MINOR PROJECT REPORT

ON
MARKETING MIX
RED BULL

PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT

OF THE REQUIREMENT
OF BACHELOR OF BUSINESS ADMINISTRATION
(BANKING AND INSURANCE)
By:
-
Enrollment No. -
(2017-2020)
Under the guidance of
MRS. -

SRI GURU TEGH BAHADUR INSTITUTE OF MANAGEMENT

&INFORMATION TECHNOLOGY
(Affiliated to GGSIP University Delhi)
 DECLARATION

I hereby declare that the project work entitled Minor Project Report on
Marketing Mix of RED BULL submitted to the Guru Gobind Singh Indraprastha
University is record in an original work done by me under the guidance of MRS. -,
faculty member, Sri Guru Tegh Bahadur Institute of Management & Information
Technology.

...........................................

Signature of the scholar

Place: Delhi -

Date: __________ Enrollment no. -

 CERTIFICATE

This is to certify that - student of Sri Guru Tegh Bahadur Institute of

Management & Information Technology of course BBA (Banking and Insurance)
Batch (2016-2019), has completed her research work titled “Minor Project Report
on Marketing mix RED BULL” under my guidance and supervision. The work
submitted is genuine and authentic.

…..….……………………………….....

Signature of Project In charge

….…...…………………………………

Signature of Guide

MRS. -

……........………………………………

Place: Delhi Signature of Scholar

Date: ___________ -
 ACKNOWLEDGEMENT

With profound sense of gratitude and regard, I express my sincere thanks to my

guide and mentor Mrs.- for her valuable guidance and the confidence she instilled
in me, that helped me in the successful completion of this project report. Without
her help, this project would have been a distant affair, her thorough understanding
of the subject and professional guidance was indeed of immense help to me.

I am also greatly thankful to the faculty members of our institute who co-operated
with me and gave me their valuable time. ACKNOWLEDGEMENT

……........………………………………

Place: Delhi Signature of Scholar

Date: ___________ -
 EXECUTIVE SUMMARY

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 171
countries and over 62 billion cans of Red Bull have been consumed so far.

Red Bull is much more than a soft drink--it is an energy drink. It was made for
moments of increased physical and mental stress and improves endurance,
alertness, concentration, and reaction speed. In short: it vitalizes body and mind.
The effectiveness of Red Bull Energy Drink has been proven by a large number
of scientific studies and is appreciated by many of the world's top athletes and
drivers, opinion-leaders and hard-working people with active lifestyles. While
Red Bull had appealed to athletes and, in the United States, tired white-collar
workers, the real story of Red Bull's growth lay in the promise of further
endurance at clubbing, giving it a special appeal for young people exhausted
from working hard all week. The Los Angeles Times reported that the beverage
appeared to glow green under the fluorescent light of nightclubs. The drink
became a very popular mixer, especially with vodka. The company promoted
the lift the beverage offered with the slogan "Red Bull gives you wings."
Traditional advertising was limited, as the company focused heavily on getting
product samples into the right hands. The company sometimes put up edgy,
graffiti-style billboards. In the late 1990s, Red Bull produced animated TV ads
for mature markets.

5
 TABLE OF CONTENT

CONTENT PAGE
NO.
1.1. BEVERAGES INDUSTRY 1
CHAPTER 1 1.2. FACTORS DRIVING DEVELOPMENTS IN 2
INDIAN BEVERAGES SECTOR

1.3. KEY RISKS TO THE BEVERAGE

3
INDUSTRY

1.4. FUTURE PROJECTIONS OF INDIAN

4-5
BEVERAGE INDUSTRY

CHAPTER 2 2.1. Overview if company 6-7

2.2. company profile and history 8-9
2.3. history 10-12
2.4. company profile 13
2.5. red bull vision 13
2.6. red bulls mission 13
2.7. red bull values 14
2.8. innovation 15-16
2.9. red bull as a brand name 16-18
2.10. factors of success 18
2.11. competitors 19
2.12. Major competitors 20

CHAPTER 3 3.1. title of study

3.2. objectives of study 21
6
 3.3. tools of data collection 21
3.5. secondary data 22
3.6. limitations of the study 22-23
CHAPTER 4 4.1. introduction to marketing mix 24-25
4.2. 4p’s 26-30

CHAPTER 5 5.1. Product Mix 31-32

5.2. Product range 33-35
5.3. Product Levels 35-37
5.4. Brand 38
5.5. Product Life Cycle 39
5.6. Packaging 40
5.7. Price Mix 41
5.8. Place Mix 42
5.9. Promotion Mix 43
5.10 media advertising 44-45
5.11. sports and event sponsorship 46
5.12. sampling 47
5.13. SWOT Analysis 48-53
5.14. reasons to purchase red bull 54

CHAPTER 6 6.1. Findings 55-56

CHAPTER 7 7.1. Conclusion 57

CHAPTER 8 8.1. Suggestions 58

Bibliography 59

7
 CHAPTER-1

INDUSTRY PROFILE

1.1 BEVERAGES INDUSTRY

A beverage is a drink specifically prepared for human consumption.

Beverages 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 aluminium 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 alcoholic and non-alcoholic nature
of the drink. Non-Alcoholic beverages are further o two types based upon
carbon content. These beverages contain Fruit juices, Coffee, Tea, Soda,
Colas. The Alcoholic beverages are based upon the fruit content and grain. It
may be Wine, Brandy, Whisky or Beer.

8
1.2 FACTORS DRIVING DEVELOPMENT IN INDIAN
BEVERAGES 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 developing economic condition, there is increase in the competition
among the manufacturers, retailers, dealers to promote their products at
competitive prices.

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 segments –Alcoholic and Non-Alcoholic Beverages.

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.

Indian Beverage market distribution and marketing channel is highly

networked and has a very approach to the customers. Due to the
globalization and technological developments there is highly innovative
products are coming into 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 of retailers, Restaurants, Coffee shops, Sport events, Hotels etc.

There are certain factors which are driving developments into the Indian
Beverage sector:

• Economic growth
9
 • Population growth

• Competition for Raw materials

• Power of retailers

• Globalization / Regionalization

• Research & Development

• Technological Developments

• Food safety and regulation

• Consumer Demands and trend

1.1 KEY RISKS TO THE BEVERAGE INDUSTRY

As water is the essential ingredient in a beverage product, as well as vital
for cooking 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.
10
 Let’s first take a look at the alcoholic drinks industry. The market growth
for alcoholic drinks is particularly strong in emerging Asian economies,
driven by a range of socio-economic factors. These include favourable
demographics such as the greater proportion of young people 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.
Health concerns of polluted municipal water sources and increasing water
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 purity, hygiene and convenience is on the increase.
In India the market is 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 against bottled water in developed
countries as the environmental impact of plastic bottles becomes more
apparent, in Asia it looks set to become an increasing trend.

