Group # 3 Sachira Choudhary B015 Nitin Jain B029 Ritika Johri B032 Nirmit Mehta B042 Pawan Pandey B049 Anshu Kumar Sinha B064

Red Bull Red Bull GmbH, Austria INTRODUCTION Dietrich Mateschitz Thailand Red Bull Red Bull GmbH, Austria 1987 Krating Daeng TC Pharmaceutical Co.

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 Red Bull Shots

Market analysis Rs 700 crore Indian market 5% of soft drinks market Global CAGR 14% Indian market CAGR 25% Coke buys 17% for 1.15 bn$ in monster

Segmentation Age Income Occupation Gender Region Area City Lifestyle Demographic Region Area City Geographic Lifestyle Personality Psychographic Behavioral Occasions Benefits Loyalty Status Attitude towards product

Consumption Collection Targeting Consumption Collection Demographics Psychographics Usage Behavior Youth Aged: 14-35 Image Conscious Spending Power Sporting Events Sports Fan Influenced Youth Trends 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 The actual jump created something interesting & contrasting

Marketing mix Product Price Place Promotion 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 Events, Locations

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 Social Cultural 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

Competitive analysis

Swot analysis Opportunities Strengths Product Category Limitations Weaknesses Opportunities Threats Product Category Limitations Controversial due to ingredients used Only 2 manufacturing facilities worldwide Category Leader Broad Geographic Presence Buzz Marketing Strategy Strong alliance with major distributors Lesser price Competitors High Marketing Costs Strict Regulations against energy drinks Premium pricing may not work in Emerging Markets 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.

Strategic challenges Not easy at the top Health Regulators Will Premium pricing work in Emerging Markets? Breaking with tradition

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

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