Marketing Project – Red Bull

Market Size and Growth:

The global market for Soft Drinks as a whole is estimated to be around US$994.7 Billion in
the year 2021 and is projected to reach a revised size of US$1.4 Trillion by 2027, growing at
a CAGR of 4.9% over the analysis period 2021-2027. Out of the entire soft drinks market, the
global energy drinks market size was valued at around USD 68.1 billion in 2021, and is expected to
grow at a CAGR of 7.0% to reach over USD 100 billion by the year 2027.

Number of Red Bull Cans Sold Percentage Growth

Year
(In Billions) (Compared to previous year)
2011 4.08
2012 5.23 28.18
2013 5.39 3.059
2014 5.61 4.082
2015 5.96 6.239
2016 6.06 1.678
2019 7.5 23.76
2020 7.9 5.333
2021 9.804 24.10
Stages in Product Cycle:
Since the sale of the first Red Bull can in 1987, the company has undergone tremendous growth with
the introduction of new product variations throughout the growth period. The various stages of
product cycle is given below.

Red Bull is currently in the maturity stage of its product life cycle.
Launched in 1987, that period will be classified as the introduction stage. It was at this stage that
heave promotions were done to make the buyers aware of this new product in the market.
Distribution at this stage was selective and scattered and targeted only at a limited number of
regions.

The next few years post the introduction (probably in the early 90’s) would define the growth stage
for Red Bull. Distribution became more significant with the increased demand and acceptability of
product. More channels were added for intensive distribution in order to meet increasing demand.
Along with maintaining the existing quality, new features and improvements in product were done

The early 2000’s is when the maturity stage began. It continues to exist till this date. Red bull added
features and modify the product in order to compete in market and differentiate the product from
competition (a new sugar free version was also introduced).

Additionally, the company is at various stages in the growth cycle across various countries as well.
The stages corresponding to some countries have been plotted below.
Sales Cyclicity:
The company bases its marketing approach on promoting a high energy philosophy for the lives of its
customers, by its advertisements and campaigns it promotes a way of life more than selling its
product. Red Bull also has a young target audience which consists of the millennials, gen y and gen z,
know what their target audience wants and utilize it in their marketing strategy. Aiming at their
entire target audience, Red Bull splits the total budget allocated for marketing between all the
sections mentioned below.

Marketing Strategy

Inexpensive Satirical
Advertisiments
20% 20%
Organizing Over the top
Sporting Events
20% 20% Sponsoring Sporting Events

20% Target Audience Oriented

Marketing
Content Based Marketing

The company promotes captivating content that inspires the young audience to be more active and
adventurous. By doing so, Red Bull captivates authentic and loyal consumers as they are usually into
athletics and sport events. Because of this effort everybody knows its slogan “Red Bull gives you
wings”, as it is used across online and offline campaigns, televisions advertisements, newspapers
and billboard ads. Some of their well-known strategies used for marketing are: using pickup trucks as
mobile displays which were painted blue and silver with a giant can of the giant mounted on top of
the vehicle. The products were designed to be eye-catching and were aimed at promoting the red
bull brand as youthful and slightly off the wall. Some of the other strategies employed are:

• 1987: Introduced to the market

• 1994: Signed first two international athlete partners
• 1995: Entered the UK market
• 1997: Entered the USA market
• 1999: Created the first international kiteboarding competition
• 2001: Sold its billionth can
• 2005: Debuted as a Formula One team
• 2006: Founded NASCAR Red Bull racing team
• 2007: Founded Red Bull Records
• 2009: First win for Red Bull Racing
• 2012: Red Bull Stratos
• 2015: Earned 43% of market share for energy drinks
• 2016: Exclusive broadcaster for six major music festivals
• 2018: Launched a new line of organic sodas
• 2020: Sales soared to a record 7.5 billion cans worldwide
• 2021: Sales increased by over 24% due to pandemic
Seasonality:
While Red Bull sees its product being sold throughout the year, the season aspect comes into play
during their extravagant promotional events. For reference, most of the over-the-top stunts and
events conducted in association with Red Bull occur between the months of July and October. This
stems from that fact that according to Red Bull, everything revolves around one concept: creating
content and experiences people would be interested in even if they don't care about energy drink
brands.