1.2 FUTURE PROJECTIONS OF FUTURE BEVERAGE

INDUSTRY

• Beverage Industry is projected to have overall growth between 8% -

8.5%.

• Indian non-alcoholic drinks market is expected to at a CAGR of around

4.4% during 2018-2023.

• India Alcoholic Drinks Market to Grow Over 5.2% CAGR during

2018-2023.

11
• The India Alcoholic Drinks Market Is Expected to Reach The 3 Billion
Litres Mark By 2023.

• The alcoholic sector has projected to achieve excellent growth of 20%

from wine.

• Fruit/vegetable juice market will grow at a CAGR of around 30 per

cent in value terms during 2011-2015.

• The energy drinks segment which will grow at a CAGR of around 29

per cent during the same period.

• All in all, annual per capita consumption of packaged beverages is

supposed to triple from 2.6 litres in 2000 to 8.7 litres in 2015. Demand
for milk and milk-based beverages are also rising.

• The estimated INR 340 BN Indian liquor industry is expected to

maintain its CAGR of 15%.

12
 CHAPTER – 2
REDBULL COMPANY PROFILE

2.1 OVERVIEW OF THE COMPANY

In 1982, Dietrich Mateschitz became aware of products called "tonic
drinks”, which enjoyed widespread popularity throughout Far East. His
idea to market evolved whilst he sat at a bar at these functional drinks
outside the Asia 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.

In 2008, Red Bull launched its own Cola: Red Bull Simply Cola – Strong
& Natural. Very much in line with the needs of today's consumers, Red
Bull Cola - unlike traditional colas - only contains ingredients of 100%
natural sources.

In 2009, Red Bull extended its product portfolio with Red Bull Energy
Shots:

Starting in the USA, now gradually rolling out globally.

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. In 2016, a total of 6.062
billion cans of Red Bull were sold worldwide in over 171 countries. 10,410
13
 employees generated €5.11 billion in revenue. As of the end of 2009, Red
Bull employed 6,900 people in 160 countries (end 2008: 5,683 in 148
countries).

Despite the ongoing difficulties presented by the global economic

downturn, 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.

2.2 COMPANY PROFILE AND HISTORY

2.2.1 HISTORY
In 1976, Chaleo Yoovidhya introduced a drink called Krating
Daeng in Thailand, which means "red gaur" in English. It was
popular among Thai truck drivers and labourers. While working for
German manufacturer Blendax in 1982, Dietrich Mateschitz
travelled to Thailand and met Chaleo, owner of T.C.
Pharmaceutical. During his visit, Mateschitz discovered that
Krating Daeng helped cure his jet lag. In 1984, Mateschitz co-
founded Red Bull GmbH with Yoovidhya and turned it into an
international brand. Each partner invested US$500,000 of savings
to found the company. Yoovidhya and Mateschitz each held a 49
percent share of the new company. They gave the remaining two
percent to Yoovidhya's son, Chalerm, but it was agreed that
Mateschitz would run the company. The product was launched in
Austria in 1987.

In Thailand, energy drinks are most popular with blue-collar

workers. Red Bull re-positioned the drink as a trendy, upscale
drink, first introducing it at Austrian ski resorts. Pricing was a key

14
differentiator, with Red Bull positioned as a premium drink and
Krating Daeng as a lower cost item. In many countries both drinks
are available, dominating both ends of the price spectrum. In 1992,
the product expanded to international markets: Hungary and
Slovenia. It entered the United States via California in 1997 and the
Middle East in 2000. In 2008, Forbes magazine listed both Chaleo
and Mateschitz as the 250th richest people in the world with an
estimated net worth of US$4 billion.

Red Bull is headquartered in Fuschl am See, an Austrian village of

about 1,500 inhabitants near Salzburg. The company is 51 percent
controlled by the Yoovidhya family who, for technical reasons,
own the trademark in Europe and the US. In 1995, Krating Daeng
authorized its drink labelled as Red Bull, to be sold in China. Since
2014, the Austrian Red Bull (carbonated) has also been exported to
China. This has created confusion since both drinks use the same
brand name, in both English and Chinese. Similarly, in Southeast
Asia, Red Bull and Krating Daeng are often confused as both use
the Red Bull name in their packaging, although they are two
separate products aimed at different markets. The main difference
is that Red Bull comes in a tall blue and silver can while the

15
 Thailand Red Bull, or Krating Daeng, is in a smaller gold can. The
two drinks also differ in terms of taste —- Red Bull has less sugar
and is carbonated. The flavouring used for Red Bull is still
produced in Bangkok and exported worldwide.

2.2.2 COMPANY PROFILE

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 171 countries and over 62 billion
cans of Red Bull have been consumed so far. Red Bull is much more than
a soft drink--it is an energy drink. It was made for moments of increased
physical and mental stress and improves endurance, alertness,
concentration, and reaction speed. In short: it vitalizes body and mind.
The effectiveness of Red Bull Energy Drink has been proven by a large
number of scientific studies and is appreciated by many of the world's top
athletes and drivers, opinion-leaders and hard-working people with active
16
lifestyles. Red Bull GmbH produces the world's leading energy drink.
More than a billion cans a year are sold in nearly 100 countries. Red Bull
holds a 70 percent share of the world market for energy drinks, or
functional beverages, a category it was largely responsible for building.
Its dominant position in the fastest-growing segment of the soft drink
market in a number of countries has drawn a number of imitators. Red
Bull has become a case study in successful guerilla marketing in the
United States and United Kingdom. Marketing is aimed at hip young
people with active lifestyles, though the formula began as a popular tonic
for blue collar workers in Thailand. Mateschitz founded Red Bull GmbH
in Austria in 1984 as a 49 percent partner with Chaleo Yoovidhya and his
son. The company began marketing its namesake drink in Austria in
1987; a million cans were sold in the year. Red Bull associated itself with
the nascent extreme sports movement. The company sponsored
snowboarding and free skiing contests and Flugtag, a homemade flying
machine challenge. Red Bull had appealed to athletes and, in the United
States, tired white-collar workers, the real story of Red Bull's growth lay
in the promise of further endurance at clubbing, giving it a special appeal
for young people exhausted from working hard all week. The Los
Angeles Times reported that the beverage appeared to glow green under
the fluorescent light of nightclubs. The drink became a very popular
mixer, especially with vodka. As of the end of 2016, Red Bull employed
11,865 people in 171 countries - compared to the end of 2015 when we
had 10,997 employees in 169 countries. 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 6.062 billion cans of Red Bull
were sold worldwide in 2016, representing an increase of 1.8% against an
already very successful 2015. Company turnover exceeded the six-billion-
euro mark for the first time, increasing from EUR 5.903 billion to EUR
17
 6.029 billion. The main reasons for such positive figures include
outstanding sales in the markets in Chile (+28%), Scandinavia (+13%),
Poland (+13%), the 8Netherlands (+12%) and South Africa (+10%),
combined with efficient cost management and ongoing brand investment.

