GENERAL MANAGEMENT

PROJECT ON

Analysis of Energy Drink Industry

PREPARED FOR MUMBAI UNIVERSITY IN THE

PARTIAL FULLFILLMENT OF THE REQUIREMENT
FOR THE AWARD OF THE DEGREE IN

MASTER’S IN MANAGEMENT STUDIES (MMS)

SUBMITED BY
(Abhinav Sahu)
MMS ROLL NO: 123

PROJECT GUIDE
(Prof. KV RAMAKRISHNAN)

1
 VIVEKANAD EDUCATION SOCITEY INSTITUTE OF
MANAGEMENT STUDIES & RESEARCH, MUMBAI
(A.Y.-2018-2020)

CERTIFICATE

Thus is to certify that Project titled “Analysis of Energy Drink Industry” is

successfully completed by “Mr. Abhinav Sahu” during the second semester, in
partial fulfilment of the Master’s Degree in Management Studies recognized by the
University of Mumbai for the academic year 2018-2020 through this general
management project.

This project work is original and not submitted earlier for the award of any degree
diploma or association of any other University\Institution.

Name: Abhinav Sahu

Date: 12.03.19
(Signature of Guide)

2
 DECLARATION

This to declare that I “Abhinav Sahu” student of “Vivekanand Education

Society’s Institute Of Management” Studies and Research, Mumbai MMS batch
2018-2020, has given original data and information to the best of my knowledge in
project titled “Analysis of Energy Drink Industry” is a record of the work carried
out by me under the guidance and supervision of the Prof. KV Ramakrishnan
towards the partial fulfilment of the requirement for the MMS course.

I also agree in principle not to share the vital information with any other person
outside the organization and that I have not submitted it for any other title, degree
or diploma.

(Student Name & Signature) (Mentor Name & Signature)

Abhinav Sahu KV Ramakrishnan

3
 Acknowledgement

Date: 12.03.2019
Place: Mumbai

I would like to express my gratitude to my project guide for his valuable guidance,
whole hearted cooperation and generous helping hand in carrying out this project.

I would like to heartily thank to Prof KV Ramakrishnan for giving me opportunity

to get to learn about the Analysis of Energy Drink Industry

With the deep sense of gratitude I would like to thank my family who has
contributed in a way or other to the success in completion of the project.

While doing this project I came to know how we can be successful in our career by
learning from other work.
It was a pleasure to have this course in our MMS curriculum.

4
5
 EXECUTIVE SUMMARY

It had a very educating and learning experience while doing the project on Energy
Drink Industry. As per my view it is working efficiently. I had done research
study on Analysis of Energy Drink Industry.

I have conducted research on potential market with special consideration to Red

Bull.

1. To assess the demand for energy drinks.

2. To assess the type of customers.

In my research I have collected primary data as well as secondary data through

Questionnaire method. In my research I found that there is a large market potential
for Energy Drinks. 

6
 INDEX

SR. NO. NAME OF THE CHAPTER PAGE NO.

INTRODUCTION TO GM 9
1

2 RESEARCH METHODOLOGY 18

3 ENERGY DRINK INDUSTRY 21

4 SECTOR & COMPANY PROFILE 27

5 32
PRODUCT PROFILE

6 DATA COLLECTION 37

7 43
DATA ANALYSIS & INTERPRETATION

8 FINDINGS AND CONCLUSION 56

9 58
LIMITATIONS OF PROJECT

10 ANNEXURES 60

11 BIBLIOGRAPHY 64

7
8
 INTRODUCTION

General Management
A business develops in course of time with complexities. With
increasing complexities managing the business has become a difficult
task. The need of existence of management has increased
tremendously. Management is essential not only for business concerns
but also for banks, schools, colleges, hospitals, hotels, religious bodies,
charitable trusts etc. Every business unit has some objectives of its
own. These objectives can be achieved with the coordinated efforts of
several personnel. The work of a number of persons are properly co-
ordinated to achieve the objectives through the process of management
is not a matter of pressing a button, pulling a lever, issuing orders,
scanning profit and loss statements, promulgating rules and regulations.
Rather it is the power to determine what shall happen to the
personalities and happiness of entire people, the power to shape the
destiny of a nation and of all the nations which make up the world."
Peter F. Drucker has stated in his famous book "The Practice of
Management" that, "the emergence of management as an essential, a
distinct and leading social institution is a pivotal event in social history.
Rarely in human history has a new institution proved indispensable so
quickly and even less often as a new institution arrived with so little
opposition, so little disturbance and so little controversy?" Management
is a vital aspect of the economic life of man, which is an organised

