Competitive analysis

red Bull was the first successful energy drink in the market. But afterward companies realize that it is a very big market of those people who like energy drinks. So other companies also jumped in to share their part. Recently we have seen many companies in Pakistan, like Pepsi and Shezan, who have jumped in energy drinks business. One thing is common in all energy drinks that they are costly then other drinks; juices, malt, carbohydrate drinks etc. They have a special market which is increasing day by day. I haven’t seen a shift of people from their regular drink to energy drink but it acts as an add on in drink list. However some people prefer to go for energy drinks only.

After lots of energy drinks in market, all are trying to compete each other in any way possible. They are trying to give a better taste because taste is the most prominent change in these energy drinks. Taste is not acceptable in mass market, however many are trying now to increase their market share by giving a different taste. Second thing is their price, they are trying to reduce the price to gather a larger share like a big company Pepsi have introduced their energy drink ‘Sting’ in just Rs. 60/- as compare to Red Bull the most famous energy drink costs above Rs. 100/- Thirdly they are working on distribution, trying to make their drinks available in all parts of the city, in every shop. Few energy drinks have different strategy to remain with their specific market.

Red Bull

The most famous energy drink in the market. It was the first one to introduce energy drinks in Pakistani market. Red Bull kept it’s price high and remain with their specific market they target. Their price is Rs. 125/- which makes it the most expensive energy drink in the market. I

t is mostly available in posh areas of the city in start. Afterward there is a big change that they seek through an other interesting market and start to supply their bottles to Pan wala shops which was not bad at all. People over there start trying it and I think that idea didn’t catch by mass market because it’s hard to see Red Bull at Pan wali dukan anymore. They have shifted to Pepsi’s ‘Sting’.

I don’t like their taste much because it seems to me that I’m drinking any cough syrup. Though who are fan of Red Bull taunt to all other available energy drinks in market that they have sweeter taste.

Booster

Booster is a German energy drink brand. It attracts one from the start as one looks to its packing. Like all other energy drinks available in long think tin packs, this is available in small, fat plastic bottle. Its packing is different from all energy drinks in the market so it appeals you at the first place.

Second important thing is its price, it is one of the cheapest energy drink in market after Ozo. But this is an imported drink which is based in Germany so people would likely to trust the quality of drink. It is of Rs. 50/- but if one buy it from super stores or whole sale market then one might also get it at the price of Rs. 45/- I’ve seen this rates in Hyperstar.

Third interesting thing about Booster is its awesome taste. This was the first energy drinks which makes a good impression of whole industry in my mind. Earlier I’ve tried Red Bull only and I thought that all energy drinks would be like cough syrup. It’s unique bottle design calls me to try it for once and then I become a regular customer of it for as long as Pepsico’s Sting jumped in. I’ve also compared Booster with Red Bull in my view.

Ozo

There are two kind of energy drinks in the market. One is the red family and other is the yellow family. Red family has its own taste and there are very few in this, for instance only ‘Red Bull’ and red ‘Sting’. All other energy drinks in market are from yellow family which has almost a same taste with little variations. Variations are like less sweet or more. Yellow ‘Sting’, ‘Booster’, ‘Power Full’, etc. all came in yellow family.

Ozo can be also count in yellow family but it has a little different taste. Most important thing about this energy drink is that is is available in few stores only, they have low distribution cycle which makes it hard to find. It is also in different bottle rather than typical energy drinks thin and large tins. This is available in green glass small size bottle with a plastic cap.

Taste of this drink is acceptable but I haven’t tried it more because of its availability. Many times I’ve thought to drink this but I didn’t find it in any store. This is the cheapest energy drink in the market till now which costs Rs. 45/- in retail market. If they work on the availability of this drink then it could become beneficial for the company.

Power Full

Power Full is also a new energy drink in market. I guess they all have started this year except few like Red Bull, Booster and Ozo which were available last year too. Red Bull would be the oldest one but new energy drinks are taking their share and at one side they are reducing the share of Red Bull but at the other side they are creating a larger market for energy drink users.

Power Full promote their energy drink through road hoardings and I thought to give it a try. It’s bottle didn’t attract me a lot but its red color on tin indicates me that it would be something like Red Bull. After opening the can I came to know that it is from the yellow family and after taking a sip I came to know that its taste is like Booster. However it is less sweeter than Booster and people might like to have this instead of Booster. But it’s price is Rs. 80/- and for me sweet is good. I would prefer Booster on Power Full.