2.3 RED BULL’S VISSION

Red bull’s vision is to provide more and more satisfaction to their
customers, employees and sell their product all over the globe.

Customers… amazing energy drink to energize them

Employees… giving jobs to 11,865 people over 171 countries.

2.4 RED BULL’S MISSION

Red Bull GmbH are dedicated to upholding Red Bull standards, while
maintaining the leadership position in the energy drinks category when
delivering superior customer service in a highly efficient and profitable

18
 manner. We create a culture where employees share best practices,
dedicated to coaching and developing our organization as an employer of
choice.

2.5 RED BULL’S VALUES

TheCompany’svalues are constant and define the waythat all the employees
are expected to behave and conduct business everywhere in the world. Red
bull cherishes following values-

 Customer orientation

 Best quality

 Creating employment

 Innovation

 Employee satisfaction

 Growth orientation

2.6 INNOVATION
Red Bull is an energy drink that was launched in Austria in 1987 by an
entrepreneur, Dieter Matteschitz. He built the company up to annual sales
now worth €1.5 billion. Red Bull’s success story is remarkable as the soft
helped the company cross the chasm. Since the initial target customers –
extreme sports enthusiasts and clubbers—were influential opinion leaders,
the mass market quickly reacted to consume Red Bull. Furthermore, the
segmented approach enabled Red Bull to offer its product at a higher price
as the willingness to pay of their target segment was higher than the mass
19
 market. Although Red Bull now caters to the mass market, it has been able
to maintain customer’s higher willingness to pay. Finally, Red Bull
innovated new channels such as clubs and bars instead of relying on big
retailers. This allowed Red Bull to shorten its “time to market”—which
was an essential factor in fighting off mighty incumbents. Another factor
that enabled Red Bull’s success was its early solidification of a strong
brand name before the incumbents entered the fight. This was another
crucial factor that enabled Red Bull to maintain and grow its market share
in spite of its extremely limited product portfolio. In order for Red Bull to
grow in the future, we believe it is imperative to expand into new market
segments as well as horizontally expand its product offerings (i.e. energy
gel, alco-pops, etc). As the incumbents are now fiercely trying to overthrow
Red Bull from its number one position, Red Bull must enhance its brand
positioning in the market.

2.7 RED BULL AS A BRAND NAME

Drink industry is one with high barriers to entry and soft drink companies
have to deal with high buyer power of distribution and retailers. This is all
due to the dominant brands like Coca Cola and Pepsi having a tight grip on
the retailers and their shelf space. Nonetheless, Red Bull has been able to
enter this market successfully by innovating in a variety of ways :-

 Product innovation :- Red Bull created a product that fills the gap in
consumer needs for a cold drink that gives mental energy.

 Market segmentation innovation :- Red Bull used a very targeted

approach compared to the mass marketing approach of the
incumbents.

20
  Channel innovation :- Red Bull used a “pull” strategy in order to
gain shelf space in the retail channel. Pull is created by gaining
popularity among the consumers by offering products in alternative
channels, for example bars and health clubs.

 Marketing innovation :- Red Bull has used creative onsite

promotions instead of mass marketing approach of the incumbents.
Red Bull’s market entry was clever in several ways. Their focused
segmentation and marketing efforts.

Red Bull has been so successful because it’s built a brand that commands
loyalty from its customers. Red Bull is a utility drink to be taken against
mental or physical weariness or exhaustion. Energy drinks combines two
natural substances and important metabolic Transmitters - the amino acid
taurine and the glucuronolactone with stimulating caffeine, vitamins and
the energy provided by carbohydrates, Energy drinks is designed to
increase endurance and concentration, improve reaction speed, and
stimulate the metabolism.

The reason Red Bull is so successful is because it’s the king of online
branded video content. It’s turned its brand into an experience, rather than a
simple energy drink – and video is the ideal medium to accomplish this.
Video can help form a highly engaged audience that shares content widely,
because it so easily allows a bond to be formed with the audience.

2.8 FACTORS FOR SUCCESS

I. BRAND FOCUS – ONE BRAND, ONE PRODUCT:

To be successful in this market, Red Bull needs a clear and consistent
statement that rings benefits in the mind of the consumer. This
21
 statement has to be supported by a long-term marketing expenditure,
with the aim of developing a consistent, clear and uncompromising
brand position in the competitive market. This brand focus and
position has to be enhanced by the creation of new categories of
products with perceived or felt benefits to the consumer. Red Bull has
already practiced this business strategy-which has worked well for the
company.

II. PREMIUM PRICING:

To maintain its market position, Red Bull must continue to be seen as
a premium product in the market. there are various objectives to
pricing, such as profit, revenue and quantity maximization, quality
leadership can also be achieved through this strategy. This is why Red
Bull is keen on applying pricing strategy to maintain its quality
perception. This strategy is often referred to as ‘premium pricing’ and
can work well for the company in the next three years. Red Bull is not
cheap-it’s indeed more expensive than its competitors. It however still
retains a large market share. In some cases, Red Bull managers,
determine the prices to be sold at cafes, restaurants, pubs, night clubs
and hotels. The company can also focus on Psychological pricing
which aims at sending signals of what the consumer considers fair,
product quality and popular price points.

III. ABOVE – THE LINE ADVERTISING:

Red Bull has adopted a market communication strategy that will work
to maintain the brand in the market for long. The company has to keep
strengthening its slogan ‘Red Bull gives you wings’-which is aimed at

22
 building the brand personality. In its marketing, the company should
also enhance the use of opinion leaders and other personalities in
sports, media and culture-which are a perfect target. Red Bull should
continue building more relationships with these groups and treating
them as friends. Agreements and partnerships with top athletes is
working well for the company. Red Bull should sponsor and organize
more events, in sports and culture. This is ‘event marketing’ aimed at
enhancing the brand image of the company.

IV. CONSUMER BENEFIT:

The health benefit provided, by these energy drinks is like all the best
performing functional food. The health benefit is easily detectable and
effective. It is most efficient in providing advantage which can be felt
by the customers. This is the key for creating brand loyalty.