9
group activity. It is considered as the indispensable institution in the
modern social organization marked by scientific thought and
technological innovations. One or the other form of management is
essential wherever human efforts are to be undertaken collectively to
satisfy wants through some productive activity, occupation or
profession. 3 It is management that regulates man's productive
activities through coordinated use of material resources. Without the
leadership provided by management, the resources of production
remain resources and never become production. Management is the
integrating force in all organized activity. Whenever two or more
people work together to attain a common objective, they have to
coordinate their activities. They also have to organize and utilize their
resources in such a way as to optimize the results. Not only in business
enterprises where costs and revenues can be ascertained accurately and
objectively but also in service organizations such as government,
hospitals, schools, clubs, etc., scarce resources including men,
machines, materials and money have to be integrated in a productive
relationship, and utilized efficiently towards the achievement of their
gals. Thus, management is not unique to business organizations but
common to all kinds of social organizations. Management has achieved
an enviable importance in recent times. We are all intimately associated
with many kinds of organizations, the most omnipresent being the
government, the school and the hospital. In fact, more and more of
major social tasks are being organized on an institution basis. Medical
care, education, recreation, irrigation, lighting, sanitation, etc., which

10
typically used to be the concern of the individual or the family, are now
the domain of large organizations. Although, organizations other than
business do not speak of management, they all need management. It is
the specific organ of all kinds of organizations since they all need to
utilize their limited resources most efficiently and effectively for the
achievement of their goals. It is the most vital forces in the successful
performance of all kinds of organized social activities. 4 Importance of
management for the development of underdeveloped economies has
been recognized during the last one and a half decade. There is a
significant gap between the management effectiveness in developed
and underdeveloped countries. It is rightly held that development is the
function not only of capital, physical and material resources, but also of
their optimum utilization. Effective management can produce not only
more outputs of goods and services with given resources, but also
expand them through better use of science and technology. A higher
rate of economic growth can be attained in our country through more
efficient and effective management of our business and other social
organizations, even with existing physical and financial resources. That
is why it is now being increasingly recognized that underdeveloped
countries are indeed somewhat inadequately managed countries. The
emergence of management in modern times may be regarded as a
significant development as the advancement of modern technology. It
has made possible organization of economic activity in giant
organizations like the Steel Authority of India and the Life Insurance
Corporation of India. It is largely through the achievements of modern

11
management that western countries have reached the stage of mass
consumption societies, and it is largely through more effective
management of our economic and social institutions that we can
improve the quality of life of our people. It is the achievements of
business management that hold the hope for the huge masses in the
third world countries that they can banish poverty and achieve for
themselves decent standards of living.

7 P’S OF MARKETING
1. Product
In the service industry, the production and consumption of the product
are simultaneous and the product is intangible, diverse and perishable.
The nature of this ‘product’ allows for on the spot customization. This
also means that the point at which this activity is occurring becomes
very important. Ideally, to ensure repeat experiences of similar quality
and a consistently good user experience, most service providers aim to
give some customization within an overall standardized mode of
delivery.

2. Pricing
since a service cannot be measured by what material goes into its
creation nor is the actual tangible cost of production measurable, it can
be challenging to put a price tag on it. There are some tangibles of
course, such as the labor costs and overheads. But additionally, the

12
ambiance, the experience and the brand name also factor into the final
price offering.

3. Place
As mentioned, the service is produced and consumed in the same place.
It cannot be owned and taken away from the location. This is why the
place at which this transaction occurs is of vital importance. The
location of the service provision is carefully analyzed to allow ease of
access and the desire to make the effort to reach it. Fast food
restaurants and sales and service centers may be located in busy main
streets to allow walk in customers, while a fine dining restaurant may
be located in a quiet street to maintain exclusivity and privacy.

4. Promotion
Promotion fulfills the same role as it does in any other marketing
context. A service may be more easily replicated than a physical
product. To prevent a service becoming interchangeable with its
competitors, it becomes vital to create a desirable brand image and
name in the market. Differentiation becomes a key goal in order to
attract both new and repeat customers.

13
5. People
This is a vitally important element of the service marketing mix. When
a service is being delivered, the person delivering it is not unique from
the service itself. When dining at a restaurant, if a rude waiter is
encountered, the entire experience will be labeled as bad service. This
is why many businesses invest in defining the right kind of person to
fill their service role and then making efforts to find or train people to
fit this definition.

6. Process
Since service provision needs to strike a balance between
customization and standardization, the processes involved in the

14
activity require special mention and attention. A process needs to be
clearly defined for the service provider. This basic process should
ensure the same level of service delivery to every customer, at any time
of day, on any day. Within this process, there should be defined areas
where a customer preference can be accommodated to provide a unique
experience.

7. Physical Environment
The location of the service delivery also takes on significance. The
level of comfort and attractiveness of a service location may make a lot
of difference to the user experience. A calm and soothing environment
with thoughtful comfort measures may provide a sense of security to a
new customer which will make them return.

