...RED BULL India Assessing market leader challenges RED BULL India Assessing market leader challenges 1. Background In 1984 Red Bull GmBH was co-founded by Dietrich Mateschitz, an Austrian entrepreneur and former marketing director for Blendax, a toothpaste company. After visiting Thailand in 1982 Mateschitz discovered that a drink called Krating Daeng helped cure his jet lag. After some research, he contacted the owner ChaleoYoovidhya, a self-made Thai billionaire who introduced Krating Daeng to the world in 1976 to strike a business deal to sell the drink in Europe. Krating Daeng, which means “Red Bull” in English, was inspired by the tonic drink Lipovitan of Japan, with prime ingredient as Taurine, and was popular among Thai truck drivers and labourers. After agreeing to the terms, Red Bull GmbH was founded by each partner investing $500,000 of savings and taking a stake in the new company. Chaleo and Dietrich each held a 49% share of the new company and gave the remaining 2% to Chaleo's son Chalerm, but it was agreed that Mateschitz would run the company. The product was initially launched in 1987 in Austria as a carbonated version. Today, Red Bull is the most popular energy drink in the world in terms of market share selling over 5.2 Billion cans worldwide in 2012. 2. Red Bull in India The Red Bull brand came to India in 2003 and has been a pioneer in the energy drinks segment in the country. Traditionally, energy drinks have not been very popular in India...
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......................................... 1 2 Company profile of Red Bull.......................................................................... 1 2.1 2.2 2.3 3.1 3.2 3.3 Company introduction..................................................................... 1 Market overview ............................................................................. 2 Financial overview .......................................................................... 2 Market-based view: market positioning .......................................... 3 Resource-based view: business system analysis .......................... 4 Current business strategy and competitive advantages ................. 5 3 Strategy analysis of Red Bull energy drink business .................................... 3 4 Recommendation proposal for Red Bull ....................................................... 6 5 Conclusion..................................................................................................... 8 Appendices ......................................................................................................... 9 Bibliography ........................................................................................................ V II List of figures Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Market shares on the global energy market for 2011 ........................ 2 Financial performance of Red Bull from 2011 to 2013 ...................... 2 Market positioning on...
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...BUSINESS RESEARCH METHODOLOGIES RESEARCH ON SMART MARKETING STRATEGY OF RED BULL AND HOW THE COMPANY MAINTAIN ITS LEADING POSITION IN ENERGY DRINK INDUSTRY TABLE OF CONTENTS I. ABSTRACT 4 II. INTRODUCTION 4 III. BACKGROUND OF RED BULL 5 IV. LITERATURE REVIEW……………………………………..….6-7 V. RESEARCH OBJECTIVES…………………………………………8 VI. RESEARCH QUESTIONS……………………………………………………………8 VII. RESEARCH METHODOLOGY…………………………………………………9-12 VIII. ETHICAL CONSIDERATION………………………………...…13 IX. LIMITATIONS……………………………………………………….13 X. CONCLUSION 13 XI. REFERENCE 14-15 I. ABSTRACT The marketing and advertising techniques revolution in the late of 1980s enabled Red Bull to create successfully an “energy drink” market. Today, when the market becomes more and more diverse as well as expanding with over 220 competitors, Red Bull may face to loss in overall global market share. However, Red Bull has reasons to feel optimistic with its strategic business and marketing plans. II. INTRODUCTION The global Functional Drinks market was reported to be worth $26.9 billion in the year of 2008. It is fairly new and continues developing; the market is forecasted to increase by over 64% to reach the value of $44.3 billion, said Datamonitor PLC (2008), cover different categories such as Energy, Nutrition etc. Being regarded as the largest brand in energy drink sector, Red Bull® was holding 29% global market share in 2008 (Datamonitor PLC, 2008) and has been successful...
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...| Product Analysis: Monster Energy Drink | Bill ClymerWednesday August 14, 2013Written by: Maira Khalid | PART A Situation Analysis Monster Beverage Corporation The Hansen Beverage company (recently changing their name to Monster Beverage Corporation on January 5th of 2012), was a family owned and operated company in the 1930’s, selling freshly squeezed juices to local film studios. In the 1970’s, one of the Hansen brothers decided to transition their beverage business into marketing ‘natural sodas’. This was the upturn of the company that led them to where they are today. Today, Monster Beverage Corp. has transformed into the largest energy drink company in Canada with sales of more than $ 2.1 billion in 2012. Monster beverages have always been, and still claim to be free of preservatives, caffeine, sodium, artificial flavours and colours. Although many people believe that all energy drinks contain high levels of caffeine and are not healthy, the company’s mission statement which has not changed since Jan 5th, 2012 when the company changed its name, states otherwise. The Mission Statement The mission of Monster Beverage Corp. is to satisfy consumers' needs for superior quality and great tasting, healthy, natural and functional beverages. Our beverages will be positioned as an upscale brand and will often be marketed at a premium to competitive mainstream products. This mission statement provides Monster Beverage Corp. with the information needed for...