2.9 COMPETITORS
Although Red Bull still maintains a dominant position in many significant
markets, it is no longer the only player. The major challenge to Red Bull's
leading position has come from US-based imitators: Monster, Rockstar and
Full Throttle which have introduced price competition to the segment and
23
 this is possible to have become more and more important during the
depression periods. (Strategy)
Consumption percentage of red bull and its competitors are as follows:

2.10 MAJOR COMPITITORS OF RED BULL

Monster: This energy drink is following each and every step that can make
itsimilar to Red Bull and gain advantage by providing the product at
relatively low price. The cost of both the products are $2 per can but the
quantity of Monster is just double than that of Red Bull.

Rockstar: This competitive energy drink whose motto is "party like

aRockstar", targeted at the younger consumers who want to be "wild and
crazy" and spend all night dancing. There are a number of flavours of
Rockstar - cola, energy drink, and juiced. The energy drink is similar in
taste to all the others, whereas the cola product has the best taste. The
juiced version is said to be 70% real fruit juice and 100% energy. They
were the first to use the 16oz larger size, and this has fixed and become the
standard. Only Red Bull continues to market the smaller cans, which is part
of their image.
24
Full Throttle: It is manufactured and owned by Coca Cola, just like their
CokeBlack mixture of coffee/cola drink. Full Throttle energy drink is
marketed as a rebellious drink, with erupting flames on the can. An 8 oz.
serving has 110 calories (comes in a 16 oz can) and 29g of sugar. It also
includes things like ginseng extract and plenty of caffeine. Full Throttle
comes with a citrus taste and a red can. Full Throttle was first introduced to
the market in 2005. It is targeted at 20-30-year-old men and contains
Taurine like Red Bull.

From the above stated information, we can find that:

i. Monster is similar to Red bull in taste, but only targets males. It has
two advantages over RB in price and quantity which is double size of
RB.

ii. Rockstar is double the size and Price as it is 1.99$ so it is cheaper

than RB.

iii. Full Throttle has the same taste and ingredients as RB, but it has
advantage of quantity and price

There are also other industries where Red Bull GmbH competes such as
sports, leisure and recreation.

25
 CHAPTER – 3

INTRODUCTION

3.1 PURPOSE OF STUDY

Marketing Mix of Red Bull analyses the brand/company which covers
4Ps (Product, Price, Place, Promotion) and explains the Red Bull
marketing strategy. The project elaborates the pricing, advertising &
distribution strategies used by the company.

3.2 OBJECTIVE OF THE STUDY

a) To understand the need for an Energy Drink in the market.

b) To understand about its features keeping in mind the consumer

needs.

c) To analyse the nearest competitors of Red Bull Energy Drink.

d) To ascertain the factors that affects the choice of Red Bull as

opposed to its competitors.

3.3 RESEARCH METHODOLOGY

Research Methodology is a way to find out the result of a given problem
on a specific matter or problem that is also referred as research problem.
In Methodology, researcher uses different criteria for solving/searching
the given research problem. Different sources use different type of
methods for solving the problem. If we think about the word
“Methodology”, it is the way of searching or solving the research
problem.

26
 In Research Methodology, researcher always tries to search the given
question systematically in our own way and find out all the answers till
conclusion. If research does not work systematically on problem, there
would be less possibility to find out the final result. For finding or
exploring research questions, a researcher faces lot of problems that can
be effectively resolved with using correct research methodology.

3.3.1 RESEARCH DESIGN

Secondary data refers to data that was collected by someone other than
the user. Common sources of secondary data for social
science include censuses, information collected by government
departments, organizational records and data that was originally
collected for other research purposes. Primary data, by contrast, are
collected by the investigator conducting the research.

Secondary data analysis can save time that would otherwise be spent
collecting data and, particularly in the case of quantitative data, can
provide larger and higher-quality databases that would be unfeasible for
any individual researcher to collect on their own. In addition, analysts
of social and economic change consider secondary data essential, since
it is impossible to conduct a new survey that can adequately capture
past change and/or developments. However, secondary data analysis
can be less useful in marketing research, as data may be outdated or
inaccurate.

Secondary data refers to data that was collected by someone other than

the user. Common sources of secondary data for social
science include censuses, information collected by government
departments, organizational records and data that was originally
27
 collected for other research purposes. Primary data, by contrast, are
collected by the investigator conducting the research.

Secondary data analysis can save time that would otherwise be spent
collecting data and, particularly in the case of quantitative data, can
provide larger and higher-quality databases that would be unfeasible for
any individual researcher to collect on their own. In addition, analysts
of social and economic change consider secondary data essential, since
it is impossible to conduct a new survey that can adequately capture
past change and/or developments. However, secondary data analysis
can be less useful in marketing research, as data may be outdated or
inaccurate.

3.3.2 SOURCES OF SECONDARY DATA

Secondary data can be obtained from different sources:
a) Information collected through censuses or government departments
like housing, social security, electoral statistics, tax records
b) Internet searches or libraries
c) Progress report

3.3.3 ADVANTAGES AND DISADVANTAGES OF

SECONDARY DATA
Secondary data is available from other sources and may already have
been used in previous research, making it easier to carry out further
research. It is time-saving and cost-efficient: the data was collected by
someone other than the researcher. Administrative data and census data
may cover both larger and much smaller samples of the population in
detail. Information collected by the government will also cover parts of

28
 the population that may be less likely to respond to the census (in
countries where this is optional).

A clear benefit of using secondary data is that much of the background

work needed has already been carried out, such as literature
reviews or case studies. The data may have been used in published texts
and statistics elsewhere, and the data could already be promoted in the
media or bring in useful personal contacts. Secondary data generally
have a pre-established degree of validity and reliability which need not
be re-examined by the researcher who is re-using such data.

3.3.4 SECONDARY ANALYSIS OR RE-USE QUALITATIVE

DATA
Qualitative data re-use provides a unique opportunity to study the raw
materials of the recent or more distant past to gain insights for both
methodological and theoretical purposes.

In the secondary analysis of qualitative data,

good documentation cannot be underestimated as it provides necessary
background and much needed context both of which make re-use a
more worthwhile and systematic endeavor.

3.4 LIMITATIONS
Though there were lots of short comings in conducting the research work
from which some of them could be listed:
o Secondary data can be general and vague and may not really
help companies with decision making.
o The information and data may not be accurate. The source of

29
 the data must always be checked.
o The data maybe old and out of date.
o The company publishing the data may not be reputable.