15
16
 CHAPTER -2

RESEARCH
METHODOLOGY

17
MEANING OF RESEARCH
Research in common parlance refers to a search for knowledge. Once
can also define research as a scientific and systematic search for
pertinent information on a specific topic. In fact, research is an art of
scientific investigation. The Advanced Learner’s Dictionary of Current
English lays down the meaning of research as “a careful investigation
or inquiry specially through search for new facts in any branch of
knowledge.”1 Redman and Mory define research as a “systematized
effort to gain new knowledge.”2 Some people consider research as a
movement, a movement from the known to the unknown. It is actually
a voyage of discovery. We all possess the vital instinct of
inquisitiveness for, when the unknown confronts us, we wonder and
our inquisitiveness makes us probe and attain full and fuller
understanding of the unknown. This inquisitiveness is the mother of all

18
knowledge and the method, which man employs for obtaining the
knowledge of whatever the unknown, can be termed as research.
Research is an academic activity and as such the term should be used in
a technical sense. According to Clifford Woody research comprises
defining and redefining problems, formulating hypothesis or suggested
solutions; collecting, organizing and evaluating data; making
deductions and reaching conclusions; and at last carefully testing the
conclusions to determine whether they fit the formulating hypothesis.
D. Slesinger and M. Stephenson in the Encyclopaedia of Social
Sciences define research as “the manipulation of things, concepts or
symbols for the purpose of generalising to extend, correct or verify
knowledge, whether that knowledge aids in construction of theory or in
the practice of an art.” Research is, thus, an original contribution to the
existing stock of knowledge making for its advancement. It is the
persuit of truth with the help of study, observation, comparison and
experiment. In short, the search for knowledge through objective and
systematic method of finding solution to a problem is research. The
systematic approach concerning generalisation and the formulation of a
theory is also research. As such the term ‘research’ refers to the
systematic method consisting of enunciating the problem, formulating a
hypothesis, collecting the facts or data, analysing the facts and reaching
certain conclusions either in the form of solutions(s) towards the
concerned problem or in certain generalisations for some theoretical
formulation.

19
OBJECTIVES OF RESEARCH
The purpose of research is to discover answers to questions through the
application of scientific procedures. The main aim of research is to find
out the truth which is hidden and which has not been discovered as yet.
Though each research study has its own specific purpose, we may think
of research objectives as falling into a number of following broad
groupings: 1. To gain familiarity with a phenomenon or to achieve new
insights into it (studies with this object in view are termed as
exploratory or formulative research studies); 2. To portray accurately
the characteristics of a particular individual, situation or a group
(studies with this object in view are known as descriptive research
studies); 3. To determine the frequency with which something occurs
or with which it is associated with something else (studies with this
object in view are known as diagnostic research studies); 4. To test a
hypothesis of a causal relationship between variables (such studies are
known as hypothesis-testing research studies)

20
 Energy Drink Industry

The energy drinks industry comprises beverages such as energy drinks, energy
shots and energy drink mixes. Energy drinks are known as beverages that promise
to give the consumer an extra energy boost. They are typically high in caffeine and
contain additional ingredients including taurine, guarana and B vitamins. Energy
shots are a more concentrated form of energy drinks and contain a larger amount of
the primary ingredient caffeine. Energy drink mixes as the third subcategory come
packaged as powder and may be mixed with water or juice. Energy drinks are
assumed to be quite popular among younger age groups who mostly consume
energy drinks to wake up or stay awake, increase their mental performance or to
enable them to concentrate longer. 

21
 Energy Drink Industry Analysis

Global energy drink sales reached €44 billion in 2014 (about $49.9 billion),
according to BeverageDaily.com, an online news service covering the food and
beverage industry. That’s a 5% increase over 2013 sales. Energy drinks are part of
the broader soft drink category, which includes carbonated beverages, fruit and
vegetable juices, bottled water, sports drinks, beverage concentrates, ready-to-
drink tea, and ready-to-drink coffee. Within this industry, consumers have been
buying less soda and more energy drinks. Americans today are consuming about
the same amount of soda as they were in 1986. Meanwhile, energy drink sales have
been growing rapidly, according to the American Beverage Association, the trade
association that represents America’s non-alcoholic beverage industry. The
markets that will be most important for energy drink growth through 2017 are the
United States, China and Brazil, according to market research
firm Euromonitor International.

Here are the biggest companies in the energy drink industry and some emerging
trends:

Red Bull

Energy drinks came to prominence in the United States in 1997 with Red Bull.
This beverage is owned by the Austrian company Red Bull GmbH, whose
introduction of the drink in 1987 in its home country marked the beginning of the
global energy drink industry. Red Bull comes in 8.4-ounce cans in a handful of
varieties: original, sugar-free (5 calories), Total Zero (no calories), and Editions
(cranberry, blueberry, tropical, zero-calorie orange and zero-calorie cherry). The
drinks’ main ingredients are caffeine, taurine, B vitamins, sucrose, glucose, and
carbonated water.

Red Bull is sold in 167 countries and has recently experienced strong sales growth
in India, Japan, Turkey, Scandinavia, Russia, and Brazil. It plans to focus on
continued expansion in the United States, Western Europe, and the Far East. Red
Bull’s advertising strategy relies heavily on event and extreme sports sponsorship,
buzz marketing, and television ads.