Staying true to this strategy for more than 30 years, the company plans their events for maximum
crowd participation.

Red Bull Megaloop → 01st November

Red Bull Drift Masters European Championship → 30th July
Red Bull Flick International Qualifier → 16 October
Red Bull Batalla National Final → 30th July
Red Bull Solo Q International Qualifier → 30th September
Red Bull Romanics → 30th July
Red Bull / Mercedes Mountain Bike world cup → 07th August

Profits – (How the Company generates Revenue)

The Red Bull Energy Company makes money by selling its signature drink, Red Bull, which is a
product that meets the needs of its customers.

They also profit from the extensive promotion and marketing of the Red Bull energy drink, which
promotes sales. Red Bull sold approximately 7.5 billion cans annually and generated roughly $6
billion in sales.

Revenue Percentage Change

Year (In Billions) (As compared to previous year)
2011 4.25
2012 4.93 16.00%
2013 5.04 2.23%
2014 5.11 1.39%
2015 5.9 15.46%
2016 6.03 2.20%
2017 6.28 4.15%
2018 5.54 -11.78%
2019 6.07 9.57%
2020 6.31 3.95%
2021 7.82 23.93%

The company also generates revenue superficially from its stunts and events. Rather than just
promoting their energy drink through traditional advertising (TV adverts, print, billboard and social
campaigns), they have invested in live event series, such as cliff diving, bull and air racing etc, which
pushes people to be a part of the lifestyle that red Bull has to offer. The monetary values associated
with some o the promotional stunts conducted by Red Bull are:

• Red Bull spent $50 million to make Felix Baumgartner's space jump a reality and the value of
the of worldwide coverage from the event is close to $6 billion.
• The cost of producing a single can is about USD 0.09. and In Western countries, the
recommended retail price for a single can is US$3.59.
• In 2019, 7.5 billion cans were sold, generating $6 billion in income, a third of which was
reinvested in marketing.
• With 7.9 billion cans sold in the year 2020, it is the world's most popular energy drink.
• In 2006, the Red Bull New York soccer team was purchased for an estimated US$25 million
which is presently values are over $290 million.

Category Factors
Bargaining power of
buyers
(Low)

Threat of New Industry

Rivalry Threat of Substitutes
Entrants
(Moderately (High)
(Moderate)
Low)

Bargaining power of
suppliers
(Low)

Threat of new entrants - Moderate

The threat of new entrants is comparatively low for Red Bull. For any new entrant who wants to get
into the energy drink industry, the cost of setting up the manufacturing facility would not be so high,
and any new entry can establish a manufacturing plant. On the other hand, one of the major key
ingredients of Red Bull energy drink is Caffeine, and the new entrants may find it difficult to come up
with an energy drink that complies with the government regulations and laws, since policies around
such beverages is quite high. This includes the amount and quality of caffeine, and the side-effects of
the drink if consumed in large quantities, etc. It will also be a difficult task for any new entrant to
create a brand like Red Bull, and the entrant may require a huge amount of capital in advertising and
promotions to compete with a brand like Red Bull.

Bargaining power of buyers - Low

The energy drink market in India consists of brands like Red Bull, Monster, Sting, Hell energy drink,
etc. But the market is dominated by Red Bull, and the presence of other brands is comparatively low.
Even though the competitor brands are available in the market, Red Bull has done a good job in
capturing the majority of the market share. This means that buyers are preferring Red Bull over its
competitors. On top of that, the cost of energy drinks, especially Red Bull, is on a higher end,
meaning that consumers of the product are high earners and not affected by price fluctuations. This
gives Red Bull the power to control market prices by its monopoly, which leaves the buyers with less
bargaining power with them.

Bargaining power of suppliers - Low

The dependability of the final energy drink by Red Bull requires only a few raw materials. And since
those raw materials are ordered in large quantities by Red Bull, it becomes easier for the supplier to
do business with the company. The suppliers of Red Bull are also known in the market mostly
because of their connection and business with the company. This gives the suppliers very less
bargaining power over Red Bull.