CHAPTER – 4
INTRODUCTION TO MARKETING MIX

The 'marketing mix (also known as the 4 Ps) is a foundation model in marketing.
The marketing mix has been defined as the "set of marketing tools that the firm
uses to pursue its marketing objectives in the target". Thus, the marketing mix
refers to four broad levels of marketing decision, namely: product, price,
promotion, and place. Marketing practice has been occurring for millennia, but
marketing theory emerged in the early twentieth century. The contemporary
marketing mix, or the 4 Ps, which has become the dominant framework for
marketing management decisions, was first published in 1960. In services

30
marketing, an extended marketing mix is used, typically comprising 7 Ps, made
up of the original 4 Ps extended by process, people, and physical evidence.
Occasionally service marketers will refer to 8 Ps, comprising these 7 Ps plus
performance.

In the 1990s, the model of 4 Cs was introduced as a more customer-driven

replacement of the 4 Ps. There are two theories based on 4 Cs: Lauterborn's 4
Cs (consumer, cost, communication, convenience), and Shimizu's 4 Cs
(commodity, cost, communication, and channel).

Given the valuation of customers towards potential product attributes (in any
category, e.g. product, promotion, etc.) and the attributes of the products sold
by other companies, the problem of selecting the attributes of a product to
maximize the number of customers preferring it is a computationally
intractable problem.

The original marketing mix, or 4 Ps, as originally proposed by marketer and

academic E. Jerome McCarthy, provides a framework for marketing decision-
making. McCarthy's marketing mix has since become one of the most
enduring and widely accepted frameworks in marketing.

4P’s

The 4Ps have been the cornerstone of the managerial approach to

marketing since the 1960s.

31
Product refers to what the business offers for sale and may include products
orservices. Product decisions include the "quality, features, benefits, style,
design, branding, packaging, services, warranties, guarantees, life cycles,
investments and returns".

Price refers to decisions surrounding "list pricing, discount pricing,

exclusive offer pricing, credit payment or credit terms". Price refers to the
total cost to customer to acquire the product and may involve both
monetary and psychological costs such as the time and effort expended in
acquisition.

Place is defined as the "direct or indirect channels to market, geographical

distribution, territorial coverage, retail outlet, market location, catalogues,
inventory, logistics and order fulfilment". Place refers either to the physical
location where a business carries out business or the distribution channels
used to reach markets. Place may refer to a retail outlet, but increasingly
refers to virtual stores such as "a mail order catalogue, a telephone call
Centre or a website".

Promotion refers to "the marketing communication used to make the

offer known to potential customers and persuade them to investigate it
further". Promotion elements include "advertising, public relations,
direct selling and sales promotions.

32
Category Definition/ Explanation Typical Marketing
Decisions
Product A product refers to an • Product design –
item that satisfies the features, quality
consumer's needs or • Product
wants. assortment –
Products may be tangible product range,
(goods) or intangible product mix,
(services, ideas or product lines
experiences). • Branding
• Packaging and
labelling
• Services
(complementary
service, after-sales
Service)
• Guarantees and
warranties
• Returns

Managing products
through the life-cycle.

Category Definition/ Explanation Typical Marketing

33
 Decisions
Price Price refers to the amount • Price Strategy
a customer pays for a
product. • Price Tactics

Price may also refer to the • Price setting

sacrifice consumers are
prepared to make to • Allowances
acquire a product. (e.g. rebates for
(e.g. time or effort) distributers)

Price is the only variable • Discounts for

that has implications for customers
revenue.
Payment terms –
Price also includes credit payment
consideration of methods
customer perceived value.

Category Definition/ Explanation Typical Marketing

Decisions
Place Refers to providing • Strategies such as
customer access intensive
Considers providing distribution,
convenience for selective
consumer. distribution,

34
 exclusive
distribution.
• Franchising
• Market coverage
• Channel member
selection and
channel member
relationships.
• Assortment
• Location
decisions
• Inventory

• Transport, logistics
& warehousing.

Category Definition/ Explanation Typical Marketing

Decisions
Promotion Promotion refers tor • Promotion Mix -
marketing appropriate
communication. balance of
May comprise elements advertising, PR,
such as: advertising, PR, direct marketing
direct marketing and sales and sales
promotion. promotion.
• Message strategy -
what is to be
communicated.
• Channel/ Media

35
 strategy – how to
reach the target
audience.

TABLE: DEPICTING 4 P’S

CHAPTER – 5

MARKETING MIX OF RED BULL

5.1 PRODUCT MIX

Product is the most basic marketing mix tool. It is the tangible offer to the
market. A Product can be anything that satisfies a need or wants in
exchange for some form of payment (where the payment may sometimes
be benefits other than money).

36
 Red Bull drink idea came from Krating Daeng which is a non-carbonated
energy drink available originated in Thailand. Red Bull drink contained
ingredients similar to that but a few more added to accommodate the
western taste and also became carbonated. The product mix of Red Bull
can be elaborated as follows. Red Bull energy drink contains caffeine,
taurine, B vitamins, sucrose and glucose which is mainly required by
workaholics, sports people or even youth who want to party at night. As
there is a usual trend that occurs in the younger segment, they came up with
a sugar free variant called Red Bull Sugar Free which contains aspartame
and acesulfame K instead of sucrose and glucose. The drink is available in
a tall blue-silver can with 2 red bulls on the front whereas Krating Daeng is
a gold short can. The two products are produced differently and available in
different countries and red bull is a much more popular energy drink
worldwide. In addition to this, in the product mix the company also put
focus on the taste and quality of the products. The health aspects of the
customers are kept on the high priority by the company. The packing of the
products is also done in an effective way so that customers can be attracted
to a good level and gives a higher edge to the company.

5.2 PRODUCT RANGE

i) Red Bull Energy Drink

37
 Red Bull Energy Drink is a functional beverage with a unique
combination of ingredients. It has been specially developed for times
of increased mental and physical exertion. Red Bull Energy Drink
vitalizes body and mind. Red Bull Energy Drink
 increases performance
 increases concentration and reaction speed
 improves vigilance
 improves the emotional status
 stimulates metabolism

Red Bull’s effects are appreciated throughout the world by top

athletes, busy professionals, active students and drivers on long
journeys.

ii) Red Bull Sugar free

Red Bull Sugar free is a functional beverage with a unique

combination of ingredients. It has been specially developed for times
of increased mental and physical exertion. Red Bull Sugar free
vitalizes body and mind.

38
iii) Red Bull Cola

The cola from Red Bull is a unique blend of ingredients, all from
100 % natural sources. In addition, it is the only cola which
contains both the original Kola nut and the Coca leaf. The result is
a natural, not-too-sweet cola taste, which comes from using the
right plant extracts.
Available - Austria, Switzerland, United Kingdom, Italy, Ireland,
Russia, USA, Belgium, Luxemburg.

iv) Red Bull Energy Shot

Red Bull Sugar-free Shot is a concentrated Red Bull Sugar-free in a

60ml bottle with the same functional ingredients as in a Red Bull
Sugar-free 250ml can and only 2 calories.