22
Dietrich Mateschitz owns most of the company, and because it is privately held,
limited financial information is available. The company says it sold 5.387 billion
cans worldwide in 2013, a 3.1% increase over 2012. In the US market, the drink
had sales of $3.433 million from July 2012 through June 2013, according to market
research firm IRI, making Red Bull the leader in US energy drink
sales. Forbesestimated the company’s market value at $20 billion last December.

Monster

California-based Monster Beverage Corp. (MNST), formerly Hansen Natural

Corp., was founded in 1990 and began selling Monster Energy drinks in 2002 after
unsuccessfully launching another drink to compete with Red Bull in 1997. Monster
promotes itself as “way more than an energy drink . . . a lifestyle in a can.” It
associates itself with “action sports, punk rock music, partying, hangin’ with the
girls, and living life on the edge.” It comes in 16-ounce cans that have about the
same price point as Red Bull’s 8.4-ounce cans. Monster drinks come in 36
varieties, ranging from its flagship Monster Energy drink to double-strength,
coffee-flavored, fruit flavored, no calorie, protein-enhanced, and other varieties.
The original Monster Energy’s main ingredients are carbonated water, sucrose,
glucose, taurine, panax ginseng, L-Carnitine, caffeine, B vitamins,
glucuronolactone, inositol, and guarana, though ingredients vary somewhat by
flavor.

Monster is sold in 114 countries, and last August, Monster Beverage Corp. entered
an agreement with the Coca-Cola Company that should close early this year. Coca-
Cola will transfer its energy drinks — NOS, Full Throttle, Burn, Mother, Play and
Power Play, and Relentless — to Monster and purchase a 16.7% equity stake in the
company for $2.15 billion. Monster will transfer its non-energy drinks — such as
Hansen’s, Hubert’s, Peace Tea, and Blue Sky, which contributed to about 7% of its
2013 net sales — to Coca-Cola. Coca-Cola will also become Monster’s preferred
distribution partner. Coca-Cola’s distribution network reaches more than 200
countries, which should help increase Monster’s sales internationally. The two
companies have done business together since 2008 (Coca-Cola is also a key
Monster distributor). Both companies’ share prices went up after the
announcement.

With US sales of $3.147 million from July 2012 through June 2013, Monster
Energy is a close second to Red Bull. Together, these two brands captured more
than 80% of the US energy drink market in 2013. Once Monster acquires Coca-
Cola’s portfolio of energy drinks, Monster could become the dominant player in

23
the US market. However, while Red Bull’s lead in sales over Monster is small
domestically, it is large internationally. According to Euromonitor International, in
2013, Red Bull had about 32% of the worldwide market, while Monster had about
14%. Similar to Red Bull, Monster’s market capitalization is nearly $20 billion.
Monster’s stock has dramatically outperformed that of Coca-Cola Co. (KO),
PepsiCo Inc. (PEP), Dr. Pepper Snapple Group (DPS), the Nasda

Rockstar

Rockstar International founder and owner Russ Weiner introduced Rockstar

Energy in San Francisco in 2001. The company says it energy drinks are “designed
for those who lead active lifestyles.” Rockstar comes in 8.4-ounce, 16-ounce, and
24-ounce cans, depending on the variety, and there are 27 varieties, ranging from
Rockstar Original energy drink to zero carb (10 calorie) and zero calorie versions,
recovery drinks, coffee flavors, and more. Rockstar’s main ingredients include
carbonated water, sucrose, glucose, taurine, caffeine, L-Carnitine, milk thistle
extract, ginkgo biloba leaf extract, guarana seed extract, and panax ginseng root
extract. Rockstar is sold in convenience and grocery stores in more than 30
countries. Its advertising strategy includes affiliations with action sports, motor
sports, live music, and models. Like Monster, Rockstar has the same $2 price point
as Red Bull, but its cans are nearly twice the size.

Rockstar International is privately held. Weiner owns 85% of the company and his
mother, Janet, owns 15%. She also serves as the company’s chief financial officer.
Rockstar had $821 million in US sales in 2013 and approximately $670 million in
revenue. It makes up about 10% of the US energy drink market. According to
Forbes, Rockstar’s annual average sales growth has slowed dramatically in recent
years, plummeting from 103% annually in the company’s first six years to just 8%
annually since then.

Monster and Rockstar, and less so Red Bull, are on top of the trends in the energy
drink and broader soft drink industry and have widened their product offerings to
compete with smaller players. For example, while Steaz Energy, the most popular
organic energy drink, distinguishes itself by using certified organic and Fair Trade
ingredients and being based on green tea, Rockstar has an organic offering, and
Monster has one with green tea.