Category rival - Moderately low

There are a number of beverage companies in India, but only a few of them are involved in the
energy drink market. There are majorly 3 or 4 brands sold in the market, and rest have almost
negligible presence. And within this, Red Bull holds the majority of the market share of these
competitors. And since there is not a lot of competition or variety in the market for the buyers, the
category rival is comparatively low for Red Bull.

Threat from substitutes - High

Red Bull energy drink is majorly sold for the amount of caffeine present in it, and naturally, one of
the biggest substitutes for Red Bull becomes different coffee brands. There are many emerging
coffee brands coming in canned/bottled/instant ready to drink packaging in the Indian market. A few
of them are - Rage Coffee, SleepyOwl, Blue Tokai, Country Bean, etc. For caffeine, these act as a
good substitute for Red Bull, especially when brands like Rage Coffee are spending heavily on their
advertising and promotions. Other substitutes for energy drinks include glucose based energy drinks
like Glucon-D, Tang, etc., and Electrolytes based like ORS, Gatorade, etc. These types of drinks are
usually cheaper and less harmful, and also easily meet the requirements of the consumers, making
the threat of substitutes higher for Red Bull.

Environmental Factors
PESTLE Analysis is a measuring technique used to evaluate markets for a certain good or service at a
specific period. The PESTLE Analysis emphasizes the various extrinsic circumstances that have an
influence on the brand's business. It aids in the planning of marketing initiatives, product
development, and research as well as strategic business choices. PESTLE analysis is a framework
that is essential for businesses like Red Bull since it aids in understanding market dynamics and
continual company improvement.

Political Factors:
Numerous things influence Red Bull. Political factors include, among others, how the government
maintains its stability, the degree of market corruption, press freedom, and governmental limits on
the use of energy drinks based on consumer health and safety. These may have an impact on the
drink's imports and exports, which may have an impact on Red Bull's total sales. The corporation will
therefore have a significant prospect for expansion if the nation is sufficiently politically stable.

As a multinational corporation that distributes energy drinks all over the world, Red Bull will be
impacted by internal government laws regarding the ease of imports and exports. This presents an
opportunity for the firm. One risk is the health policy, which might have an impact on the sale of Red
Bull when taking the health of the people into account.

Economic Factors:
The production and sales of Red Bull will be impacted by the economic situation of the nation in
question since high inflation rates would result in high raw material costs for the corporation, which
might raise the cost of the beverage for consumers. Another factor might be the interest rate at
which the nation is conducting business, which would have an impact on the loans that Red Bull
takes, causing the firm to change its costing in accordance with that, which could also result in a
decrease in sales.

Because Red Bull is a premium brand, any type of global economic crisis immediately impacts the
energy drink's sales. For instance, the global economic crisis in 2009 caused sales to drop by 1.5
percent from the previous year. Opportunities for Red Bull come from industrialized nations, while
threats are typically seen when the nation has an economic slowdown. Red Bull's total sales are
impacted by the ease of obtaining resources and raw ingredients in each nation since doing so will
raise the cost of the beverage.
Social Factors:
Red Bull's revenue generation is influenced by sociological variables such as the population's
lifestyle, the amount of young people in the nation, and social standing. Energy drink use is
increasingly prevalent in current culture; thus Red Bull has a great market opportunity if this is the
case in the nation. Because they are linked to sports imagery, the energy drink companies are
regarded as being highly hip and socially acceptable. Red Bull may take advantage of the possibility
created by the hectic lifestyle of the present generation. Everyone is so preoccupied with their busy
lives that energy drinks like Red Bull have turned into a need.

Energy beverages like Red Bull have certain risks as well; for example, sales of these drinks will
decline if consumers become more health-conscious and buy fewer of them. The marketing of drinks
with sugar-free versions in a culture that is more health-conscious is assisted by such tactics.

Technological Factors:
Research and development present a huge potential for companies that produce food and drinks,
such as Red Bull. The utilization of the internet is the most crucial aspect of technology for such a
sector. The majority of energy drink sales, including those of Red Bull, are made through online
marketing and advertising.

