1. IMC PROJECT The Integrated Marketing Communication Plan Submitted to: Submitted by: Dr. Poonam kumar Sunil singh (2k11a35) Vijender jakhar (2k11a37) Vikas chauhan (2k11a38)
2. Executive Summary Red Bull can be called as a pioneer in the energy drink category worldwide. In India too, Red Bull was the brand that created the energy drink category. The brand came into existence in 1987. Red Bull Energy Drink is a functional beverage. Thanks to unique combination of high quality ingredients Red Bull Energy Drink vitalizes body and mind. Red Bull Energy Drink has been developed for people who want to have a clear and focused mind, perform physically, are dynamic and performance-oriented whilst also balancing this with a fun and active lifestyle. In short, Red Bull gives wings to people who want to be mentally and physically active and have a zest for life. Red bull is trying to penetrate the Indian market to gain the highest market share but its facing so much competion fromother companie‟s drink. In this project we try to find out that what IMC plan red bulluses to become the number one company in beverage in India.
3. Company History Red Bull took many marketing and ingredient ideas from an energy drink in Thailand called Krating Daeng (1970). Dietrich Mateschitz, an Austrian entrepreneur, developed the Red Bull Energy Drink brand. Product was launched in 1987, in a carbonated format which is not as sweet as Krating Daeng. Red Bull entered its first foreign market (Hungary) in 1992, and the United States (via California) in 1997. In 2008, Forbes magazine listed both Chaleo and Mateschitz as being the 260th richest persons in the world with an estimated net worth of $4.0 billion. Red Bull was launched in Germany in 1994 after meeting with huge success it was launched globally in 1997. In 2003 the sugar-free Red Bull was introduced into the market. Problem Statement Red Bull has recently faced Decrease in perceived value of the product due the fact that Red Bull has recently faced much controversy in regards to the health concerns associated with it. Due to the high levels of taurine and caffeine it has been banned in countries such as; Denmark, Norway, France, Uruguay and Iceland. Red bull loses out on women, teen agers and seniors as these groups won‟t pay for a drink that doesn‟t include the ingredients they needs nor branded for their life style perceived to Above-average prices with lack of innovation-reliant on small prouct base as the company only markets one branded product. In addition red bull core benefits don‟t fit into new trends, there are new trends to focus more on being natural, healthy, new trends not only towards boosting body and brain but also memory,intelliegnce, lower stree and depression accordingly Red Bull seems not to be appealing to the next generation.
4. SWOT Analysis Strengths 1. Red Bull is a leader in the ever-growing niche market of energy drinks. 2. The brand has a strong footbold in major markets such as Germany and UK and more recently, (since 2002), the vast US market. 3. Red Bull has a distribution agreement with Cadbury Schweppes; this is positive for further international expansion of the brand. 4. Its network of international subsidiaries is well-developed and will aid the company to effectively move products throughout the globe. 5. Market leadership-Within the energy drinks market Red Bullis the industry leader throughout the world. 6. Marketing Efforts- alot of promotions and well targeted campaigns and sponsorship e.g.formula 1 helps to expand Redbull brand and increase consumer brand awareness. 7. Strong,fresh &fashionablebrand identity. Weaknesses 1. Since Red Bull is a private company, it has very few sources to generate capital for international growth and internal expansion in comparison with its public competition.
