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presented by : AMRIT DUREJA KSHITIJ GOPAL MASAKATA SATO SAHIL MALHOTRA YOSHIYUKI KIMURA

Environmental Analysis - 5 Cs
Customers Context Company Collaborators Competitors
Seek multiple benefits Growing high income groups Extreme sports and thrill
Wall-to-Wall production very few suppliers
3 main competitors in similar price category

Environmental Analysis Porters 5 forces


Potential Entrants
Low barriers - Monster, Kamasutra and Restless Action

Supplier Power
Low tertiary supply

Competitor rivalry
High in industry

Buyer Power
High from retailers and customers

Availability of substitutes
High - Sports drinks (Lucozade, Gatorade)

Environmental Analysis SWOT


Strengths
High market share and growth in India Red Bull global brand image Product utility

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

SWOT
Opportunities
Expanding energy drink market Rising incomes of target groups Increasing consumer sentiment towards energy drinks Hub for Asia

Threats
Health issues and political restrictions Several new competitors Sports drinks as possible substitutes Repercussions of negative publicity abroad Higher relative price to competitors

Segmentation Targeting Positioning


Demographic
Gender Age Income Job

Geographic
Region

Behavioral

Sports

Party

Segmentation Targeting Positioning


Price Red Bull

POP
Size&Effect
Positioning Size

POD
Brand Image

RED BULL GIVES YOU WINGS

Brand Mantra

4P & Marketing Mix


Product
Red Bull ENERGY DRINK Red Bull SUGAR FREE
Supermarket Department store Restaurant Club

Price Rs 85 /250ml

Media advertising Sponsoring Free sampling

Place

Promotion

Challenges
New Entrants

Source: Euromonitor International

Challenges
Substitutes
Off-trade Volume
120.0 120.0

Off-trade Value

100.0

100.0

80.0

80.0

60.0

60.0

40.0

40.0

20.0

20.0

0.0 2009 Red Bull Gatorade

2010 Lucozade Tzinga 100 Plus

2011 Cluod 9 Burn XXX

2012 Others

0.0 2009 Red Bull Gatorade

2010 Lucozade Tzinga 100 Plus

2011 Cluod 9 Burn XXX

2012 Others

Source: Euromonitor International

Challenges
Price
Rs. /ml
0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 Red Bull Burn Cluod 9 XXX Tzinga Lucozade Gatorade

Source: Euromonitor International

Challenges
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

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 Distribution (Tier 2)

Expanding the Market


Line Extensions
Red Bull Shot

New uses
Sex

Increased Awareness
Long Drives Academics At work Sports

Expanding the Market


Boost Profitability
Reduce Costs localize production and serve as a hub for Asia

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

Innovation product, distribution & promotion Most profitable market share rather than the whole market!

How do we get there??


1. New product introduction 2. Improving the relative product quality 3. Increasing marketing expenditures relative to market growth

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 Prix sponsor 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

Increasing marketing expenditures


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

Establish a larger presence on social media very low cost


No Facebook presence crucial 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 cities Delhi, Mumbai, Bangalore

Defending Market Share


Kotler quotes Sun Tzu : Leaders should not rely on the enemy not attacking, but have to become unassailable Improve customer service and experience
Setup a customer service call centre immediately address queries on quality & health concerns Cost of a 10 person call centre/month : USD 5000

Leverage new distribution network


Pass savings from new network to the retailers to gather optimum shelf space