39
5.3 PRODUCT LEVEL

Core benefit - the core benefit of energy drink is to boas energy of the
consumer.

Basic product - in the second level, the basic product is drink.

Expected product - the consumers expect the product to have a good

taste and also give nutrition.

Augmented product – red bull increases a person ‘s energy levels. This is

not always expected by the consumers and hence
exceeds customer ‘s expectations.

Potential product - in the future red bull could come up with various
products such as an energy drink with new flavours or
fusion of some flavours.

5.4 CLASSIFICATION OF PRODUCT

Based on tangibility- red bull energy drinks are tangible, i.e. one can see
and touch them.

Based on functional life- red bull energy drinks are consumables since the
demand of energy drinks is rising with high rate.

Based on price and quality- red bull energy drinks are premium or
prestige products.

40
 Based on utility- red bull energy dinks gives a boast to the body. It’s a
sports drink required by the sports persons more often
and its fusion with other hard drink is also trending.

5.5 CONSISTENCY
The product consistency generally depends on 3 parameters.

1) Production
2) Distribution
3) Consumer end-user

The production process of every red bull follows :

• Caffeine
The active ingredient in Red Bull is caffeine, a mild stimulant also
found in coffee and tea that can increase metabolism, concentration,
reaction time and energy. Caffeine can be addictive, and withdrawal
symptoms include headaches and irritability.

• Taurine
Red Bull contains taurine, an amino acid that has many functions. It
regulates levels of waters and salt in the body, as it can form into bile
salts. It works as an inhibitory neurotransmitter in the brain and can
also affect learning and memory. Taurine is also an antioxidant and
may play a role in formation of fat tissue.

• Glucuronolactone
Red bull contains glucuronolactone, a chemical made naturally in the
body when glucose is metabolized. Glucuronolactone may fight fatigue
and it is present in many energy drinks.
41
 • Vitamins
Red Bull contains several B vitamins. Niacinamide, better known as
niacin or vitamin B-3, is necessary for metabolism as well as DNA
repair and production of steroid hormones. Calcium pantothenate,
better known as pantothenic acid or vitamin B-5, is necessary to make
co-enzyme A as well as synthesize proteins, fats and carbohydrates.
Pyroxidine HCL, better known as vitamin B-6, is necessary for protein
metabolism and the reaction converting glycogen to glucose. Vitamin
B-12, also known as cobalamin, is necessary for metabolism, blood
formation and fatty acid production.

• Sugars and Flavourings

Red Bull contains two types of sugar: glucose and sucrose, as well as
artificial flavorings. A sugar-free Red Bull sweetened with artificial
sugar is also available.

5.6 BRAND
The red bull, such as, energy drinks enjoy a strong imagery and appeal
amongst consumers. name symbolizes quality, health and great taste. And
yet, this reputation has been built, by constantly innovating and catering to
new tastes. This can be seen by the success of latest brands.

42
 Red bull follows both line extension and brand extension for its products. For
a product like basic red bull energy drink it followed line extension with the
introduction of red bull’s sugar free edition there flavor editions. Initially red
bull used to produce only one flavor.

5.7 PRODUCT LIFE CYCLE

Naturally, Red Bull’s production and global distribution needs energy and
thus causes an environmental impact. Whether through increasing
implementation of wall-to-wall production or optimization of its supply
chain, Red Bull sets itself ambitious targets to further minimize its
environmental impact and energy use.

5.8 PACKAGING
Red Bull’s iconic symmetrical image of fighting bulls suggests power
andendurance and is now often identified with extreme sports. Indeed, the
productis marketed towards young athletes in need of extra energy while
practicing their sport.

However, it’s not just the bull image standing out, the can itself – the
shape, size and material – is also instantly recognizable. A bold move,
indeed, by Red Bull when they first entered the market years ago. It has
become the standard for the energy drink market.

43
5.9 PRICE MIX

Price refers to decisions surrounding "list pricing, discount pricing, special

offer pricing, credit payment or credit terms". Price refers to the total cost
to customer to acquire the product and may involve both monetary and
psychological costs such as the time and effort expended in acquisition.
Price is influenced by the type of distribution channel used, the type of
promotions used, and the quality of the product. Where manufacturing is
expensive, distribution is exclusive, and the product is supported by
extensive advertising and promotional campaigns, then prices are likely to
be higher. Price can act as a substitute for product quality, effective
promotions, or an energetic selling effort by distributors in certain markets.

From the marketer's point of view, an efficient price is a price that is very
close to the maximum that customers are prepared to pay. The objectives of
pricing should consider:

 the financial goals of the company (i.e. profitability)

 the fit with marketplace realities (will customers buy at that price?)

 the extent to which the price supports a product's market positioning

and be consistent with the other variables in the marketing mix

44
Red Bull has a number of competitors in the energy drinks industry but yet
they are the market leaders. Hence, the pricing strategy is that of a market
leader but based on competitor pricing. Being on the top they can easily
charge a premium for their products and customers will even buy it for
their quality. Red Bull was the first in its category so it will always be the
number one choice for customers and its demand will never decrease.
People prefer buying Red Bull in bulk as its’ cheaper than buying a single
can. Yet overall they are the most expensive energy drink compared to
competitors like Rockstar, Tzinga, Cloud 9, Gatorade, Monster and KS. In
all the international markets, the company sets its prices on equal level in
order to attain high degree of competitive position in the global beverage
industry.

45
5.10 PLACE MIX

Place is defined as the "direct or indirect channels to market, geographical

distribution, territorial coverage, retail outlet, market location, catalogues,
inventory, logistics and order fulfilment". Place refers either to the physical
location where a business carries out business or the distribution channels
used to reach markets. Place may refer to a retail outlet, but increasingly
refers to virtual stores such as "a mail order catalogue, a telephone call
centre or a website". It is the process of making a product or service
available for the consumer or business user that needs it.

Red Bull has greater degree of emphasis on the place mix element of its
marketing mix strategy. Under the place mix, Red Bull does the
distribution of its products on international level. Red Bull has successfully
managed to sell 5.9 billion cans worldwide in 2015 owing to its vast
distribution network worldwide. Red Bull is available at convenient
locations like a supermarket, convenience store, retail outlet or even night
clubs, bars and casinos. This way it becomes very easy for a customer to
buy the product. Also, Red Bull is often stored in Red Bull exclusive
refrigerators attracting customers to buy an energy drink when they go
grocery shopping or to a bar. Red Bull is also available online either in bulk
packs or single making it easier for customers to buy it in bulk. The main
motive of selling this drink at night clubs and bars is either people prefer
46
 mixing it with an alcoholic beverage to add some extra flavor or sometimes
it is just to help them stay up late and party with friends. At supermarkets
and convenience stores they are placed along with other competitive
products giving the customer a choice between which one to buy.

