• Elderberry juice which contains anti-aging anti-oxidants and other natural extracts
14
The drink would be launched in multiple flavours using natural fruit extracts and without any artificial
preservatives. Attributed such as packaging type and size, drink colour, taste and scent were finalized
Each and every product attribute would be designed to address nothing but the health benefits to
consumers.
• Two distinct quantity per servings were endorsed by respondents – 150 ml and 250 ml. This
would segment the organic energy drink market into light users and heavy users.
• There was a clear preference towards cans for the packaging of the new product .This was in
• In terms of colour and scent, majority of the respondents favoured berry – red colour with a
• Amongst flavours, there was a clear indication for need of new flavours, as people ranked the
existing Red Bull flavour the lowest. This is consistent with the results of the first survey. At
the same time, there was no strong preference for one particular flavour, indicating high
segmentation.
• The results showed positive correlation between the frequency of consumption and stress
levels i.e. the consumption frequency per week increased as stress experienced per week
increased. As the stress levels are constantly on the rise in Indian urban population due to
increased corporate workloads and competitive environment, it is expected that the product
15
11. Product Specifications
Features Specifications
Appearance Liquid
Carbonation Light
Key ingredients Caffeine from raw Brazilian coffee, Ginseng extract, Brazilian guarana
extract, Elderberry juice, Natural crystal sugar, Sparkling filtered water
Key Nutrients Citric acid, Sodium citrate, Vitamin C, Vitamin B6, Folic Acid, Vitamin B12
Packaging Can
Energy kcal 42
Carbohydrate g 10.6
Protein g 0
Fat g 0
Caffeine mg 10
16
12. Segmentation, Targeting and Positioning
The target market for Red Bull Natural would be defined through more than one dimension and would
be targeted towards Generation Y, with purchasing power to spend Rs. 75-85 on an energy drink and
A. Market Segmentation
The data collected was used to profile the target market on the following dimensions:
• Geography
• Psychographics (Lifestyle)
Geographic Segmentation
The major demand for energy drinks came from metropolis, Tier I and Tier II cities where people lead
a fast, stressful life and are in the constant need of energy. It also resonated with their idea of a style
statement. Analysis of the first survey indicated that 65% of consumers from metros, tier 1 and tier II
cities were users of energy drink. Of this, about 70% showed inclination to switch to organic energy
drink were it made available. Hence, the launch of Red Bull Natural would be aimed at urban areas
and the product would be made available in the market through modern retail stores. Local kirana
stores would not be suitable for selling this product as they would not gel with its premium-product
image.
Demographic Segmentation
Age
Red Bull Natural would be focussed towards the young and the middle age group people i.e. between
the ages of 18-35 as the main benefits and features would cater to their needs. For example, students
and young executives need to work hard and remain awake for long hours. Another significant use is
as a mixing beverage during parties. This was supported by the survey numbers. In urban areas, 70%
17
of the people from 20 to 30 years of age consumed energy drinks. Of this, 66% were willing to shift to
Gender
Historically, energy drinks had appealed only to the male consumer segment. However, there is a
rising consumption trend among the young, female population. Hence, both genders would be
Income
Red Bull Natural will be a premium energy drink with added health benefits. Since it would be priced
in the Rs. 80-85 range, the higher and upper middle class people would find it affordable. Essentially,
the product is expected to find higher consumption with people whose family income is greater than
With the pricing, packaging and promotion strategies and the brand image of Red Bull, Red Bull
Natural will gain an image that reflects high class, top-level achiever, fashion icon and trend setter
with added benefits on the health front. It is suited to the lifestyle of party-going social animals as a
source of energy with health and style; to students and young professionals who stay up long hours
and lead a stressful life and to adventurous, fun-loving people. Being natural, it is also well suited to
Based on the survey, two major groups were identified - light users and heavy users. Hence, the
product will be launched in two can sizes- 150 ml and 250 ml. This will also be in-line with the lower
18
B. Consumer Targeting
Based on the segmentation and survey results, Red Bull Natural will target consumers with the
following profile:
Both genders would be targeted as it is believes that more females would be attracted to the product
once the brand goes organic. To cater to the different consumption capacities of individuals, the
C. Product Positioning
Red Bull Natural will be positioned towards health conscious minds who want energy and benefits of
an energy drink without any of its adverse effects. In line with consumer perception derived from the
first survey, Red Bull Natural will be positioned as an organic drink with natural extracts and no
added artificial flavours. The product aims to occupy the minds of consumers as a source of instant
energy and wellness. This would tap the existing market space unoccupied by energy drinks due to
Positioning Statement
To the urban youth and office-going professionals, Red Bull Natural, an organic energy drink made of
natural extracts will be positioned as a ‘Value for Money’ product that offers instant energy to keep
the mind alert and provides fun for party lovers with no adverse affect on health.