Another trend is energy drinks with additional ingredients that are supposed to
enhance athletic performance and recovery. We might also start seeing more
energy drinks with branched-chain amino acids (BCAAs), protein, n-acetyl-l-

24
tyrosine, beetroot extract ,and creatine, according to BeverageDaily. Other
relatively new varieties of existing energy drinks have selling points like no sugar,
no carbs, no calories, and, counter-intuitively, no caffeine. There are also coffee
flavors and non-carbonated flavors. Other marketing strategies include limited-
edition drinks offered only in certain store chains and flavors tailored for different
countries. 

25
 CHAPTER-3
COMPANY PROFILE

26
 THE COMPANY BEHIND THE CAN
REDBULL

How it all began

Inspired by functional drinks from the Far East, Dietrich Mateschitz founded Red

Bull in the mid 1980's. He created the formula of Red Bull Energy Drink and

developed the unique marketing concept of Red Bull. In 1987, on April 1, Red Bull

Energy Drink was sold for the very first time in its home market Austria. This was

not only the launch of a completely new product, in fact it was the birth of a totally

new product category. Today Red Bull is available in more than 169 countries and

around 60 billion cans of Red Bull have been consumed so far.

Red Bull is an energy drink sold by Austrian company Red Bull GmbH, created in

1987. In terms of market share, Red Bull is the highest-selling energy drink in the
world, with 5.387 billion cans sold in 2013.[1 HYPERLINK
"https://en.wikipedia.org/wiki/Red_Bull" HYPERLINK
"https://en.wikipedia.org/wiki/Red_Bull" HYPERLINK
"https://en.wikipedia.org/wiki/Red_Bull"] HYPERLINK

27
"https://en.wikipedia.org/wiki/Red_Bull" HYPERLINK
"https://en.wikipedia.org/wiki/Red_Bull" HYPERLINK
"https://en.wikipedia.org/wiki/Red_Bull"[2] HYPERLINK
"https://en.wikipedia.org/wiki/Red_Bull" HYPERLINK
"https://en.wikipedia.org/wiki/Red_Bull" HYPERLINK
"https://en.wikipedia.org/wiki/Red_Bull"[3] HYPERLINK
"https://en.wikipedia.org/wiki/Red_Bull" HYPERLINK
"https://en.wikipedia.org/wiki/Red_Bull" HYPERLINK
"https://en.wikipedia.org/wiki/Red_Bull"[4]

Austrian entrepreneur Dietrich HYPERLINK

"https://en.wikipedia.org/wiki/Dietrich_Mateschitz" HYPERLINK
"https://en.wikipedia.org/wiki/Dietrich_Mateschitz" HYPERLINK
"https://en.wikipedia.org/wiki/Dietrich_Mateschitz"Mateschitz was inspired by an
existing energy drink named Krating Daeng, which was first invented and sold
in Thailand. He took this idea, modified the ingredients to suit the tastes of
Westerners,[5] and, in partnership with Chaleo Yoovidhya, founded Red
Bull GmbH in 1987 in Chakkapong, Thailand. In Thai, daeng means red,
and krating is the large bovinecalled "gaur". Red Bull is sold in a tall and slim
blue-silver can, while Krating Daeng is in a gold shorter can.[6] The two are
different products, produced separately.

The Red Bull company slogan is "Red Bull gives you wings",[7] and the product is
marketed through advertising, events (Red Bull Cliff Diving World Series, Red
Bull Air Race, Red Bull Crashed Ice), sports team ownerships (RB HYPERLINK
"https://en.wikipedia.org/wiki/RB_Leipzig" HYPERLINK
"https://en.wikipedia.org/wiki/RB_Leipzig" HYPERLINK
"https://en.wikipedia.org/wiki/RB_Leipzig"Leipzig, FC Red Bull Salzburg, Red
Bull HYPERLINK "https://en.wikipedia.org/wiki/Red_Bull_Brasil" HYPERLINK
"https://en.wikipedia.org/wiki/Red_Bull_Brasil" HYPERLINK

28
"https://en.wikipedia.org/wiki/Red_Bull_Brasil"Brasil, New York Red Bulls, Red
Bull Racing, Scuderia Toro Rosso), celebrity endorsements, and music, through
its record label Red Bull Records.[8]

Energy drinks have been associated with health risks, such as masking the
effects of intoxication when consumed with alcohol,[9] and excessive or
repeated consumption can lead to cardiac and psychiatric conditions.[10]
HYPERLINK "https://en.wikipedia.org/wiki/Red_Bull" HYPERLINK "https://en.wikipedia.org/wiki/Red_Bull" HYPERLINK

"https://en.wikipedia.org/wiki/Red_Bull"[11]
 However, the European Food Safety Authority
(EFSA) concluded that an adequate consumption of Red Bull and other
popular energy drinks is safe and that the amount of caffeine in standard Red
Bull cans is unlikely to interact adversely with other typical constituents of
energy drinks or with alcohol.[12] Energy drinks have the effects that caffeine
and sugar provide, but there is no distinct evidence that the wide variety of
other ingredients have any effect.[13]

EMPLOYEES:

As of the end of 2015, Red Bull employed 10,997 people in 169 countries -
compared to the end of 2014 when we had 10,410 employees in 167
countries.