5.11 PROMOTION MIX

In marketing, promotion is advertising a product or brand, generating sales,

and creating brand loyalty. It is one of the four basic elements of the market
mix, which includes the four P's: price, product, promotion, and place.

Promotion is also defined as one of five pieces in the promotional mix or

promotional plan.

These are personal selling, advertising, sales promotion, direct marketing,

and publicity. A promotional mix specifies how much attention to pay to
each of the five factors, and how much money to budget.

Promotion covers the methods of communication that a marketer uses to

provide information about its product. Information can be both verbal and
visual.

There are three objectives of promotion. These are:

 To present information to consumers and others.

 To increase demand.

47
  To differentiate a product.

The purpose of a promotion and thus its promotional plan can have a wide
range, including: sales increases, new product acceptance, creation of brand
equity, positioning, competitive retaliations, or creation of a corporate
image.

The term 'promotion' tends to be used internally by the marketing function.

To the public or the market, phrases like "special offer" are more common.

Red Bull high degree of emphasis on the promotion of the products. For
promotional purpose, Red Bull organizes several kinds of activities in its
marketing process to promote its products on the global level. Red Bull being
an energy drink mostly targets sports people with their tagline “Red Bull
gives you wings” so owing to a huge customer base they organize a lot of
sports events and even sponsor teams as well as the events. Some of these
events include mountain biking, BMX, motocross, windsurfing, surfing,
skating, Formula 1, Red Bull Startos, Red Bull Foxhunt, Red Bull Cape Fear,
Red Bull BC One, Red Bull Battle Grounds, etc. They also endorse various
sports athletes and celebrities. Besides sports they also have a Red Bull House
of Art where they encourage artists to display their art in a period of 3 months
at their exhibitions. They have Red Bull T.V available on laptops, PCs,
mobiles, gaming consoles and tablets airing various music festivals, shows,
films, performances and videos. Red Bull also have their own merchandise
stores online and magazines for extreme sports persons. Sources of its
promotion are described below –

 Media Advertising –

48
Red Bull uses all the available media channels, meaning cinema,TV,
radio, press and the internet. In other words, the company focuses on
the media through which it reaches its primary target market-young
people.

Therefore, they advertise in TV shows like T.F.I. Friday and in

magazines like Time Out and men’s health. Their advertisements in the
different media channels are very successful. They allow the
consumers to interpret the product and the moments of use themselves.
Red Bull achieves this by a humorous and witty cartoon campaign,
transferring the message that this energy drink helps you to escape by
`giving you wings ´. The idea of communicating with the consumer in
form of a simple cartoon has got the advantage that the message is easy
to understand. People do not only enjoy the campaigns they even
remember what the product is called and what it delivers, which is the
most important characteristic for a successful campaign.

49
 Sports and Event Sponsoring –

The company also implements sponsoring in their marketing mix

strategy. Sponsoring supports the image, the credibility and the
visibility of the product.

On the one hand Red Bull sponsors the athlete target market in either
extreme sports such as free climbing, paragliding and motorsports or
fun sports, but always where Red Bull is needed. This strategy
contributes to Red Bull that the brand appears (logos and stickers) and
that the product ´s target market is more precisely defined.

On the other hand, Red Bull does event sponsoring. The company
either creates its own events (i.e. Red Bull Music Academy .......)
where the whole events are promoted by Red Bull or they promote
other events (i.e. Speed Ski World Championship). Event sponsoring
attracts people’s attention towards the product and connects them.

 Sampling –
50
 Sampling is another very important part of the three-pillar marketing
system. The methods used are well tested and proven in other markets.
As the major purpose of Red Bull is to energise the company samples
at the right place at the right time, where it finds its exact target market.

Examples of usage are driving, studying, working night shifts and

sports. Red Bull is following the basic sampling rules consisting of:

i. never impose the product

ii. always explain the benefits of the product

iii. drink always a full can (250 ml)

iv. It must always be chilled

v. Always being cautious about whom you are sampling the

product

This year 8 teams will sample 400,000 consumers across the entire
country.

Through all these promotional activities they want customers to recall

their brand every time they see or hear energy drink thus increasing
their customer base. Hence, this covers the marketing mix of Red Bull.

5.12 SWOT ANALYSIS

51
 SWOT Analysis is a general technique which can be applied across diverse
management functions and activities but its application is particularly
appropriate to appropriate to the early stage of strategy making and
marketing plan.

SWOT involves generation and recording of strengths, weaknesses,

opportunities and threats concerning a task, individual, department or
organization, it is customary to take account of internal resources and
capabilities (strengths & weakness) and factors external to organization
(opportunities & threats).

SWOT analysis is an effective way of identifying your strengths and

weaknesses and of examining the opportunities and threats.

What makes it particularly powerful is that with a little thought, it can help
you uncover opportunities that you are well placed to take advantage of.
And by understanding your weakness, you can manage and eliminate
threats that would otherwise catch you unawares.

More than this, buy looking at yourself and your competitors using the
SWOT framework, you can start to craft a strategy that helps you compete
successfully in your market.

5.13 SWOT ANALYSIS OF RED BULL

52
 Red Bull as a premium market leader within a product classification that is
low involvement and highly contingent on the image and perceived
efficacy of the product. Red Bull- SWOT Analysis examines the
company’s key business structure and operations, history and products and
provides summary analysis of its key revenue lines and strategy. Following
are the points in the SWOT analysis of Red Bull –

5.13.1 STRENGTHS

53
1. Market leadership in the global scale- Red Bull is sold in more
than 169countries and about 60 billion cans of Red Bull have been
consumed so far. The company sold more than 5.9 billion of cans
in 2015 alone. Market leadership in the global scale is an
indication of a considerable strength from the viewpoint of the
brand equity and consumer loyalty.

2. Increasing popularity in emerging markets- Red Bull is engaged in

international market expansion with a focus on emerging markets
in an aggressive manner. In 2015, Red Bull sales in Turkey, South
Africa and India increased by 25 per cent, 19 per cent and 18 per
cent respectively. The current strategy of increasing presence in
developing countries is set to contribute to the long-term growth
prospects of the business.