Though some people like Power Full experience and it kept them awake for whole night. If it serves the meaning of energy drinks then it could remain in the market otherwise I don’t see its space after lot of others with better efficiency and taste.

Speed

After seeing lot of potential in energy drinks market, Shezan also introduced its energy drink with the name of Speed. Their packing is cool and I was looking for something different. Plus their price was like of Red Bull, I bought it for Rs. 120/- whereas new energy drinks have tried to beat the prices. Speed has kept its price above which might attracts people about its quality and uniqueness.

Well I tried it and found it out the typical yellow flavor energy drink like others mentioned above. Neither the taste is new nor the low prices. It would be only one time try and then shift to other international brand like Booster which is giving same quality but in less rates, less than Speed’s half price. Though one person share his experience with Speed that he remain fresh whole night after having this drink.

Sting

Recently Pepsi introduced their energy drink in Pakistan with the name of Sting. They must have came in the market after lot of research. They checked the loop holes in energy drinks market and try to fix it from the product. Earlier energy drinks was considered as a sour drink which people take to energize themselves and to wake up late at night. Sting has add better taste in it. They have made it full of flavor with ingredients of energy drinks as well. People in large loves it taste and most of them have started drinking energy drinks after the arrival of Sting; count me in too.

They have introduced two flavors in energy drinks which I believe compete all energy drinks available in market. For competing Red Bull they have introduced their red berry flavor in red can. Taste is awesome and that is my favorite flavor energy drink. For all others who used yellow color and have their own specific taste, Sting yellow is exactly the same, might be little better in flavor.

Most important about Sting to catch the mass market is its rates. They are one of the cheapest energy drink in the market except a few like Booster and Ozo. Sting can is of Rs. 60/- If a less price energy drink came in market, people would think about its quality and might not go for it. But when a big company like Pepsico came up with energy drink, whether its price low, people won’t question about its quality.

RED BULL TARGET MARKET While working on this report, we tried to figure out the best way to go about completing a consumer analysis for Redbull. Initially, we were confused as to what to tackle first: the marketing strategy or the consumer profile? We figured that both the marketing and the communication strategy of Redbull in Pakistan were based on— or rather for— a very specific type of consumer. So our first task (in order to understand this consumer type, as well as the dynamics of Redbull’s marketing strategy) was to review the nature of the product, and establish a consumer profile for it.

      Redbull is an energy drink, developed specially for periods of increased mental and physical exertion in humans. It aims at increasing performance, concentration and reaction speed in order to improve the vigilance and emotional status of its user. It additionally stimulates cell metabolism. Redbull’s effects are appreciated throughout the world by top athletes, busy professionals,active students and drivers on long journeys. All this information is listed on the back of a Redbull can— but what you don’t find at the back of the can is the fact that Redbull is also highly addictive! Its addictiveness is fully recognized and appreciated by Mansur Khan, the marketing head of Redbull Pakistan. He also realizes that not every consumer is a victim to it— only people who actually exert themselves physically or mentally directly after consuming a Redbull are prey. So the question that remains unanswered is: who consumes Redbull in Pakistan? What are his or her traits, tastes and habits?

      It is clear that Redbull, as a product, is meant for action-oriented consumers—‘experiencers’ to be precise…young individuals who are impulsive, enthusiastic and rebellious. Experiencers combine an abstract disdain for conformity with an outsider awe of others wealth, prestige and power. Their energy finds outlets in exercise, sports, outdoor recreation and social activities mostly teenagers and young men and women n Pakistan red bull is consumed more by the students. Our research has showedthat 83% of students consume red bull while the reaming 17% are businessprofessionals. This clearly states that red bull is more common among the students.People consume it once a week, once a

month or more than once a week.If you ask the target market about the energy drink that comes first in their mindthan their answer will be ‘sting’ because our research has clearly showed that 60%prefer sting whereas 20% prefer ‘red bull’.And if you talk about the satisfaction level, then 70% of the customers are satisfiedwith the drink of his/her own choice. That drink can either be red bull or sting etc.Customer usually consumes red bull because of its brand name. In our research54% percent of the sampled group considered brand name as the major influencingfactor and remaining considered other factors like price, packaging etc.People usually consume red bull to gain extra energy so that they can easily absorbthe work load pressure. In our research we find out that 20% drink at work, 23%drink before deadline, this clearly shows that they drink red bull for extra energy.We also find out through our research that 38% of target group like the taste of thered bull as compare to the other energy drinks.Red bull is easily available in the market because 61% of our target sample buys itfrom the convenience store and remaining 31% buy it from the retail stores. So,there is no issue of availability.