Red Bull functions in 169 Countries around the world. In terms of further
expansion, Red Bull is targeting the core markets of Western Europe and the
USA and growth markets in the Far East, while also focusing on the
worldwide roll-out of the Red Bull Editions.

A total of 5.957 billion cans of Red Bull were sold worldwide in 2015,
representing an increase of 6.1% against 2014. Taking into account price and
currency fluctuations, company turnover even witnessed a 15.5% increase
from EUR 5.110 billion to EUR 5.903 billion. The main reasons for such
positive figures include outstanding sales in the Red Bull markets in Turkey
(+25%), South Africa (+19%), Saudi Arabia (+19%), India (+18%), Poland
(+18%) and Germany (+16%), a price increase in the USA, the weaker euro
exchange rate, efficient cost management and ongoing brand investment.

29
 Red Bull has created the global market for energy drinks, and the pioneering
Red Bull brand has became synonymous with energy drinks for a large
number of consumers. Red Bull remains bullish and ambitious in their
corporate brand. Despite rising competition, Red Bull continues to
comfortably lead the global energy drinks market in both volume and value
terms. However, the threat from The CocaCola Co (TCCC) has been
mounting.

30
 CHAPTER -4
PRODUCT PROFILE

31
 RED BULL- ENERGY DRINK
Vitalizes Body and Mind

HOW IT WORKS:
Red Bull Energy Drink is a functional beverage providing wings
whenever you need them.

Red Bull Energy Drink is a great functional drink which can be really
handy just before training or competition. Red Bull gives you wings.”

Red Bull gives that extra boost that we all need.

WHEN TO DRINK:
On the road:

32
Every traveller knows that the most important factor for a safe journey is an alert
state of body and mind. Red Bull is the ideal fuel for those who cover many
kilometres. Whether it's a stressful business trip, a spontaneous excursion or while
on vacation, take a break and reach out for a cold can of Red Bull.

During lectures & study sessions:

For university students all over the world the blue and silver can belongs to their
lectures and study sessions as much as pencil and paper does. They appreciate Red
Bull Energy Drink after a challenging day between auditorium and study or in
leisure time with their fellow students and friends.

At work:

The world is spinning at great speed, so professional life is certainly a daily

challenge. For all those who have to fully focus on their jobs, a chilled Red Bull
gives additional support. Whether it’s during intense meetings, conference calls or
creative brainstorming sessions, in your first job or as the chief executive.

While doing sports:

Whenever athletes are in need of wings they turn to Red Bull. Red Bull Energy
Drink is appreciated by sport enthusiasts and top athletes all over the world.

While playing video games:

Good skills and constant training are half the battle. If you want to keep the pace
up with your teammates or competitors make sure you have a can of Red Bull at
your side to take your game to a higher level.

While going out day and night:

Red Bull is a self-evident guest at every party, club session, festival and concert.
Like many DJs, B-boys and other artists you can benefit from Red Bull to ensure
you get the most out of your days and nights.

Red Bull Energy Drink is a functional beverage, containing the following high
quality ingredients:

33
• Caffeine

• Taurine

• B-group vitamins

• Sugars

• Alpine Spring Water

RED BULL- SUGAR FREE

HOW IT WORKS:

34
Red Bull Sugar free is Red Bull Energy Drink without sugar. It is a
functional beverage with only 3 calories per 100 ml.

WHATS INSIDE:
• Caffeine

• Taurine

• B-group vitamins

• Aspartame & Acesulfame K

• Alpine Spring Water

Company Goals
Red Bull is dedicated to upholding the highest industry standards,
while maintaining their leadership position in the energy drinks
category and delivering superior customer service in a highly efficient
and profitable manner. Red Bull’s desire to maintain their leadership
position is reflected in their mission statement “To spread our wings
over the world” (Red Bull, 2013), as they continue to focus on global
expansion.

Products
Red Bull has expanded their product line from the original Red Bull
Energy Drink to Red Bull Sugarfree, Total Zero, Energy Shot, and
most recently, Red Bull Editions. Red Bull Editions is their line of fruit
flavoured drinks which include cranberry, lime, and blueberry. Red
Bull products continue to gain popularity with an increase in product
sales of 12.8% in 2012, resulting in 5.226 billion cans sold worldwide
(Red Bull, 2013). New regulations on the sale of energy drinks are an

35
ongoing concern for companies like Red Bull. Red Bull’s product line
has also widened to include merchandise that is adorned with the
company name such as hoodies, hats and shirts, due to their
involvement in sponsoring athletes and events.