This method of connecting with customers offers a two-way advantage; by using social media,
customers can connect with the product more readily, and the marketing organization provides
them a clear message in a very affordable and effective manner. Since Red Bull pays the stuntman
who appears in the commercials a lot of money, the best method for Red Bull to sell the commercial
is through social media. The corporation will be able to produce Red Bull at a lower cost with the
assistance of research into its manufacturing and packaging processes, which will also enhance the
energy drink's packaging.

Legal Factors:
All the laws and regulations that fall under the purview of food and regulating laws must be adhered
to by an energy drink firm like Red Bull. The business must abide by all legal requirements that are
relevant to a certain nation in order to be selling on the market. The business must also meet safety
standards so that humans may consume it without experiencing any negative side effects. The
regulatory limitations may also prevent the corporation from expanding into other nations, which
might pose a danger to the business.

Being a beverage firm, it is required to utilize only the highest-quality ingredients in its beverages
and to accurately list the components' nutritional values on the label. So, if a consumer has an
allergy to a certain ingredient, they won't become sick. This will prevent claims and a resulting
negative perception of the business.

Environmental Factors:
The largest issue that businesses like Red bull are dealing with is garbage disposal. The long-term
sustainability of the corporation should be its main priority. Red Bull has a number of environmental
difficulties, which ultimately hurt the company's reputation as a brand.
Red Bull was among the top ten businesses that received the biggest penalties for recycling issues,
according to a list of environmental agencies that was published in 2009. Used aluminum cans are
100% recyclable when the corporation updated the recycling method.

COMPANY AND COMPETITOR ANALYSIS

Product Feature Matrix

Red Bull Monster Sting HELL

(100 ml) (100 ml) (100 ml) (100 ml)
Caffeine 30 mg 30 mg 28.8 mg 32 mg
Calories 45 kcal 48 kcal 28 kcal 47 kcal
Sugar 11 g 11 g 7g 11 g
Taurine 400 mg 400 mg Listed 400 mg
Niacin 2.4 mg 2.5 mg 1.9 mg 8 mg
Sodium - 75 mg 53 mg 80 mg
Glucuronolactone - 2 mg - -
Inositol - 2 mg Listed -
Vitamin B2 - - - 0.6 mg
Vitamin B5 - - - 2 mg
Vitamin B6 0.4 mg 0.35 mg 0.2 mg 0.8 mg
Vitamin B12 0.2 ug 0.15 ug 0.2 ug 0.2 ug
Can Size 250 ml 350 ml 250 ml 250 ml
Price Rs. 115 Rs. 110 Rs. 20 Rs. 55

Company Objectives
Red Bull launched in 2009 in India and has more than 70% market share in energy drink market. Red
Bull has positioned itself as a premium in the energy drink market. It has launched two new flavours
this year to increase their variety of products, intended to take advantage of the growing market for
flavoured options in sports & energy drinks and thus increase their consumer base.

Competition Objectives
1. Monster Energy Drink:

As Red Bull has positioned itself as a premium in energy drink market, which also has
75% market share of the energy drink in India. Being a strong competitor on a worldwide
level to Red Bull, in India Monster’s (Coca-Cola being a partner with 17% stake)
marketing objectives has been clear to capture market share using lower price strategy
and thus having a growth objective so that it can compete with Red Bull in the energy
drink market.
 2. Sting Energy Drink (PepsiCo):

Same as Monster energy drink, PepsiCo wants to capture the market share which is
largely captured by Red Bull. Sting was the answer PepsiCo came up using lower price
strategy having a growth objective.

3. Hell Energy Drink:

Hell energy drink having the same growth objective as above drinks. Launched in 2018
the company has saw sales grew by 80% year on year in the Indian Market. There is
likely to be a huge potential demand for energy booster products in India and all the
drinks are trying to bring down Red Bull’s dominance in Indian market.

