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Brand Audit : Energy Drink BURN

Global Energy Drinks Market


Niche category- Accounts for 2.7% of total soft drink consumption globally
Experienced dynamic growth over the past decade- Absolute volume growth: 4
billion
liters
Absolute value growth: US $26 billion
Major players- Red Bull, Monster, Rockstar, SoBe, Burn, Full Throttle
Leading players- Red Bull with 42% market share, Monster with 37% market
share
While Soda sales have been declining steadily, energy drink sales have been
booming
Key trends:
Grand scale sports and music events sponsorships for brand placements
Introduction of natural flavors
Replacement of caffeine with better substitutes
Market sizes of
each of the
segments are as
below Particulars
Off-trade*
(Shops &
Other
Retail
Outlets)
On-trade*
(Pubs & bars,
hotels &
restaurants,
cafs etc.)
Total
% of
Total
(Rs.
Million)
(Rs. Million)
(Rs.
Million)
Bottled Water 65,662.00 63,111.30
128,773
.30
36.64%
Carbonated Soft
Drinks
63,434.20 92,684.90
156,119
.10
44.42%
Concentrates 4,202.80 -
4,202.8
0
1.20%
Fruit/Vegetable
Juices
40,398.70 13,633.10
54,031.
90
15.37%
RTD Coffee 50.1 87.6 137.7
0.04%
RTD Tea 599.9 144.2 744.1
0.21%
Sports and
Energy Drinks
2,345.60 5,255.60
7,601.2
0
2.16%
Total Soft Drinks 176,643.20 174,829.10
351,472
.30
100%
Beverages Drink Market in India
Bottled
Water
37%
Carbonat
ed Soft
Drinks
45%
Concentr
ates
1%
Fruit/Ve
getable
Juices
15%
RTD
Coffee
0%
RTD
Tea
0%
Sports
and
Energy
Drinks
2%
Sales
(Source: Euromonitor 2012)
2001
SHOCK
2003
Red Bull
2008
SoBe
Cloud9
2009
Burn
2011
Tzinga
Few Facts about energy drinks in India
Current Size 500 cr
Niche industry, at a nascent stage
CAGR 25%
First Energy Drink Shock in 2001
Red Bull, launched in 2003, is the current
market leader

Timeline of Energy Drink
Market in India
Burn Energy Drink
After Shock failed to penetrate the Indian market in
2001, Coca Cola launched Burn in 2009
Imports Burn from Malaysia to sell in India
Positioned as a premium product, available only in
the HORECA segment and high end retailers, in
Mumbai, Delhi and NCR
Targeted towards socially active young adults
Strategy at the time of launch- Exclusivity and
Expansion
From a market share of 11% in 2009, reduced to
about 2% in 2012
Faces intense competition in its targeted segment
from Red Bull
1. Brand Elements
300 ml
500 ml - Not available
in India
2. Kapferers Brand Identity Prism
Picture of Sender
Picture of Recipient
PHYSIQUE PERSONALITY
RELATIONSHIP CULTURE
REFLECTION
SELF IMAGE
Energetic
Young
Rebel
Sensual
Dynamic
Overpassing limits
Upbeat
Energy
Quality
Potent

American
Music

Trust
Party drink
Mood setter
High profile music events like - Burn Studios, Residency, etc. in Ibiza, Spain
Sponsors extreme sports like Skateboarding and snowboarding all across Europe,
short films on the same
Advertisements focused around music and extreme sports









Entered Formula 1 racing with a sponsorship deal with the Lotus F1 team









No TVCs and internet marketing for the Indian market

Below the Line sales promotion - Out Of Home campaign in Mumbai, Delhi and Bangalore

Activities like sampling, event sponsorships and community based marketing initiatives with
focus on restaurants, clubs and bars

Point of sales promotions
Social Networking
Active on social networking- Facebook, Twitter, Flickr, Vimeo, YouTube

Burn Car by Dilip Chhabaria
Burn Curate
Competitions for best costume inspired by Burn can in Delhi and Mumbai: 2010,
2011
Enlisted digital media and campaigns to generate response
Icons such as Sabyasachi, Rocky S, Sapna Bhavnani, DJ Pearl to promote the events

