Group # 3

Sachira Choudhary
Nitin Jain
Ritika Johri
Nirmit Mehta
Pawan Pandey
Anshu Kumar Sinha

B015
B029
B032
B042
B049
B064

INTRODUCTION

Thailand

Dietrich
Mateschitz

Red Bull
Red Bull GmbH,
Austria

Krating Daeng
TC Pharmaceutical

198
7

Overview
Largest Energy Drink Company in terms of
market share & volume
Products available in 162 countries
Approx. 5.5 billion cans sold in 2013
World renown for their advertising
campaigns
Tagline: Red Bull Gives You Wings
Red Bull offers 4 Products
Reb Bull
Red Bull Sugar-Free
Reb Bull Cola

Market analysis
Rs 700 crore Indian
market

Global Energy Drinks Market ($bn)

5% of soft drinks market40

Global CAGR 14%
Indian market CAGR
25%
Coke buys 17% for
1.15 bn$ in monster

35
30
25
20
15
10
5
0

Global
Energy
Drinks
Market ($bn)

Segmentation
Demographic

Age
Gender
Income
Occupatio
n

Geographic

Region
Area
City

Psychographic

Lifestyle
Personality

Behavioral

Occasions
Benefits
Loyalty
Status
Attitude
towards
product

Targeting
Demographi Psychograph
ics
cs

Youth
Aged: 14-35

Sports
Fan

Image
Conscio
us

Influence
d

Usage
Behavior

Spending
Power

Youth Trends

Consumption
Collection

Sporting
Events

Eat Out

Positioning
Red Bull customers are always looking for new
thrill
Advertising Slogan- Red Bull gives you wings.
Red bull maintains the brand personality of being
pioneer in extreme sports

Extreme Sporting Events

Red Bull
Stratos
Red Bull
Flugtag
X Games

World wide product = Need for global

attention
Positioned the brand as an independent
stimulating beverage
Exposed to over 8 million people

Marketing mix
Product

Utility Drink- Medicinal Taste & Functional

Energy
Improves Physical Endurance & Mental
Alertness

Price

Premium Pricing
10 % above competitor price

Place
Grocery & conventional stores
Night clubs & Casinos

Promotion
Team Ownerships, Sponsorships,
Endorsements

Consumer buying behavior

All roles except
Influencer
conducted by same
person
First 4 major lifestyle
groups
Aspirers
Succeeders
Transitionals
Reformers
Criteria for Purchase
Technical
Economic

Buying Decision Process

Personal factors

Competitive analysis
Red Bull Leader in Global and Indian Market
with 43% and 75% market share respectively
Increasingly challenged by the likes of Tzinga,
Cloud 9, KamaSutra, Restless and Burn.
Expected entry of numerous new players
Market Share in India
Red Bull
Cloud 9
XXX
Monster
Power
House
Rocksta
r

Global Market Share

Red Bull
Monster
Rockstar
Amp
NOS
Others

Competitive analysis
Price (In Rs)
100
80
60
40
20
0

Price (In Rs)

Caffeine Content(in mg per 10 oz)

250
200
150
100
50
0

Caffeine
Content(in
mg per 10
oz)

Swot analysis

Category Leader
Broad Geographic
Presence
Buzz Marketing Strategy
Strong alliance with
major distributors

Weaknesses

Product Category Limitations

Controversial due to ingredients
used
Only 2 manufacturing facilities
worldwide

Strengths

Opportunities
Lesser price Competitors
High Marketing Costs
Strict Regulations against
energy drinks
Premium pricing may not
work in Emerging Markets

Threats

Emerging Markets
New Production facilities
New product categories

Survey results
Only 57% respondents had tasted Red Bull, till now.
83% of respondents bought Red Bull from a Retail
Outlet and only 9% from Bars/Lounges.
54% of respondents were impulsive buyers. They
bought Red Bull just to quench their thirst. 25% of
respondents agreed that it revitalized their mind
and body.

Shed Premium Pricing Policy?

Preferred Drinks,
when low on Energy
Fruit

21%
13%
2%

64%

Juices
Energy
Bars
Energy
Drinks
Aerated
Drinks

Red Bull in Soft Drink Segment?

Yes
No

37%
63%

52% 42%
6%

Yes
No
Indiffer
ent

Strategic challenges
Not easy at
the top

Will Premium pricing

work in Emerging
Markets?

Health
Regulators

Breaking with
tradition

 Relinquishing to some degree its highly

centralised production model will help it
to better compete in the emerging
markets
Expand their target market to increase
the market size, hence adopt a forward
diversification form
Focus on horizontal and unrelated
diversification to expand their product
portfolio and reduce their risk

Recommendations

Thank You!