Competitor Strategies
1. Monster Energy Drink:
(a) Monster’s core market comprises of youths aged 18 to 32. The segment that Monster
has chosen to target is Peacocks.
(b) Monster energy drink marketing focuses on motorsports, action sports, e-gaming, and
punk rock scenes. They have partnered with some of the most accomplished
personalities in these domains like UFC Superstar, Conor McGregor, Formula One World
Champion, Lewis Hamilton, and 6 times X-Games gold medalist Jackson Strong, etc. The
internet has also played a huge part in the creating the image of Monster as the “gamer
drink”.
(c) Monster with its unusual packaging tries to create an immediate synergy with its
customers. Its dangerous image, dark packaging, and oversized cans have created its
image as the angsty teen of the energy drink world
(d) Monster ignores traditional marketing and instead focusses in one-on-one
conversations with fans and consumers. It not only sponsors events, teams and athletes,
but also has a significant presence at these events. It offers product sampling at events,
goes out of its way to connect directly with fans, and also has the controversial Monster
Girls at their events.
(e) The drink for the same price as Red Bull, offers 40% more quantity which resonates with
the company’s statement that “size does matter”
(f) To increase its global presence, Monster Energy in 2014 entered a strategic partnership
with Coca-Cola so that it can benefit from Coca-Cola’s large distribution channels

2. Sting Energy:
(a) Similar to other energy drinks, Sting Energy also targets the 18-30 years young on-the-
go energy uplift space, but unlike Red Bull and Monster it is not present in the action
sports or gaming events.
(b) Currently priced at 1/5th of Red Bull’s MRP, Sting has pegged themselves in the much
larger segment of affordable energy drinks.
(c) Sting is launched with the positioning of high energy content with great taste and thus
the tagline, "Electrifying Energy, Ultimate Taste".
 (d) It also promotes itself as a healthier energy drink as the sugar content in Sting is lower
than many beverages in this segment.
(e) Their promotional strategy involves the traditional marketing strategy through TV
commercials, outdoors, digital media and direct engagement with the consumers.
(f) The brand recently teamed up with Akshay Kumar to expand brand’s footprint across
India.

3. Hell Energy:
(a) Like most other energy drinks, HELL also caters to the 18-30 year age group but by
pricing itself at Rs.55 (for a 250ml can), it has targeted the audience that is looking for a
more affordable energy drink without compromising on the quality
(b) HELL energy uses its own capabilities in production, warehousing and logistics. This has
helped HELL provide an affordable price for its products (half of Red Bull)
(c) It is produced using superior quality machines meeting the strictest food standards. The
company also promotes its energy drink as a premium quality product containing 5
types of Vitamin B and having no artificial sweeteners or preservatives
(d) It also promotes itself as an environment friendly brand by minimizing the use of
plastic, using recyclable Aluminium for their cans and multiple other efforts that help
reduce carbon footprint
(e) The company focusses a lot on innovation. Every year, HELL launches 4 new products.
The innovation can be in terms of flavors or packaging
(f) HELL’s strategy is to arrive in a new market, build up their presence, invest in local
marketing and sales. In some countries they have their own subsidiary, while in some
they are working with a local distributor that has HELL ENERGY as a sole product.
(g) HELL entered India in 2018 with an aim to achieve 80% distribution reach on the Indian
market in the next few years
(h) To popularize their product, they have signed Bruce Willis as their global brand
ambassador and MTV Star Ranvijay Singh as their brand ambassador in India

Marketing Mix
Red Bull

Product Red Bull’s primary energy drink contains caffeine, taurine, B vitamins, sucrose and
glucose which is mainly required by workaholics, sports people and youth in general.
Red Bull has come up with new sugar-free variant containing aspartame instead of
sucrose & glucose.
Pricing It was the first entrant in the energy drinks segment and has become the top
customer preference. Red Bull follows a premium pricing strategy because it pays
higher price for its goods, keeping in mind its high quality & dominant market
position.
Promotion Red Bull sponsors extreme sports events like Dakar rally, Moto GP,F1. It also
supports individual athletes that act as a symbol of inspiration for consumers with
regards to stamina, strength & energy. It has built a mental association with energy.
 Place Red Bull is available in locations such as a pharmacy, grocery stores or even pubs. It
is convenient for customers to purchase Red Bull in bulk because it is also supplied
online in bulk or single packs.