5. 2. Red Bull has a lack of diversification in its drinks, although it did release its sugar-free version in 2003. Hence, the company is „missing out‟ on potential profits that exist in other soft-drink sub sectors. 3. Red Bull firm focus on energy drinks, and hence, if there were to be a drop in demand in the future, it would be left highly vulnerable 4. Above-average prices. 5. Lack of innovation-Relianton small product base- The company onlymarkets one branded product 6. Lack of patenton Red Bull„s recipe means anyone can copy it. 7. Red bullloses outon women, teenagers and seniors as these groups won‟t pay for a drink thatdoesn‟t include the ingredients they needs nor branded for their life style 8. Decrease in perceived value of the product due the fact that Red Bull hasrecently faced much controversy in regards to the health concerns associatedwith it. 9. RedBull core benefits don‟tfit into new trends , there are new trends to focus more onbeing natural, healthy ,new trends not only towards boosting body and brain but also memory, intelligence, lowers stress and depression accordingly RedBull seemsnotto be appealing to thenext generation
6. Opportunities 1. Marketing researches shows that Middle East and Africa shows the largest growth of energy drinks consumption 255% 2007 – 2011, mainly by young customers who may choose not to drink alcohols dueto social and religious reasons in café‟s and music venues 2. The new cultural shift towards weight loosing and having in shape bodies would be an opportunity if, Red Bull. Red Bull introduced alow calorie product/Sugar freeproduct. 3. The new cultural shift especially of guys towards body building and going to the gyms. 4. The Indian consumers are price sensitive; introducing a high quality product compared to competitors with slightly lower prices would be very effective. 5. The Indian consumers are size sensitive ,introducing a larger pack relative tocompetitors with lower prices would bea very effective 6. Red Bull is still quite a new product in the growing functional drinks market, which leaves a lot of room for development in major markets (eg: UK and US) 7. The development of a functional drink is a possibility. Since Red Bull is normally consumed before participation in a sporting event, the company could create an apre-sport, hydrating drink that also replenished vitamis and minerals lost from physical exertion. 8. Continuation of its tradition of entering new markets through the process of on-trade has potential on an international level.
7. Threats 1. Health concerns- expected tougher rules fromgovernment on high caffeine content. 2. Consumer awareness of health and wellbeing-people may start to drink other alternatives as it is associated with healthier lifestyle. 3. Organic energy drinks might steal RedBull‟s market share. 4. Numerous substitutes 5. Low capital requirements to enter the industry 6. High levelof intensive competition with energy drinks and other carbonated softdrinks producers as well as Pepsi, Coke etc. 7. Increasing health and hygiene awareness among Indians has greatly increased sales of fruit juiceproducts forhealth watchers as well as bottled water and sparkling water 8. Easy entrance to themarket dueto easy access to distribution channels 9. Low switching costs by buyers 10. Many „copycat‟ energy drinks such as Mad Bull and Red Devil threaten to take brand share from Red Bull. Although the company has won most lawsuits, litigation is expensive and the damages remain undisclosed. 11. Many small operators also act as a threat because they have a high „cool‟ value amongst younger consumers with whom energy drinks are popular.
8. Consumer behavior and Market analysis Controversies Seen as addictive, drug-infused beverages with negative health implications. Red Bull has recently faced much controversy in regards to the health concerns associated with it. Due to the high levels of taurine and caffeine it has beenbanned in countries such as; Denmark, Norway, France, Uruguay and Iceland. It has been proven that caffeine can be deadly when consumed in massive doses, but the amount estimated to prove fatal is 10 grams, which would require 125 cans of the drink. A study conducted in 2007 by American researchers found that although consumption of Red Bull could increase both blood pressure and heartrates it was only dangerous for those people with heart disease. Most claimsabout the dangers of Red Bull and other energy drinks have been proven to benothing more than urban myths. Current customers are: 1. Young people are especially open to determined exhaustion and insufficient energy. 2. More specifically male teenagers & people in their 20s are also most likely tobelieve in the authenticity of the energy drinks‟. As a result, the majority of energy drinks are developed for and advertised to this younger generation.Appealto very specialized groups, such as gamers, extreme sports enthusiasts, and thehip-hop crowd.
9. The power of consumers is decreasing due to: 1. Low loyalty to red bull 2. Low switching cost 3. Health issues 4. Low valur perceived 5. Many subsitutes 6. Over average price 7. More price sensitivity due to economic situation Consumer Evaluation RED BULL with sugar: Demographics Men and women aged 16-29 Geographics Mainly people who are situated in the city, as they are likely to be really busy and tired. Red Bull seems to have a cooler in most bars and clubs in the city as well as in convenient stores. Psychographics People who are tired / stressed and want to relax and have fun.
10. Behavioural Students and young professionals to boost energy during work long day at work. RED BULL sugar-free: Demographics Women aged 16-29 Geographics Mainly in the city where there are many young professional women. Psychographics Drivers who are tired and need and increase in concentration. Women who want energy boost but are on a diet. Behavioural Women who own a car and use it often for long journeys or are always stuck in traffic after work as well as tired health.
11. Brand Positioning Brand positioning starategy Clear, engaging, unique and relevant t