‘Red Bull Natural’ has been designed to ensure that the following points of parity and points of
differentiation are established with other energy drinks available in market. This will enable the
19
Points of Differentiation
• Organic Nature – Currently there is no prominent organic energy drink available in the Indian
market. Red Bull Natural’s organic nature will differentiate it from normal energy drinks.
• Natural Extracts – Our product will not have any artificial ingredients or preservatives. It will
be completely made of natural extracts unlike other energy drinks available in market.
• Health Appeal – Regular energy drinks are perceived to have an adverse effect on health
• Smaller Can Size – All available energy drinks come in a can size of 250 ml or greater.
However, a serving of 150 ml was the preferred option in our survey and simultaneous launch
Points of Parity
• Instant Energy – The core benefit of energy drinks is the instant energy on consumption and
since a large (%) number of people consume energy drinks to fight fatigue, Red Bull Natural
will keep the instant energy appeal while launching and promoting it..
• Lifestyle Drink – A considerable segment of customers consume energy drinks during parties
or drink for style statement and Red Bull Natural will carry with the same identity.
• Can Packaging – ‘Can Packaging’ was the most preferred packaging. Thus we will continue
Using the Resonate Focus Approach to Customer Value Proposition ("CVP") as opposed to the All
Benefits Approach or the Points of Difference approach, certain captivating features of Red Bull
Natural and a point of parity associated with Classic Red Bull are highlighted below:
100% Natural
All natural ingredients, from naturally extracted caffeine from raw Brazilian coffee seeds to zero
preservatives, would make Red Bull Natural the first of its kind in India. Its lightly carbonated form
20
would be finely balanced to ensure that there is not too much fizz to spoil the refreshing experience of
energy while still retaining the fun of a light beverage. Adding more to the drink, it would be fortified
with a shot of Vitamin-B to provide that extra special kick with all-natural energy.
Instant Energy
Red Bull Natural, an all-natural energy drink, would be based on Red Bull's formula of providing the
much-needed spurt of instant energy in everyday stressful life. Red Bull Natural would provide the
same performance benefits of increased energy, increased concentration, increased reaction speed,
improved mental alertness and increased metabolism, as Red Bull, the highly successful energy drink,
Healthy Lifestyle
Red Bull Natural has been developed for people who want a clear and focused mind, high physical
performance stamina, are dynamic and performance-oriented whilst wanting to balance this with a fun
and healthy lifestyle. Indeed, Red Bull Natural would serve the purpose of keeping up one’s healthy
lifestyle energetic by its innovative approach to the energy drink concept. It would no compromises
on health of the consumer and would aim to provide a sustained balance of natural energy in the
Red Bull Natural would be available at stores in two attractive flavours and vibrant tastes: the new
and refreshing ‘Berry Red’, filled with goodness of berries and its extracts and ‘Juicy Orange’, filled
with the healthy citrus extract. Red Bull Natural would be packaged in cans of two quantities, 150ml
21
14. Brand Identity and Personality
Red Bull Natural's brand identity can be anchored at various levels of brand meaning as tabulated
below:
Ingredients Caffeine from raw Brazilian coffee, Ginseng extract, Brazilian guarana
extract, Elderberry juice, Natural crystal sugar, Sparkling filtered water
Red Bull Natural's brand personality is defined by the following unique set of human attributes that
can be attached to it for recognition and resonance with the targeted customer segment of ‘Generation
• Purely natural
• Full of energy
• Fun-Loving
Brand personality will be supported by product aspects and features and will be portrayed in brand
advertisements. It will be effective when synchronized with brand campaign elements and the
consumers’ expectations.
22
15. Demand Estimation and Price Setting
Estimate of Red Bull Natural's demand was calculated is the steps listed below:
• Estimation of total population falling in Generation Now and Generation Next segments and
calculation of the number of consumers in these segments that have annual household income
• Refining data set further to target population in urban areas, thereby estimating the size of the
• Demand estimation by assuming Red Bull Natural will capture 3% of market share in the
launch year. This is a conservative estimate considering the significant brand equity enjoyed
by parent brand ‘Red Bull’ and increasing need for organic products by Indian consumers
Thus, as per calculation, the total annual demand faced by Red Bull Natural in the first year would be
Steps Size
Total country population in Generation Now and Generation Next 600 million
segments
13
Percentage of the population with income > 3 lacs per annum 42.0%
Generation Now & Generation Next population with income > 3 lacs 252 million
per annum
Gen Now and Gen Next population with income > 3 lacs per annum 70 million
in urban areas
14
Penetration of energy drinks in Target Population (%) 5.0%
13
http://greenisfuture.wordpress.com/2010/03/08/income-distribution-and-consumer-pattern-in-india/
23
Steps Size
Using the consumption data from Survey 2 , total annual 165.3 million
consumption of all energy drinks (cans per annum)
Total annual consumption of Red Bull Natural (Can Per Annum) 4.96 million
B. Product Pricing
The retail price of 250 ml of Red Bull is Rs. 75 and it ranges between Rs. 65 to Rs. 80 for other
energy drinks. Factoring a premium of Rs.10 over the common variant of Red Bull, 250 ml of Red
Bull Natural will be priced at Rs. 85. Similarly, 150 ml of Red bull Natural will be priced at Rs. 55.