Profits
Company Revenue (FY 2020-21) Net Income (FY 2020-21)
Red Bull ~6 Bn USD 971 Mn USD
Monster 5.5 Bn USD 1.8 Bn USD
Hell Energy 0.17 Bn USD 17 Mn USD
* The financial figures for Sting were not available.

Value Chain analysis of Red Bull

While analyzing Value Chain framework identifying the importance of activities according to their
role in product/service delivery process. Taking a rigid framework in terms of assigning equal
importance to all activities is not required.

o Primary Activities

Producing and marketing the product to targeted clients is the main value chain operations
for Red Bull. As outlined below, Red Bull's performance may be enhanced by analysing
primary value chain operations.

• Inbound Logistics

Red Bull places a lot of focus on logistical difficulties. All the components in the Red Bull
drink are manufactured synthetically by pharmaceutical corporations, therefore they take
care to manage their products properly to preserve the high quality threshold. To achieve
 their strategic objectives, Red Bull always makes sure to work in concert with a top logistics
supplier. Red Bull's supply chain visibility goal is to be web-based.

• Operations

The importance of analysing operational activities raises when raw material arrives, and Red
Bull is ready to process the raw material into the end product and launch it in the market.
Some examples of operational activities are machining, packing, assembling and testing.
Equipment repair and maintenance also falls into this category.

It includes both- manufacturing and service operations. Analysis of operational activities is

important for improving productivity, maximising the efficiency and ensuring the
competitive success of Red Bull. The increased productivity can help Red Bull to achieve
consistent economic growth, increase profitability and set a powerful basis for competitive
advantage.

• Outbound Logistics

Outbound logistics include the activities that deliver the product to the customer by passing
through different intermediaries. Some outbound logistics activities are material handling,
warehousing, scheduling, order processing, transporting and delivering to the destination.
Red Bull can analyse and optimise the outbound logistics to explore competitive advantage
sources and achieve its business growth objectives.

Because, when outbound activities are timely managed with optimal costs and product
delivery processes put a minimum negative effect on the quality, it maximises the customer
satisfaction and increases growth opportunities for the firm. Red Bull should pay specific
importance to its outbound value chain activities when its offered products are perishable
and require quick delivery to the end customer.

• Marketing and Sales

At this stage, Red Bull will highlight the benefits and differentiation points of offered
products to persuade the customers that its offering is better than competitors. Only
producing a high-quality product at affordable costs and distinctive features cannot create
value until Red Bull invests on the marketing and sales activities. The sales agents and
marketers play an important role here.

Some examples of Red Bull's marketing and sales activities are- sales force, advertising,
promotional activities, pricing, channel selection, quoting and building relations with
channel members. The company can use the marketing funnel approach to structure its
marketing and sales activities. The marketing strategies can either be push or pull in nature,
depending on the Red Bull’s business objectives, brand image, competitive dynamics and
current standing in the market.

Effective and wisely integrated marketing activities can develop the brand equity of Red Bull
and help it stand out from the competition. However, Red Bull must avoid making false
commitments about product features that cannot be fulfilled by the production department.
It indicates the need to ensure coordination between different value chain activities.
• Services

The pre-sale and post-sale services offered by the Red Bull will play an important role in
developing customer loyalty. The modern customers consider post-sale services as
important as marketing and promotional activities. The power of negative e-WOM due to
poor support service cannot be undermined in the current technologically advanced era. The
company must analyse its support activities to avoid damaging brand reputation, and
instead use it as a tool to spread positive word of mouth due to quick, timely and efficient
support services.

o Support Activities:

• Firm Infrastructure

This structure consists of departmental groups and it is identified by specialty, such as

marketing, development, finance, engineering and human resources that are controlled by
the head of management. Red Bull has taken a global outlook on its business operations
which has allowed them to capture market regionally in various region all over the world.

• Procurement

Red Bull’s procurement includes acquisition of highest quality of raw materials. Red Bull's
key production sites are located in the Austrian and Swiss Alps, where fresh water of highest
quality is sourced from springs nearby. The sugar is produced from sugar beet. Ingredients
such as taurine, caffeine and vitamins are synthetically produced to ensure consistent high
quality.
• Technology Development

Red Bull’s key strategies has been to localize its product development in every market it is in
to suit consumer tastes. These localized products in Red Bull editions are seasonal ranges
like for example in Singapore there is a coconut edition, Australia has a orange edition, etc. It
has released more than 15+ Red Bull editions globally and keeping almost the same product
features of their original product.