REDBULL MARKETING STRATEGY IN PAKISTAN

Some observers say that Red Bull's branding is revolutionary, calling it an 'anti-brand' strategy. The company faced additional problems in Pakistan where there were already many established drinks available.

The firm avoided usual methods of marketing, relying more on what is called 'buzz marketing' or word-of-mouth. A brand image was created and cultivated which associated the drink with youth culture and extreme and adventure-related sports, such as motor-sports, mountain biking, snowboarding and dance music parties. In other countries Red Bull's target consumer segment began to adopt nicknames for the product such as 'liquid cocaine' or 'speed in a can', thus spreading its 'left-field' appeal.Red Bull then worked to ensure that their brand was visible on the street:

Using pick-up trucks as mobile displays, painted blue and silver with a giant can of the drink mounted on top of the vehicle.

Designed to be eye-catching, these devices were aimed at promoting the red bull brand as youthful and slightly 'off-the-wall'.

Cans of the drink were also given out free to people on the street who had been identified as being in need of energy.

Red Bull was given to club DJs, empty cans would also be left on tables in hot spots such as trendy bars, clubs and pubs.

The company also set about promoting the Red Bull brand directly to Generation Y, the so-called 'millennial': people born after 1981 who were believed to be cynical of traditional marketing strategies. Part of this idea involved recruiting 'student brand managers' who would be used to promote Red Bull on university campuses. These students would be encouraged to throw parties (as if encouragement was needed!) at which cases of Red Bull would be distributed. The brand managers would then report back to the company, giving the firm a low cost form of market research data.

The use of this kind of marketing strategy has become known as 'viral' marketing. It is as if a company sees no need for traditional informative or persuasive communications, rather in Red Bull's case it used the youth 'underground' to spread the popularity of the drink. So the firm would rather restrict the drink's supply and not advertise it, expecting that growing numbers of target consumers 'catch the bug' and its reputation spreads. Red Bull was a spectacularly successful example of the strategy working even though as we see later, its branding was aided by state intervention in countries like France and Denmark.

By 2004, the worldwide energy drinks market was worth an estimated £1.6 billion; Red Bull had achieved a clear market leading position, with a 70% market share. The lure of fast-growing profits in this market brought many competitors into the functional foods sector, where health and energy drinks have seen sales double every year since their introduction. Many competitors have tried to employ similar marketing strategies and tactics in order to grab sales from the market leader. Not all have been successful, of course.

When a firm tried to launch its own energy drink in 2002, it tried to target 16-24 year olds with a poster campaign featuring barely clothed young people exhibiting wounds to their bodies. As the drink was called 'Shark', the relevance of the injuries seemed clear. However, following complaints, the Advertising Standards Authority (ASA) banned the posters, as the campaign appeared to endorse sexual violence. More on this decision can be found on the ASA Web site.The problem that Red Bull now faces is how to build on its incredible sales growth, as it has become a mature brand within a saturated market. Among the challenges that Red Bull faces, the following are some of the most serious:

The loss of its original consumer base, as the 'millennial' become working adults. How should the firm attract a new group of 16 year old consumers?

Health concerns that have emerged in several countries over problems associated with high intake of caffeine. Red Bull was banned in France and Denmark following the publication of these concerns. It is classified as a medicine in Norway and until recently could only be bought in pharmacies in Japan. As the health and energy soft drinks market has reached maturity, Red Bull is concerned that it is unable to target mass consumption in these countries.

Being over-reliant on a single brand. Until 2003, the company only produced one version of Red Bull. A sugar-free version was introduced in that year.

The mature market for energy drinks has attracted some of the global firms, such as Coca Cola, Pepsi as well as Asda/Wal-Mart, with their own brands seeking to gain a competitive advantage over the market leader.