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...Introduction Coffee and tea can be considered the world’s first energy drinks. Both of them contain caffeine and people have been using these beverages for year to receive an extra boost of energy for their day. I could remember my grandmother would wake up in the morning and the first thing she would do was to start to boil water for her morning tea. As a child I had no idea why she drunk tea. All I knew that if you added lemon and a bunch of the sugar to the tea, then it wasn't so bad. My grandmother was a local babysitter for the neighbourhood and the tea helped to give her energy for the day. My grandmother has passed away for years now but the idea of drinking something to gain energy didn’t pass with her. Tea and coffee has gotten a little out-dated and people today have adopted a new energy increaser, the energy drinks. The energy drinks as we know it today has gotten very poplar. From 2008 to 2012 the energy drink market has grown 60% (wallstreetinsanity.com). Energy drinks of today, besides coffee and tea, have been around for years. From it’s unknown origin, the energy drink has traveled around the world, and have gained substantial market shares in the functional beverage industry of several parts of the world. Europe is one of the largest functional beverages markets in the world. The energy drink has made a sizeable impact on the functional beverage markets in both western and eastern Europe. In this research project we are going to explore a number of objectives...
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...Red Bull's Innovative Marketing: Transforming a Humdrum Product into a Happening Brand Abstract: The Red Bull energy drink was launched in Austria in 1987, by Dietrich Mateschitz. He claimed to have experienced the invigorating properties of a popular Thai energy drink, Krating Daeng, on a trip to Thailand. Realizing that a similar product could have good potential in Western markets, Mateschitz obtained the license to manufacture a carbonated version of Krating Daeng from its Thai owners. Obtaining permission to sell Red Bull in Europe was not easy, as it contained several ingredients whose effects on the human body were untested However, permissions were eventually obtained, and Red Bull became exceptionally successful in all the markets in which it was launched. It was generally acknowledged that Red Bull's success was the product of the company's innovative marketing efforts. This case study discusses the marketing strategy adopted by Red Bull GmbH, including the company's effective employment of buzz marketing in new markets, and its sponsorship of sporting activities, especially extreme alternative sports, to enhance its image. The case also talks about Red Bull's target markets, and its pricing and differentiation strategies. It includes a section on the various controversies surrounding Red Bull, and the effects of these on its brand image. The competitive situation in the energy drinks market and Red Bull's position vis-à-vis competitors, is also discussed. The case...
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...* Discussion 1: “ Motivation, Personality, and Emotion.” Students will respond to the following: Discuss how could Maslow’s motive hierarchy be used to develop marketing strategy for the following; pick two (2): a. Redkin shampoo b. Dasani bottle water-Physiological c. Blackberry d. Crest Whitestrips e. Chili’s Bar and Grill f. American Bird Conservancy Give an example of how marketers create need and demand. Discuss the ethical issues that are relevant. Explain your reasoning. Describe how motivational conflict might arise in purchasing, patronizing, or giving to the following; pick two (2): a. Greenpeace b. Pruis c. Wal-mart d. Taco Bell restaurant e. Red Bull energy drink f. Home security system * Week 5 Discussion 2 Discussion 2: “ Consumer Insight 11-1.” Students will respond to the following: Discuss how discounting by consumers is related to marketer’s use of the cognitive attitude change strategy of “shifting importance.”< /span> Give examples of situations where loyal customers might be converted by competing brands. Discuss how this insight is related to the difficulty marketers have when trying to get consumers to stop engaging in behaviors that are dangerous for them, such as the use of illegal drugs. * Imagine yourself as a small-business owner with 10 employees. Create a one (1) paragraph memo explaining the training, evaluation, our compensation, and benefits policy of your company. We are pleased...
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...RED BULL IN INDIA The case has been written by Prof. Rishabha Nayyar, Director, Genesis Institute of Business Management (GIBM) for the purpose of an in-class discussion. The content and data is fictitious and has no relevance whatsoever to any existing brand in the market. The case attempts to drive understanding / application of the marketing concept. Rakesh Singh was sitting in his office waiting for the Board of Directors to call him to the conference room. Rakesh has been appointed a year ago as the CEO of Red Bull India Ltd. and had been given the responsibility of growing the brand. However, a year had passed and the results were not there for showing. Rakesh was carefully looking at everything in his office being very sure that this was probably the last time he would ever see it again! Background Red Bull is a highly successful branding story. The brand came into existence in 1984. The brand was created by an Austrian professional turned businessman Mr Dietrich Mateschitz. The story goes like this -The original inventor of Red Bull energy drink is said to be Chaleo Voovidhya, a Thai businessman. In 1962 he created a drink named Krating Daeng (meaning Red Bull in Thai). In 1982 when Mr Dietrich visited Thailand, he came across this product which helped him to tide over the jetlag very quickly. Impressed by the product efficacy, Dietrich decided to take this product to Europe. He started Red Bull Gmbh with equity participation from Chaleo Voovidhya. By the year 1987...