• Human Resource

Red Bull employs 13,610 in 172 countries. Red Bull is famous for practicing what they
preach, especially when it comes to recruitment. Due to the fact that Red Bull promotes
their product as a Hip and young product, they make sure to recruit staffs that are young, in
touch with youth culture, dynamic and innovative. For example, they achieve that by
recruiting university students as ‘student brand managers’ to promote its product among
young student groups. HRM support activities include – Recruiting, Hiring, Selection, People
Planning, Training & Development, Skill Assessment and Compensation at both business unit
level and corporate level.
Differential Advantage Analysis
• Ability to conceive and design

1.Red Bull -> It has over 10 products consisting of different flavours worldwide (Latest
flavour being launched in 2021) and the company also launches flavour on season basis
too, indicating that it has the ability to develop new products which can become a
serious long-term threat in a product category.

2.Monster -> It has over 30 energy drink flavours worldwide (Latest flavour being
launched in 2021). The wide variety in flavours showcases the firm’s ability to conceive
and design new products.

3.Sting -> Sting currently is launched in two flavours but being a product of PepsiCo,
which has over 20 brands and numerous products is the major reason why Sting will be
able to produce new flavours which cater to the large number of consumers.

4.Hell -> Hell Energy drink has 10 variants worldwide (Latest flavour being launched in
2022). Also, they have launched iced coffees in different flavours which shows that the
company has the ability to design and conceive new products.

• Ability to Produce

1.Red Bull -> Red Bull has its manufacturing plant mainly in Europe. In India Red Bull is
imported from Austria because of lack of manufacturing plant in India.

2.Monster ->Monster doesn't manufacture and distribute its products. It outsources the
manufacturing process to third-party bottlers and contract packers. The company does
pack some of its products in certain locations—like Australia, Brazil, Canada, Europe,
Mexico, and the US. In India, Monster is manufactured by Coca-Cola (Coca-Cola has 17%
stake in Monster).

3.Sting -> Sting is produced in multiple manufacturing plants of India which are owned
or partnered with PepsiCo. With the history of PepsiCo there is no doubt in their ability
to produce to the Indian market.

4.Hell -> Hell has its manufacturing plant in Hungary and in India it is imported from
Hungary.

• Ability to Market

1.Red Bull -> Red Bull in India has signed many Sportspersons from varying sports such
as cricket, football, hockey, supercross, chess and many more. Red Bull on a worldwide
level create adventurous content, organize colossal publicity stunts and Sponsor/Create
events. Red Bull’s distribution is handled by third party vendors and recently they have
 partnered with Solv, a B2B E-Commerce marketplace, to expand distribution to
150,000+ verified small business present in multiple cities across India.

2. Monster -> The brand has teamed up with some of the world’s most accomplished
sports persons which include Ultimate Fighting Championship Superstar, Conor
McGregor, MotoGP Legend, Valentino Rossi, 6x Formula One World Champion, Lewis
Hamilton, and 6x X-Games gold medallist Jackson Strong, the recent feature in a major
video campaign with Monster Energy in India. Recently Monster energy has signed
Hardik Pandaya making him the first Indian athlete to be signed by the brand. As part of
a strategic partnership with Coca-Cola India, Monster has been able to able leverage the
distribution channels set by Coca-Cola.

3.Sting -> Sting is the PepsiCo India's Energy drink brand and thus given the history of
PepsiCo the energy drink will face very limited problems in terms of marketing and
distribution. Being a brand, which is just launched it has teamed up with Bollywood
actor Akshay Kumar to expand brand’s footprint across India.

4.Hell -> The brand has teamed up with Hollywood actors most prominent being Bruce
Willis to feature in their major Video campaign worldwide. In India Hell has teamed up
with Bollywood actor Ranvijay Singh to increase awareness about the product. Hell had
appointed a distributor here that would make Hell Energy available in tier I & II markets
and slowly achieve 80 per cent distribution in the Indian market.