3. Strong and visionary leadership by Dietrich Mateschitz -Dietrich

Mateschitz is a proven visionary leader who had to deal with
multiple obstacles during his pursuit of making Red Bull an
undisputed market leader in energy drink segment around the
globe. Innovative ideas of Dietrich Mateschitz for the further
development of the business are far from being dried and point
marks one of the noteworthy strengths of the brand.

4. Solid financial position-Red Bull is No.74 the most valuable brand

in the world with the brand value of USD 7.9 billion according to
Forbes. In 2015 alone, the company generated EUR 5.903 billion,
a 15.5 per cent increase compared to the previous year. Solid
financial position is a strategically important strength in terms of
enabling the company to engage in research and development to
enhance long-term growth prospects of the business.
54
5.13.2 WEAKNESS

1. Red Bull consumption has been linked to the cases of health

deterioration and in some occasions with fatal outcome for
consumers. These include the cases of Australian Matthew
Penbross’s, whose heart stopped after consuming 8 Red
Bulls within 5 hours in 2007 and 33-year-old Cory Terry,
from Brooklyn, whose death was linked to regular Red Bull
consumption in 2011. While the actual extent of the role of
Red Bull to the deaths of these people is a debatable matter,
there is consensus that overconsumption of the energy drink
will have negative health implications. This is because each
can contain 80 milligrams of caffeine along with taurine
(0.4pc) and pantothenic acid (B6, B12) – substances that
impose risks to health if consumed in more than moderate
quantities.

2. The company’s product range is limited to the following four

groups:

i. Red Bull Energy Drink

ii. Red Bull Sugar Free

iii. Red Bull Zero Calories

iv. Red Bull Editions: tropical, blue and orange editions

v. Red Bull Simply Cola

55
 A lack of choice for customers can be a considerable weakness
taking into account the increasing level of customer expectations
and a growing popularity of product customization according to
consumer needs and preferences.

5.13.3 OPPURTUNITIES

1. Red Bull needs to adopt the innovative policy to extend their

strategy and get the market share of the product.

2. The vending process can increase the sale of the product and
it can represent the commitment for its distribution network.

3. Red Bull needs to expand their business and look for new
emerging markets to get good growth of its product.

4. The new production of Red Bull can facilitate in new markets

and countries to get the retail price at the competitive level.

5. The company can keep or improve its market share with the
introduction of new flavours of its product.

5.13.4 THREATS
1. Competition –Monster represents the biggest threat as it contains
natural ingredients, which seems more desirable than Red Bull for
some consumers. Competition is becoming more and more
dangerous in term of marketing actions (copying Red Bull).

56
 2. High marketing costs –Maturity in developed markets makes
promotion harder than in the past, inducing higher marketing
costs.

3. Negative publicity –Media worldwide report Red Bull as harmful

for health. Parents also state that some components can be
dangerous if consumed by their teenagers (who are the product’s
target audience).

5.14 REASONS TO PURCHASE RED BULL

1. High quality products- all the products by this company are up to

the mark not only for its taste or benefits even for its high quality.

2. Available almost all over the globe- 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.

3. High brand equity- All the products are of high standards and they
provide complete satisfaction to all the customers which has led to
creation of a strong brand image of the company.

4. Value for money products – The products manufactured by the

company are amazing and provide great customer satisfaction and
hence, provide great value for their money.

57
 CHAPTER – 6
FINDINGS

 Red Bull’s messaging strategy revolves around their tagline, “Red

Bull gives you wings.” It focuses on the idea that their product gives

people the “wings” or energy they need to do whatever they want

when they want.

 Their values play a role in their content as well. They center around

one core phrase “giving wings to people and ideas.” Everything that

the Red Bull team communicates revolves around that tagline and

their values.

 Publishing awesome content: The content that the Red Bull

marketing team creates is on the same level as other major media

outlets that their audience might consume content from.

 Colossal publicity stunts: Red Bull takes “Go Big or Go Home” to

the next level by producing massive stunts that cause everyone to

freeze and watch what happens.

 Sponsoring or creating events: Red Bull proved its marketing

prowess by taking their product and associating it with things their

audience loves by sponsoring or creating events for them.

58
 It covers topics that interest their audience. Extreme sports, concerts

and music festivals are just a few of the topics covered on the Red

Bull website. Picture anywhere you might see someone enjoying (or

needing) a Red Bull and their content will cover it.

 Is their ability to sell their brand but not push their product. Their

content focuses solely on the enjoyment of the reader, not selling

Red Bull. In turn, their audience begins to associate their product

with content that they love to consume.

59
 CHAPTER – 7
CONCLUSION

Red Bull has demonstrated a novel approach to marketing and has introduced a
new product to the market that has spawned an entire new category of product.
Through its actions, the company has become very successful and has become
the market leader in its sector. Its use of a marketing message that is light on
selling the product but heavy on building the brand image and associating it with
extreme sports and other activities of interest to its target audience has possibly
shown the future direction of much marketing effort.

The current position of Red Bull remains strong in its market sector. However,
as it is now the leading brand in many markets, it will find it difficult to
maintain its position due to increased competition from other brands that have
seen the opportunities offered by the sector. The growing age of its original
target audience may also prove a factor; the company has deliberately addressed
a youthful market and as these original customers grow older, it remains to be
seen whether the product will continue to appeal to newer generations.
However, the company can n develop new markets, and it can potentially reduce
costs by focusing on domestic production. These new markets may allow the
development of complimentary new products. It is possible that these could then
be sold in its mature markets, widening its product portfolio.

Whether the company remains successful will depend on a number of factors.

Primarily, there is a question of whether the brand can continue to be trendy
now that it is well established in the market. It faces increasing competition in
its sector, and this will affect sales unless the company can successfully fend it
off. However, it can still expand into new markets and streamline its production
facilities to allow the business to continue to grow.

60
 CHAPTER – 8

SUGGESTIONS

• The company should come up with new, better and attractive flavours
to attract all segments of the market.

• The company can come up with different beverages other than energy
drinks.

• The company can reduce prices and introduce promotional campaigns

so larger mass can try the product.

• Red Bull is affiliated with caffeine industry, which might help them
exploit coffee industry.

• The packaging should help retain the chillness of the drink without
which it is tasteless.

61
 BIBLIOGRAPHY

Text books

• Marketing Management, 13th edition - Philip Kotler

• Survey Research Method - Charles Babbie

Magazines Referred

• The Red Bulletin

Websites

• https://www.wiiings.com

• https://www.google.co.in/search?
q=redbull&oq=redbull&aqs=chrome..69i57.4506j0j1&sourceid=chrom
e&ie=UTF-8

• https://coschedule.com/blog/red-bull-marketing-strategy/

• https://www.redbull.com/in-en/

• https://en.wikipedia.org/wiki/Red_Bull

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