Market Share
By creating a product that had never been seen before, Red Bull has
made their name synonymous with the word energy drink. With Red
Bull products sold in 165 countries, the company holds an estimated
global market share of 43% as of 2012 (MarketLine, 2012). This
statistic becomes even more impressive when you consider that their
closest competitor, Monster Energy Drink, only holds an estimated
16% market share (MarketLine, 2012). This market share and brand
recognition has allowed Red Bull to hold their ground and fend off
larger beverage companies like Coca-Cola and PepsiCo. Even with
such a dominant position in the energy drink market, Red Bull
continues to grow.

36
 CHAPTER-5
DATA COLLECTION

37
Data Gathering
This study involves data collection (primary research) from different households in
four different areas of pune (Ness wadias boy’s hostel, girl’s hostel andB.T,
kaeade road, Koregaon Park, Mundwa)

Literature Review
The research conducted as a part of our study would include Primary as well as
Secondary research, Primary research would include a survey that would be
conducted in selected localities of pune and nearby area where the responses of
consumers would be recorded through a designed questionnaire. Secondary
research would include various aspects of Brand management through internet,
journals, company reports, expert views etc.

38
SWOT ANALYSIS OF RED BULL

Strengths

1.      Market leadership in the global scale

2.      Increasing popularity in emerging markets
3.      Strong and visionary leadership by Dietrich Mateschitz
4.      Solid financial position

Weaknesses

1.      Red Bull products considered to be unhealthy

2.      Limited range of products
3.      Expensive price
4.      Concentrated production facilities

Opportunities

1.      Enhancing nutritional aspects of beverages

2.      Further increasing presence in media via strategic collaborations
3.      Engaging in product diversification
4.      Increasing focus on CSR

Threats

1.      Negative health implications due to the consumption of Red Bull products
2.      Increase in marketing costs
3.      Further intensifying competition
4.      Lawsuits against the company due to consumer health deterioration
39
Pestle Analysis of Energy Drink Industry

Political Factors
The political factors include the external factors like governmental factors. The
effects of governmental policies and regulations that directly affect the company.
These policies are derived from the government. These policies sometimes could
be tax reforms that directly laid impact on the company. The political stability of
the region in which the company is working wills certainly an opportunity for the
company. Likewise, good intra-governmental relationships are also a source of
opportunity for the global companies like Red Bull. The threat factors include
several policies of the government pertaining to the energy drinks and health of the
population is one of the major threats for the Red Bull. For instance good
economies like USA and Canada the business of a company like Red Bull is best,
while in the regions of third world countries the process of opportunities is halted
in an indirect way.

Economic Factors
Red Bull has always focused on the realm of product innovation, which assists the
company in maintaining the stability and the worth in the whole industry.   The
performance of the company like Red Bull is directly proportional to the economic
stability of the state in which the company is working. Same way in the regions
where the countries are more developed there are more avenues for opportunities
of the company. The possible threat in this perspective is the slowdown of the
Chinese economy as the Chinese economy has now been considered as one of the
greatest economies in the world.

40
Social Factors
The social factors encompass the beliefs and lifestyle of the people and most
importantly the culture of the region. For instance, the modern state people are
more prone to energy drinks; this culture becomes an opportunity for the beverage
companies like Red Bull. The states where the population is more conscious about
their health, such maxims could sometimes be a threat and sometimes an
opportunity for the global. The trend of hectic life and the habits of taking the
energy drink after few hours and is the major opportunity for Pepsi Cola Company.

Technological Factors
The moderate Research and development in the realm of food and beverage
industry have always been a great opportunity for the companies like Red Bull.
The improvement in knowledge management system with the help of technological
advancement is an opportunity. The increased trend of automation in business
strategies is certainly a great opportunity for the expanding the business for the
international recognized companies like Red Bull company. The other
technological factors include the trend of marketing using the internet and many
other latest technological tricks. Therefore, this technological renaissance has
explored many new avenues as opportunities for the contemporary trendy brands
like Red Bull Company.

Legal Factors
The legal elements are always there to bind the competitors and Red Bull
Company. For instance, various regulations like health safety regulations are great
opportunities for Red Bull industry. Many other legal aspects of the governmental
reforms also laid a direct impact on the companies like Red Bull. The legalities
sometimes act as the bindings which act as the hurdle on the way of expansion of
the company. There are however possible benefits of these legal issues as well as

41
they have given as they provide a more organized business environments to the
related companies like Red Bull.

Environmental Factors
These factors encompass the high standards and expectations on the waste disposal
related policies. There should be the focus on the sustainability of the business.
One of the world’s concerns that are climate change is sometimes the threat and
sometimes an opportunity for the global companies like Red Bull which are in the
process of expansion.   Red Bull has been one of the greatest companies. The
bottom line of the above discussion is that there are a plethora of opportunities for
Red Bull Company. If proper strategies and the right future plan have been chalked
out, the company can sustain the name in the market. The wise planning and taking
the company in the right direction will always give new room for opportunities. On
the flip side, there are also many possible threats in terms of competitors and
change in the global scenario pertaining to the new legalities and business
practices.