• As per the primary survey, 70% of the respondents were willing to pay a price equal to or
• Factoring in strategy to capture a part of consumer surplus and maximize current profits
Initially, Red Bull Natural will be able to capitalize on its first-mover advantage and the Price
Skimming Approach will be used. The price will be initially set at a high level and then reduced
systematically over time with the objective of capturing a part of consumer surplus till other players
come up with a similar product, thereby increasing competition and lowering prices.
When competition intensifies, the Market-Penetration Pricing Strategy will be adopted, with
emphasis on gaining market share by lowering prices. A lower price will increase sales volume and
14
http://www.censusindia.gov.in/Census_Data_2001/India_at_glance/rural.aspx
24
16. Value Proposition Statement
'Red Bull Natural – An organic energy drink made purely of natural extracts for providing instant
energy to keep the mind alert and body active for the wellness of your health.'
‘Red Bull Natural’ is purely organic and made only of natural extracts. This differentiates it from the
other energy drinks available in the market. Instant energy will be a point of parity with energy drinks
but the added ‘health’ and ‘wellness’ aspect will be the product's Unique Selling Proposition ("USP").
On the basis of product attributes and brand personality that is to be in resonance with customers, the
Natural Energy resonates with the health factor and natural ingredients of the product, while Amazing
Attitude brings out the confident, energetic, active and out-going aspects of the product's brand
personality. This fits perfectly with the personality of the youth being targeted while proposing the
A. Promotion Strategies
Red Bull Natural's promotion strategy is based on the following findings from of the primary and
secondary studies:
• Potential customers include urban consumers aged between 16 years and 35 years who have
stressful routines and are looking for healthy energizing drinks to improve their performance.
25
• Primary survey results confirmed that broadcast media and buzz marketing were the principal
• Secondary study showed that electronic and display media, association with sports and
fashion events, celebrity endorsements, branding through social networking sites, etc have
The health and wellness factor of the product offering, as a result of using only natural ingredients,
will be the main differentiating factor with respect to other existing energy drinks. Hence, these will
be our USP and the marketing and promotion activities will emphasize on these factors apart from the
The main objectives of Red Bull Natural's promotion campaign will be to:
• Grab consumer’s attention and create awareness about organic energy drinks
• Create buzz marketing about the organic nature and related benefits of Red Bull Natural
Based on the above the following Integrative Marketing Communication strategy is proposed for Red
Bull Natural:
The product's appeal to the youth and carries an adventurous and energetic brand personality with an
added health value. Therefore, Red Bull Natural will be promoted with the involvement of a young
Various events like slogan-writing and logo-design will be organized through tie-ups with colleges.
Also, opportunities of sponsorships with the college festivals will also be explored to pitch the
26
Public Relations
Being a new product, consumers will need to accept the concept of an organic energy drink before
consumption. Therefore, the company will emphasise on developing relations with consumers, traders
and distributors. Special training sessions will be organized for traders and distributors while press
relations will be used so as to make consumers aware about the concept of organic energy drinks
Events
The parent company, Red Bull can plan to tie-up with famous sports events like F1 Formula Racing,
IPL and Cricket World Cup so as to pitch Red Bull Natural to the youth. Events based on the ‘Green
Theme’ and ‘Health Consciousness’ will also be organized to emphasise on the point of
Buzz marketing
Since Red Bull Natural will be introducing a new concept, buzz marketing will play a significant role
in passing on the message amongst the youth. It will also help establish the product against the other
energy drinks in the market that are considered to have adverse health effects. Technology will also be
Sales Promotion
The promotion strategy will look at marketing as a 360 degree solution, that will include innovative
branding, from movies to sports(e.g. including the IPL and Bollywood Blockbusters). An experienced
and dedicated marketing team will be setup to focus on market segments like malls, multiplexes, retail
stores, 5 Star hotels and restaurants, pubs, discotheques, gym, spas, cafes and airlines. Each tie-up will
be supported with promotional and merchandising materials, loyalty programmes and consumer
offers.
27
B. Promotion Budget
In line with the requirements of a new product and new concept launch, the Objective and Task
Method will be used to budget for promotion. This will be based on the targeted market share, the
target increase in tester percentage and the target reach/awareness about the product.
The project is hypothetical in nature and the following limitations were likely encountered:
• Change in the competitive landscape of the energy drink segment during the course of study
• Consumer biases towards energy drink brands could not be eliminated in the primary study.
• The survey respondents base might not have been a true representative sample of the
consumer base.
28
21. Appendix
The first survey to study the current energy drink market was composed of the following questions:
29
30
31
B. Second Consumer Survey
The second survey to study the response to Red Bull Natural was composed of the following
questions:
32
33
34