Direct Competitors
Energy drinks brands like:
Red Bull
Market leader, with 62% market share
Mass brand, with availability in all segments
Cloud 9
Manufactured by Mumbai based Goldwin Healthcare
Monster
Recently launched at select locations in metropolitans
XXX
Local brand, manufactured by Viiking Beverages Pvt. Ltd., owned by Sachiin
Joshi
Tzinga
Recently launched local brand, popular due to its pouch packaging and
lower prices, owned by Hector Beverages


Red Bull
62.00%
Cloud 9
25.00%
Power Horse
4.00%
XXX
3.50%
Tzinza
3.00%
Burn
2.00%
Others
0.50%
Market Share of Key Players in India
Direct Competition Analysis
Energy Drink Caffeine
Content
Variants Variants
Red Bull 0.32% 4 Original, Sugar free, Cola, Total Zero
Burn 0.32% 4 Original, Fruit-flavored, Mocha, Sugar Free
Cloud 9 0.30% 2 Premium, Fruit-flavored
Power Horse 0.31% 3 Regular, Sugar Free, Soda
XXX 0.10% 3 Rejuve, Nicofix, Minus
Tzinga 0.30% 3 Lemon Mint, Tropical Trip, Mango Strawberry
Indirect Competitors

Indirect Competitors

Soft Drink Market


Coffee


Sports Energy drinks


Glucose based drinks and
powders
Packaging
Similar Distribution Model


Caffeine


Energy /Sugar


Instant Stamina
POP
Carbonated
Lesser Caffeine Content


Milk Base

Zero Caffeine content


Zero Caffeine Content
POD
Customers Speak: Why do you like this
specific Brand?
Brand Name
4%
Availability in
vicinity
17%
Effectiveness
4%
Taste
25%
Lower Price
50%
Tzinga
Brand Name
35%
Availability in
vicinity
19%
Effectiveness
14%
Taste
32%
Red Bull
Pricing and Packaging
Energy
Drinks
Red Bull Coke Burn Cloud 9 Power
Horse
Tzinga XXX
Packaging
Type
Can Can Slimmer
Can
Can Can Shorter
Can
Pouches Can
Volume
(ml)
250 355 300 180 250 250 250 250
Prices (Re) 95 120 95 45 85 75 25 75
Price / ml 0.38 0.34 0.32 0.37 0.34 0.3 0.10 0.30
Inconsistencies and problem areas
Reduction in market share
Market share in India in 2009- 11%
Market share in 2012- 2%
Lack of brand awareness
Lack of retail availability- a premium brand
priced on the same lines as mass brands
New entrants like Tzinga to further intensify
competition
Customer Feedback
Of the 84 survey respondents aged between
18-28,
100% had heard of Red Bull
90% had heard of Tzinga
69% had heard of Cloud9
43% xxx
21% had heard of BURN
24% knew about Monster
15% had heard of KS

20-30
12%
30-40
20%
40-50
28%
50-60
18%
60-70
9%
70-80
5%
80-90
4%
90-100
4%
What price (INR) do you think is
appropriate / you would pay for an
energy drink?
78% want
price to be
lower than
Rs 60
3%
19%
66%
6%
6%
How frequently do you consume an energy drink
Daily Once a month Rarely Twice a month Weekly
Music
Festivals/Concerts
15%
Night out/Party
36%
No Occasion
3%
Sports
20%
Studies
19%
Tired
1%
Work Out
6%
On what occasion do you buy an energy drink?
1% 1%
3%
79%
16%
Which brand do you prefer the most?
Burn
Kamasutra
Whichever is available
Red Bull
tzinga
No
94%
Yes
6%
Have you ever tried BURN Energy Drink?
No
85%
Yes
15%
Do you know that it is a product from
the house of Coca-Cola?
No
24%
Yes
76%
Now that you know about Burn and
its association with Coca Cola, would
you try it?
Summary of findings
Brand
Issues
Brand
Objectives
Recommendations
Build Awareness: Start ATL marketing for mass reach
Change positioning: From premium brand to a mass brand
Decrease prices- with license to product in India, Coke can
reintroduce Burn with its new packaging and at lower
prices, to attract the mass segment
Bring out association to music by sponsoring events like the
Sunburn music festival in Goa and Noida, which attract a
crowd of more than 50,000 trance music lovers
Be more vocal about Burn being a Coca Cola brand
Re-introduce sampling, after awareness has been
established