42
 CHAPTER-6
DATA ANALYSIS AND
INTERPRETATION

43
ANALYSIS

Q1. Which age group do you fall into?

• 13-17

• 18-24

• 25-30

• 31 and above

Interpretation:

The consumption is highest among the age group of late-teens / early

20s, followed closely by the ones in late 20s.

44
Q2. What is your gender?

• Male

• Female

Interpretation:

The majority of consumers of the energy drink came out to be male.

45
Q3. Do you consume energy drinks?

• Yes

• No

Interpretation:

Energy drinks being related to various activities including sports and in

general, all walks-of-life is majorly consumed by the majority.

46
Q4. In general, which energy drink you consume the most?

• V drink energy

• Red bull

• Lucozade energy

• Others

Interpretation:

Being one of the most widespread and effective energy drink, Red bull
gains the consumer's trust followed by other major drinks, such as
Lucozade and V drink energy.

47
 Q5.How often do you consume red bull?

• Everyday

• Once or twice week

• Once month

• Rarely

Interpretation:

Being affiliated to a wide range of product-related activities it includes

frequent consumers of the product on daily to weekly basis.

48
Q6. What do you think about the price of red bull?

• Just right

• Could improve

Interpretation:

The price being nominal as compared with other energy drinks caters to
the majority of the consumers.

49
Q7. Who do you think is Red bulls target Market?

• Professionals

• Athletes

• Students

• Others

Interpretation:

Revolving around providing the consumer with better energy for the
output. It is best suited for the ones with high physically- intensive
labour, such as athletes. Followed by the students.

50
Q8. Why do you buy red bull?

• Gives an energy boost

• Acts as a good mixture with alcohol

• Provides good value against competition

• Others

Interpretation:

Being one of the best flavoured, easy-to-consume energy drink, it

stands for its name with majority trusting it to provide them with
energy.

51
 Q9. Which of the following is red bull’s slogan?

• What else are you today?

• Doping for the mind

• Makes you fly

• Gives you wings

Interpretation

The world famous, well-suited slogan to the product.

52
Q10. What do you think about the advertisement of red bull you have seen?

• Have not seen any

• Okay

• Could improve

Interpretation:

With the attractive top-end marketers and advertisements, the quality of

stands high among consumers.

53
Q11. Where do you usually buy red bull?

• Convenient store

• Super market

• Wholesaler

• Others

Interpretation:

With the setting up of super markets and Red bull being spread
everywhere across the country could be easily sought at super markets
which is the preferred place for the consumers. Closely followed by the
wholesalers and other convenient stores.

54
Q12. What is one thing you would like to change about red bull?

• Flavour

• Packaging

• Design

• Slogan

Interpretation:

The product, staying true to its original version could need a bit of
improvisation. With the majority agreeing to the over-all packaging.

55
 CHAPTER-7
CONCLUSION

56
CONCLUION

• Red Bull focuses more on customer’s satisfaction.

• Quality of energy drink that red bull gives is much better than
the competitors.

• Being an MNC and operating all over the wold, they are trust
worthy.

• According to the survey done, Red bull came out to be the best
energy drink available in the India market.

57
 CHAPTER-9
LIMITATIONS OF
PROJECT

58
 LIMITATIONS

• It was very difficult to find out what all I needed as everyone

was busy with their own work.

• They find us irritating while I as questioning them.

• Lots of customers have not filled the questionnaire properly.

• The information provided by the people was not sufficient and

the people were not that co-operative.

• Customers gave very less time for the interaction.

59
CHAPTER-10
ANNEXURES

60
 ANNEXURES 1

• Which age group do you fall into?

• 13-17

• 18-24

• 25-30

• 31 and above

• Whats is your gender?

• Male

• Female

• Do you consume energy drinks?

• Yes

• No

• In general, which energy drink you consume the most?

• V drink energy

• Red bull

• Lucozad energy

61
• Others

• How often do you consume red bull?

• Everyday

• Once or twice week

• Once month

• Rarely

• What do you think about the price of red bull?

• Just right

• Could improve

• Who do you think is Red bulls target Market?

• Professionals

• Athletes

• Students

• Others

• Why do you buy red bull?

• Gives an energy boost

• Acts as a good mixture with alcohol

• Provides good value against competition

• Others
62
•

• Which of the following id red bull’s slogan?

• What else are you today?

• Doping for the mind

• Makes you fly

• Gives you wings

• What do you think about the advertisement of red bull you have seen?

• Have not seen any

• Okay

• Could improve

• Where do you usually buy red bull?

• Convenient store

• Super market

• Wholesaler

• Others

• What is one thing you would like to change about red bull?

• Flavour

• Packaging

• Desig

• Slogan
63
 CHAPTER-11
BIBLIOGRAPHY

64
BIBLIOGRAPHY

• http://energydrink-in.redbull.com/

• www.slideshare.som

• www.wikipedia.org

• www.mindtools.com

• Book-Advertising and Sales Promotion

• Book- Research Methodology

65