• Ability to Finance

1.Red Bull -> A total of 9.804 billion cans of Red Bull were sold worldwide in 2021,
representing an increase of 24.3% against an already very successful 2020. Group
turnover was up 23.9% from EUR 6.307 billion to EUR 7.816 billion. In terms of sales,
revenue and productivity 2021 has been the best year in the company’s history. This
data shows that Red Bull has more than enough financial resources.

2.Monster -> Monster Beverage revenue for the twelve months ending March 31, 2022
was $5.816B, a 21.67% increase year-over-year, this also again being the best year in
terms of revenue and sales in the company’s history. The gradual growth in the
company’s revenue shows that Monster has the financial resource to effectively
compete with Red Bull in India.

3.Sting -> PepsiCo's net revenue in 2021 from Africa, Middle East, South Asia (AMESA)
division, which includes India, was up 32.91 per cent to USD 6.07 billion as against USD
4.57 billion earlier. Overall, its global net revenue for the year ended December 25, 2021
rose 12.93 per cent to USD 79.47 billion. With such high revenue PepsiCo’s energy drink
Sting has the financial resources to compete with the international brands in India.

4.Hell -> Hell Energy Drink revenue for year 2021 was $253 million, a 38.5% increase
from the previous year where exports generated more than 50% of sales. The consistent
growth in revenue of Hell showcases its ability to fight against the competition
financially.
 • Ability to Manage

1.Red Bull -> Red Bull India CEO Bhaskar Sharma has been the on this post for 13+ years.
He also has been the marketing director & VP Marketing Operations in Unilever for 7
years. His experience showcases Red Bull’s trust in him to lead Red Bull India.

2.Monster -> Monster energy’s Country head of India & South Asia Muffaddel Janjira has
been in the company for 7 years running and has been the country head for 3+ years
now. He was also part of Red Bull for 5 years previously at the position of Business
Manager. His total experience of 13+ years in energy drink market makes him a
responsible candidate for Monster to continue the success of Monster energy drink in
India.

3.Sting -> PepsiCo’s India President Ahmed Elsheikh has been working with PepsiCo for
21 years and was appointed as the President in 2017. The company’s trust in him for
such a long time showcases the trust in him to lead PepsiCo India.

4.Hell -> HELL ENERGY in India is looked after by Unnikannan Gangadharan and Tomas
Grosch. Unnikannan Gangadharan has been in the industry of Sales and Distribution for
12 years at Narang Access. Tomas is the Director of Development and Strategy &
Managing Director at Hell energy for 18 years now. Under the guidance of such
experience Hell Energy is expecting success in Indian market.

Expected Future Strategies

Red Bull -> Currently Red Bull has 4 variants of Red Bull in India. Red Bull’s one of the key
strategies has been to localize its product development in every market it is in to suit
consumer tastes. These localized products in Red Bull editions are seasonal ranges like for
example in Singapore there is a coconut edition, Australia has a orange edition, etc. The
same is expected by Red Bull to realize editions suited for Indian consumer tastes. Further
growth of brand awareness is expected through sports, music, stunts and
sponsorship/creation of events.

Monster -> Monster expected strategy is to increase their brand awareness in India by
signing Indian sportspersons/celebrities. With the increase in the brand awareness, they will
be able to compete to Red Bull in India on the same level as they do on the world level.

Sting -> Sting strategy is same as Monster is to increase their brand awareness. They recently
chose to associate as a broadcast sponsor for TATA IPL 2022 where they leveraged sports
globally as a vehicle to drive brand awareness.

Hell -> Hell energy aims to achieve 80% distribution in the Indian Market and thus they will
majorly focus on streamlining their distribution channels and vendors to achieve this target.

Budweiser Beats -> Ab InBev is angling for a 10 percent share in the energy market in India.
AB InBev's global strategy by 2025 is that the company expects at least 20 percent of its
overall revenues to come from a mix of non-alcoholic beverages and beverages with lower
alcohol content. So, their future strategy is to create brand awareness and improve their
distribution so that it is accessible to consumers easily.