Red Bull in India

8/13/2019 Red Bull in India

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presented by :

AMRIT DUREJA KSHITIJ GOPAL MASAKATA SATO SAHIL MALHOTRA YOSHI


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Environmental Analysis - 5 Cs

Seek multiple benefitsCustomers

Growing high income groupsContext

Extreme sports and thrillCompany

Wall-to-Wall productionvery fsuppliersCollaborators

3 main competitors in similar prcategoryCompetitors


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Environmental AnalysisPorters 5

Potential EntrantsLow barriers - Monster, Kamasutra and Restless Action

Competitor rivalryHigh in industry

Availability of substitutesHigh - Sports drinks (Lucozade, Gatorade)

High

Supplier

PowerLowtertiary supply


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Environmental AnalysisSWOStrengths

High market share and growth inIndia

Red Bull global brand image Product utility

Weaknesses

Single product offering High marketing budget Associated with extreme sports Re-building distribution network

Opportunities

Expanding energy drink market Rising incomes of target groups Increasing consumer sentiment towards

energy drinks

Hub for Asia

Threats

Health issues and political restriction Several new competitors Sports drinks as possible substitutes Repercussions of negative publicity a

Higher relative price to competitors

SWOT


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Segmentation Targeting Positioning

Demographic

Geographic

Behavioral

Gender Age Income

Region

Sports Party


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Price

Size

Red Bull

Positioning

Brand Mantra

Size&EffectPOP POD

Segmentation Targeting Positioning

RED BULL GIVES YOU WING


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4P & Marketing Mix

Promot Place

Price Product

Red BullENERGYDRINK

Red BullSUGARFREE

Rs 85

/250ml

Mediaadvertising

Sponsoring

Free sampling

Supermarket

Departmentstore

Restaurant

Club


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ChallengesNew Entrants

Source: Euromonitor International


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ChallengesSubstitutes

0.0

20.0

40.0

60.0

80.0

100.0

120.0

2009 2010 2011 2012

Off-trade Volume

Red Bull Gatorade Lucozade Tzinga 100 Plus Cluod 9 Burn XXX Others

0.0

20.0

40.0

60.0

80.0

100.0

120.0

2009 2010 20

Off-trade Value

Red Bull Gatorade Lucozade Tzinga 100 Plus C



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ChallengesPrice

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

Red Bul l Burn Cluod 9 XXX Tzinga Lucozade Gatorade

Rs. /ml



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Health Concern- Banned in Tamil Nadu

- Ordered to label as caffeinated beverages

Local Production & Distribution- All imported from Austria

- Broke up with a long-allied distributor

Challenges


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Expanding the Market

Tier 2 cities are the next focus Coimbatore, Indore, Chandigarh Colleges & Workplaces with high % of young populace

Distribution Strategy

Split between self distribution (Tier 1) & Outsourced Distributi


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Line Extensions Red Bull Shot

New uses

Sex

Increased Awareness

Long Drives Academics

At work

Sports


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Boost Profitability Reduce Costslocalize production and serve as a hub for Asia

Bundling

Buy 4 get 1 free in Tier 2 to increase initial adoption


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Innovationproduct, distribution & promotion

Most profitable market share

rather than the whole market!

How do we1. New product introd

2. Improving the relat

3. Increasing marketin

relative to market gro


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Strategies to gain market share

Launch the new variants, Indian consumers appreciate variety Requires global marketing team approval

Work on the drink can Eco-friendly materials and branding on the drink can

Introduce an exciting new shape to create buzz

Add a touch more local to the promotion efforts No more Indian Grand Prixsponsor other local racing events Establish an active Facebook India page

crucial to connect with the target segment

Robby Nash and Thierry Henry are less known figures

- Virat Kohli and Karun Chandhok would

create better brand associations


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Increasing marketing expenditures

Indian grand prix uncertain in the coming years Bigger promotional spends on local events - MRF Challenge car racing, c

racing

Establish a larger presence on social mediavery low cost No Facebook presencecrucial to connect with the targeted segment. Social media gaming platforms

Thierry Henry, Robby Nash endorsements not relevant in India Virat Kohli (cricketer) and Karun Chandhok (Formula 1 driver) establish a

better connect with the local audience.

Vending machines and fridges in offices

and BPOs in top citiesDelhi, Mumbai, Bangalore


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Defending Market Share

Kotler quotes Sun Tzu :Leaders should not rely on the enemy attacking, but have to become unassailable

Improve customer service and experienceSetup a customer service call centreimmediately address queries on

& health concerns

Cost of a 10 person call centre/month : USD 5000

Leverage new distribution networkPass savings from new network to the

retailers to gather optimum shelf space


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Red Bull in India

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