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...Contents Stakeholders Analysis 2 Customers 2 Competitors 2 Company 2 Red Bull's key internal stakeholders 2 Red Bull's Strengths and Weaknesses 3 Red Bull's brand appearance, personality and reputation 3 Community 3 Marketing Mix 3 Product 4 Price 4 Place 4 Promotion 4 Positioning 5 Bibliography 6 Reference Material 6 Internet Resources 6 Appendix 7 Stakeholders Analysis Customers Athletes – Red Bull is targeted at athletes serious about their sport and personal performance. Red Bull increases athletes performance, concentration and reaction speed. A good example of Red Bulls support of athletes can be seen with the many extreme and high adrenaline events they are sponsoring, such as the F1 Grand Prix, Moto GP, NASCAR, and FIS Ski Championships. Red Bulls support of athletes shows in their slogan of when to drink Red Bull. “Sport is Red Bull’s natural grazing ground. Whenever athletes are in need of wings you can find Red Bull” (Red Bull, 2011) Students – Red Bull is targeted at students looking to gain that additional performance during challenging days in the auditorium. Red Bull increases students’ concentration, improves vigilance, and stimulates metabolism. Students find these qualities appealing and useful when studying hard or playing harder with fellow students and friends. Competitors Red Bull’s main competitors are Monster and Rockstar. All three are market leaders in the energy drinks market, differentiating themselves with taste...
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...IntroductionThe Red Bull energy drink was launched in Austrlia in 1987 by Dietrich Mateschitz. Dietrich Mateschitz grew up in a small village in Styria, Austria. After graduating with a degree in world trade he decided to become a “really good marketing man.” Dietrich Mateschitz met up with Chaleo Yoovidhya at the beginning of 1980s and they decided to start an energy drinks together. Realizing that energy drinks product could have good potential in Western markets, Mateschitz obtained the license to manufacture a carbonated version of Krating Daeng from its Thai owners. Obtaining permission to sell Red Bull in Europe was not easy, as it contained several ingredients whose effects on the human body were untested. However, permissions were eventually obtained, and Red Bull became exceptionally successful in all the markets in which it was launched.It was generally acknowledged that Red Bull's success was the product of the company's innovative marketing efforts. This case study discusses the key strategic challenges that the company faces internationally in the functional drink sector using 12C framework. This case also discuss for either changing or retaining Red Bull current product mix and identify and evaluate the company’s mode of market entry in its non-domestic markets. Finally this case will evaluate the company’s approaches to promotion and distribution and assess to what extent these approaches represent sources of sustainable competitive advantages.II. The key strategic...
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...Executive summary Introduction In 1984 Mateschitz founded Red Bull. Red Bull Energy Drink was first sold on the Austrian market in 1987. Red Bull reached its first foreign markets in 1989 in Singapore and in 1992 in Hungary. In 2008 Red Bull created its own cola, Red Bull Simply Cola. It created a market segment unlike traditional colas, by using only 100% natural ingredients. In 2009, Red Bull extended its product line with Red Bull Energy Shots. Red Bull headquarters are based in Fuschl am See, near Salzburg Austria. Approximately 4 billion cans of Red Bull are consumed each year; the product is available in 160 countries. Red Bull is the leader of the energy drink market and performs an annual turnover of more than 3 billion Euros. As we will see in this report, polemics, nonconformist, genius marketing are, among others, the ingredients that made Red Bull the star product of Energy Drink Segment in the world. For more than 20 years, Red Bull has managed to establish itself brilliantly in the world, which, despite the widespread economic gloom, has always taken a growing interest for this drink. In this report, we will analyse Red Bull and the environment in which the company evolves, its target and positioning trough marketing tools. It will enable us to understand how Red Bull managed to reach its leader position and to think about some recommendations to further improve its strategy. The Product Red Bull is a lightly carbonated drink that enhances mental and physical...
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...drinks. At this time there is no long-term research to report on in regards to energy drinks. What we do know is that these drinks have a variety of ingredients such as ginseng, amino acids, ginkgo, various vitamins, and high amounts of sugar. However, the primary active energy ingredient is caffeine. At this time, the FDA does not regulate the amounts of caffeine that are in these drinks. They suggest that within a 12-ounce beverage serving the amount of caffeine should be 68 milligrams or less. A report published by the Journal of Analytical Toxicology showed that of ten of the most popular energy drinks had as high as 141 milligrams in one 16-ounce serving. The following 12-ounce energy drinks showed, Monster at 120 milligrams, Red Bull at 116 milligrams, and Amp contained 107 milligrams of caffeine. To give a comparison, look at Coke and Pepsi. They only contain between 34 to 38 milligrams of caffeine. Energy drinks have risen significantly in popularity in the last few years with revenues exceeding $3.5 billion a year and growing. One report states that with the new found popularity there are growing concerns of the possible health effects among children, adolescents, and young adults. It states that 30 to 50 percent of America drinks energy drinks. Of this amount they report that one third...
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...MARKET RESEARCH PROJECT BASED ON: RED BULL BY: COLLEEN CHAKAR INTRODUCTION Red Bull is an energy drink that has had a recent impact on today’s market. However, I believe you already know this because even if you haven’t drank red bull at least once in your life, then you know someone that has. It all started in 1982 when a man named Dietrich Mateschitz became aware of products called "tonic drinks", which enjoyed widespread popularity throughout the Far East. His idea to market these functional drinks outside Asia evolved on a visit to Hong Kong. In 1984, Mateschitz founded Red Bull. He fine-tuned the product, developed a unique marketing concept and started selling Red Bull Energy Drink on the Austrian market by 1987. This was not only the launch of a completely new product, in fact it was the birth of a totally new product category. Since 1987, Red Bull has found its way around the globe and now around 30 billion cans of Red Bull have been consumed, more than 4.2 billion in 2010. The Red Bull headquarters are based in Fuschl am See, not far from Salzburg, Austria. OBJECTIVE There are two main objectives to focus on with a company such as Red Bull. There is the objective of the product itself, and the objective of the company. The objective of the product itself is to increase the consumer’s performance, increase the reaction speed, improve vigilance, and stimulate metabolism. Overall, the main point of Red Bull is to increase the consumer’s energy and improve...
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...Marketing Management 522 Prof. James Frazee Marketing Plan: Actify - Energizing Chewing Gum By: Sarah Riney, Aneri Modi and Purvi Shah 02.24.2011 EXECUTIVE SUMMARY TABLE OF CONTENTS Product Description/ Situation Analysis 4 Mission Statement 5 SWOT Analysis 6 Target Market 7 Competition 10 Cost of Goods Analysis/Pricing 13 Channels of Distribution 15 Advertising/Promotion Programs 17 Financial Overview 20 References 21-22 PRODUCT DESCRIPTION/SITUATION ANALYSIS How many times in a day have you thought that you need to consume an energy drink? And how many times have you stopped yourself from consuming one because of the crash rate and its harmful effects? We would like to introduce you to our product, “ACTIFY”. ACTIFY is a natural, herbal energizing chewing gum. The chewing gum has a natural taste to it with key ingredients such as peppermint, ginseng, guarana, and, acai berry. The energizing gum lasts up to two and a half hours with zero crash rate. ACTIFY is also a sugar free chewing gum and has zero calories. The chewing gum comes in two flavors: Cinnamon and Winter fresh. We have also, designed the energizing gum in such a way that the package that it comes in is also eco-friendly. Our core product, ACTIFY is the only energizing chewing gum in the market. Our product is designed in a way that it will appeal to different target markets ranging from different...
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...their attractive ads. They use a bull not just for the name; a bull represents something powerful, big, and full of energy. Red means fury, energy, strength power and more. It is also very appealing to the eye, and marketing use this color’s attractiveness as an advantage. All of these ads have a strong use of pathos and ethos, they use stuff and persons with an important well known background, like the Einstein picture, who is famous for his energy theories and they took a good advantage of that, and by adding a little humor they can get more attention. The way they are fighting the war against France is pretty much as trying to make them look more important than France itself, like if France is lost and its dependant from Red Bull. By making war to France, they are getting more fame. All of these pictures contain black and white to make the viewer see the Red Bull drink better than the ad, that way they can know what is first, and then will focus their attention into the picture. Also, they are in black and white because they are telling you how boring everything is without Red Bull, and the drink Red Bull is in its colors blue, red, and silver, meaning that if you drink Red Bull your day will brighten up. In the picture with the old man is lifting into the air with his bicycle, there is other people in the background, and they are still in the ground, they cannot fly, because they don’t have Red Bull. So if you don’t get Red Bull you can’t fly and everyone loves...
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